This guide offers information on the current regulations related anticorruption policies in various jurisdictions around the world. Please contact the listed contributors for specific questions.
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India is not a signatory. However, India is a Key Partner and has co-operated with the OECD over a range of areas. The core aims of the India-OECD partnership are boosting productivity, encouraging sustainable development, and enhancing connectivity.
The Prevention of Corruption Act, 1988 (“Act”).
Giving and/or receiving illegal gratification to/or by public servant defined under the Act, including abetment and exercise of influence thereof, from a person/corporate organization are prohibited.
No, unless the bribe is routed through such foreign government official to a public servant under the Act.
Yes, if one of the businesses is a government enterprise or a public authority.
No.
If any person associated with a commercial organization gives or promises to give undue advantage to a public servant in order to obtain or retain business, or to obtain or retain an advantage in the conduct of business, such commercial organization may be prosecuted under the Act.
Yes, but it applies only to Indian citizens outside India.
In a case where it is established that an offence is committed by a commercial organization under the Act with the consent or connivance of any director, manager, secretary or other officer, such director, manager, secretary or other officer of the commercial organization can be prosecuted under the Act. Here, the term commercial organization means a corporate body, partnership, firm, or association of persons incorporated outside India and carrying out business or part of business in India; or corporate body, partnership, firm, or association of persons incorporated in India and carrying out business or part of business in India or outside India.
The commercial organization which has committed a breach under the Act can be punished with a fine, and the director of such commercial organization who consented or connived to such breach can be punished with a fine and imprisonment for a minimum term of three years and maximum term of seven years for an offence under the Act.
Yes, a commercial organization can be held liable for an offence of corruption under the Act if any person associated with such organization gives or promises to give any undue advantage to a public servant intending to obtain or retain business for such commercial organization, or to obtain or retain an advantage in the conduct of business for such commercial organization.
The Companies Act, 2013 (“CA 13”) mandates public listed companies and specified public unlisted companies to constitute an Audit Committee. While the CA 13 does not explicitly require the Audit Committee to investigate corrupt practices within the company, the Board of Directors may direct the Audit Committee to perform such inquiry.
Additionally, such companies must also establish a vigilance mechanism to facilitate members of the company to raise their concerns regarding the operations of the company with the Audit Committee.
Private companies, though not mandated by the law, may voluntarily adopt a whistleblowers’ policy and/or constitute an Audit Committee to enable their officers, shareholders, etc., to report concerns regarding any corrupt practices within the company.
The Act provides that it is a defence for a commercial organization to prove that it has implemented adequate measures in accordance with the guidelines prescribed under the Act to prevent persons associated with it from undertaking corrupt practices.
However, such guidelines under the Act have not been prescribed yet.
Where the commercial organization voluntarily implements a compliance program, it may have the effect of mitigating the fine at the discretion of the court.
No, the Act does not permit any kind of settlement for offences under the Act.
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.
