New Delhi, May 27, 2012 : A move is afoot in the
Government to make corruption in private sector a penal
offence with imprisonment up to seven years for the offenders.
The government has proposed to make bribery in private
sector -- both giving and accepting it -- a criminal offence
by amending the Indian Penal Code (IPC).
The draft Indian Penal Code (Amendments) Bill, 2011,
circulated to States and Union Territories by the Centre for
their comments, would cover graft by an individual, firm,
society, trust, association of individuals, company, whether
incorporated or not,which undertakes any economic or financial
or commercial activity.
Prime Minister Manmohan Singh had spoken on the issue of
changing laws to make private sector bribery a criminal
offence at a conference of CBI and state anti-corruption
bureaus about seven months ago.
At present, there are no legal provisions to check graft
in the private sector.
According to the draft law, whoever in the course of
economic, financial or commercial activity promises, offers or
gives, directly or indirectly, any gratification, in any
capacity, for a private sector entity, for the person himself
or for another person shall be punishable.
Besides, it said, if somebody "solicits or accepts,
directly or indirectly, any gratification amounting to an
undue advantage from any person, who directs or works, in any
capacity, for a private sector entity" shall also be
punishable with imprisonment and fine or both.
The Centre has asked all States and UT administrations to
give their views on the proposed amendments in the IPC.
Explaining the move, an official in the Ministry of
Personnel, Public Grievances and Pensions under which the
anti-graft agency CBI comes, said local police or any other
appropriate agency would be able to register a case and
initiate probe against an individual working in the private
sector if the proposed amendments becomes law.
"However, the law and order enforcement agency would have
to establish a quid pro quo agreement or a deal between the
offenders," the official said.
So far most of the states have either agreed to the
proposal or suggested some changes in it.
According to a Ministry of Home Affairs (MHA) official,
Gujarat, Chhattisgarh, Karnataka, West Bengal, Punjab,
Maharashtra, Assam, Haryana, Manipur, Meghalaya, Mizoram,
Nagaland, Rajasthan, Sikkim, Tripura, Andaman and Nicobar
Islands, Chandigarh, Dadra and Nagar Haveli, Lakshawdeep and
Delhi have agreed to the proposal.
Jammu and Kashmir, Kerala, Tamil Nadu and Daman and Diu
administrations have suggested some changes in the proposal,
he said, adding that Arunachal Pradesh has offered "no
comments" on the proposal.
In its suggestion, Kerala sought enhanced punishment for
the habitual offenders. "Committing an offence for the first
time cannot be treated on par with habitual committing of the
offence. The attempt to commit the offence of bribery and the
abetment of the offence are also not made punishable in the
Bill.
"Hence, it is suggested that specific provision
prescribing enhanced punishment for habitual committing of
offence of bribery in private sector similar to the provisions
of the Prevention of Corruption Act, 1988 be incorporated in
the Bill," it said.
Besides, it suggested "the activities of persons coming
under the purview of 'private sector' who dishonestly or
fraudulently collects money by way of shares, debentures,
bonds or in whatever form, from the public and
misappropriating the same for themselves like money laundering
or money chain be brought within the purview".
Whereas, Tamil Nadu sought enlisting foreign trip and
gift in any form as offence under the proposed amendments.
The State suggested to bring the commercial activity
mainly concerned with the bribery activities either in money
form or in other way like foreign trip, gift in any form,
concession, reduction in rate, selling sub-standard material
in priced rate of labelling etc in the ambit of proposed IPC
amendment bill.
"There should be a separate provision to prosecute the
companies and for cancellation or suspension of their licenses
or registration etc," it said.
According to Home Ministry official, views from Andhra
Pradesh, Bihar, Madhya Pradesh, Odisha, Uttarakhand, Uttar
Pradesh and Puducherry have not been received so far.
Officials said the Government would also try to get
opinions from industry bodies including Federation of Indian
Chambers of Commerce and Industry (FICCI), Associated Chambers
of Commerce and Industry of India (ASSOCHAM) and Confederation
of Indian Industry (CII) among others.
They said after getting comments from all States, UT
administrations and other stakeholders, the draft will be
given a final shape and other modalities will be worked out
before sending it to the Parliament.
Recently, the Central Vigilance Commission has cited acts
of alleged corruption based on Transparency International
India's assessment report on 'Implementation of Integrity Pact
(IP) in Public Sector Undertakings (PSUs).
"Collusive Corruption, where officials from the public
sector undertaking join hands with the private sector, is
greatly present in the Indian business environment,
particularly in the power, mining and oil sectors," the CVC
has quoted the report as saying.
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