effect of anti - corruption legislation, criminal enforcement & administrative sanctions on...

EFFECT OF ANTI - CORRUPTION LEGISLATION, EFFECT OF ANTI - CORRUPTION LEGISLATION,

CRIMINAL ENFORCEMENT & ADMINISTRATIVE SANCTIONS CRIMINAL ENFORCEMENT & ADMINISTRATIVE SANCTIONS ON EXPANDING EAST-WEST INVESTMENTON EXPANDING EAST-WEST INVESTMENT

Ravi NATHRavi NATHIndiaIndia

Partner, RNCPartner, RNClegal/legal/Rajinder Narain & Co.Rajinder Narain & Co.

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April 20, 2013CBIC Session

ANTI - CORRUPTION REGIMEANTI - CORRUPTION REGIME

1.1. Legislative frameworkLegislative framework

2.2. Administrative / Institutional frameworkAdministrative / Institutional framework

3.3. International Conventions / RegulationsInternational Conventions / Regulations

4.4. Court precedents / Judge made law Court precedents / Judge made law

RAVI.NATH@ RNCLEGAL.COM

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ANTI - CORRUPTION REGIME – ANTI - CORRUPTION REGIME – Cont.Cont.

1.1. Legislative frameworkLegislative framework

Corruption ActCorruption Act

Money Laundering ActMoney Laundering Act

Right to Information ActRight to Information Act

Benami Transactions Prohibition ActBenami Transactions Prohibition Act

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ANTI - CORRUPTION REGIME – ANTI - CORRUPTION REGIME – Cont.Cont.

1.1. Legislative framework Legislative framework (slide 3)(slide 3)

2.2. Administrative / Institutional frameworkAdministrative / Institutional framework

The Central Vigilance Commission The Central Vigilance Commission

The Central Bureau of Investigation The Central Bureau of Investigation

The Office of the Comptroller and Auditor General The Office of the Comptroller and Auditor General

The Chief Information Commission The Chief Information Commission

E-governance E-governance

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ANTI - CORRUPTION REGIME – ANTI - CORRUPTION REGIME – Cont.Cont.

1.1. Legislative framework Legislative framework (slide 3)(slide 3)

2.2. Administrative / Institutional framework Administrative / Institutional framework (slide 4)(slide 4)

3.3. International Conventions / RegulationsInternational Conventions / Regulations

UN Convention against corruption - not ratified by UN Convention against corruption - not ratified by

Japan, Germany, Korea and others.Japan, Germany, Korea and others.

Financial Action Task ForceFinancial Action Task Force

ADB’s anti-corruption action plan for Asia-PacificADB’s anti-corruption action plan for Asia-Pacific

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ANTI - CORRUPTION REGIME – ANTI - CORRUPTION REGIME – Cont.Cont.

1.1. Legislative framework (Legislative framework (slide 3slide 3))

2.2. Administrative / Institutional framework (Administrative / Institutional framework (slide 4slide 4))

3.3. International Conventions / Regulations (International Conventions / Regulations (slide 5slide 5))

4.4. Court precedents / Judge made law Court precedents / Judge made law

Cancellation of contract / withdrawal of tenderCancellation of contract / withdrawal of tender

Demand or solicitation is an offence Demand or solicitation is an offence

Employment of decoys and spies / sting operationsEmployment of decoys and spies / sting operations

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ADMINISTRATIVE SANCTIONSADMINISTRATIVE SANCTIONS

Object: to prevent frivolous prosecutions of public servantsObject: to prevent frivolous prosecutions of public servants

Without sanction, Court will not cognize offences of gratification, Without sanction, Court will not cognize offences of gratification,

abetment, misconduct etc. (u/s 7, 10, 11, 13 and 15 of the Corruption Act)abetment, misconduct etc. (u/s 7, 10, 11, 13 and 15 of the Corruption Act)

Sanction to be given:Sanction to be given:

By competent authority for all Govt. employees except Group A By competent authority for all Govt. employees except Group A

OfficersOfficers

By Govt. itself for Group A OfficersBy Govt. itself for Group A Officers

Within 3 monthsWithin 3 months

Courts not to direct Government to issue sanctionsCourts not to direct Government to issue sanctions

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US AND UK LAWS; COMPARISON WITH; US AND UK LAWS; COMPARISON WITH;

US : Foreign Corrupt Practices Act, 1977US : Foreign Corrupt Practices Act, 1977

UK : Bribery Act, 2010UK : Bribery Act, 2010

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IS INDIAN ENFORCEMENT REGIME EFFECTIVE?IS INDIAN ENFORCEMENT REGIME EFFECTIVE?

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IS INDIA REALLY FIGHTING CORRUPTION?IS INDIA REALLY FIGHTING CORRUPTION?

CORRUPTION IN INDIA – IS IT A ‘FACT OF LIFE’?CORRUPTION IN INDIA – IS IT A ‘FACT OF LIFE’?

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EXAMPLES OF RECENT SCAMSEXAMPLES OF RECENT SCAMS

Bribery and abuse of powerBribery and abuse of power (Coalgate) (Coalgate)

Adarsh HousingAdarsh Housing

Commonwealth games (US$ 13b)Commonwealth games (US$ 13b)

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2G spectrum allocation (US$ 40 b)2G spectrum allocation (US$ 40 b)

Kickbacks in defense Kickbacks in defense

Corporate fraudCorporate fraud

EXAMPLES OF RECENT SCAMS– Cont.EXAMPLES OF RECENT SCAMS– Cont.

STEPS FOR IMPROVEMENTSTEPS FOR IMPROVEMENT

Strict law enforcementStrict law enforcement

Procedure simplification: legal and administrative Procedure simplification: legal and administrative

Electoral reformsElectoral reforms

Citizen empowermentCitizen empowerment

Police reformPolice reform

RAVI.NATH@ RNCLEGAL.COM12

Removal / reduction in number of intermediariesRemoval / reduction in number of intermediaries

Transparency and accountability in governanceTransparency and accountability in governance

Corruption free governance a fundamental/human rightCorruption free governance a fundamental/human right

Whistleblower policyWhistleblower policy

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STEPS FOR IMPROVEMENT STEPS FOR IMPROVEMENT – – Cont.Cont.

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Ravi NATHRavi NATHRNCRNClegal / Rajinder Narain & Co.legal / Rajinder Narain & Co.

International Commercial & Corporate LawyersInternational Commercial & Corporate LawyersT: + 91 11 4122 5000T: + 91 11 4122 5000C: + 91 98110 27193C: + 91 98110 27193

E: ravi.nath@rnclegal.comE: ravi.nath@rnclegal.comwww.rnclegal.comwww.rnclegal.com

Questions?Questions?

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