Anti-Corruption Laws in India

Brief:
In India, public servants involved in corruption are penalized under multiple legislations, primarily the Prevention of Corruption Act, 1988, and the Indian Penal Code, 1860. Offenses related to money laundering are punishable under the Prevention of Money Laundering Act, 2002, while benami (proxy) transactions are prohibited under the Benami Transactions (Prohibition) Act, 1988.

Original Jurisdiction:
Special jurisdiction in cases under these laws rests with a Sessions Judge or a Special Judge designated for corruption cases, who exercises original jurisdiction in handling such matters.

The Prevention of Corruption Act, 1988:

Under Section 2(c) of the Prevention of Corruption Act, 1988, the term ‘public servant’ includes individuals engaged in various public duties, such as:

1.  Government employees or those remunerated by the government for public duties.
2.  Individuals in service or pay of local authorities, state corporations, or bodies under government control.
3.  Judges and individuals empowered by law for adjudicatory functions.
4.  Any individual authorized by the court for justice-related tasks, including liquidators, receivers, or commissioners.
5.  Officials involved in electoral processes or public duties.
6.  Members of cooperative societies or educational institutions receiving government aid.
7.  Service Commission members and staff conducting examinations and selections.

Definition of Criminal Misconduct (Section 13):

According to Section 13, criminal misconduct includes cases where a public servant:

1.  Dishonestly misappropriates property entrusted to them.
2.  Illicitly enriches themselves while holding office.

Punishment for criminal misconduct includes imprisonment ranging from four to ten years, with fines applicable as determined by the court.

The Indian Penal Code, 1860:

Section 21 of the IPC defines ‘public servant’ broadly, including roles such as:

1.  Military and Commissioned Officers.
2.  Judges and officers of courts.
3.  Arbitrators appointed by courts.
4.  Individuals tasked with confinement and justice-related duties.
5.  Officers assigned to manage public funds, surveys, or law enforcement.

Punishable Offenses:

Under the IPC, specific sections penalize misconduct by public servants:

•   Section 169: Bidding or purchasing restricted property incurs imprisonment up to two years or fines, and the property may be confiscated. (Non-Cognizable, Bailable, Triable by Magistrate of First Class)
•   Section 409: Criminal breach of trust by public servants or professionals like bankers can lead to life imprisonment or a term up to ten years with fines. (Cognizable, Non-Bailable, Triable by Magistrate of First Class)

Misappropriation of Assets:

Section 13(b) of the Prevention of Corruption Act defines asset misappropriation by a public servant. Misappropriation is presumed if:

1.  The accused is proven to be a public servant.
2.  Pecuniary assets in their possession exceed known income sources.
3.  These assets are disproportionate to legitimate income sources.

Ingredients for Substantiating Misappropriation Charges:
To prove misappropriation:

1.  The accused must be identified as a public servant.
2.  Pecuniary assets must be precisely documented.
3.  The extent of the accused’s lawful income must be established.
4.  Evidence must indicate the assets exceed lawful income.

If these elements are proven, the onus shifts to the accused to justify the excess assets. Failure to provide a satisfactory explanation completes the offense of misappropriation, leading to penalties under the Prevention of Corruption Act.