Title: “Deferred Prosecution Agreements: A Potential Solution to Corporate Corruption in India”
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