INDIA Law and Practice Contributed by: Priyank Ladoia, Asif Ahmed, Puneet Dhanoa and Utkarsh Routh, AZB & Partners
Furthermore, the PCA also provides for minimum pun - ishments for specific offences. Section 15 (attempt to commit an offence under Section 13 (1)(a)) prescribes a minimum of two years’ imprisonment, plus a fine; and Section 13 (2) (punishment for criminal miscon - duct under Section 13) prescribes a minimum of four years’ imprisonment, plus a fine. Section 12 (abet - ment) prescribes a minimum of three years’ impris - onment, plus a fine. In addition, Sections 7, 7A and 8 each carry a minimum of three years’ imprisonment, plus a fine; Section 10 also mandates a minimum of three years’ imprisonment. For a commercial organi - sation’s liability, Sections 8 and 9 of the PCA provide for a fine only for the entity, while Section 10 expos - es responsible officers to a minimum of three years’ imprisonment if consent/connivance is proved. Further, there is no formal sentencing policy in India. Consequently, there is wide discretion for courts in matters concerning sentencing of the accused. As per the guidelines outlined by the Supreme Court, while awarding sentences, courts must consider the princi - ples of proportionality and deterrence. In A Karunanithi v the State , reported in 2025 INSC 967, the Supreme Court upheld the conviction of the accused under the PCA but modified the sentence. The Court considered factors such as the minuscule amount of the bribe involved, the advanced age of the accused and the over two decades of trial and appeal proceedings, which caused considerable hardship to the accused. No express provision under the PCA casts a duty on any person to report commission of any offence under the PCA by another person to any law enforcement authority. However, Section 8 of the PCA states that, if a per - son has been compelled to give a bribe to any pub - lic officer, such person is legally obligated to report/ disclose this to a law enforcement authority within a period of seven days. Section 8 also envisages a duty to disclose in a scenario where a person, before giv - 6. Disclosure Processes 6.1 Disclosure Obligations
ing a bribe to a public officer, is obligated to inform a law enforcement authority when such bribe is being offered in order to assist any law enforcement author - ity or investigating agency to investigate any offence under the PCA against an identified person. While the duty of disclosure under the PCA is lim - ited to the aforementioned circumstances, a duty is nonetheless cast upon listed companies under Sec - tion 177 (9) of the Companies Act to internally imple - ment a “vigil mechanism” enabling their directors and employees to report illegal conduct and behaviour. In cases where such conduct is reported, Section 177 (10) requires such listed company to disclose this on its website and in its board report. Further, it is also the duty of independent directors to ensure that such a “vigil mechanism” envisaged under Section 177 (9) is workable and effective, so that the sanctity of such The PCA is silent on creating any incentives for com - panies and individuals to engage in voluntary self- disclosure of potential violations of anti-bribery and anti-corruption. Various protections are granted to whistle-blowers under numerous statutes (as stated in 6.4 Protections Afforded to Whistle-Blowers ) but do not incentivise this practice. 6.3 Self-Disclosure Procedures As stated in 6.2 Voluntary Disclosure Incentives , Indian law does not lay down relevant procedures for self-disclosure. 6.4 Protections Afforded to Whistle-Blowers In 2014, the Indian Parliament enacted the Whistle- Blowers Protection Act, 2014; however, the Act is yet to be put into operation. “vigil mechanism” is not compromised. 6.2 Voluntary Disclosure Incentives As stated in 6.1 Disclosure Obligations , Section 177 (9) of the Companies Act casts a duty on listed com - panies to ensure that their “vigil mechanism” is framed in such a manner that it contains adequate safeguards and sufficient checks and balances for preventing victimisation of employees who report illegal conduct and behaviour.
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