#doyouknow about #corruption in #India

1. #do you know that the amendment to #prevention of #corruption act in #India is yet to notify the “Model Adequate procedures /#guidelines to prevent #bribery

#do you know why there is provision for #subsequent #offence/ #subsequently commits #bribery act second time offence under this act.

Under Section 9 of the amended Prevention of #Corruption Act (PCA), a commercial organization can be held liable "if any person associated with the commercial organisation gives or promises to give any undue advantage to a public servant" with an intent to obtain or retain #business or any advantage for that commercial organizations. This provision covers all types of entities (including domestic companies, foreign companies and partnerships) doing business in India.

#Commercial organizations operating in India will therefore be vicariously liable for any #bribes provided to public servants by persons associated with such organizations. In order to cast a wide net on intermediaries who provide bribes on behalf of commercial organizations, the 2018 Amendment considers anyone "who performs services for or on behalf of the commercial organisation" to be a person associated with such organization. As a Consequence, commercial organizations can be held liable for the actions of their employees, agents, service providers and professional advisors.

Further, a parent company (including a foreign parent company) can be held liable under the PCA for the actions of its Indian subsidiary. Commercial organizations can avoid #liability for a bribe provided by a person associated with them by demonstrating that the bribe was provided to the public servant despite the organization putting in place "adequate procedures designed to prevent" it. While the 2018 Amendment does not outline what are considered to be "adequate procedures", it requires the #Indian Government to prescribe #guidelines in this regard. These are yet to be #notified.

Foreign parent companies should be mindful of the increased liability under the amended PCA. As parent entities may now be held liable in India for wrong-doing committed by their Indian subsidiaries, such parent companies should ensure that their Indian subsidiaries have adequate procedures to prevent bribe giving to Indian public servants. Until such time as the Indian Government stipulates guidelines regarding the #adequateprocedures, commercial organizations doing business in India would do well to adhere to established international standards for compliance programs, such as those expected under the U.S. Foreign Corrupt Practices Act #FCPA and the U.K. Bribery Act #UKBA.