Anti-Corruption Laws in India: Income Tax Act, 1961

Anti-corruption laws in India[edit]
Public servants in India can be penalised for corruption under the
Indian Penal Code, 1860
Prosecution section of Income Tax Act,1961
The Prevention of Corruption Act, 1988
The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions.
Prevention of Money Laundering Act, 2002
India is also a signatory to the UN Convention against Corruption since 2005 (ratified 2011). The Convention
covers a wide range of acts of corruption and also proposes certain preventive policies. [57]
The Lokpal Bill, 2011 is a bill pending before the Rajya Sabha.
India's lower house of parliament, the Lok Sabha voted to pass The Whistle Blowers Protection Bill, 2011. The
bill is now pending in the Rajya Sabha, the upper house. [58]
At present there are no legal provisions to check graft in the private sector in India. Government has proposed
amendments in existing acts and certain new bills for checking corruption in private sector.
Big-ticket corruption is mainly witnessed in the operations of large commercial or corporate entities. In order to
prevent bribery on supply side, it is proposed that key managerial personnels of companies' and also the
company shall be held liable for offering bribes to gain undue benefits. The Prevention of Money Laundering
Act, 2002 provides that the properties of corrupt public servants shall be confiscated. However, the
Government is considering incorporating provisions for confiscation or forfeiture of the property of corrupt public
servant in the Prevention of Corruption Act, 1988 to make it more self-contained and comprehensive.[59]
A committee headed by the Chairman of Central Board of Direct Taxes (CBDT), has been constituted to
examine ways to strengthen laws to curb generation of black money in India, its illegal transfer abroad and its
recovery. The Committee shall examine the existing legal and administrative framework to deal with the
menace of generation of black money through illegal means including inter-alia the following: 1. Declaring
wealth generated illegally as national asset; 2. Enacting/amending laws to confiscate and recover such assets;
and 3. Providing for exemplary punishment against its perpetrators. (Source: 2013 EY report on Bribery &
Corruption)
In August 2013 The Companies Bill, 2012[60] neared passage. It will regulate fraud by corporations and is
intended to avoid the accounting scandals such as theSatyam scandal which have plagued India.[61] It
replaces The Companies Act, 1956 which has proven outmoded in terms of handling 21st century problems. [62]
Anti-corruption police and courts[edit]

The Directorate General of Income Tax Investigation, Central Vigilance Commission and Central Bureau of
Investigation all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Andhra Pradesh
Anti-corruption Bureau) and Karnataka (Lokayukta) also have their own anti-corruption agencies and courts. [63]
[64]
Andhra Pradesh's Anti Corruption Bureau (ACB) has launched a large scale investigation in the "cash-for-bail"
scam.[65] CBI court judge Talluri Pattabhirama Rao was arrested on 19 June 2012 for taking a bribe to grant bail
to former Karnataka Minister Gali Janardhan Reddy, who was allegedly amassing assets disproportionate to
his known sources of income. Investigation revealed that India Cements one of India's largest cement had
been investing in Reddy's businesses in return for government contracts. [66] A case has also been opened
against seven other individuals under the Indian Penal Code and the Prevention of Corruption Act. [65]
Civic anti-corruption organisations[edit]

A variety of organisations have been created in India to actively fight against corrupt government and business
practices. Notable organisations include:
Bharat Swabhiman Trust established by well-known Yog Guru Swami Ramdev running a large
campaign against black money and corruption since last 10 years.
5th Pillar is most known for the creation of the zero rupee note, a valueless note designed to be given
to corrupt officials when they request bribes.
India Against Corruption is a movement created by citizens from a variety of profession and status to
work against corruption in India. The movement gathered tremendous media attention and came to the
forefront in 2012. Prominent people associated with the movement were Arvind Kejriwal, Kiran
Bedi & Anna Hazare. In late 2012, Arvind Kejriwal took the route to form a political party to fight corruption
while Anna Hazare & Kiran Bedi remain apolitical. The apolitical movement is currently headed by Anna
Hazare while the political party formed by Arvind Kejriwal & his followers is called Aam Aadmi Party .[67]
Jaago Re! One Billion Votes is an organisation originally founded by Tata Tea and Janaagraha to
increase youth voter registration.[68] They have since expanded their work to include other social issues,
including corruption.[69]
Association for Social Transparency, Rights and Action (ASTRA) is an NGO focused on grass-roots
work to fight corruption in Karnataka.
One organisation, the Lok Satta Movement, has transformed itself from a civil organisation to a full-fledged
political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and
Bangalore. In 2009, it obtained its first elected post, when Jayaprakash Narayan won the election for
the KukatpallyAssembly Constituency in Andhra Pradesh.

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Anti-corruption laws in India[edit]

Public servants in India can be penalised for corruption under the

Indian Penal Code, 1860

Prosecution section of Income Tax Act,1961

The Prevention of Corruption Act, 1988

The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions.

Prevention of Money Laundering Act, 2002

Anti-corruption police and courts[edit]

Civic anti-corruption organisations[edit]

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