INDIA Law and Practice Contributed by: Priyank Ladoia, Asif Ahmed, Pranav Tomar and Puneet Dhanoa, AZB & Partners
3.2 Geographical Reach of Applicable Legislation The geographical reach of the PCA is the entirety of India, including all its states and Union terri - tories; therefore, it does not have extraterritorial reach. 3.3 Corporate Liability The Amendment Act introduced corporate liability to the PCA, under which, “commercial organisation” has been defined comprehensively to include not only Indian companies but also foreign companies who carry on a part of their business in India. These “commercial organisations” are suscep - tible to standing trial and suffering imposition of a fine if found guilty during trial of the offence of giving or promising to give any “undue advan - tage” to a public servant, in order to obtain or retain business or to obtain or retain any advan- tage in the conduct of their business. Further, the commercial organisation can also be held liable for the offence of bribing a public servant, in order to induce the public servant to improperly perform a public duty or to reward the public servant’s improper performance, just as an individual so accused would be held liable. While the BNS does not envisage vicarious liability, the PCA provides for a certain type of vicarious liability – ie, any person in charge of a company is liable for acts of the company, upon proof that such acts were committed with their consent or connivance. Therefore, individuals and companies can both be held liable for the same offence. In Religare Finvest Limited v State of NCT of Del - hi and Another, reported at 2023 INSC 819, the Supreme Court held that a successor entity can
other than legal remuneration in respect of an official Act”. In 2015, a private member’s bill – the Disclosure of Lobbying Activities Bill, 2015 – was intro - duced in the Upper House of the Parliament of India, though it subsequently lapsed and never became law.
3. Scope of Application 3.1 Limitation Period
There is no specific statute of limitations under the PCA preventing any investigating agency from initiating an investigation or launching a prosecution before the court, or depriving any court from taking cognisance of an offence with - in a stipulated timeframe. However, the general criminal procedural law in India, under Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) (which replaced the earlier regime set out under Code of Criminal Procedure, 1973) prescribes periods of limitation for launching prosecution only in respect of certain categories of offences, based on the quantum of punishment prescribed. For all offences under the PCA concerning more than three years, the limitation period prescribed under the BNSS is not applicable, meaning that prosecution may be launched at any point of time. Further, the PCA provides that – as far as practi - cable – trials shall be held on a day-to-day basis and concluded within two years. If the trial is not concluded within two years, it is incumbent upon the court holding trial to record reasons for not being able to complete trial, and to extend the period for six months at a time. However, the total time taken to conclude the trial shall not ordinarily exceed four years.
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