Maharishi Arvind Institute of

Engineering And Technology,

Jaipur
ANTI CORRUPTION
Divaksh Jain
Sec ‘D’, MAIET Jaipur

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 MEETING AGENDA
• INTRODUCTION OF CORRUPTION
• ANTI CORRUPTION LANDSCAPE IN INDIA
• NATURE OF CORRUPTION IN INDIA
• CAUSES OF CORRUPTION IN INDIA
• AREAS OF RISK FOR US COMPANIES
• FAPA PROCEEDINGS IN INDIA
• TRENDS IN INDIA
• ANTI CORRUPTION LAWS
• INITIATIVES TO CURB CORRUPTION
• INVESTIGATION AGENCIES

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 ANTI CORRUPTION
LANDSCAPE IN INDIA
• Nature and causes of corruption in India
• Areas of risk for US companies
• FCPA proceedings involving bribery in India
• Trends in India
• Anti-corruption laws
• Investigation agencies dealing with corruption
• Efforts to curb corruption
• Dealing with extortionist government officials

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 NATURE OF CORRUPTION
IN INDIA
• Encountered by public in day to day
dealings
• Reported demands:
− 50% (under $ 100)
− 84% (under $ 5000)

• General Mindset: bribe giver is victim

• Motivation: avoid harm or disadvantage,
rather than for gaining an advantage

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 CAUSES OF CORRUPTION IN
INDIA
As identified by Santhanam Committee
• Administrative delays
• Excessive burden of regulatory functions on
government
• Government officials vested with personal
discretion
• Complex procedures in matters of importance to
citizens

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 CAUSES contd…
As identified by Scholarly Literature
• Political patronage. Corruption in the political
leadership
• Administrative labyrinth. Cumbersome and dilatory
administrative procedures
• Lack of punishment. Corruption cases handled in a
casual and clumsy manner
• Social environment. Corruption accepted in the social
psyche and behavior

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 AREAS OF RISK FOR U S
COMPANIES
• Culture of acceptance of corruption
• Excessive discretion in exercise of
governmental authority
• Pervasiveness of public sector in commerce
• Compliance challenges due to legal and
regulatory ambiguity and inconsistencies
• Cash oriented economy

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FCPA PROCEEDINGS IN INDIA
• Ten cases involving bribery in India
− 4 by DOJ Fraud Section
− 6 by the SEC
• Many involve conduct of an Indian
subsidiary
• Highest monetary penalty, $ 10 million
• Disgorgement of profits and interest
• Imprisonment (5 yrs) sought in one case

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 TRENDS IN INDIA
• Transparency in government
• Increased public awareness of rights
• Emphasis on legal and regulatory compliance
• Movement away from business model relying
on undue influence
• Increased use of technology in dealing with
government (e-governance)
• Contract focus vs. relationship focus in business
• Implementation of global best practices
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 ANTI CORRUPTION LAWS
• Prevention of Corruption Act, 1988
− Prohibits the taking of a bribe or other gratification
by a “public servant”
− “public servant” expansively defined
− Central Vigilance Commission (CVC) charged with
inquiring into and investigating offenses
− Prosecution requires prior government approval
− Imprisonment and monetary fines

• State Lokayukta Acts and Rules

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 INVESTIGATION AGENCIES
• Central Vigilance Commission (CVC)
• Central Vigilance Officer (CVO) at
undertaking level
• Central Bureau of Investigation (CBI)
• Enforcement Directorate

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 INITIATIVES TO CURB
CORRUPTION
• Right to Information Act, 2005
• Government Whistleblower Resolution
• National e-Governance Plan, May 2006
• Transparency Efforts in Public Procurement
− Integrity pact between government department
and each bidder
− E-procurement, listed as initiatives under
National e–Governance Plan
− CVC guidelines Preventive Vigilance in Public
Procurement
− Defence Procurement Policy

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 DEALING WITH
EXTORTIONIST DEMAND
• Positive Deviance Approach
− Have the courage to say NO and stand by it
− Written policy not to engage in bribery
− Strict compliance with legal and regulatory
requirements
− Make representation to higher authorities
− Encourage and implement E-governance
− Reward ethical behavior within government

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 THANK YOU

DIVAKSH JAIN
SEC D & ROLL NO 39
MAIET, JAIPUR

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