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Anti-Corruption Laws in India PDF
Anti-Corruption Laws in India PDF
Dr.G.B.Reddy
Department of Law
Osmania University
Corruption-Conceptual
Analysis
Corrupt-to break
Corruption- denotes something spoiled
It is deeply rooted, cancerous, contaminating,
and impossible to eradicate
It is as old as governance itself
It is a global phenomenon
It is colourless, shapeless, odorless, collusive,
secret, stealthy, and shameless.
Anti Corruption Laws in India
IPC,1860
Prevention of Corruption Act,1988
Prevention of Money Laundering Act,
2002
Right to Information Act,2005
Central Vigilance Commission Act
Lok Ayukta Acts of States etc
A) Indian Penal Code
(IPC)-Relevant Provisions
Dishonest misappropriation of
property
Whoever dishonestly misappropriates or
converts to his own use any movable
property, shall be punished with
imprisonment of either description for a
term which may extend to two years, or
with fine, or with both.(Section 403)
Criminal breach of trust
(a) In the case of a person who is employed in connection with the affairs of the
Union and is not removable from his office save by or with the sanction of
the Central Government, of that Government;
(b) In the case of a person who is employed in connection with the affairs of a
State and is not removable from his office save by or with the sanction of the
State Government, of that Government;
(c) In the case of any other person, of the authority competent to remove him
from his office.
(2) Where for any reason whatsoever any doubt arises as to whether the
previous sanction as required under sub-section (1) should be given by the
Central Government or the State Government or any other authority, such
sanction shall be given by that Government or authority which would have
been competent to remove the public servant from his office at the time
when the offence was alleged to have been committed.
Previous sanction necessary for
prosecution (contd..)
(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973-
(a) No finding, sentence or order passed by a Special Judge shall be reversed or altered by a
Court in appeal, confirmation or revision on the ground of the absence of, or any error,
omission, irregularity in, the sanction required under sub-section (1), unless in the
opinion of that court, a failure of justice has, in fact, been occasioned thereby;
(b) No court shall stay the proceedings under this Act on the ground of any error, omission
or irregularity in the sanction granted by the authority, unless it is satisfied that such
error, omission or irregularity has resulted in a failure of justice;
(c) No court shall stay the proceedings under this Act on any other ground and no court shall
exercise the powers of revision in relation to any interlocutory order passed in inquiry,
trial, appeal or other proceedings.
(4) In determining under sub-section (3) whether the absence of, or any error, omission
or irregularity in, such sanction has occasioned or resulted in a failure of justice the
Court shall have regard to the fact whether the objection could and should have been
raised at any earlier stage in the proceedings.
Explanation. -For the purposes of this section, -
(Sec.31)
Offence of Money-Laundering
" Whosoever directly or indirectly attempts to
indulge or knowingly assists or knowingly is a
party or is actually involved in any process or
activity connected with the proceeds of crime and
projecting it as untainted property shall be guilty
of offence of money laundering."
[Section 3]
Punishment for Money-Laundering
"Whoever commits the offence of money-laundering shall be
punishable with rigorous 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 which may extend
to five lakh rupees:
Provided that where the proceeds of crime involved in
money-laundering relates to any offence specified under
paragraph 2 of Part A of the Schedule, the provisions of this
section shall have effect as if for the words "which may
extend to seven years", the words "which may extend to ten
years" had been substituted." [Section 4 ]
Obligations of Banking Companies, Financial
Institutions and Intermediaries of securities market
[Section 12]
(
1) Every banking company, financial institution and intermediary shall - (a)maintain a
record of all transactions, the nature and value of which may be prescribed,
whether such transactions comprise of a single transaction or a series of
transactions integrally connected to each other, and where such series of
transactions take place within a month; (b) furnish information of transactions
referred to in clause (a) to the Director within such time as may be prescribed; (c)
verify and maintain the records of the identity of all its clients, in such a manner as
may be prescribed. Provided that where the principal officer of a banking company
or financial institution or intermediary, as the case may be, has reason to believe
that a single transaction or series of transactions integrally connected to each
other have been valued below the prescribed value so as to defeat the provisions
of this section, such officer shall furnish information in respect of such transactions
to the Director within the prescribed time. [(2)(a) The records referred to in clause
(a) of sub-section (1) shall be maintained for a period of ten years from the date of
transactions between the clients and the banking company or financial institution
or intermediary, as the case may be.(b) The records referred to in clause (c) of
sub-section (1) shall be maintained for a period of ten years from the date of
cessation of transactions between the clients and the banking company or financial
institution or intermediary, as the case may be.]**Substituted for sub-section (2)
vide Prevention of Money-laundering (Amendment) Act, 2009
No civil proceedings
[Section 14]
(d) Corruption includes anything made punishable under Chapter IX of the Indian Penal Code
(Central Act 45 of 1860), or under the Prevention of Corruption Act,1947 (Central Act 2 of
1947);
(e) Government means the State Government;
Matters which may be investigated by
Lokayukta or Upa-Lokayukta [Sec.7]
( 1) Subject to the provisions of this Act, the Lokayukta may investigate any action which is
taken by, or with the general or specific approval of, or at the behest of,-
(i) a Minister or a Secretary; or
(ii) a Member of either House of the State Legislature; or
(iii) a Mayor of the Municipal Corporation constituted by or under the relevant law for the
time being in force; or
(iv) any other public servant, belonging to such class or section of public servants, as may
be notified by the Government in this behalf after consultation with the Lokayukta, in any
case where a Complaint involving an allegation is made in respect of such action, or such
action can be or could have been, in the opinion of the Lokayukta, the subject of an
allegation.
(2) Subject to the provisions of this Act, the Upa-Lokayukta may investigate any action
which is taken by, or with the general or specific approval of, any public servant, other than
those referred to in sub-section (1), in any case where a complaint involving an allegation
is made in respect of such action, or such action can be or could have been, in the opinion
of the Upa-Lokayukta, the subject of an allegation.
(3) Notwithstanding anything in sub-section (2), the Lokayukta may, for reasons to be
recorded in writing, investigate any allegation in respect of an action which may be
investigated by the Upa-Lokayukta under that sub-section, whether or not complaint has
been made to the Lokayukta in respect of such action.
(4) Where two or more Upa-Lokayuktas are appointed under this Act, the Lokayukta may,
by general or special order, assign to each of them matters which may be investigated by
them under this Act:
Provided that no investigation made by the Upa-Lokayukta under this Act and no action
taken or thing done by him in respect of such investigation shall be called in question on
the ground only that such investigation relates to a matter which is not assigned to him by
such order.
Matters not subject to investigation by
Lokayukta or Upa-Lokayukta [Sec.8]
( 1) Where the Lokayukta or Upa-Lokayukta after making such preliminary verifications as he deems
fit, proposes to conduct any investigation under this Act, he,-
( a) shall forward a copy of the Complaint or, in the case of any investigation which he proposes to
conduct on his own motion, a statement setting out the grounds therefor, to the public servant
concerned and the competent authority concerned;
(b) shall afford to the Public servant concerned an opportunity to offer his comments on such
complaint or statement; and
(c) may make such orders as to the safe custody of documents relevant to the investigation as he
deems fit.
(2)(a) Every perliminary verification referred to in sub-section (1) shall be conducted in private and
in particular, the identity of the complainant and of the public servant affected by the said
preliminary verification shall not be disclosed to the public or the press, whether before or during
the preliminary verification, but every investigation referred to in sub-section (1) shall be conducted
in public: Provided that the Lokayukta or Upa-Lokayukta may conduct any such investigation in
private, if he, for reasons to be recorded in writing thinks fit to do so.
(b) Every such investigation shall be completed within a period of six months, unless there is
sufficient cause for not completing the investigation within that period, so however, that the total
period for completing such investigation shall not exceed one year.
(3) Save as aforesaid, the procedure for conducting any investigation shall be such as the Lokayukta
or, as the case may be, the Upa-Lokayukta considers appropriate in the circumstances of each case.
(4) The Lokayukta or Upa-Lokayukta may, in his discretion, refuse to investigate or discontinue the
investigation of any complaint involving any allegation if in his opinion,-
( a) the complaint is frivolous or vexatious, or is not made in good faith; or
(b) there are no sufficient grounds for investigation or, as the case may be, for continuing the
investigation; or
(c) other remedies are available to the complainant and in the circumstances of the case it would be
more proper for the complainant to avail of such remedies.
(5) In any case where the Lokayukta or Upa-Lokayukta decides not to entertain a complaint or to
discontinue any investigation in respect of the complaint, he shall record his reasons therefor and
communicate the same to the complainant and the public servant concerned.
Evidence
[s.11]
( 1) Subject to the other provisions of this section, for the purpose of any investigation (including the
preliminary verification if any, before such investigation) made under this Act, the Lokayukta or Upa-Lokayukta
may require any public servant or any other person, who in his opinion is able to furnish information or produce
documents relevant to the the investigation to furnish any such information or produce any such document.
(2) For the purpose of any such investigation (including the preliminary verification) the Lokayukta or Upa-
Lokayukta shall have all the powers of a Civil Court while trying a suit under the code of Civil Procedure, 1908
(Central Act 5 of 1908) in respect of the following matters, namely,-
( a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) receiving evidence on affidavits;
(d) requisitioning any public record or copy thereof from any Court or Office;
(e) issuing commissions for the examination of witnesses or documents;
(f) such other matters as may be prescribed.
(3) Any proceedings before the Lokayukta or Upa-Lokayukta shall be deemed to be a judicial proceeding within
the meaning of Section 193 of the Indian Penal Code, 1860 (Central Act 45 of 1860).
(4) Subject to the provisions of sub-section (5), no obligation to maintain secrecy or other restriction upon the
disclosure of information obtained by or furnished to the Government or any public Servant, whether imposed
by or under any law or by any instrument having the force of law, shall apply to the disclosure of information for
the purpose of any investigation made under this Act and the government or any Public Servant shall not be
entitled in relation to any such investigation to any such privilege in respect of the production of documents or
the giving of evidence as is allowed by any law or instrument as aforesaid in legal proceedings: Provided that no
person shall be compelled for the purpose of any investigation under this Act to give any evidence or produce
any document which he could not be compelled to give or produce in any proceedings before a Court.
(5) No person shall be required or authorised by virtue of this Act, to furnish any such information or answer any
such question or produce so much of any document,-
( a) as might prejudice the security or defence or international relations of India (including Indias relations
with the Government of any other country or with any international organisation); or (b) as might involve the
disclosure of the proceedings of the Council of Ministers of Government or any Committee of that Council; and
for the purpose of this sub-section a certificate issued by the Chief Secretary to the Government certifying that
any information, answer or portion of a document is of the nature specified in Clause (a) or Clause (b) shall be
binding and conclusive.
Reports of Lokayukta or Upa-
Lokayukta [Sec.12]
( 1) If, after investigation of any allegation in respect of any action under this Act, the
Lokayukta or Upa-Lokayukta is satisfied that such allegation is substantiated either wholly or
partly, he shall by a report in writing, communicate his findings and recommendations along
with the relevant documents, materials or other evidence to the competent authority.
(2) The competent authority shall examine the report forwarded to it under sub-section (1) and
without any further inquiry take action on the basis of the recommendation and intimate within
three months of the date of receipt of the report, the Lokayukta or, as the case may be, the
Upa-Lokayukta, the action taken or proposed to be taken on the basis of the report.
(3) Where,in a report forwarded by the Lokayukta or Upa-Lokayukta, any recommendation
imposing the penalty of removal from the office of a Public Servant falling within sub-clause
(iv) or sub-clause( v) of clause (k) of Section 2 has been made, it shall be lawful for the
Government without any further inquiry to take action on the basis of the said recommendation
for the removal of such Public Servant from his office and for making him ineligible for being
elected to any office specified by the Government in this behalf, notwithstanding anything
contained in any law for the time being in force.
(4) If the Lokayukta or Upa-Lokayukta is satisfied with the action taken or proposed to be
taken on his findings and recommendations referred to in sub-section (1), he shall close the
case under intimation to the complaint, the Public Servant and the competent authority
concerned; but where he is not so satisfied and if he considers that the case so deserves, he
may make a special report upon the case to the Governor and also inform the complainant.
(5) The Lokayukta and the Upa-Lokayukta shall present annually a consolidated report on the
work done under this Act to the Governor.
(6) On receipt of the special report under sub-section (4) or the annual report under sub-
section (5), the Governor shall cause a copy thereof together with an explanatory memorandum
to be laid before each House of the State Legislature.
(7) Subject to the provisions of sub-section (2) of Section 10, the Lokayukta may, at his
discretion make available, from time to time, the substance of cases closed or otherwise
disposed of by him or by the Upa-Lokayukta, which may appear to him to be of a general,
public, academic or professional interest, in such manner and to such persons as he may deem
appropriate.
Prosecution for false Complaints
[Sec. 13]