Prevention of Corruption Act


    Prevention of Corruption Act

    The Prevention of Corruption Act 1988 (as amended in 2018) (‘PCA’) consolidates the law on prevention of corruption in government agencies and public sector business in India. 

    Last Updated: July 30, 2019

  • Under Section 9 of the PCA, a commercial organisation i.e. a body, partnership, or association of persons who carry out business in India or were formed in India shall be punishable with a fine if any person associated with the organisation gives or promises to give undue advantage to a public servant, intending to obtain or retain business for or advantage in the conduct of the business of the organisation.  

    Furthermore, the PCA specifies that a person is associated with the commercial organisation if he/she performs services for or on the organisation’s behalf, irrespective of whether he/she is an employee, agent or subsidiary of the organisation.  

    Under Section 10 of the PCA, where an offence under section 9 is committed by a commercial organisation, and such offence is proved in the court to have been committed with the consent or connivance of any director, manager, secretary or other officer shall be of the commercial organisation, such director, manager, secretary or other officer shall be guilty of the offence and shall be liable to be proceeded against and shall be punishable with 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.

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