anti corruption 2002

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The Prevention of Corruption Act, 2059 (2002 A.D)

Preamble: Whereas, it is expedient to make timely legal

provisions relating to prevention of corruption with a view tomaintaining peace, convenience, financial discipline, moralityand good conduct among general public;

Be itenacted by Parliament in the first year of the reign of HisMajesty's the King Gyanendra Bir Bikram Shah Dev.

Chapter - 1Preliminary

1. Short Title, Extent and Commencement : (1) This

Act may be called the "Prevention of Corruption Act, 2059(2002 A.D.)."(2) It shall be extended throughout the Kingdom of

Nepal and applicable to all Nepalese citizens, publicservants residing anywhere outside the Kingdom of Nepaland to the non- Nepalese citizens residing in foreigncountries having committed any act that may be deemedto be corruption under this Act.

(3) It shall come into force at once.

2. Definitions: In this Act, unless the context otherwiserequires,(a) "Corruption" means offences punishable under

Chapter -2.(b) "Graft" means cash, goods or any type of gain

or benefit and the term also includes bribe.(c) "public institution" means the following

institutions:-(1) A company, bank or a committee wholly or

largely owned or controlled by HisMajesty's Government; or a commission,organization, authority, corporation,academy, board, center, council or anyother corporate body of such natureestablished by His Majesty's Government;

(2) A university, college, school, researchcenter and any other similar academic oreducational institution run by His Majesty'sGovernment or on the full or partial

donation from His Majesty's Government;

An unofficial translation

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(3) Local bodies constituted under the LocalSelf-Governance Act, 1999;

(4) An institution run on loan, grant orguarantee of His Majesty's Government;

(5) An institution fully or partly owned orcontrolled by the institution referred to insub-clauses (1), (2), (3) or (4) or obtainedgrant from such institution; and

(6) Any other institution prescribed as publicinstitution by His Majesty's Government ina notification published in the NepalGazette.

(b) "Public Servant" means the person holding apublic office under the prevailing laws and theterm also includes the following persons:-(1) Persons appointed, nominated or elected

under an oath to His Majesty, His Majesty'sGovernment or to public institution, orunder the terms, contracts or agreementsconcluded with His Majesty, His Majesty'sGovernment or with any public institution,or holding any office of public responsibility

for salary or allowances or remuneration orbenefit or position with or without any typeof gain from His Majesty's Government orany public institution;

(2) Person appointed as an arbitrator or anyother person appointed in the sameposition pursuant to the prevailing laws toresolve or adjudicate any dispute;

(3) Persons appointed, elected or nominated

as liquidator, surveyor or any other personworking in the same capacity inaccordance with the prevailing laws;

(4) Persons designated as public servants byHis Majesty's Government in a notificationpublished in the Nepal Gazette.

(c) "Revenue" means any type of tax, fee, charge,royalty, fine and other amount of this type to bepaid or given to His Majesty's Government or

public institution, and the term also includes

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interest or fine to be charged on such tax, fees,royalty and other amount of this type.

(d) "Degree of offense" means the degree ofoffense to be determined on the basis ofcircumstances and situation in which theoffence has been committed or attempted to becommitted, the gravity of such offence or theintention, qualification, position and capacity ofthe person who has committed or attempted tocommit any offense punishable under this Act.

(e) "Investigating Authority" means the body orofficial authorized to conduct inquiry,investigation and to file cases relating tocorruption in accordance with the prevailinglaws.

Chapter - 2Provisions Relating to Offenses of Corruption and

Punishment3. Punishment to Giver and Taker of Graft: (1) Whoever,

being, or expecting to become, a public servant accepts oragrees to accept graft amounting as follows for himself orfor any other person in consideration of his performing or

having performed or of forbearing to perform or havingforborne to perform any act pertaining to his office or therelated act or in consideration of favoring or disfavoring orcausing or not causing a loss or of having favored ordisfavored or having caused or not caused a loss to anyperson while carrying out his official functions, shall beliable to a punishment of imprisonment as follows and ofa fine as per the amount involved depending on thedegree of the offense. In case the graft has already been

accepted, it shall be confiscated.(a) Up to twenty five

thousand rupees.Imprisonment for a termnot exceeding threemonths.

(b) More than twenty fivethousand rupees to fiftythousand rupees.

Imprisonment for a termfrom three to fourmonths.

(c) More than fifty thousandrupees to one hundred

thousand rupees.

Imprisonment for a termfrom four to six months.

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(d) More than one hundredthousand rupees to fivehundred thousandrupees.

Imprisonment for a termfrom six months to oneyear and six months.

(e) More than five hundredthousand rupees to onemillion rupees.

Imprisonment for a termfrom one year and sixmonths to two years andsix months.

(f) More than one millionrupees to two million andfive hundred thousandrupees.

Imprisonment for a termfrom two years and sixmonths.

(g) More than two millionand five hundredthousand rupees to fivemillion rupees.

Imprisonment for a termfrom four to six years.

(h) More than five millionrupees to ten millionrupees.

Imprisonment for a termfrom six to eight years.

(i) Whatsoever amountabove ten million rupees.

Imprisonment for a termfrom eight to ten years

(2) Whoever, other than a public servant, accepts

or agrees to accept graft amounting as follows for himselfor for any other person with the intention of convincingany public servant to perform or forbear to perform anyfunction under his office or position or for convincing toperform or forbear to perform any such act or with theintention of favoring or disfavoring any person or causingor not causing any loss or for convincing to perform orforbear to perform any such act while carrying out anyfunction under his office or position, shall be liable to a

punishment of imprisonment as follows and of a fine asper the amount involved depending on the degree of theoffense. In case the graft has already been accepted, itshall be confiscated.

(3) Whoever gives a graft to a public servant or anyother person in order to do or forbear to do any functionpursuant to sub-Section (1) or (2), shall be liable to apunishment pursuant to sub-Section (1) depending on the

degree of the offense committed.

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(4) Whoever abates to commit an offencepunishable under this Section shall, if he is a publicservant, be liable to a punishment as same as thepunishment prescribed for the same offence, and if he isany other person, shall be liable to half of the punishmentfor that offence on the basis of the degree of the offenceirrespective of whether or not the offence has beencommitted because of such abetment.

4. Punishment to Public Servants Accepting Goods orService Free of Cost or at Lower Prices: Whoever,being a public servant, accepts or agrees or attempts toaccept, without a prior approval of His Majesty, HisMajesty's Government or public institution, any goods orservice free of cost or at lower prices for himself or for anyother person, from any individual, having knowledge thatsuch individual is related to or is likely to be related to anyact related to his office or any act carried out or to becarried out by himself is related to any function of hisoffice, shall be liable to a punishment of imprisonment fora term from six months to one year depending on thedegree of the offence and a fine equal to the amountinvolved and in case such goods is already accepted, it

shall be confiscated and in case of the service, the pricethereof shall be fixed and a fine equal to the price of suchservice shall be imposed.

5. Punishment for Taking Gift, Present, Award orDonation: (1) Whoever, being a public servant, accepts,without a prior approval of His Majesty, His Majesty'sGovernment or a public institution, any type of donation,gifts, presents, awards or any type of benefit himself orthrough any member of his family or other person, so as

to causing an impact in any way on any of his works whichis supposed to be carried out by him according to theoffice he assumes; or any public servant who borrowsfrom a person related to a work which he has to carry outaccording to the office he assumes, shall be liable to apunishment of imprisonment from three to six monthsdepending on the degree of the offence and the amountshall be confiscated.

(2) Whoever, being a public servant, has received

any present or gift in exchange of a gift or presentbrought from the amount of a fund belonging to His

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Majesty's Government or a public institution, such gift orpresent shall be immediately submitted to his office. If notsubmitted, it shall be deemed to have committed theoffence referred to in sub-section (1) and such gift orpresent shall be confiscated having him punishedaccordingly.

6. Punishment for Taking Commission: In case any typeof commission, remuneration, brokerage fee, benefit oradvantage is liable to be paid while performing duties by apublic servant or while purchasing or hiring or taking orgiving on a lease any commodity or service necessary forHis Majesty, His Majesty's Government or a publicinstitution or while awarding or accepting a contract by HisMajesty's Government or a public institution or whileselling or hiring or taking or giving on a lease anycommodity or service produced by His Majesty'sGovernment or a public institution, such commission,remuneration, brokerage fee, benefit or advantage shallbe submitted to the concerned office within seven daysfrom the date of receipt. In case not submitted as such,such public servant shall be deemed to have committedthe offence referred to in Section 3 and the amount shall

be confiscated having him punished accordingly.7. Punishment to Public Servants for Leaking

Revenue: Whoever, being a public servant under the dutyof collecting revenues, causes revenue leakage or helps orabets any person for its leakage having been involvedhimself in any of the following manners, shall be deemedto have committed the offence referred to in Section 3with regard to the amount of revenue so leaked and heshall be liable to the same punishment of imprisonment,

and double of the amount of revenue leaked shall befined: -(a) To assist any person in the act of leaking revenue in

any manner whatsoever, having accepted any cashor kind, fee, prize or donation or any type of otherbenefit or forbear to collect revenue or to assist orcause to assist to collect less revenue having causedloss to His Majesty, His Majesty's Government or apublic institution by taking or not taking any type of

gain from any person;

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(b) To assess or assist to assess less revenue or toassess revenue to the effect of not charging revenueat all by not going through the documents or notinvestigating such documents or by not collectingnecessary evidences while assessing revenue asrequired by the existing law;

(c) To embezzle the revenue collected by not depositingit in accordance with the prevailing laws;

(d) To release or assist to release goods, by makingdifference in the invoice, quality or quantity of suchgoods, and without collecting the prescribed revenuewhile assessing the revenue or carrying out valuationof such goods.

8. Punishment to Public Servants for Getting IllegalBenefit or Causing Illegal Loss with MalafideIntention: (1) Whoever, being a public servant, commitsany of the following acts with the malafide intention ofgetting illegal benefits for himself or for any other person,or of causing loss to His Majesty, His Majesty'sGovernment or public institution, shall be liable to animprisonment of a term from three months to three yearsdepending on the degree of offense, and in case the

amount involving the offence is known, such amount shallbe confiscated having him fined accordingly. In case suchamount is not known, an imprisonment for a term fromthree months to three years and a fine from ten thousandto fifty thousand rupees shall be imposed.(a) To show more costs or works in an

unnatural manner without any ground of justificationwhile conducting physibility study of, or settingnorms for, a project.

(b) To use or allow to use the constructionmaterials of lower quality than that of the prescribedquality, or to certify or to approve the use of suchmaterials as the materials of prescribed quality;

(c) To degrade the quality of constructionwork or to change the form or shape thereof or tocarry out or cause to carry out construction works incontravention of the prescribed terms, conditions andstandard; or to certify or to approve such

construction work as qualitative and under the

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prescribed terms and conditions without anyreasonable ground;

(d) To carry out or cause to carry outconstruction works having increased or amended thecosts estimate in an unnatural manner and withoutany reasonable ground;

(e) To give or receive payment havingprepared false bills or receipts or to give or receivedouble payment of bills;(f) To procure or cause to procure excessive

quantity of goods in an unnatural manner thanthe quantity needed without reasonablegrounds;

(g) To carry out or cause to carry outunnatural valuation of a government property, aproperty of a public organization or of publicproperty;

(h) To register, occupy or use or to cause toregister, occupy or use a government or publicproperty in one's own name or in the name ofother in an illegal manner;

(i) To value or cause to value a collateral

security to be mortgaged in the name of agovernmental or public organization in anexcessive and unreasonable prices than the realprices;

(j) To procure or cause to procure goods of degrading quality, date expired and to procureor cause to procure goods having paid higherprices in an unnatural manner.

(2) In case any public servant does not return a

vehicle or a facility available to him by virtue of his officialposition within the prescribed time after the expiry of theofficial position without any reasonable ground, he shallbe liable to a fine from one thousand to five thousandrupees depending on the degree of the offense and suchvehicle or facility shall be taken back.

(3) Whoever, being a public servant, causes anytype of loss to a governmental or public property withmalafide intention having committed any act excluding

the acts referred to in sub-Section (1) and (2), shall beliable to a punishment of imprisonment not exceeding two

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years or of a fine equal to the amount of the loss or bothdepending on the degree of the offence.

(4) In case any person other than a public servant,with malafide intention of making illegal gain to himself orto any other person, does not abide by the terms andconditions of an oath, undertaking, agreement, contract,license, permit, promissory note or dealership entered intowith His Majesty, His Majesty's Government or a publicinstitution or carries out business or misuses the facilitiesor powers of governmental or such institution violating theRules or Procedures determined by or terms andconditions accepted by His Majesty's Government or suchinstitution in a manner prohibited by the prevailing law, heshall be liable to a punishment of imprisonment notexceeding two years and be fined according to theamount of loss and the amount of loss shall beconfiscated.

9. Punishment to Public Servants Preparing FalseDocuments:Whoever, being a public servant under the duty ofpreparing documents, prepares false documents withmalafide intention of causing loss to His Majesty, His

Majesty's Government or Government or public institution,shall be liable to a punishment of imprisonment for a termfrom three months to one year, and a fine from tenthousand to fifty thousand rupees.

10. Punishment for Translating False Documents:Whoever, either a public servant or any other personauthorized or designated to translate documents, wronglytranslates documents, translates documents incorporatingtherein false particulars or makes difference in the name,

surname, date, facts or other particulars with the malafideintention of causing loss to His Majesty, His Majesty'sGovernment, a Government or public institution; or withthe intention of getting illegal benefit to himself or to anyother person, shall be liable to a punishment ofimprisonment for a term from three months to one yearand of a fine from ten thousand to fifty thousand rupees,depending on the degree of offense committed.

11. Punishment for Tempering Government Documents:

Whoever, either a public servant or any other person,corrects, adds, or changes in documents belonging to a

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government or public institution without authority or in anillegal manner, shall be liable to a punishment ofimprisonment for a term from three months to two yearsand a fine not exceeding fifty thousands rupees.

12. Punishment for Causing Damage to Government orPublic Documents: Whoever, being a public servant,conceals a document belonging to government or to apublic institution or causes damage to, or destroys, suchdocument, shall be liable to a punishment ofimprisonment from six month to one year and shall befined from ten thousand to fifty thousand rupees. In caseany loss is incurred due to such concealment, damage ordestruction, the loss shall also be recovered.

13. Punishment for Disclosing Secrecy of QuestionPapers or Altering the Result of Examination: Savein cases where the authorized person discloses or causesto disclose question papers of an examination to beconducted by a government body or a public institutionbefore the prescribed time having given reasons of specialcircumstances, whoever, being a public servant, disclosesor causes to disclose the secrecy of such question paper inany manner whatsoever, or alters or causes to alter the

results of examinations with the intention of making illegaladvantage to himself or any other person, shall be liableto a punishment of imprisonment from three months toone year and shall be fined from five thousand to tenthousand rupees.

14. Punishment to Public Servants Engaging in IllegalTrade or Business: Whoever, being a public servant,engages in trade or business in his own name or in thename of other person or in partnership with others, takes

part in auction or bidding, or becomes a partner in anyfirm or company or a cooperative organization while beingprohibited by law, shall be liable a punishment ofimprisonment for a term from three months to six monthsand a fine from ten thousand to fifty thousand rupees, andthe property earned in such a manner shall beconfiscated.

Provided that this section shall not be deemed tohave hindered to subscribe shares of a public limited

company called for public subscription.

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15. Punishment for Claiming False Designation:Whoever, either a public servant or any other personfalsely claims that he holds any position, power, capacityor facility, or enjoys such position, power, capacity orfacility of a public servant which he is not entitled to ordisplays any symbol, dress or mark relating to a positionof a public servant or wears or displays any objectresembling to such symbol, dress or mark with theintention of leading others to falsely believe that these arethe official symbols, dresses or marks of a public servant,shall be liable to a punishment of imprisonment for a termfrom one year to two years and with a fine from fiftythousand to one hundred thousand rupees, depending onthe degree of the offense committed.

16. Punishment for Giving False Particulars: (1)Whoever, with the intention of securing a position of apublic servant, or of being continue in such a position, orof securing any position or of getting any benefit orfacility, gives false particulars regarding his educationalqualifications, name, names of the father and grandfather,age, caste, surname, address, nationality or qualification,or gives false description in any other matters, or submits

false certificate relating thereto, shall be liable to apunishment of imprisonment for a term from six months toone year and of a fine from ten thousand to twentythousand rupees, depending on the degree of the offensecommitted.

(2) Whoever, being a public servant under the dutyof giving statement of his property under this Act or anyother prevailing laws, gives false statement either havingincreased or having concealed the actual property

belonging to or registered in his name or under his shareentitlement or belonging to his joint family, shall be liableto a punishment of imprisonment for a term from onemonth to three months and the fine not exceeding tenthousand rupees. The property, which has been concealedin such a manner, shall also be confiscated.

17. Punishment for Damaging Public Property: Whoever,being a public servant, misappropriates, causes loss to orabuses or causes others to do so, or destroys or uses for

personal purposes, while performing his duties pertainingto his office, shall be liable to be punished pursuant to

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Section 3 and the property which has beenmisappropriated, damaged, misused or destroyed orcaused others to do so, shall be recovered from him.

18. Punishment for Exerting Illegal Pressures: Whoever,either a public servant or any other person, compels anypublic servant or any other person to commit any offencepunishable murder this Act by exercise of fear or threat ofunder, kidnapping, taking away of property, of causingadverse impact on prestige or by exerting any other typeof illegal pressure, shall be liable to a punishment ofimprisonment for a term from four to eight years and afine from one hundred thousand to five hundred thousandrupees.

19. Punishment for Giving False Report: (1) Whoever,either a public servant or any other person authorized tocarry out auditing in a government body or in a publicinstitution, prepares auditing report with malafideintention having shown the facts not done or happened inthe transaction or having concealed the facts done orhappened, shall be liable to a punishment of imprisonmentfor a term from three months to one year and to a finefrom ten thousand rupees to fifty thousand rupees

depending on the degree of the offence committed.(2) Save as provided in sub-section (1), in case any

public servant or any other person under the duty ofsubmitting report having conducted a study orinvestigation on any subject in connection with functionsof government body or public institution, prepares reportwith malafide intention having shown the facts actuallynot done or happened or having concealed the factsactually done or happened, such persons shall be liable to

a punishment of imprisonment for a term from threemonths to one year and to the fine from ten thousandrupees to fifty thousand rupees depending on the degreeof the offence committed.

20. Property Deemed to be Acquired Illegally: (1) In casethe statement of property submitted in accordance withprevailing laws by a public servant deemed to have held apublic office in accordance with prevailing laws seems tobe incompatible or unnatural or in case he maintains an

incompatible or unsuitable lifestyle or it is proved that hehas given someone a donation, gift, grant, present or has

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lent money beyond his capacity, he shall prove thesources from which he has acquired such property and ifhe fails to do so, such property shall be deemed to havebeen acquired in an illegal manner.

(2) In case it has been proved that a public servanthas acquired property in an illegal manner as referred toin sub-section (1), he shall be liable to a punishment ofimprisonment for a term not exceeding two years as perthe amount of the property acquired in such a manner,and a fine according to the amount of property and theillegal property acquired in such a manner shall also beconfiscated.

21. Punishment for Committing Attempts: Exceptotherwise provided for in this chapter, whoever attemptsto commit an offense punishable under this Act shall beliable to half of the punishment to be imposed on thepublic servant or any other person committing suchoffences.

22. Punishment to Accomplices: Except otherwise providedelsewhere in this Act, the accomplices to any offensepunishable under this Act shall be liable to half of thepunishment to be imposed on the public servant or any

other person committing such offences.Provided that the accomplice who has given cash or

kind or made available any other type of benefit to thepublic servant or any other person committing an offenceor who has taken such benefit shall be liable to thepunishment as equal to the person committing theoffence.

23. Principal to be Deemed to have Committed theOffence in case a Corporate Body Commits Offence:

In case any firm, company or corporate body commits anyact that is deemed to be an offence under this chapter,the partners at the time of commission of the act in caseof a firm and the person acting as the principal official incase of a company or a corporate body shall be deemed tohave committed the offence.

Provided that in case it is proved that such act hasbeen committed prior to the appointment of the personacting as the principal official, the person who has

committed the act shall be deemed to have committedthe offence.

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Explanation: For the purpose of this Section, the "theperson acting as the principal official" means theChairman, Board Member, General Manager, ManagingDirector or the Official of a company or corporate bodyworking in the same capacity.

24. Additional Punishment : In case the offences under thischapter have been committed by an office bearer of aconstitutional organ or body to be nominated or appointedby His Majesty, officer belonging to the special class of HisMajesty's Government or officers of equivalent rank; Head,General Manager or officer of a public institution ofequivalent rank, such person shall be liable to thepunishment of imprisonment for a term of three years inaddition to the punishment prescribed for such offence.

25.Chapter - 3

Investigations, Inquiries and Filling of Cases ofCorruption

25. Investigations and Inquiries: (1) In case theinvestigating authority comes to know, through anyinformation, source or a complaint lodged by any person,that any person has committed or is going to commit

corruption, it shall initiate necessary investigations,inquiries and other actions in this regard.

(2) Notwithstanding anything contained in sub-Section (1), in case the investigating authority hasreceived an information from any source that any personhas committed or is going to commit corruption, suchauthority may take immediate actions including raid,seizure of documents or goods and materials or arrest ofperson.

26. Preliminary Inquiry: The investigating authority shall,upon having received a complaint or an information thatone has committed or is going to commit an offence underthis Act, initiate preliminary inquiry confidentially as maybe necessary.

27. Seeking Explanation: While conducting preliminaryinquiry pursuant to Section 26, in case the investigatingauthority is of the view that the information received isbased on facts, it may, having provided particulars

relating thereto, seek for comment or explanation fromthe concerned body or person as may be necessary.

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28. Powers of Investigating Authority: (1) Theinvestigating authority may, while conductinginvestigations and inquiries into offenses of corruptionunder this Chapter, exercise the following powers: -(a) To order a government body, public

institution, public servant or any other person to sendor to submit within a certain time any relevantdocument, documentary evidences or any otherthings before it;

(b) To conduct inquiry with, or torecord the statement of, the public servant or anyother person accused of corruption or the person towhom the investigating authority deems to havinginformation on the relevant facts;

(c) The investigating authority may,upon having taken explanation from or uponcompleting inquiry or recording the statement of apublic servant or any other person accused ofcorruption, release such person having executed abond from him to appear as and when required, orhaving required him to appear on the prescribed dateor, in case there is a reasonable cause to believe that

such public servant or person may disappear or therehas been a loss of an amount, the investigatingauthority may ask from him to submit a deposit orguarantee and require him to appear in theprescribed date or in case no deposit or guarantee isproduced, keep him in custody.(2) In case the investigating authority has sent a

letter having fixed a time limit to the concerned body,public servant or other person requiring to submit any

document or any other material or to provide informationon any matter or requiring a public servant or any otherperson to appear before it, it shall be done accordinglyand in case not done, it shall be as follows:

(a) In case the concerned government body orpublic institution does not submit such documentor material or does not provide information withinthe time prescribed, the investigating authoritymay send a letter to the concerned government

body or a public institution to take departmentalaction against the chief officer of the concerned

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government body or a public institution and incase such a letter is received, the concernedgovernment body or a public institution shall takeactions immediately.

(b) In case the concerned public servant or anyother person does not submit the document ormaterial or does not provide information or doesnot appear within the prescribed period, theinvestigating authority may impose a fine notexceeding one thousand rupees on such person.

(c) In case any government body, public institution,public servant or any other person does not do asrequired to do in writing by the investigatingauthority even after the departmental action orimposition of a fine pursuant to clauses (a) or (b),the investigating authority may issue arrestwarrant to get the chief officer of such body orinstitute or such public servant or other personappeared and get such document or materialproduced or acquired necessary information fromhim. In case the chief officer of a body orinstitution, public servant or any other person so

arrested does not submit such document ormaterial or does not give information relatingthereto, the investigating authority may order forkeeping him in custody for a period of up to sevendays.

(3) After the investigating authority's order fordepartmental action or payment of the fine pursuant tosub-section (2), in case the chief officer of the concernedbody or the concerned public servant or any other person

submits an application along with reasonable causes forbeing unable to do as required, and if the causes aresatisfactory, such order or order of fine may be cancelled.

(4) The investigating authority may conduct orcause to conduct a search at any place and seize anynecessary materials or document or Photostat copythereof while conducting the search. A receipt of thematerial or document so seized shall be given to theconcerned person.

29. Appointment or Designation of InvestigationOfficer: The investigation authority may, in order to

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conduct investigation and inquiries into the offensespunishable under this Act, appoint or designate any officerunder it or any government officer or any officer of apublic institution as the investigation officer.

Provided that, while appointing or designating anygovernment officer, or officer of a public institution as theinvestigating officer, consultation shall be held with HisMajesty's Government or with the Chief officer of theconcerned body, depending on circumstances.

30. Functions, Duties and Powers of the InvestigationOfficer: (1) Functions, duties and powers of theinvestigation officer shall be as follows:-

(a) To arrest the offender immediately and to takenecessary actions;

(b) To conduct or cause to conduct search at anyoffice, house, building, godown, vehicle or anyother places while conducting investigation andinquiries or while collecting evidences intooffenses punishable under this Act;

(c) To exercise other powers conferred on theinvestigation officer.

(2) While conducting investigation and inquiries into

offenses punishable under this Act, the investigationofficer shall have all such powers, duties, facilities andobligation as the police is having under the prevailing lawsin respect to recording statements of the accused persons,and preparing reports of public inquiries.

(3) While carrying out functions under sub-Section(2), the investigation officer may exercise the powersequivalent to the powers of a court to require the accusedto appear on prescribed date or to release him on deposit

or on guarantee or detain him in case he is unable tofurnish such deposit or guarantee as may be necessary.

31. Keeping Accused in Custody: (1) The investigationofficer may, in case there is sufficient ground that anyperson having been taken action for an offence under thisAct may lose or destroy any evidence or cause hindrancein the process of investigation or inquiries or causeadverse impact thereon, keep him in custody having givenhim an order of detention in accordance with the

prevailing laws.

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(2) In case the investigation or inquiries with regardto a person is not completed within twenty four hours andit appears that the investigation needs to be continuedhaving him detained, the investigation officer shall detainhim after having him presented before the authorityhearing the case and only after getting approval thereforfrom the authority hearing the case. While seeking forapproval with the authority hearing the case, the chargesagainst the person detained, its bases, the reason forcontinuing investigation having him detained and if hisstatement has been recorded, the contents of suchstatement shall be clearly stated.

(3) The person who has been presented before theauthority hearing the case for approval of detentionpursuant to sub-section (2) may submit an applicationwhile being presented there requesting for his physicalcheckup.

(4) In case a permission for detention is soughtpursuant to sub-section (2), the authority hearing the casemay, having considered whether or not the investigationhas been carried out in a satisfactory manner and if it isfound that the investigation is being carried out

satisfactorily, give approval for detention for a maximumperiod of six months not exceeding thirty days at once ortime and again.

(5) While seeking for a permission for extension oftime duration of detention pursuant to sub-section (4), theperson under the custody may, if he so wants, submit anapplication to the authority hearing the case mentioningthe reason or basis for his not being in detention anylonger.

32. Cooperation of Other Bodies May be Required: (1)The investigating authority may, in course ofinvestigations and inquiries into offenses punishable underthis Act, ask any government body or public institution orany person for cooperation as may be necessary and itshall be the duty of such body, institution or person tocooperate as and when required.

(2) The investigating authority may, in course ofconducting investigation and inquiries into offenses of

corruption under this Act, take the help of police forces aswell. While engaging police personnel in the work, the

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order issued by the investigating authority shall, withregard to the police, be equivalent to the order of theconcerned Inspector General of Police.

(3) The investigation officer may ask the policeofficer or police personnel subordinate to him for help. Itshall be the duty of the concerned police officer orpersonnel to assist him in case the investigation officerrequires such assistance.

(4) In case the investigating authority deems it fitthat because of the very nature of the offence underinvestigation and inquiry, it is necessary to consult anexpert engaged in any agency to be involved in suchinvestigation and inquiry; the investigating authority mayask the concerned body to make such expert available ona temporary assignment for a specific period of time; andin case such a demand is made, such body shall,notwithstanding anything contained in the prevailing laws,make available the concerned expert.

33. Automatic Suspension: In case any public servant isdetained pursuant to clause (c) of sub-section (1) ofSection 28, sub-section (3) of Section 30 and Section 31,he shall ipso facto be suspended until the period of

detention and if a case is filed against him pursuant toSection 36, he shall ipso facto be suspended unless anduntil the proceedings of the case is over.

34. Accepting Services: (1) The investigating authoritymay, while conducting investigation, inquiries and takingany other actions relating thereto, require services ofexperts of the concerned subject or of specializedagencies.

(2) The investigating authority shall, in order to get

the services referred to in sub-section (1), appoint theconcerned expert or specialized agency and whileappointing as such, the investigating authority shall haveto enter into an agreement having stated the functions tobe carried out by such expert or specialized agency, thepowers that may be exercised, the terms and conditionsto be fulfilled, the procedures and remuneration and otherbenefits which such expert or specialized agency isentitled to.

(3) In case the investigating authority is in need ofthe service of employees of His Majesty's Government or

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of a specialized agency, notwithstanding anythingcontained in the prevailing laws, such employees shall bedeputed for a period required by the investigatingauthority.

35. Keeping in Postponement: While inquiring andinvesting under this Act, in case it appears that thealleged offense could not be proved on the basis of thecollected evidences, the investigating authority may keepthe complaint in postponement having published an orderslip along with reasons thereof and in case of decision ofpostponement, the information thereof shall be given tothe accused person and the complainant.

Provided that nothing in this section shall be deemedto have prevented to investigate and re-inquire on suchcomplaint if any new evidence is found later on.

36. Filing of cases: In connection with an accusation ofcommission of corruption, in case there is a reasonablecause to believe that the accused has committed the saidoffence, the investigating authority shall file a case beforethe authority having powers to hear the case under theprevailing laws.

Chapter - 4

Provisions Relating to Prevention of Corruption37. National Vigilance Center: (1) His Majesty's

Government may establish a National Vigilance Centerunder the direct control and supervision of the PrimeMinister in order to effectively control corruption-orientedacts and to promote people's awareness againstcorruption.

(2) His Majesty's Government may designate anyspecial class officer of the civil service as the chief of the

center referred to in sub-Section (1), and there shall beother officials of the services of His Majesty's Governmentin the center as may be necessary.

38. Functions, Duties and Powers of the NationalVigilance Center: The National Vigilance Centerestablished under sub-Section (1) of Section 37 shall havefollowing functions, duties and powers:-

(a) To collect information on whether or not thefunctions to be carried out by the Ministries,

Departments, offices of His Majesty's Government

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and public institution are being regularly carriedout;

(b) To alert Ministries, Departments, Offices of HisMajesty's Government, or public institution in casethe functions to be carried out by them are not foundto have been carried out;

(c) To monitor the statement of property and incomegiven by persons assuming the office of publicresponsibility as per the prevailing laws;

(d) To make necessary provision for regular surveillance,surprise check and investigation in corruption proneplaces or works;

(e) To make necessary recommendations to HisMajesty's Government with regard to the policies,strategies and reformation on laws to be adopted forcorruption control;

(f) To make provision of a complaint box in theMinistries of His Majesty's Government, Departments,Offices or public institution;

(g) To provide any suggestion or direction to theconcerned bodies with the objective of preventingcorruption as may be necessary;

(h) To collect necessary description or informationconcerning corruption from the body or authorityworking for investigation into offenses of corruptionand to maintain them updated;

(i) To forward any information concerningcorruption received to it to the concernedbodies;

(j) To carry out or cause to carry out otherincidental functions with regard to

corruption control;(k) To carry out or cause to carry out other

functions prescribed by His Majesty'sGovernment.

Chapter - 5Miscellaneous

39. Statement May be Taken or Transaction or AccountMay be Freeze: (1) Notwithstanding anything containedin the existing law, if it appears from any source during

the course of investigation into offences of corruption thatthere has been financial transaction or operation of an

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account in the name of any person with any bank orfinancial institution within the country or in any foreigncountry, the investigating authority may order to freezesuch transaction or account. The concerned bank orfinancial institute shall freeze such transaction or accountin accordance with the order of the investigating authority.

Provided that in case such transaction or account tobe freeze is with a bank or financial institution in a foreigncountry, the investigation authority may cause to freezethe operation of transaction or account through thediplomatic channel.

(2) The investigating authority may impose a fine offifty thousand rupees in maximum to the chief of theconcerned bank or financial institution located in Nepalnot freezing transactions or accounts pursuant to sub-Section (1).

(3) The investigation authority may, if it deems fitin the course of investigation, according to the need, askfor the statement of property belonging to persons holdingan office of public responsibility or freeze such property.

40. Banning to Issue or Freezing Passport:Notwithstanding anything contained in the prevailing laws,

the investigating authority may, on the basis of the gravityof the offence, the condition, circumstances in which theaccused committed the offence, degree of the offence andthe punishment in case of conviction of the offence, issuean order to the concerned bodies for not issuing passportto any accused or for withholding it if it has been alreadyissued.

41. Restriction to Leave Places: In case an action has beentaken against any person under this Act, the investigating

authority may, on the basis of the gravity of the offence,the condition and circumstances in which the accusedcommitted the offence, the degree of the offence and thepunishment in case of conviction of the offence, issue anorder to any accused not to leave any place or not to goany particular place without the approval of theinvestigating authority.

42. Provision Relating to Service of Summons: (1)Notwithstanding anything contained in the existing law,

while servicing summon in the name a foreigner in anyoffence under this Act, the summon may be served to the

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office or representative of such person within the Kingdomof Nepal, if any, and service of summon in that mannershall be deemed to have duly made.

(2) In case there is no office or representativereferred to in sub-Section (1), the summon shall be servedto the main place of transactions, or to the address ofsuch person where he resides permanently, or to theaddress of correspondence given by such person inconnection with his business transaction through themeans of telex, fax or any other means of telecommunication in written form or through registeredpost, and the summon served in any of such mannersshall be deemed to have been duly made.

(3) Notwithstanding anything contained in sub-Sections (1) or (2), this Section shall not be deemed tohave hindered the service of summons according to theprovisions of a treaty in case there is a separate provisionfor service of summons in the name of persons living in aforeign country in any treaty to which His Majesty'sGovernment or the Kingdom of Nepal is a party.

43. Publication of Notice: Notwithstanding anythingcontained in the prevailing laws, in case it has been

reported that no notice could be served while sending anotice or servicing a summon in the name of any person inaccordance with this Act or other prevailing laws for notfinding the address of such person or for any otherreasons, a public notice shall be published least for twicein a national level newspaper (in case of a foreigner in aEnglish Daily) having given him/her a time limit of 30 daysand having given short description as to whether theinvestigation is underway or the case is already filed at

the authority hearing the case; and in case a notice hasbeen published in such a way, the notice shall be orsummon deemed to have been duly delivered or served tosuch person notwithstanding anything contained in theprevailing laws.

44. Obligations of government bodies and publicinstitutions: The chief of a government body and publicinstitution shall, in case any information has been receivedthat corruption has been committed at his office or any

other office under him, immediately take the relateddocuments or file under his custody and keep it safe, and

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upon having inquired with the persons and officials relatedto such subject and upon having known the reality, if thereappears any reason of commission of corruption, he shallforward such documents to the concerned body forinvestigation and inquiry.

45. Case May be Filed against Retired Person: Nothingin this Act shall be deemed to have prevented filling of acase against a retired public servant in connection withcommission of corruption having embezzled or causingloss to government or public property or the propertybelonging to an organization owned by His Majesty'sGovernment even after such public servant is retired fromthe service.

46. No Hindrance to Initiate Proceedings and FinalizeCase: Notwithstanding anything contained in theprevailing laws, there shall be no hindrance to initiateproceedings and finalize a case even if the accused ordefendant dies before or after a case under this Act isfiled.

47. Confiscation of Property: In case it is proved that anyperson has earned property having committed any actwhich is deemed to have committed corruption under this

Act or other prevailing laws and has kept such propertyand the property accrued therefrom in his own name or inthe name of anybody else such property shall beconfiscated.

Provided that, in case the ownership of such propertyis transferred to any person and in case the price of such aproperty is quoted, the transaction involving such amountshall be treated as a simple loan deed.

48. Order to Freeze Property of Foreigner: (1) In case

any foreigner who does not appear before theinvestigating authority in pursuance of a notice sent bythe investigating authority or summon served pursuant tosection 42 is having any property, entitlement, interest orconcern within the Kingdom of Nepal, the investigatingauthority may order to maintain a status quo with regardto them or not to allow to take such property, entitlement,interest or concern outside of King of Nepal unless anduntil such a person appears before the investigating

authority, and it shall be the duty of all concerned to abideby such an order.

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(2) The investigating authority may impose a fine ofone thousand rupees in maximum to the person who doesnot abide by the order made pursuant to sub- Section (1)and in case any type of loss or damage is caused to HisMajesty's Government or a public institution because ofnon observance of such an order, such loss shall also berecovered from him.

49. Punishment for Filing False Complaint: In case it isfound that any person has filed a false complaint againstany public servant or person without having anyreasonable ground for filing a complaint and with theintention of causing any type of loss, damage orharassment, the investigating authority may impose a finenot exceeding five thousand rupees on him.

50. Provision Relating to Statement of Property: (1)Whoever joins a public office shall, within sixty days fromthe date of joining the public office, and whoever isengaged in a public office on the date of commencementof this section shall, within sixty days from the date ofcommencement of this Act, and thereafter within sixtydays from the date of completion of each fiscal year,submit the up dated statement of property in his name or

in the name of his family members along with the sourcesor evidence thereof to the body or authority prescribed byHis Majesty's Government having published a notificationin the Nepal Gazette.

(2) In case the person assuming a public office whois unable to submit the statement of property within thetime limit referred to in sub-section (1) makes a requestfor extension of the time limit having stated therein thereasons for his not being able to submit such statement,

the concerned body or authority may extend the time limitfor a period of thirty days in maximum.

(3) The person assuming a public office who doesnot submit the statement of property within the time limitextended pursuant to sub-section (2) shall be liable to afine of five thousand rupees and the concerned body orofficial may investigate having suspected that there isillegal property in his and his family member's names.

(4) The statement of property submitted under this

section shall be confidential.

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case may be filed against him again notwithstandinganything contained in this Act or in other prevailing laws.

56. No Action to be Taken: Notwithstanding anythingcontained in the prevailing laws, no action shall be takenagainst a public servant for disclosing confidentialityunder the law relating to the terms and condition of hisservice who gives information for taking legal action incase of corruption committed or going to be committed orfor preventing to be committed.

57. Delegation of Power: (1) The investigating authoritymay, by publication of a notification in the Nepal Gazette,delegate its all or any power conferred on it by this Act toany of the His Majesty's Government's gazetted levelofficers.

(2) While delegating power pursuant to sub-Section(1), the territorial jurisdiction for the powers to beexercised by such officer shall be as prescribed in suchnotification.

(3) The officer exercising the power conferred onhim under sub-Section (1) shall, for that purpose, beresponsible to the investigating authority.

58. Provision Relating to Rewards: The investigating

authority may give an appropriate reward to the personassisting it in connection with inquires, investigation orcollection of evidences in the offences punishable underthis Act.

59. Special Provisions Relating to Cases of Corruption:Notwithstanding anything contained in the prevailing laws,it shall be as follows in the following matters with regardto the cases filed under this Act:-(a) In case any public servant or any other person

has, while committing or in connection withcommitting an act that is deemed to be an offenceunder other prevailing laws, there shall be nohindrance to file separate case in accordance withother prevailing laws.

(b) In case there has been adverse impact causedon the rights, property or interests of any personwhile committing or in connection with committingan act that is deemed to be an offence under this Act

by a public servant or any other person, there shall

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be no hindrance for such person to file a separatecase.

(c) In cases where a case has been filed against aperson for an offence under this Act and it appearslater on, after having examined the evidences, thatthe case must be filed against other person as well,there shall be no hindrance to file a separate chargesheet against such person.

(d) Nothing shall be deemed to prevent filling of aseparate case against any public servant or personfor offenses to be liable under this Act, even if theseparate case has been already filed against suchperson in order to recover injury and damages madeby such person to His Majesty's Government orpublic institution illegally;

(e) In case where a case has been filed under thisAct against any public servant or other person, thereshall be no hindrance to file a case under this Act orthe case filed shall not be dismissed merely for thereason that there is a legal provision of recovery ofthe loss caused to His Majesty's Government or apublic institution from such public servant or other

person.(f) No cases filed under this Act shall be withdrawn

or compromised.60. Informer and his details to be kept confidential:The

name or address of an informer providing information thatan offence under this Act has been committed or going tobe committed shall be kept confidential in case he sorequests.

61. Unclaimed goods to be entitled to His Majesty's

Government: (1) In case no owner of the goods relatedto the offence punishable under this Act is traced, theinvestigating authority shall publish a public noticerequiring the claimant, if any, of the goods so seized toclaim the goods, within a time limit of 35 days.

(2) In case no claim is made within the time limitreferred to in sub-section (1) or even if the claim is madebut in absence of proof the claim is not tenable, suchgoods shall be the property of His Majesty's Government

having treated such goods as unclaimed goods.

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62. Goods may be sold: (1) In case it appears that anygoods seized in connection with an offence punishableunder this Act would be damaged or broken for storing fora long time due to rust or for any other reason or would berotten or damaged or price of such goods would go downfor being old or would be useless or it could not be storedor maintained for lack of space, such goods may be soldhaving completed the process thereof in accordance withthe prevailing laws.

(2) The amount received from the sale pursuant tosub-section (1) shall be deposited to security depositaccounts. In case it has been decided that such goods hasto be given to the concerned owner, he shall be entitledonly to the amount received from the sale.

63. No Hindrance to Exercise Powers: Nothing in this Actshall be deemed to have hindered any authority or officerto exercise powers under other prevailing laws with regardto investigation, inquires, other actions and filing or casesrelating to corruption.

64. Power to Frame Rules: His Majesty's Government mayframe necessary Rules for implementing the objectives ofthis Act.

65. Amendment, Repeal and Saving: (1)The followingSections of the Revenue (Investigation and Control) Act,2052 have been repealed,-

(a) Clause (c) of Section 2;(b) Sub-Section (2) of Section 6;(c) The terms "or employee" appearing in sub-Section (4) of

Section 9;(d) Sub-Section (2) of Section 18;(e) Sub-Section (2) of Section 21;

(f) Sub-Section (2) of Section 23;(g) The terms "or corruption" frequently used in place to

place;(h) Section 5, chapter 4 and Section 25.

(2) The Prevention of Corruption Act, 2017 has beenrepealed.(3) All actions taken and proceedings initiated under thePrevention of Corruption Act, 2017 shall be deemed tohave been taken or initiated under this Act.