Government mulling private sector corruption law

NEW DELHI: 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.