Bring guidelines for commercial bodies to prevent bribery: Law panel

 With India bidding big ticket investments, the Law Commission on Friday recommended mandatory norms by government for commercial organisations to prevent bribery.

PTI| Updated: Feb 14, 2015, 00:35 AM IST

New Delhi: With India bidding big ticket investments, the Law Commission on Friday recommended mandatory norms by government for commercial organisations to prevent bribery.

Recommending amendments to the Prevention of Corruption Amendment Bill, 2013, the law panel proposed introducing a "statutory obligation" on the government to publish guidance about the procedures that commercial organisations can take to put in place "adequate systems" to prevent bribery to public servants.

It said in Section 9, a new sub-clause can be added to make it clear that "the central government shall prescribe and publish guidelines about the adequate procedures, which can be put in place by commercial organisations to prevent persons associated with them from bribing any person, being or expecting to be, a public servant".

It said the guidelines shall be prescribed and published by the Centre "after following a consultation process in which the views of all the interested stakeholders are obtained".

Section 10 of the bill pending in the Rajya Sabha extends the liability of the commercial organisation to every person who is in charge of and is responsible to the organisation for the conduct of its business through a deeming provision.

The panel in its latest report submitted to the Law Ministry has also recommended amending Section 10.

The revised Section 10 now states that if an offence by a commercial organisation is proved to have been committed with the consent or connivance of any director, manager, secretary or other officer of the commercial organisation, then such person shall be guilty of the offence and will be liable to be proceeded against and punishable with imprisonment which shall not be less than three years but which may extend to seven years.