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Sec 9, Prevention of Corruption Act: bribing public servant by organisation

Section 9 (Offence relating to bribing a public servant by a commercial organisation) under Chapter III (Offences and Penalties) of the Prevention of Corruption Act 1988

❝(1) Where an offence under this Act has been committed by a commercial organisation, such organisation shall be punishable with fine, if any person associated with such commercial organisation gives or promises to give any undue advantage to a public servant intending—
 (a) to obtain or retain business for such commercial organisation; or
 (b) to obtain or retain an advantage in the conduct of business for such commercial organisation:
 Provided that it shall be a defence for the commercial organisation to prove that it had in place adequate procedures in compliance of such guidelines as may be prescribed to prevent persons associated with it from undertaking such conduct.

(2) For the purposes of this section, a person is said to give or promise to give any undue advantage to a public servant, if he is alleged to have committed the offence under section 8, whether or not such person has been prosecuted for such offence.

(3) For the purposes of section 8 and this section,—

(a) “commercial organisation” means—
 (i) a body which is incorporated in India and which carries on a business, whether in India or outside India;
 (ii) any other body which is incorporated outside India and which carries on a business, or part of a business, in any part of India;
 (iii) a partnership firm or any association of persons formed in India and which carries on a business whether in India or outside India; or
 (iv) any other partnership or association of persons which is formed outside India and which carries on a business, or part of a business, in any part of India;

(b) “business” includes a trade or profession or providing service;

(c) a person is said to be associated with the commercial organisation, if such person performs services for or on behalf of the commercial organisation irrespective of any promise to give or giving of any undue advantage which constitutes an offence under sub-section (1).

Explanation 1.—The capacity in which the person performs services for or on behalf of the commercial organisation shall not matter irrespective of whether such person is employee or agent or subsidiary of such commercial organisation.

Explanation 2.—Whether or not the person is a person who performs services for or on behalf of the commercial organisation is to be determined by reference to all the relevant circumstances and not merely by reference to the nature of the relationship between such person and the commercial organisation.

Explanation 3.—If the person is an employee of the commercial organisation, it shall be presumed unless the contrary is proved that such person is a person who has performed services for or on behalf of the commercial organisation.

(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), the offence under sections 7A, 8 and this section shall be cognizable.

(5) The Central Government shall, in consultation with the concerned stakeholders including departments and with a view to preventing persons associated with commercial organisations from bribing any person, being a public servant, prescribe such guidelines as may be considered necessary which can be put in place for compliance by such organisations.❞



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Notes:

The Prevention of Corruption Act, 1988 was amended by the:
 - the Lokpal and Lokayuktas Act, 2013 (Act No. 01 of 2014);
 - the Prevention of Corruption (Amendment) Act, 2018 (Act No. 16 of 2018).

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