The Prevention of Corruption (Amendment), 2018

The "Amendment to the Prevention of Corruption Act, 1988", passed on 19, July, 2018, introduces several material changes to prior law covering bribes and undue influence concerning public servants. It covers the definition of criminal misconduct, the permissions, approvals and sanctions which may be required prior to government investigation and also covers bribe givers in addition to recipients. It also provides a carve out of what consitutes an offence and addresses situations where bankers and lenders have extended loans which are later called into question. Some notable text includes:

Amendment to Section 2: "In the Prevention of Corruption Act, 1988 (hereinafter referred to as the principal Act), in section 2,— (a) the word “gratification” is not limited to pecuniary gratifications or to gratifications estimable in money; (b) the expression “legal remuneration” is not restricted to remuneration paid to a public servant, but includes all remuneration which he is permitted by the Government or the organisation, which he serves, to receive.’."

In section 4 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:— “(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the trial of an offence shall be held, as far as practicable, on day-to-day basis and an endeavour shall be made to ensure that the said trial is concluded within a period of two years: Provided that where the trial is not concluded within the said period, the special Judge shall record the reasons for not having done so: Provided further that the said period may be extended by such further period, for the reasons to be recorded in writing but not exceeding six months at a time; so, however, that the said period together wiht such extended period shall not exceed ordinarily four years in aggregate.

Section 7A. "Whoever accepts or obtains or attempts to obtain from another person for himself or for any other person any undue advantage of a motive or reward to induce a public servant, by corrupt or illegal means or by exercise of his personal influence to perform or to cause performance of a public duty improperly or dishonestly or to forbear or to cause to forbear such public duty by such public servant or by another public servant, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and shall also be liable to fine.’’."

Section 8. "(1) Any person who gives or promises to give an undue advantage to another person or persons, with intention— (i) to induce a public servant to perform improperly a public duty; or (ii) to reward such public servant for the improper (ii) to reward such public servant for the improper performance of public duty; shall be punishable with imprisonment for a term which may extend to seven years or with fine or with both: Provided that the provisions of this section shall not apply where a person is compelled to give such undue advantage: Provided further that the person so compelled shall report the matter to the law enforcement authority or investigating agency within a period of seven days from the date of giving such undue advantage: Provided also that when the offence under this section has been committeed by commercial organisation, such commercial organisations shall be punishable with fine."

 

 

 

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2018
Date of Document: 
Thursday, July 19, 2018

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