EFFECT OF ANTI - CORRUPTION LEGISLATION,
CRIMINAL ENFORCEMENT & ADMINISTRATIVE SANCTIONS
ON EXPANDING EAST-WEST INVESTMENT
Ravi NATH
India
Partner, RNClegal/Rajinder Narain & Co.
April 20, 2013
CBIC Session
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ANTI - CORRUPTION REGIME
1. Legislative framework
2. Administrative / Institutional framework
3. International Conventions / Regulations
4. Court precedents / Judge made law
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ANTI - CORRUPTION REGIME – Cont.
1.
Legislative framework
 Corruption Act
 Money Laundering Act
 Right to Information Act
 Benami Transactions Prohibition Act
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ANTI - CORRUPTION REGIME – Cont.
1. Legislative framework (slide 3)
2. Administrative / Institutional framework
 The Central Vigilance Commission
 The Central Bureau of Investigation
 The Office of the Comptroller and Auditor General
 The Chief Information Commission
 E-governance
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ANTI - CORRUPTION REGIME – Cont.
1. Legislative framework (slide 3)
2. Administrative / Institutional framework (slide 4)
3. International Conventions / Regulations
 UN Convention against corruption - not ratified by
Japan, Germany, Korea and others.
 Financial Action Task Force
 ADB’s anti-corruption action plan for Asia-Pacific
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ANTI - CORRUPTION REGIME – Cont.
1. Legislative framework (slide 3)
2. Administrative / Institutional framework (slide 4)
3. International Conventions / Regulations (slide 5)
4. Court precedents / Judge made law
 Cancellation of contract / withdrawal of tender
 Demand or solicitation is an offence
 Employment of decoys and spies / sting operations
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ADMINISTRATIVE SANCTIONS

Object: to prevent frivolous prosecutions of public servants

Without sanction, Court will not cognize offences of gratification,
abetment, misconduct etc. (u/s 7, 10, 11, 13 and 15 of the Corruption Act)


Sanction to be given:

By competent authority for all Govt. employees except Group A Officers

By Govt. itself for Group A Officers

Within 3 months
Courts not to direct Government to issue sanctions
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US AND UK LAWS; COMPARISON WITH;

US : Foreign Corrupt Practices Act, 1977

UK : Bribery Act, 2010
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
IS INDIA REALLY FIGHTING CORRUPTION?

CORRUPTION IN INDIA – IS IT A ‘FACT OF LIFE’?

IS INDIAN ENFORCEMENT REGIME EFFECTIVE?
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EXAMPLES OF RECENT SCAMS
Bribery and abuse of power
(Coalgate)
Adarsh Housing
Commonwealth games (US$ 13b)
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EXAMPLES OF RECENT SCAMS– Cont.
2G spectrum allocation (US$ 40 b)
Kickbacks in defense
Corporate fraud
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STEPS FOR IMPROVEMENT

Strict law enforcement

Procedure simplification: legal and administrative

Electoral reforms

Citizen empowerment

Police reform
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STEPS FOR IMPROVEMENT – Cont.

Removal / reduction in number of intermediaries

Transparency and accountability in governance

Corruption free governance a fundamental/human right

Whistleblower policy
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Questions?
Ravi NATH
RNClegal / Rajinder Narain & Co.
International Commercial & Corporate Lawyers
T: + 91 11 4122 5000
C: + 91 98110 27193
E: ravi.nath@rnclegal.com
www.rnclegal.com
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