1

AS PASSED BY THE RAJYA SABHA

ON THE 19TH JULY, 2018

Bill No. LIII-C of 2013

THE PREVENTION OF CORRUPTION (AMENDMENT) BILL, 2018

(AS P ASSED BY THE RAJYA S ABHA)
A

BILL
further to amend the Prevention of Corruption Act, 1988.
BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:—
1. (1) This Act may be called the Prevention of Corruption (Amendment) Act, 2018. Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.
49 of 1988. 5 2. In the Prevention of Corruption Act, 1988 (hereinafter referred to as the principal Amendment of
Act), in section 2,— section 2.

(i) after clause (a), the following clause shall be inserted, namely:—
‘(aa) ‘‘prescribed’’ means prescribed by rules made under this Act and the
expression ‘‘prescribe’’ shall be construed accordingly;’;
10 (ii) after clause (c), the following clause shall be inserted, namely:—
‘(d) “undue advantage” means any gratification whatever, other than legal
remuneration.
Explanation.—For the purposes of this clause,—
(a) the word “gratification” is not limited to pecuniary gratifications or to
15 gratifications estimable in money;
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(b) the expression “legal remuneration” is not restricted to remuneration

paid to a public servant, but includes all remuneration which he is permitted by
the Government or the organisation, which he serves, to receive.’.
Amendment 3. In section 4 of the principal Act, for sub-section (4), the following sub-section shall
of section 4. 5
be substituted, namely:—
“(4) Notwithstanding anything contained in the Code of Criminal Procedure,
1973, the trial of an offence shall be held, as far as practicable, on day-to-day basis and
an endeavour shall be made to ensure that the said trial is concluded within a period
of two years:
Provided that where the trial is not concluded within the said period, the special 10
Judge shall record the reasons for not having done so:
Provided further that the said period may be extended by such further period,
for the reasons to be recorded in writing but not exceeding six months at a time; so,
however, that the said period together wiht such extended period shall not exceed
ordinarily four years in aggregate.’’ 15

Substitution of 4. For sections 7, 8, 9 and 10 of the principal Act, the following sections shall be
new sections substituted, namely:—
for sections 7,
8, 9 and 10.

Offence 7. Any public servant who,—

relating to
public servant (a) obtains or accepts or attempts to obtain from any person, an undue advantage,
being bribed. with the intention to perform or cause performance of public duty improperly or 20
dishonestly or to forbear or cause forbearance to perform such duty either by himself
or by another public servant; or’’.

(b) obtains or accepts or attempts to obtain, an undue advantage from any

person as a reward for the improper or dishonest performance of a public duty or for
forbearing to perform such duty either by himself or another public servant; or; 25

(c) performs or induces another public servant to perform improperly or

dishonestly a public duty or to forbear performance of such duty in ancitipation of or
in consequence of accepting an undue advantage from any person,’’.

shall be punishable, with imprisonment for a term which shall not be less than three
years but which may extend to seven years and shall also be liable to fine. 30

Explanation 1.—For the purpose of this section, the obtaining, accepting, or

the attempting to obtain an undue advantage shall itself constitutes an offence even if
the performance of a public duty by public servant, is not or has not been improper.

Illustration.—A public servant, ‘S’ asks a person, ‘P’ to give him an amount of
five thousand rupees to process his routine ration card application on time. 'S' is 35
guilty of an offence under this section.

Explanation 2.—For the purpose of this section,—

(i) the expressions “obtains” or “accepts” or “attempts to obtain” shall

cover cases where a person being a public servant, obtains or “accepts” or
attempts to obtain, any undue advantage for himself or for another person, by 40
abusing his position as a public servant or by using his personal influence over
another public servant; or by any other corrupt or illegal means;

(ii) it shall be immaterial whether such person being a public servant

obtains or accepts, or attempts to obtain the advantage directly or through a
third party. 45
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‘‘7A. Whoever accepts or obtains or attempts to obtain from another person for Taking undue
himself or for any other person any undue advantage of a motive or reward to induce a advantage to
influence
public servant, by corrupt or illegal means or by exercise of his personal influence to public servant
perform or to cause performance of a public duty improperly or dishonestly or to forbear by corrupt or
5 or to cause to forbear such public duty by such public servant or by another public illegal means
servant, shall be punishable with imprisonment for a term which shall not be less than or by exercise
of personal
three years but which may extend to seven years and shall also be liable to fine.’’. influence.
8. (1) Any person who gives or promises to give an undue advantage to another Offence
person or persons, with intention— relating to
bribing of a
10 (i) to induce a public servant to perform improperly a public duty; or public
servant.
(ii) to reward such public servant for the improper (ii) to reward such public
servant for the improper performance of public duty;
shall be punishable with imprisonment for a term which may extend to seven years or
with fine or with both:
15 Provided that the provisions of this section shall not apply where a person is compelled
to give such undue advantage:
Provided further that the person so compelled shall report the matter to the law
enforcement authority or investigating agency within a period of seven days from the date
of giving such undue advantage:
20 Provided also that when the offence under this section has been committeed by
commercial organisation, such commercial organisations shall be punishable with fine.
Illustration.—A person, ‘P’ gives a public servant, ‘S’ an amount of ten thousand
rupees to ensure that he is granted a license, over all the other bidders. ‘P’ is guilty of an
offence under this sub-section.
25 Explanation.—It shall be immaterial whether the person to whom an undue advantage
is given or promised to be given is the same person as the person who is to perform, or has
performed, the public duty concerned, and, it shall also be immaterial whether such undue
advantage is given or promised to be given by the person directly or through a third party.
(2) Nothing in sub-section (1) shall apply to a person, if that person, after informing
30 a law enforcement authority or investigating agency, gives or promises to give any undue
advantage to another person in order to assist such law enforcement authority or
investigating agency in its investigation of the offence alleged against the later.
9. (1) Where an offence under this Act has been committed by a commercial organisation, Offence
such organisation shall be punishable with fine, if any person associated with such commercial relating to
bribing a
35 organisations gives or promises to give any undue advantage to a public servant intending— public servant
(a) to obtain or retain business for such commercial organisation; or by a
commercial
(b) to obtain or retain an advantage in the conduct of business for such commercial organisation.
organisation:
Provided that it shall be a defence for the commercial organisation to prove that it had
40 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 the person has been prosecuted for such offence.
45 (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;
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(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 5
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 constitute an offence 10
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 15
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 20
services for or on behalf of the commercial organisation.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the 2 of 1974.
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 25
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.
Person in 10. Where an offence under section 9 is committed by a commercial organisation,
charge of
commercial and such offence is proved in the court to have been committed with the consent or connivance
organisation of any director, manager, secretary or other officer shall be of the commercial organisation, 30
to be guilty of such director, manager, secretary or other officer shall be guilty of the offence and shall be
offence. liable to be proceeded against and shall be punishable with imprisonment for a term which
shall not be less than three years but which may extend to seven years and shall also be
liable to fine.
Explanation.—For the purposes of this section, ‘‘director’’, in relation to a firm means 35
a partner in the firm.’’
Amendment 5. In section 11 of the principal Act,—
of section 11.
(i) in the marginal heading, for the words ‘‘valuable thing’’, the words ‘‘undue
advantage’’ shall be substituted;
(ii) the words ‘‘or agrees to accept’’ shall be omitted; 40

(iii) for the words ‘‘valuable thing’’, the words ‘‘undue advantage’’ shall be
substituted;
(iv) for the words ‘‘official functions’’, the words ‘‘official functions or public
duty’’ shall be substituted.’.
Substitution of 6. For section 12 of the principal Act, the following section shall be substituted, 45
new section
for section 12.
namely:—
 5

“12. Whoever abets any offence punishable under this Act, whether or not that Punishment
offence is committed in consequence of that abetment, shall be punishable with for abetment
of offences.
imprisonment for a term which shall be not less than three years, but which may extend
to seven years and shall also be liable to fine.”.
7. In section 13 of the principal Act, for sub-section (1), the following shall be substituted, Amendment
5
of section 13.
namely:—
(1) A public servant is said to commit the offence of criminal misconduct,—
(a) if he dishonestly or fraudulently misappropriates or otherwise converts
for his own use any property entrusted to him or any property under his control
10 as a public servant or allows any other person so to do; or
(b) if he intentionally enriches himself illicitly during the period of his
office.
Explanation 1.—A person shall be presumed to have intentionally enriched himself
illicitly if he or any person on his behalf, is in possession of or has, at any time during the
15 period of his office, been in possession of pecuniary resources or property disproportionate
to his known sources of income which the public servant cannot satisfactorily account for.
Explanation 2.—The expression ‘‘known sources of income’’ means income received
from any lawful sources.’.
8. For section 14 of the principal Act, the following section shall be substituted, Substitution of
20 namely:— new section
for section 14.
“14. Whoever convicted of an offence under this Act subsequently commits an Punishment
offence punishable under this Act, shall be punishable with imprisonment for a term for habitual
which shall be not less than five years but which may extend to ten years and shall also offender.
be liable to fine.”.
25
9. In Section 15 of the principal Act, for the words, brackets and letters “clause (c) or Amendment
clause (d)”, the word, brackets, and letter “clause (a)” shall be substituted. of section 15.

10. In section 16 of the principal Act,— Amendment of

section 16.
(a) for the words, brackets and figures, “sub-section (2) of section 13 or
section 14”, the words, figures and brackets “section 7 or section 8 or section 9 or
30 section 10 or section 11 or sub-section (2) of section 13 or section 14 or section 15”
shall be substituted;
(b) for the word, brackets and letter “clause (e)” the word, brackets and letter
“clause (b)” shall be substituted.
11. In section 17 of the principal Act, in the second proviso, for the words, brackets, Amendment of
35 letter and figure “clause (e) of sub-section (1)”, the words, brackets, letter and figure section 17.
“clause (b) of sub-section (1)” shall be substituted.
12. After section 17 of the principal Act, the following section shall be inserted, Insertion of
namely:— new section
17A.
“17A. (1) No police officer shall conduct any enquiry or inquiry or investigation Enquiry or
40 into any offence alleged to have been committed by a public servant under this Act, inquiry
where the alleged offence is relatable to any recommendation made or decision taken investigation
of offences
by such public servant in discharge of his official functions or duties, without the relatable to
previous approval— recommendations
(a) in the case of a person who is or was employed, at the time when the made or
45 offence was alleged to have been committed, in connection with the affairs of the decision taken
by public
Union, of that Government;
servant in
(b) in the case of a person who is or was employed, at the time when the discharge of
offence was alleged to have been committed, in connection with the affairs of a official
functions or
State, of that Government;
duties.
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(c) in the case of any other person, of the authority competent to remove
him from his office, at the time when the offence was alleged to have been 1 of 2014.
committed:
Provided that no such approval shall be necessary for cases involving arrest of a
person on the spot on the charge of accepting or attempting to accept any undue advantage 5
for himself or for any other person:
Provided further that the concerned authority shall convey its decision under this
section within a period of three months, which may, for reasons to be recorded in writing by
such authority, be extended by a further period of one month.’’.
Insertion of 13. After Chapter IV of the principal Act, the following Chapter shall be inserted, 10
new Chapter namely:—
IVA.
‘CHAPTER IV A
ATTACHMENT AND FORFEITURE OF PROPERTY
Provisions of
18A. (1) Save as otherwise provided under the Prevention of Money Laundering
Criminal Law
Amendment Act, 2002, the provisions of the Criminal Law Amendment Ordinance, 1944 shall, as 15 15 of 2003.
Ordinance, far as may be, apply to the attachment, administration of attached property and execution Ord. 38 of
1944 to apply of order of attachment or confiscation of money or property procured by means of an 1944.
to attachment
offence under this Act.
under this Act.
(2) For the purposes of this Act, the provisions of the Criminal Law Amendment
Ordinance, 1944 shall have effect, subject to the modification that the references to 20 Ord. 38 of
“District Judge” shall be construed as references to “Special Judge”.’. 1944.
Amendment of 14. In section 19 of the principal Act, in sub-section (1),—
section 19.
(i) for the words and figures “sections 7, 10, 11, 13 and 15”, the words and figures
"sections 7, 11, 13 and 15" shall be substitued;
(ii) in clause (a), for the words "who is employed", the words “who is employed, 25
or as the case may be, was at the time of commission of the alleged offence employed”
shall be substituted;
(iii) in clause (b), for the words “who is employed”, the words “who is employed,
or as the case may be, was at the time of commission of the alleged offence employed”
shall be substituted; 30
(iv) after clause (c), the following shall be inserted, namely:—
“Provided that no request can be made, by a person other than a police officer or
an officer of an investigation agency or other law enforcement authority, to the
appropriate Government or competent authority, as the case may be, for the previous
sanction of such Government or authority for taking cognizance by the court of any of 35
the offences specified in this sub-section, unless—
(i) such person has filed a complaint in a competent court about the alleged
offences for which the public servant is sought to be prosecuted; and
(ii) the court has not dismissed the complaint under section 203 of the
Code of Criminal Procedure, 1973 and directed the complainant to obtain the 40
sanction for prosecution against the public servant for further proceeding:
Provided further that in the case of request from the person other than a police officer
or an officer of an investigation agency or other law enforcement authority, the appropriate
Government or competent authority shall not accord sanction to prosecute a public servant
without providing an opportunity of being heard to the concerned public servant: 45

Provided also that the appropriate Government or any comptent authority shall, after
the receipt of the proposal requiring sanction for prosecution of a public servant under this
sub-section, endeavour to convey the decision on such proposal within a period of three
months from the date of its receipt:
 7

Provided also that in case where, for the purpose of grant of sanction for prosecution,
legal consultation is required, such period may, for the reasons to be recorded in writing, be
extended by a further period of one month:
Provided also that the Central Government may, for the purpose of sanction for
5 prosecution of a public servant, presecribed such guidelines as it considers necessary.
Explanation.—For the purposes of sub-section (1), the expression "public servant"
includes such person—
(a) who has ceased to hold the office during which the offence is alleged to have been
committed; or
10 (b) who has ceased to hold the office during which the offence is alleged to have been
committed and is holding an office other than the office during which the offence is alleged
to have been committed.".

15. For section 20 of the principal Act, the following section shall be substituted, Substitution of
namely:— new section for
section 20.
15 ‘‘20. Where, in any trial of an offence punishable under section 7 or under Presumption
section 11, it is proved that a public servant accused of an offence has accepted or where public
servant
obtained or attempted to obtain for himself, or for any other person, any undue
accepts any
advantage from any person, it shall be presumed, unless the contrary is proved, that undue
he accepted or obtained or attempted to obtain that undue advantage, as a motive or advantage.
20 reward under section 7 for performing or to cause performance of a public duty
imporperly or dishonestly either by himself or by another public servant or, as the case
may be, any undue advantage without consideration or for a consideration which he
knows to be inadequate under section 11.".
16. In section 23 of the principal Act,— Amendment
of section 23.
25 (a) in the marginal heading, for the word, figures, brackets and letter
“section 13 (1) (c)”, the word, figures, brackets and letter “section 13 (1) (A)” shall
be substituted;
(b) for the word, brackets and letter “clause (c)”, the word, brackets and letter
“clause (a)” shall be substituted.
Omission of
30 17. Section 24 shall be omitted.
section 24.
18. After section 29 of the principal Act, the following section shall be inserted, Insertion of
namely:— new section
29A.
"29A. (1) The Central Government may, by notification in the Official Gazette, Power to make
make rules for carrying out the provisions of this Act. rules.

35 (2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:—
(a) guidelines which can be put in place by commercial organisation
under section 9;".
(b) guidelines for sanction of prosecution under sub-section (1) of
40 section 19;".
(c) any other matter which is required to be, or may be, prescribed.
(3) Every rule made under this Act, shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more successive
45 sessions, and if, before the expiry of the session immediately following the session or
the successive sessions aforesaid, both Houses agree in making any modification in
the rule, or both Houses agree that the rule should not be made, the rule shall
 8

thereafter have effect only in such modified form or be of no effect, as the case may be;
so, however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.”.
Amendment 19. In the Prevention of Money Laundering Act, 2002, in Part A of the Schedule, for
of Act 15 of Paragraph 8, the following Paragraph shall be substituted, namely:— 5
2003.
“PARAGRAPH 8
OFFENCES UNDER THE PREVENTION OF CORRUPTION ACT, 1988
(49 OF 1988)
Section Description of offence.
7. Offence relating to public servant being bribed. 10

7A. Taking undue advantage to influence public servant by corrupt or illegal

means or by exercise of personal influence.
8. Offence relating to bribing a public servant.
9. Offence relating to bribing a public servant by a commercial organisation.
10. Person in charge of commercial organisation to be guilty of offence. 15

11. Public servant obtaining undue advantage, without consideration from person
concerned in proceeding or business transacted by such public servant.
12. Punishment for abetment of offences.
13. Criminal misconduct by a public servant.
14. Punishment for habitual offender.”. 20
 RAJYA SABHA

————

A
BILL

further to amend the Prevention of Corruption Act, 1988.

————

(As passed by the Rajya Sabha)

MGIPMRND—798RS—19.07.2018.