MCA Adopts AI: MCA21 Platform and IT Notices Go Smart

In a major step toward digital governance, the Ministry of Corporate Affairs (MCA) has officially integrated Artificial Intelligence (AI) into its operations. The ministry has begun using AI to issue Income Tax (IT) incentive notices, while also upgrading its flagship compliance platform — MCA21 — with machine-driven capabilities.

This bold move marks a key milestone in India’s push for smart governance and automated compliance.

The announcement came during a high-level seminar titled “Blending AI for Effective ESG & Compliance”, held at PHD House, New Delhi. The event launched the second edition of the Knowledge Series on Corporate Affairs 2025–26, themed around “Attaining Excellence in Sustainability & CSR Reporting.”

AI Meets Governance: MCA Leads India’s Corporate Digital Shift

Speaking at the seminar, Dr. Sanjay Shorey, Director General of Corporate Affairs at the MCA, confirmed the ministry’s entry into the AI era. “The adoption of AI in issuing IT incentive notices and upgrading the MCA21 platform signifies a formal shift in how we view governance, compliance, and technology,” he said.

Dr. Shorey highlighted the increasing relevance of Environmental, Social, and Governance (ESG) frameworks in corporate functioning, emphasizing that governance must remain central to the conversation. He also reminded the audience that India’s ESG roots can be traced back to the Voluntary Guidelines on Corporate Social Responsibility (2010).

“AI still lacks the human mind’s creativity,” he added. “To make AI effective, it must work hand-in-hand with human intellect and innovation.”

From ESG Buzzword to Strategic Mandate

Sameet Gambhir, Chair of the Corporate Affairs Committee at PHDCCI, emphasized that ESG is no longer a side narrative but a core business strategy.

“Companies today are judged not just by profit margins but by their sustainability metrics. ESG is now a strategic tool for long-term risk management,” he said.

Gambhir called for tighter integration between AI, legal compliance, and sustainability practices, asserting that such a fusion will prepare Indian enterprises for future challenges. “Sustainability has long been embedded in Indian traditions. It’s time we align tradition with technology,” he remarked. 

AI in Compliance: No Longer Optional

Manish Gupta, Former President of the Institute of Company Secretaries of India (ICSI), underscored AI’s role in modern compliance. “The integration of AI into compliance frameworks is now a necessity. It brings transparency, speed, and objectivity,” he said.

Gupta noted that ICSI has already embraced sustainability by powering its buildings with solar energy. He urged compliance professionals to lead the ESG movement from the front by combining AI with ethical governance.

The Way Forward: Smarter Governance for a Sustainable Future

The seminar concluded with a unified call from regulators, industry leaders, and compliance professionals: India’s corporate future lies at the intersection of AI, sustainability, and good governance.

With the MCA now deploying AI in both administrative and regulatory functions, the country moves closer to a tech-powered, transparent, and resilient corporate ecosystem — one that’s ready for global leadership.