INR 52,568 Crore Spent in FY24 for Indian Corporate Legal Expenditure The top 50 companies by market capitalization accounted for a substantial portion of this increase, with their legal costs growing by 17.4 per cent to INR 21,389 crore

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

Legal expenses for Indian corporations surged by 17 per cent in the financial year ending March 2024 (FY24), primarily driven by increased global deal activity, high dispute resolution costs and rising compliance expenses, according to a report from The Economic Times. The Nifty 500 companies reported a combined legal expenditure of INR 52,568 crore ($6.26 billion), a sharp rise from the INR 44,920 crore spent in FY23, as per data from ET Intelligence Group (ETIG).

The top 50 companies by market capitalization accounted for a substantial portion of this increase, with their legal costs growing by 17.4 per cent to INR 21,389 crore. Key factors behind the rising expenses include domestic and international expansion, higher regulatory fees and the substantial costs of litigation and arbitration.

The report quoted Nishith Dhruva, managing partner of law firm MDP & Legal, stating, "The cost of non-compliance has gone up significantly and hence most companies are trying to spend on compliance and other regulatory, which generally goes in the bucket of 'legal spend' for several listed companies. It's a sign of a maturing market and one may see this cost going up continuously."

Legal expenditures encompass a variety of costs, including litigation, arbitration, professional services, regulatory filings, fines and stamp duties. Leading corporate spenders in FY24 included Reliance Industries (INR 3,286 crore), Sun Pharmaceutical Industries (INR 2,953 crore), Infosys (INR 1,726 crore), Larsen & Toubro (INR 1,550 crore) and Samvardhana Motherson International (INR 1,287 crore).

Sector-wise, the top spenders were the infotech industry at INR 9,901 crore, followed by pharmaceuticals at INR 9,496 crore, finance at INR 5,110 crore, capital goods at INR 4,321 crore and oil & gas with INR 4,065 crore, as per the report.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Growing a Business

Walter Elias Disney

Uncle Walt

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Fundraising

These 30 International Entrepreneurs Really Are Solving the World's Problems

The world has countless problems, unless you're an entrepreneur, in which case the world has countless opportunities.

Business News

'I Want the Best People on Our Teams': Meta Is Laying Off More Than 3,000, CEO Mark Zuckerberg Calls for 'Extensive Performance-Based Cuts' — Read the Memo

In an internal memo shared on Tuesday, Zuckerberg said it's "going to be an intense year" at the company.