Corruption Act; Manmohan Singh, P Chidambaram hold different views

NEW DELHI: Prime Minister Manmohan Singh has called for revoking a specific provision of the Prevention of Corruption (PC) Act, 1988 invoked by the Central Bureau of Investigation (CBI) against industrialist Kumara Mangalam Birla and former bureaucrat PC Parakh while Finance Minister P Chidambaram said that CBI is misinterpreting this provision and hence criminalising bona-fide policy decisions.

Prime Minister Manmohan Singh on Monday told CBI officers that the Section 13 (1) (d) of PC Act, 1988 was being revoked in a draft bill which is pending parliament approval as the provision criminalises an officer's act even in the absence of any mens rea (criminal state of mind). "The Prevention of Corruption (Amendment) Bill, 2013 has been introduced to amend a provision which at present criminalises, even in the absence of mens rea, any action of a public servant that secures for any person a pecuniary advantage," Singh said, emphasising honest officials need protection.




Speaking at the same conference Finance Minister P Chidambaram on Tuesday said that the provision did not exclude mens rea but the CBI has been misinterpreting the provision to not factor in mens rea while deciding to lodge criminal cases. "There are cases where the CBI - and sometimes the courts - have interpreted provisions of law to exclude mens rea. A frequently cited example is section 13(1) (d) (iii) of the Prevention of Corruption Act 1988. A close reading of the above provision does not, in my view, rule out mens rea," the finance minister said on Tuesday.

"In financial crimes, mens rea or the state of mind must be invariably proved or presumed from certain facts. The words (in the provision) - 'without public interest' - imply that the offender must have committed the act although he knew that there was no public interest. In a case arising under this section, if the accused is able to show that there was indeed some public interest, in my view, the offence would not be made out and the accused would be entitled to an acquittal," Chidambaram said, admitting later that he was unaware that the provision will be revoked in a draft law.

The CBI has invoked 13 (1) (d) of the PC Act to book Birla and former coal secretary PC Parakh, alleging the former conspired with Parakh who in turn abused his official position to extend an undue favour to Hindalco. CBI chief Ranjit Sinha has earlier said that no quid-quo-pro needs to be proved under this specific provision of the law and only an undue favour needs to be established. Chidambaram however argued on Tuesday that prudent approach to financial crimes was the requirement of mens rea, unless it is "unambiguously excluded" by the express language of the law.

Former CBI Director, US Mishra told ET that the government seemed to have a poor understanding of the provision and backed the probe agency's case against Hindalco.