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DPAs: A Solution for India's Corporate Corruption?

· 2 min read
Alexander Petrov
Financial Crime Investigator

Introduction​

India's corporate landscape has been tainted by corruption since its independence. In this article, we explore the possibility of implementing Deferred Prosecution Agreements (DPAs) in India as a means to combat corporate corruption.

Challenges in Combating Corporate Corruption in India​

  • Complex financial crimes involving bribery, corruption, tax fraud, market manipulation, insider trading, or money laundering
  • Time-consuming and arduous to establish and prosecute, especially involving international corporations

The Case for Deferred Prosecution Agreements (DPAs)​

The Success of DPAs in the UK​

  • Faster judicial process
  • High-profile corporate corruption cases settlement
  • Restoration of public trust in the judicial system

What are Deferred Prosecution Agreements (DPAs)?​

  • Agreements between a prosecutor and a corporation
  • Suspend prosecution for a defined period
  • Requires the corporation to make reparations for the criminal offenses

Use of DPAs in the US and Other Countries​

  • US: Department of Justice and Securities and Exchange Commission
  • UK: Independent judge approval for public interest and justice
  • France: Improving their track record on prosecuting bribery cases
  • Australia: Consultation paper discussing DPAs

Negative Impact of Corporate Corruption​

  • Negatively impacts growth, development, and creates monetary inequality
  • Underprivileged affected the most

India's Corruption Scourge​

  • Long-winded and complicated judicial process
  • Average court proceeding taking years
  • Public demand to eradicate corruption

Benefits of Deferred Prosecution Agreements (DPAs) in India​

  • More effective solution to prosecute corporate criminals
  • Reducing the burden on an overworked judicial system
  • Restoring public faith in the system

Considerations for Implementing DPAs in India​

  • Establishment of national DPA system
  • Availability to all companies
  • Transparency and judicial scrutiny

Conclusion​

Deferred Prosecution Agreements (DPAs) can significantly impact the elimination of corporate corruption in India. As the demand for corruption eradication grows, DPAs provide a more accountable and efficient means of prosecuting corporate crimes and offering redress to affected parties.

About the Authors​

  • Percival Billimoria: Partner, Cyril Amarchand Mangaldas
  • Vivan Marwaha: Researcher, Observer Research Foundation
  • Jhoomar Mehta: Researcher, Observer Research Foundation

Contact Information​

Email: contactus@orfonline.org Website: www.orfonline.org