Key Amendment To India's Anti-Corruption Legislation Has Significant Implications For Multinationals Doing Business In India

In late July 2018, India's parliament passed an amendment to the Prevention of Corruption Act 1988 (the "PCA"), India's principal legislation for combating bribery and corruption involving public officials. The Prevention of Corruption (Amendment) Act, 2018 (the "Amendment") introduces changes that have considerable significance for multinational corporations ("MNCs") doing business in India. In this summary, we discuss the Amendment's key provisions and impact on MNCs.

Targeting Bribe-Payers

Prior to the Amendment, the primary anti-bribery provisions of the PCA in Sections 7 and 11 dealt with the acceptance of bribes by public servants. Section 12 of the unamended PCA allowed for the prosecution of bribe-payers indirectly though the law's abetting provisions. However, Indian prosecutors used the abetting provisions sparingly against private individuals and entities.