White-Collar Crime Laws in India
India has established comprehensive laws to combat white-collar crime, ensuring that individuals and entities involved in corrupt activities are held accountable. This article provides an overview of key legislation, including the Prevention of Corruption Act (PCA) and other relevant laws.
Prevention of Corruption Act (PCA)
The PCA is a pivotal law in India’s fight against corruption. It defines corruption as “any gratification other than legal remuneration” and covers public servants, deemed public servants, and private individuals.
Key Provisions:
- Corruption: attracts imprisonment for a period of six months to five years, plus a fine
- Gratification: results in imprisonment between three and seven years, plus a fine
- Use of personal influence: results in imprisonment between six months and five years, plus a fine
Other Relevant Legislation
In addition to the PCA, other laws address specific aspects of white-collar crime.
Key Provisions:
- Fraud:
- Defined as any act, omission, concealment of fact or abuse of position committed with the intent to deceive, gain undue advantage, or injure interests
- Imprisonment between six months and 10 years, and a fine of at least the amount involved in the fraud up to three times that amount
- Criminal Breach of Trust:
- Defined as misappropriation or dishonest use of property by an individual entrusted with that property
- Imprisonment for a period of up to three years, plus a fine
- For public servants, bankers, merchants, or agents, imprisonment for a term of up to 10 years, plus a fine
- Cheating:
- Defined as deceit of an individual by inducing any person to carry out or omit to carry out any act that the individual would not have done otherwise
- Imprisonment for a period of up to one year, plus a fine
Extraterritorial Laws
India is subject to the application of extraterritorial anti-corruption laws, including the FCPA and the UKBA.
Key Provisions:
- Indian entities with US parent companies or that form part of a group of companies to whom the FCPA is applicable must comply with the FCPA
Conclusion
India’s commitment to combating financial and corporate crimes is evident in its comprehensive laws. Businesses operating in India can effectively tackle these challenges by prioritizing the creation of a robust compliance program backed with proactive risk management strategies.