Case of Prevention of Corruption Act, 1988

We will assist you in cases wherein allegations have been leveled in respect of corporate bribery.

The 2018 amendment has significant implications for multi-nationals currently doing business in India. Prior to the amendment, the Act mainly dealt with the acceptance of bribes by public servants while the bribe payers were prosecuted through the abetting provisions under the Law. But corporate entities were rarely prosecuted for such alleged bribes. But this has changed with the amendment in Section 8. This provision creates a separate offence for giving or offering an “undue advantage” to another person with the intention of inducing or rewarding a public servant to improperly perform a public function. If convicted, the bribe payer can be given a punishment of upto 7 years imprisonment in addition to fines.

The amendment has made it clear that individual and companies will be held liable under the Act for bribes that are paid or offered by third parties on behalf of the corporate entities. Even third party intermediaries who are working on the directions of the corporate entity an assisting them in their dealings with the state authorities will be held liable for such corrupt practices. For the actions of the third party intermediaries, liability will be attributed to the corporate entity who has engaged him or her. This has greatly increased the risk of doing business for corporations in India.

The liability for commercial organizations has further be increased by the change in section 9. A promise to give an undue advantage to a public servant to retain one’s business or obtain any other commercial advantage has been made a separate offence altogether. This is especially important in light of the Bankruptcy Law that has been brought in to force in India.

Concomitantly corporations in India may face potential liability for the actions of their employees, consultants, contractors, external agents, subsidiaries and other persons associated with them.

Even directors, managers and other officers who have conspired or worked with in individual towards committing an offence under this Act will be held liable as well.

We deal with the following types of cases:-

• Cases of Corporate bribery under the Prevention of Corruption Act
• Cases of Corporate bribery  as a result of association with third party intermediaries
• Cases of management of a corporation allegedly engaging in corrupt practice to retain a business advantage
• We will also assist you in framing a sophisticated anti-corruption compliance program to reduce your commercial risk as far as possible when doing business in India