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Introduction

With India ranking 86th globally in Corruption Perception Index (published by Transparency International), the government has amended the Prevention of Corruption Act, 1988 on 26th July 2018. Important implications of the Act are highlighted below:

Section 4: Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), or in any other law for the time being in force, the offences specified in sub-section (1) of section 3 shall be tried by special Judges only

Prevention of Corruption Amendment Act, 2018 and its implications

Offences and Penalties under the Act

Section

Offence

Penalty

Section 7

Offence relating to public servant being bribed (Public servant obtaining undue advantage)

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 7A

Taking undue advantage to influence public servant by corrupt or illegal means or by exercise of personal influence

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

Offence relating to bribing of a public servant

If the person is compelled to give a bribe and the same is reported to law enforcement authority, punishment is not applicable

Imprisonment for a term which may extend to seven years or with fine or with both.

Section 9

Offence relating to bribing a public servant by a commercial organization

Such commercial organisation shall be punishable with fine

(Commercial organization has to prove that it had in place adequate procedures in compliance of such guidelines as may be prescribed to prevent persons associated with it from undertaking such conduct)

Section 10

Person in charge of commercial organisation to be guilty of offence

(offence committed with the consent or

connivance of any director, manager, secretary or other officer)

Such director, manager, secretary or other officer shall be guilty of the offence and shall be liable to be proceeded against and 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 11

Public servant obtaining undue advantage without consideration from person concerned in proceeding

Imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine

Section 12

Punishment for abetment of offences

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 13

Criminal misconduct by a public servant (misappropriation of properties or illicit enrichment)

Imprisonment for a term which shall be not less than four years but which may extend to ten years and shall also be liable to fine.

Section 14

Punishment for habitual offenders

Imprisonment for a term which shall not be less than five years but which may extend to ten years and shall also be liable to fine.

Section 15

Punishment for attempt

Imprisonment for a term which shall not be less than two years but which may extend to five years and with fine

Section 16 - Fine

The court in fixing the amount of the fine shall take into consideration the amount or the value of the property, if any, which the accused person has obtained by committing the offence.

Section 20 - Presumption where public servant accepts any undue advantage

If it is proved that a public servant accused of an offence has accepted or obtained or attempted to obtain for himself, or for any other person, any undue advantage from any person, it shall be presumed, unless the contrary is proved, that he accepted or obtained or attempted to obtain that undue advantage, as a motive or reward under section 7 for performing or to cause performance of a public duty improperly or dishonestly

Sources:

  1. THE PREVENTION OF CORRUPTION ACT, 1988 (Bare Act)
  2. THE PREVENTION OF CORRUPTION (AMENDMENT) ACT, 2018 (Bare Act)
 

Disclaimer: This material is published in electronic media for educational purpose only. Material is neither not an opinion of the author.

 

The author is a Practicing Chartered Accountant with 10 years of experience.


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Category Corporate Law, Other Articles by - Ramachandra 



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