THE PREVENTION OF CORRUPTION (AMENDMENT) BILL, 2008

TO BE INTRODUCED IN LOK SABHA

THE PREVENTION OF CORRUPTION (AMENDMENT)

BILL, 2008

A

BILL

to amend the Prevention of Corruption Act, 1988.

BE it enacted by Parliament in the Fifty-ninth Year of the Republic of India as follows:—

1. This Act may be called the Prevention of Corruption (Amendment) Act, 2008.

2. In the Prevention of Corruption Act, 1988 (hereinafter referred to as the principal

Act), in section 5, sub-section (6) shall be omitted.

3. In section 13 of the principal Act, in sub-section (1)—

(i) in clause (d), sub-clause (iii) shall be omitted;

(ii) in the Explanation, the words ''and such receipt has been intimated in

accordance with the provisions of any law, rules or orders for the time being applicable

to a public servant'' shall be omitted.

Amendment

of section 5.

Amendment

of section 13.

Short title.

49 of 1988.

Bill No. 70 of 2008

2

4. In section 16 of the principal Act, at the end, the following proviso shall be inserted,

namely:—

''Provided that where a sentence of fine is imposed on an accused person for an

offence referred to in clause (e) of sub-section (1) of section 13, such fine shall not

exceed the pecuniary resources or value of property referred to in that clause for which

the accused person in unable to account satisfactorily.''.

5. After Chapter IV of the principal Act, the following Chapter shall be inserted, namely:—

‘CHAPTER IVA

ATTACHMENT AND FORFEITURE OF PROPERTY

18A. In this Chapter, unless the context otherwise requires,—

(1) ''date of termination of criminal proceedings'' means-—

(a) where such proceedings are taken to the Supreme Court in appeal,

whether on the certificate of a High Court or otherwise, the date on which

the Supreme Court passes its final orders in such appeal; or

(b) where such proceedings are taken to the High Court and orders

are passed thereon and—

(i) no application for a certificate for leave to appeal to the

Supreme Court is made to the High Court, the day immediately

following the expiry of ninety days from the date on which the High

Court passes its final orders;

(ii) an application for a certificate for leave to appeal to the

Supreme Court has been refused by the High Court, the day

immediately following the expiry of sixty days from the date of the

refusal of the certificate;

(iii) a certificate for leave to appeal to the Supreme Court has

been granted by the High Court, but no appeal is lodged in the

Supreme Court, the day immediately following the expiry of thirty

days from the date of the order granting the certificate; or

(c) where such proceedings are not taken to the High Court, the day

immediately following the expiry of sixty days from the date of the last

judgment or order of a special Judge in the proceedings;

(2) ''property'' means any property or assets of every description, whether

corporeal or incorporeal, movable or immovable, tangible or intangible and

includes deeds and instruments evidencing title to, or interest in such property

or assets.

18B. (1) Where any police officer authorised to investigate any offence under

section 17 has reason to belive that any person has committed any offence under this

Act and such person has procured money or other property by means of such offence.

Investigating Officer may, with the prior approval of the Central Government or the

State Government, as the case may be, at any stage, whether or not any court has taken

cognizance, move an application before the special Judge appointed under section 3

for attachment of the said money or property or if such money or property cannot, for

any reason, be attached, other property of the said person of value as nearly as may be

equivalent to that of the aforesaid money or other property.

(2) An application under sub-section (1) shall be accompanied by one or more

affidavits, stating the grounds on which belief that the said person has committed any

offence under this Act is founded and the amount of money or value of other property

Amndment of

section 16.

Insertion of

new Chapter

IVA.

Definitions.

Application

for

attachment.

3

believed to have been procured by means of the offence.

(3) The application shall also furnish—

(a) any information available as to the location for the time being of any

such money or other property, and shall, if necessary, give particulars, including

the estimated value, of other property of the said person.

(b) the names and addresses of any other persons believed to have or to

be likely to claim, any interest or title in the property of the said person.

18C. Upon receipt of any application under section 18B, the special Judge shall,

unless for reasons to be recorded in writing, is of the opinion that there exists no prima

facie grounds for believing that the person in respect of whom the application is made

has committed any offence under this Act or that he has procured thereby any money

or other property, pass without delay an ad interim order attaching the money or other

property alleged to have been so procured, or if it transpires that such money or other

property is not available for attachment, such other property of the said person of

equivalent value as the special Judge may think fit:

Provided that the special Judge may, if he thinks fit, before passing such order,

and shall before refusing to pass such order, examine the person or persons making the

affidavit accompanying the application.

(2) At the same time as he passes an order under sub-section (1), the special

Judge shall issue to the person whose money or other property is being attached, a

notice accompanied by copies of the order, the application, affidavits and of the evidence,

if any, recorded, calling upon him to show cause why the order should not be made

absolute.

(3) The special Judge shall also issue, accompanied by copies of the documents

accompanying the notice under sub-section (2), to all persons represented to him as

having or being likely to claim, any interest or title in the property of the person to

whom notice is issued under the said sub-section calling upon each such person to

appear on the same date as specified in the notice under the said sub-section and make

objection if he so desires to the attachment of the property or any portion thereof on

the ground that he has an interest in such property or portion thereof.

(4) Any person claiming an interest in the attached property or any portion

thereof may, notwithstanding that no notice has been served upon him under this

section, make an objection as aforesaid to the special Judge at any time before an order

is passed under sub-section (1) or sub-section (3), as the case may be, of section 18D.

18D. (1) If no cause is shown and no objections are made under section 18C on

or before the specified date, the special Judge shall forthwith pass an order making the

ad interim order of attachment absolute.

(2) If cause is shown or any objections are made as aforesaid the special Judge

shall proceed to inquire the same and in so doing, as regards the examination of the

parties and in all other respects he shall, subject to the provisions of this Chapter,

follow the procedure and exercise all the powers of a court in hearing a suit under the

Code of Civil Procedure, 1908 and any person making an objection under section 18C

shall be required to adduce evidence to show that on the date of the attachment he had

some interest in the property attached.

(3) After inquiry under sub-section (2), the special Judge shall pass an order

either making the ad interim order of attachment absolute or varying it by releasing a

portion of the property from attachment or withdrawing the order:

Provided that the special Judge shall not—

(a) release from attachment any interest which he is satisfied that the

person believed to have committed an offence under this Act, has in the property,

Ad interim

attachment.

5 of 1908.

Inquiry of

objections to

attachment.

4

unless he is also satisfied that there will remain under attachment an amount of

the said person's property of value not less than that of the property believed to

have been procured by the said person by means of the offence; or

(b) withdraw the order of attachment unless he is satisfied that the said

person has not by means of the offence procured any money or other property.

18E. (1) Where the assets available for attachment of a person believed to have

committed any offence under this Act are found to be less than the amount or value

which he is believed to have procured by means of such offence, and where the special

Judge is satisfied, by affidavit or otherwise, that there is reasonable cause for believing

that the said person has, after the date on which the offence is alleged to have been

committed, transferred (whether after commencement of this Chapter, or not) any of his

property otherwise than in good faith and for consideration, the special Judge may by

notice require any transferee of such property (whether or not he received the property

directly from the said person) to appear on a date to be specified in the notice and

show cause why so much of the transferee's property as is equivalent to the proper

value of property transferred should not be attached.

(2) Where the said transferee does not appear and show cause on the specified

date, or where after inquiry in the manner provided in sub-section (2) of section 18D,

the special Judge is satisfied that the transfer of the property to the said transferee was

not in good faith and for consideration, the special Judge shall order the attachment of

so much of the said transferee's property as is, in the opinion of the special Judge

equivalent to the proper value of the property, transferred.

18F. An order of attachment of property under this Chapter shall be carried into

effect so far as may be practicable in the manner provided in the Code of Civil Procedure,

1908 for the attachment of property in execution of a decree.

18G. Any person whose property has been or is about to be attached under this

Chapter may, at any time, apply to the special Judge to be permitted to give security in

lieu of such attachment and where the security offered and given is in the opinion of

the special Judge, satisfactory and sufficient, he may withdraw or, as the case may be,

refrain from passing the order of attachment.

18H. (1) The special Judge may, on the application of any person interested in

any property attached under this Chapter and after giving the agent of the State

Government or, as the case may be, the Central Government, an opportunity of being

heard, make such orders as the special Judge considers just and reasonable for—

(a) providing from such attached property, as the applicant claims, an

interest in, such sums as may be reasonably necessary for the maintenance of

the applicant and of his family, and for the expenses connected with the defence

of the applicant where criminal proceedings have been instituted against him in

any court for the offence;

(b) safeguarding, so far as may be practicable, the interests of any business

affected by the attachment, and in particular, the interests of any partners in

such business.

(2) Where it appears to the special Judge to be just and convenient, he may, by

order appoint a receiver to manage any property attached under this Chapter in

accordance with such instructions as the special Judge may, from time to time, think fit

to give and where a receiver is so appointed, the provisions of rules 2, 3, 4 and 5 of

Order XL of the First Schedule to the Code of Civil Procedure, 1908 shall be applicable.

18-I An order of attachment of property under this Act shall, unless it is withdrawn

earlier in accordance with the provisions of this Act, continue in force—

Attachment

of property

of mala fide

transferees.

Execution of

orders of

attachment.

5 of 1908.

Security in

lieu of

attachment.

Administration

of

attachment.

5 of 1908.

Duration of

attachment.

5

(a) where no court has taken cognizance of the alleged offence at the time

when the order is applied for, one year from the date of the order under subsection

(1) of section 18C or sub-section (2) of section 18E, as the case may be,

unless cognizance of such offence is, in the meantime so taken, or unless the

special Judge on application by the Investigating officer showing reasons for

non-completion of the investigation and if the Judge is satisfied that reasonable

grounds exist, he may extend further period of attachment not exceeding six

months;

(b) where a court has taken cognizance of the alleged offence whether

before or after the time when the order was applied for until orders are passed by

the special Judge in accordance with the provisions of this Act after the

termination of the criminal proceedings.

18J. (1) The State Government or, as the case may be, the Central Government or

any person who has shown cause under section 18C or section 18E or has made an

objection under section 18C or has made an application under section 18G or

section 18H, if aggrieved by any order of the special Judge under any of the foregoing

provisions of this Chapter, may appeal to the High Court within thirty days from the

date on which the order complained against was passed.

(2) Upon any appeal under this section, the High Court, may, after giving such

parties as it thinks proper an opportunity of being heard, pass such orders as it thinks

fit.

(3) Until an appeal under this section is finally disposed of by the High Court,

no court shall, otherwise than in accordance with the provisions of section 18G or

section 18L, order the withdrawal or suspension of any order of attachment to which

the appeal relates.

18K. (1) Where before judgment is pronounced in any criminal trial for any

offence under this Act, it is represented to the Court that an order of attachment of

property has been passed under this Chapter in connection with such offence, the

Court shall, if it is convicting an accused, record a finding as to the amount of money

or value of other property procured by the accused by means of the offence.

(2) In any appeal or revisional proceedings against such conviction, the appellate

or revisional Court shall unless it sets aside the conviction, either confirm such

finding or modify it in such manner as it thinks proper.

(3) In any appeal or revisional proceedings against an order of acquittal passed

in a trial, such as, is referred to in sub-section (1), the appellate or revisional Court, if

it convicts the accused, shall record a finding, such as is referred to in that sub-section.

(4) Where the accused is convicted of any offence under this Act and where it

appears that the offence has caused loss to more than one Government or local authority

the finding referred to in this section shall indicate the amount of loss sustained by

each such Government or local authority.

(5) Where the accused is convicted in the same trial of one or more offences

specified under this Act, the finding referred to in this section shall indicate separately

the amounts procured by means of the two classes of offences.

18L. (1) Upon the termination of any criminal proceedings for any offence under

this Act in respect of which any order of attachment of property has been under this

Chapter or security given to in lieu thereof, the agent of the State Government or, as the

case may be, the Central Government shall, without delay inform the special Judge,

and shall where criminal proceedings have been taken in any Court, furnish the special

Judge with a copy of the judgment or order of the trying Court and with copies of the

judgment or orders, if any, of the appellate or revisional Court thereon.

Appeals.

Court to

evaluate

property procured

by the

offence.

Disposal of

attached property

upon

termination

of

criminal proceedings.

6

(2) Where it is reported to the special Judge under sub-section (1) that

cognizance of the alleged offence has not been taken or where the final judgment or

order of the court is one of acquittal, the special Judge shall forthwith withdraw any

orders of attachment of property made in connection with the offence, or where security

has been given in lieu of such attachment, order such security to be returned.

(3) Where the final judgment or order of the court is one of conviction, the

special Judge shall order that from the property of the convicted person attached

under this Chaper or out of the security given in lieu of such attachment, there shall be

forfeited to the Central Government or the State Government as the case may be, such

amount or value as is found in the final judgment or order of the courts in pursuance

of section 18K, to have been procured by the convicted person by means of the

offence, together with the costs of attachment as determined by the special Judge and

where the final judgment or order of the court has imposed or upheld a sentence of fine

on the said person (whether alone or in conjunction with any other punishment), the

special Judge may order, without prejudice to any other mode of recovery, that the

said fine shall be recovered from the residue of the said attached property of the

security given in lieu of attachment.

(4) Where the amounts ordered to be foreited or recovered under sub-section

(3) exceed the value of the property of the convicted person attached, and where the

property of any transferee of the convicted person has been attached under section

18E, the special Judge shall order that the balance of the amount order to be foreited

under sub-section (3) together with the costs of attachment of the transferee's

property as determined by the special Judge shall be forfeited to the Government

from the attached property of the transferee or out of the security given in lieu of such

attachment; and the special Judge may order without prejudice to any other mode of

recovery that any fine referred to in sub-section (3) or any portion thereof not recovered

under that sub-section shall be recovered from the attached property of the transferee

or out of security given in lieu of such attachment.

(5) If any property remains under attachment in respect of any offence under

this Act or any security given to in lieu of such attachment remains with the special

Judge after his orders under sub-sections (3) and (4) have been carried into effect,

the order of attachment in respect of such property remaining shall be forthwith

withdrawn or as the case may be, the remainder of the security returned, under the

orders of the special Judge.

(6) Every sum ordered to be forfeited under this section in connection with any

offence under this Act shall, after deduction of the costs of attachment as determined

by the special Judge, be credited to the Government or local authority to which the

offence has caused loss, or where there is more than one such Government or local

authority, the sum shall after such deduction as aforesaid, be distributed among them

in proportion to the loss sustained by each.

18M. Save as provided in section18J and notwithstanding anything contained

in any other law,—

(a) no suit or other legal proceeding shall be maintainable in any Court—

(i) in respect of any property ordered to be forfeited under section

18L, or which has been taken in recovery of fine in pursuance of an order

under that section; or

(ii) while any other property is attached under this Chapter, in respect

of such other property,

by any person upon whom a notice has been served under section 18C or

section 18E or who has made an objection under sub-secction (4) of section

18C; and

Bar to other

proceedings.

7

(b) no court shall, in any legal proceeding or otherwise, pass any decree

or order, other than a final decree to a suit by a person not being a person

referred to in clause (a), which shall have the effect of nullifying or affecting in

any way any subsisting order of attachment of property under this Chapter, or

the right of the special Judge to hold security in lieu of any such order of

attachment.

18N. No suit, prosecution or other legal proceeding shall lie against any person

for anything in good faith done or intended to be done in pursuance of this Chapter.’.

6. In section 19 of the principal Act, in sub-section (1),—

(i) in clause (a), for the words "who is employed", the words "who is employed,

or as the case may be, was at the time of commission of the alleged offence employed"

shall be substituted;

(ii) in clause (b), for the words "who is employed", the words "who is

employed, or as the case may be, was at the time of commission of the alleged offence

employed" shall be substituted.

7. In the Criminal Law Amendment Ordinance, 1944, in the Schedule,—

(i) paragraph 4A shall be omitted;

(ii) in paragraph 5, for the words, figures and letter “items 2, 3, 4 and 4A”, the

words and figures "items 2, 3 and 4" shall be substituted.

Protection of

action taken

in

good faith.

Amendment

of

section 19.

Amendment

of

Ordinance 38

of

1944.

STATEMENT OF OBJECTS AND REASONS

The prevention of Corruption Act, 1988 was enacted to make anti-corruption laws

more effective. On the basis of actual experience in implementation and keeping in view the

recommendations of the Law Commission of India and the Committee on Civil Services

Reforms (Hota Committee), it is proposed to amend the said Act. Hence, the present Bill.

2. The salient features of the Bill are as follows:—

(i) The Law Commission of India in its 166th Report recommended for enactment of a

separate law providing for forfeiture of property acquired by the holders of public office

through corrupt means. The said recommendations were examined and it was considered

that the objective of confiscations of illegally acquired property could be achieved by

incorporating the provision of the Criminal Law (Amendment) Ordinance, 1944 in the

Prevention of Corruption Act, 1988 itself with suitable modifications. Therefore, it is proposed

to insert a new Chapter IVA in the Prevention of Corruption Act which empowers the special

judge to exercise the powers of attachment before judgment. The procedure provided will be

more effective and speedy.

(ii) The Committee on Civil Services Reforms (Hota Committee) in its Report favoured

a review of section 13 (1) (d) (iii) of the said Act by observing that if a decision of an officer

benefits a person without public interest, the officer concerned can be prosecuted in a court

of law. Since all commercial decisions benefit one party or another, it is often difficult for an

officer, even though acting in good faith, to ensure conformity with this provision. Therefore,

it is proposed to omit the said sub-clause.

(iii) It is also proposed to amend section 16 of the said Act to provide a quantum of fine

for a person accused of an offence under section 13(1)(e), so as to not exceed the pecuniary

resources or value of property for which the accused person is unable to account satisfactorily.

(iv) The purpose of section 19 of the said Act is to provide a safeguard to a public

servant from vaxatious prosecution from any bonafide omission or commission in the

discharge of his official duties. Presently, this protection is not available for a person who

has ceased to be a public servant. The said section is being amended to provide the said

protection to the persons who ceased to be public servants on the lines of section 197 of the

Code of Criminal Procedure, 1973.

3. The Bill seeks to achieve the above objectives.

NEW DELHI; PRITHVIRAJ CHAVAN.

The 17th October, 2008.

8

9

ANNEXURE

EXTRACTS FROM THE PREVENTION OF CORRUPTION ACT, 1988

(49 OF 1988)

* * * * *

5. (1) * * * * *

(6) A special Judge, while trying an offence punishable under this Act, shall exercise all

the powers and functions exercisable by a District Judge under the Criminal Law Amendment

Ordinance, 1944.

* * * * *

13. (1) A public servant is said to commit the offence of criminal misconduct,—

(a) if he habitually accepts or obtains or agrees to accept or attempts to obtain

from any person for himself or for any other person any gratification other than legal

remuneration as a motive or reward such as is mentioned in section 7; or

(b) if he habitually accepts or obtains or agrees to accept or attempts to obtain

for himself or for any other person, any valuable thing without consideration or for a

consideration which he knows to be inadequate from any person whom he knows to

have been, or to be, or to be likely to be concerned in any proceeding or business

transacted or about to be transacted by him, or having any connection with the official

functions of himself or of any public servant to whom he is subordinate, or from any

person whom he knows to be interested in or related to the person so concerned; or

(c) if he dishonestly or fraudulently misappropriates or otherwise converts for

his own use any property entrusted to him or under his control as a public servant or

allows any other person so to do; or

(d) if he,—

(i) by corrupt or illegal means, obtains for himself or for any other person

any valuable thing or pecuniary advantage; or

(ii) by abusing his position as a public servant, obtains for himself or for

any other person any valuable thing or pecuniary advantage; or

(iii) while holding office as a public servant, obtains for any person any

valuable thing or pecuniary advantage without any public interest; or

(e) if he or any person on his behalf, is in possession or has, at any time during

the period of his office, been in possession for which the public servant cannot

satisfactorily account, of pecuniary resources or property disproportionate to his

known sources of income.

Explanation.—For the purposes of this section, “known sources of income” means

income received from any lawful source and such receipt has been intimated in accordance

with the provisions of any law, rules or orders for the time being applicable to a public

servant.

(2) Any public servant who commits criminal misconduct shall be punishable with

imprisonment for a term which shall be not less than one year but which may extend to seven

years and shall also be liable to fine.

* * * * *

CHAPTER V

SANCTION FOR PROSECUTION AND OTHER MISCELLANEOUS PROVISIONS

19. (1) No court shall take cognizance of an offence punishable under sections 7, 10,

11, 13 and 15 alleged to have been committed by a public servant, except with the

previous sanction,—

Previous

sanction

necessary for

prosecution.

Procedure and

powers of

special Judge.

Ord. 38 of

1944.

Criminal

misconduct

by a public

servant.

10

(a) in the case of a person who is employed in connection with the affairs of the

Union and is not removable from his office save by or with the sanction of the Central

Government, of that Government;

(b) in the case of a person who is employed in connection with the affairs of a

State and is not removable from his office save by or with the sanction of the State

Government, of that Government;

* * * * *

————

EXTRACTS FROM THE CRIMINAL LAW AMENDMENT ORDINANCE, 1944

ORD. 38 OF 1944

* * * * *

THE SCHEDULE

(See section 2)

Offences in connection with which property is liable to be attached.

* * * * *

4A. An offence punishable under the Prevention of Corruption Act, 1988.

5. Any conspiracy to commit or any attempt to commit or any abetment of any of the

offences specified in items 2, 3, 4 and 4A.

* * * * *

49 of 1988.

LOK SABHA

————

A

BILL

further to amend the Prevention of Corruption Act, 1988.

————

(Shri Prithviraj Chavan, Minister of State in the Ministry of Personnel,

Public Grivances and Pensions)

GMGIPMRND—3671LS(S-1)—24-10-2008.

Prevention of Corruption Act, 1988 CHAPTER V: SANCTION FOR PROSECUTION AND OTHER MISCELLANEOUS PROVISIONS

19. Previous sanction necessary for prosecution

(1) No court shall take cognizance of an offence punishable under section 7, 10, 11, 13 and 15 alleged to have been committed by a public servant, except with the previous sanction,-

(a) in the case of a person who is employed in connection with the affairs of the Union and is not removable from his office save by or with the sanction of the Central Government, of that Government;

(b) in the case of a person who is employed in connection with the affairs of a State and is not removable from his office save by or with the sanction of the State Government, of that Government;

(c) in the case of any other person, of the authority competent to remove him from his office.

(2) Where for any reason whatsoever any doubt arises as to whether the previous sanction as required under sub-section (1) should be given by the Central Government or the State Government or any other authority, such sanction shall be given by that Government or authority which would have been competent to remove the public servant from his office at the time when the offence was alleged to have been committed.

(3) Notwithstanding anything contained in the code of Criminal Procedure, 1973,-

(a) no finding, sentence or order passed by a special Judge shall be reversed or altered by a Court in appeal, confirmation or revision on the ground of the absence of, or any error, omission or irregularity in, the sanction required under sub-section (1), unless in the opinion of that court, a failure of justice has in fact been occasioned thereby;

(b) no court shall stay the proceedings under this Act on the ground of any error, omission or irregularity in the sanction granted by the authority, unless it is satisfied that such error, omission or irregularity has resulted in a failure of justice;

(c) no court shall stay the proceedings under this Act on any other ground and no court shall exercise the powers of revision in relation to any interlocutory order passed in any inquiry, trial, appeal or other proceedings.

(4) In determining under sub-section (3) whether the absence of, or any error, omission or irregularity in, such sanction has occasioned or resulted in a failure of justice the court shall have regard to the fact whether the objection could and should have been raised at any earlier stage in the proceedings.

Explanation.-For the purposes of this section,-

(a) error includes competency of the authority to grant sanction;

(b) a sanction required for prosecution includes reference to any requirement that the prosecution shall be at the instance of a specified authority or with the sanction of a specified person or any requirement of a similar nature.
20. Presumption where public servant accepts gratification other than legal remuneration

(1) Where, in any trial of an offence punishable under section 7 or section 11 or clause (a) or clause (b) of sub-section (1) of section 13 it is proved that an accused person has accepted or obtained or has agreed to accept or attempted to obtain for himself, or for any other person, any gratification (other than legal remuneration) or any valuable thing from any person, it shall be presumed, unless the contrary is proved, that he accepted or obtained or agreed to accept or attempted to obtain that gratification or that valuable thing, as the case may be, as a motive or reward such as is mentioned in section 7 or, as the case may be, without consideration or for a consideration which he knows to be Inadequate.

(2) Where in any trial of an offence punishable under section 12 or under clause (b) of section 14, it is proved that any gratification (other than legal remuneration) or any valuable thing has been given or offered to be given or attempted to be given by an accused person, it shall be presumed, unless the contrary is proved, that he gave or offered to give or attempted to give that gratification or that valuable thing, as the case may be, as a motive or reward such as is mentioned in section 7, or, as the case may be, without consideration or for a consideration which he knows to be inadequate.

(3) Notwithstanding anything contained in sub-section (1) and (2), the court may decline to draw the presumption referred to in either of the said sub-sections, if the gratification or thing aforesaid is, in its opinion, so trivial that no inference of corruption may fairly be drawn.
21. Accused person to be a competent witness

Any person charged with an offence punishable under this Act, shall be a competent witness for the defence and may give evidence on oath in disproof of the charges made against him or any person charged together with him at the same trial:

Provided that-

(a) he shall not be called as a witness except at his own request;

(b) his failure to give evidence shall not be made the subject of any comment by the prosecution or give rise to any presumption against himself or any person charged together with him at the same trial;

(c) he shall not be asked, and if asked shall not be required to answer, any question tending to show that he has committed or been convicted of any offence other than the offence with which he is charged, or is of bad character, unless-

(i) the proof that he has committed or been convicted of such offence is admissible evidence to that he is guilty of the offence with which he is charged, or

(ii) he has personally or by his pleader asked any question of any witness for the prosecution with a view to establish his own good character, or has given evidence of his good character, or the nature or conduct of the defence is such as to involve imputations on the character of the prosecutor or of any witness for the prosecution, or

(iii) he has given evidence against any other person charged with the same offence.

22. The Code of Criminal Procedure, 1973 to apply subject to certain modifications

The provisions of the Code of Criminal Procedure, 1973, shall in their application to any proceeding in relation to an offence punishable under this Act have effect as if,-

(a) in sub-section (1) of section 243, for the words "The accused shall then be called upon", the words "The accused shall then be required to give in writing at once or within. such time as the Court may allow, a list of the persons (if any) whom he proposes to examine as his witnesses and of the documents (if any) on which he proposes to rely and he shall then be called upon" had been substituted;

(b) in sub-section (2) of section 309, after the 'third proviso, the following proviso had been inserted, namely:-

"Provided also that the proceeding shall not be adjourned or postponed merely on the ground that an application under section 397 has been made by a party to the proceeding.";

(c) after sub-section (2) of section 317, the following sub-section had been inserted, namely:-

"(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Judge may, if he thinks fit and for reasons to be recorded by him, proceed with inquiry or trial in the absence of the accused or his pleader and record the evidence of any witness subject to the right of the accused to recall the witness for cross-examination.";

(d) in sub-section (1) of section 397, before the Explanation, the following proviso had been inserted, namely:-

"Provided that where the powers under this section are exercised by a Court on an application made by a party to such proceedings, the Court shall not ordinarily call for the record of the proceedings:-

(a) without giving the other party an opportunity of showing cause why the record should not be called for; or

(b) if it is satisfied that an examination of the record of the proceedings may be made from the certified copies.".

23. Particulars in a charge in relation to an offence under section 13(1) (c).

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, when an accused is charged with an offence under clause (c) of sub-section (1) of section 13, it shall be sufficient to describe in the charge the property in respect of which the offence is alleged to have been committed , and the dates between which the offence is alleged to have been committed, without specifying particular items or exact dates, and the charge so framed shall be deemed to be a charge of one offence within the meaning of section 219 of the said Code:

Provided that the time included between the first and last of such dates shall not exceed one year.

24. Statement by bribe giver not to subject him to prosecution

Notwithstanding anything contained in any law for the time being in force, a statement made by a person in any proceeding against a public servant for an offence under sections 7 to 11 or under section 13 or section 15, that he offered or agreed to offer any gratification (other than legal remuneration) or any valuable thing to the public servant, shall not subject such person to a prosecution under section 12.

25. Military, Naval and Air Force or other law not to be affected

(1) Nothing in this Act shall affect the jurisdiction exercisable by, or the procedure applicable to, any court or other authority under the Army Act. 1950, the Air Force Act, 1950, the Navy Act, 1957, the Border Security Force Act, 1968, the Coast Guard Act, 1978 and the National Security Guard Act, 1986.

(2) For the removal of doubts, it is hereby declared that for the purposes of any such law as is referred to in sub-section (1), the court of a special Judge shall be deemed to be a court of ordinary criminal justice.
26. Special Judges appointed under Act 46 of 1952 to be special Judges appointed under this Act

Every special Judge appointed under the Criminal Law Amendment Act, 1952,, for any area or areas and is holding office on the commencement of this Act shall be deemed to be a special Judge appointed under section 3 of this Act for that area or areas and, accordingly, on and from such commencement, every such Judge shall continue to deal with all the proceedings pending before him on such commencement in accordance with the provisions of this Act.

27. Appeal and revision

Subject to the provisions of this Act, the High Court may exercise, so far as they may be applicable, all the powers of appeal and revision conferred by the Code of Criminal Procedure, 1973 on a High Court as if the court of special Judge were a court of Session trying cases within the local limits of the High Court.

28. Act to be in addition to any other law

The provisions of this Act shall be in addition to, and not in derogation of, any other law for the time being in force, and nothing contained herein shall exempt any public servant from any proceeding which might, apart from this Act, be instituted against him.

29. Amendment of the Ordinance 38 of 1944

In the Criminal Law Amendment Ordinance, 1944,-

(a) in sub-section (1) of section 3, sub-section (1) of sector 9, clause (a) of section 10, sub-section (1) of section 11 and sub-section (1) of section 13, for the words "State Government", wherever they occur, the words "State Government or, as the case may be, the Central Government" shall be substituted;

(b) in section 10, in clause (a), for the words " three months", the words "one year" shall be substituted;

(c) in the Schedule,-

(i) paragraph 1 shall be omitted;

(ii) in paragraphs 2 and 4,-

(a) after the words "a local authority", the words and figures "or a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by Government or a Government company as defined in section 617 of the Companies Act, 1956 or a society aided by such corporation, authority. body or Government company" shall be inserted;

(b) after the words "or authority", the words "or corporation or body or Government company or society" shall be inserted;

(iii) for paragraph 4A, the following paragraph shall be substituted, namely: -

"4A. An offence punishable under the Prevention of Corruption Act, 1988.";

(iv) in paragraph 5, for the words and figures "items 2, 3 and 4", the words, figures and letter "items 2, 3, 4 and 4A" shall be substituted.

30. Repeal and saving

(1) The Prevention of Corruption Act, 1947 and the Criminal Law Amendment Act, 1952 are hereby repealed.

(2) Notwithstanding such repeal, but without prejudice to the application of section 6 of the General Clauses Act, 1897, anything done or any action taken or purported to 'have been done or taken under or in pursuance of the Acts so repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken, under or in pursuance of the corresponding provision of this Act.

31. Omission of certain sections of Act 45 of 1860

Sections 161 to 165A (both inclusive) of the Indian Penal Code shall be omitted, and section 6 of the General Clauses Act, 1897, shall apply to such omission as if the said sections had been repealed by a Central Act.

Prevention of Corruption Act, 1988 CHAPTER IV: INVESTIGATION INTO CASES UNDER THE ACT

17. Persons authorised to investigate

Notwithstanding anything contained in the Code of Criminal Procedure, 1973, no police officer below the rank,-

(a) in the case of the Delhi Special Police Establishment, of an Inspector of Police;

(b) in the metropolitan areas of Bombay, Calcutta, Madras and Ahmedabad and in any other metropolitan area notified as such under sub-section (1) of section 8 of the Code of Criminal Procedure, 1973, of an Assistant Commissioner of Police;

(c) elsewhere, of a Deputy Superintendent of Police or a police officer of equivalent rank,

shall investigate any offence punishable under this Act without the order of a Metropolitan Magistrate or a Magistrate of the first class, as the case may be, or make any arrest therefor without a warrant:

Provided that if a police officer not below the rank of an Inspector of Police is authorised by the State Government in this behalf by general or special order, he may also investigate any such offence without the order of a Metropolitan Magistrate or a Magistrate of the first class, as the case may be, or make arrest therefor without a warrant:

Provided further that an offence referred to in clause (e) of sub-section (1) of section 13 shall not be investigated without the older of a police officer not below the rank of a Superintendent of Police.

18. Power to inspect bankers' books

If from information received or otherwise, a police officer has reason to suspect the commission of an offence which he is empowered to investigate under section 17 and considers that for the purpose of investigation or inquiry into such offence, it is necessary to inspect any bankers’ books, then, notwithstanding anything contained in any law for the time being in force, he may inspect any bankers’ books in so far as they relate to the accounts of the persons suspected to have committed that offence or of any other person suspected to be holding money on behalf of such person, and take or cause to be taken certified copies of the relevant entries therefrom, and the bank concerned shall be bound to assist the police officer in the exercise of his powers under this section:

Provided that no power under this section in relation to the accounts of any person shall be exercised by a police officer below the rank of a Superintendent of Police, unless he is specially authorised in this behalf by a police officer of or above the rank of a superintendent of Police.

Explanation-In this section, the expressions "bank" and "bankers’ books" shall have the meanings respectively assigned to them in the Bankers’ Books Evidence Act, 1891.

Prevention of Corruption Act, 1988 -- OFFENCES AND PENALTIES

7. Public servant taking gratification other than legal remuneration in respect of an official act

Whoever, being, or expecting to be a public servant, accepts or obtains or agrees to accept or attempts to obtain from any person, for himself or for any other person, any gratification whatever, other than legal remuneration, as a motive or reward for doing or forbearing to do any official act or for showing or forbearing to show, in the exercise of his official functions, favour or disfavour to any person or for rendering or attempting to render any service or disservice to any person, with the Central Government or any State Government or Parliament or the Legislature of any State or with any local authority, corporation or Government company referred to in clause (c) of section 2, or with any public servant, whether named or otherwise, shall be punishable with imprisonment which shall be not less than six months but which may extend to five years and shall also be liable to fine.

Explanations.-(a) "Expecting to be a public servant." If a person not expecting to be in office obtains a gratification by deceiving others into a belief that he is about to be in office, and that he will then serve them, he may be guilty of cheating, but he is not guilty of the offence defined in this section.

(b) "Gratification." The word "gratification" is not restricted to pecuniary gratifications or to gratifications estimable in money.

(c) "Legal remuneration." The words "legal remuneration" are not restricted to remuneration which a public servant can lawfully demand, but include all remuneration which he is permitted by the Government or the organisation, which he serves, to accept.

(d) "A motive or reward for doing." A person who receives a gratification as a motive or reward for doing what he does not intend or is not in a position to do, or has not done, comes within this expression.

(e) Where a public servant induces a person erroneously to believe that his influence with the Government has obtained a title for that person and thus induces that person to give the public servant, money or any other gratification as a reward for this service, the public servant has committed an offence under this section.

8. Taking gratification, in order, by corrupt or illegal means, to influence public servant

Whoever accepts or obtains, or agrees to accept, or attempts to obtain, from any person, for himself or for any other person, any gratification whatever as a motive or reward for inducing, by corrupt or illegal means, any public servant, whether named or otherwise, to do or to forbear to do any official act, or in the exercise of the official functions of such public servant to show favour or disfavour to any person, or to render or attempt to render any service or disservice to any person with the Central Government or any State Government or Parliament or the Legislature of any State or with any local authority, corporation or Government company referred to in clause (c) of section 2, or with any public servant, whether named or otherwise, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine.

9. Taking gratification, for exercise of personal influence with public servant

Whoever accepts or obtains or agrees to accept or attempts to obtain, from any person, for himself or for any other person, any gratification whatever, as a motive or reward for inducing, by the exercise of personal influence, any public servant whether named or otherwise to do or to forbear to do any official act, or in the exercise of the official functions of such public servant to show favour or disfavour to any person, or to render or attempt to render any service or disservice to any person with the Central Government or any State Government or Parliament or the Legislature of any State or with any local authority, corporation or Government company referred to in clause (c) of section 2, or with any public servant, whether named or otherwise, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend. to five years and shall also be liable to fine.

10. Punishment for abetment by public servant of offences defined in section 8 or 9

Whoever, being a public servant, in respect of whom either of the offences defined in section 8 or section 9 is committed, abets the offence, whether or not that offence is committed in consequence of that abetment, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine.

11. Public servant obtaining valuable thing, without consideration from person concerned in proceeding or business transacted by such public servant

Whoever, being a public servant, accepts or obtains or agrees to accept or attempts to obtain for himself, or for any other person, any valuable thing without consideration, or for a consideration which he knows to be inadequate, from any person whom he knows to have been, or to be, or to be likely to be concerned in any proceeding or business transacted or about to be transacted by such public servant, or having any connection with the official functions of himself or of any public servant to whom he is subordinate, or from any person whom he knows to be interested in or related to the person so concerned, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine.

12. Punishment for abetment of offences defined in section 7 or 11

Whoever abets any offence punishable under section 7 or section 11 whether or not that offence is committed in consequence of that abetment, shall be punishable with imprisonment for a term which shall be not less than six months but which may extend to five years and shall also be liable to fine,

13. Criminal misconduct by a public servant

(1) A public servant is said to commit the offence of criminal misconduct,-

(a) if he habitually accepts or obtains or agrees to accept or attempts to obtain from any person for himself or for any other person any gratification other than legal remuneration as a motive or reward such as is mentioned in section 7; or

(b) if he habitually accepts or obtains or agrees to accept or attempts to obtain for himself or for any other person, any valuable thing without consideration or for a consideration which he knows to be inadequate from any person whom he knows to have been, or to be, or to be likely to be concerned in any proceeding or business transacted or about to be transacted by him, or having any connection with the official functions of himself or of any public servant to whom he is subordinate, or from any person whom he knows to be interested in or related to the person so concerned; or

(c) if he dishonestly or fraudulently misappropriates or otherwise converts for his own use any property entrusted to him or under his control as a public servant or allows any other person so to do; or

(d) if he,-

(i) by corrupt or illegal means, obtains for himself or for any other person any valuable thing or pecuniary advantage; or

(ii) by abusing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or

(iii) while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest; or

(e) if he or any person on his behalf, is in possession or has, at any time during the period of his office, been in possession for which the public servant cannot satisfactorily account, of pecuniary resources or property disproportionate to his known sources of income.

Explanation.-For the purposes of this section, "known sources of income" means income received from any lawful source and such receipt has been intimated in accordance with the provisions of any law, rules or orders for the time being applicable to a public servant.

(2) Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall be not less than one year but which may extend to seven years and shall also be liable to fine.

14. Habitual committing of offence under sections 8, 9 and 12

Whoever habitually commits-

(a) an offence punishable under section 8 or section 9; or

(b) an offence punishable under section 12,

shall be punishable with imprisonment for a term which shall be not less than two years but which may extend to seven years and shall also be liable to fine.

15. Punishment for attempt

Whoever attempts to commit an offence referred to in clause (c) or clause (d) of sub-section (1) of section 13 shall be punishable with imprisonment for a term which may extend to three years and with fine.

16. Matters to be taken into consideration for fixing fine

Where a sentence of fine is imposed. under sub-section (2) of section 13 or section 14, the court in fixing the amount of the fine shall taken into consideration the amount or the value of the property, if any, which the accused person has obtained by committing the offence or where the conviction is for an offence referred to in clause (e) of sub-section (1) of section 13, the pecuniary resources or property referred to in that clause for which the accused person is unable to account satisfactorily.

Prevention of Corruption Act, 1988 CHAPTER II: APPOINTMENT OF SPECIAL JUDGES

3. Power to appoint special Judges

(1) The Central Government or the State Government may, by notification in the. Official Gazette, appoint as many special Judges as may be necessary for such area or areas or for such case or group of cases as may be specified in the notification to try the following offences, namely: -

(a) any offence punishable under this Act; and

(b) any conspiracy to commit or any attempt to commit or any abetment of any of the offences specified in clause (a).

(2) A person shall not be qualified for appointment as a special Judge under this Act unless he is or has been a Sessions Judge or an Additional Sessions Judge or an Assistant Sessions Judge under the Code of Criminal Procedure, 1973.

4. Cases triable by special Judges

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, or in any other law for the time being in force, the offences specified in sub-section (1) of section 3 shall be tried by special Judges only.

(2) Every offence specified in sub-section (1) of section 3 shall be tried by the special Judge for the area within which it was committed, or, as the case may be, by the special Judge appointed for the case, or where there are more special Judges than one for such area, by such one of them as may be specified in this behalf by the Central Government.

(3) When trying any case, a special Judge may also try any offence, other than an offence specified in section 3, with which the accused may, under the Code of Criminal Procedure. 1973, be charged at the same trial.

(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, a special Judge shall, as far as practicable, hold the trial of an offence on day-to-day basis.
5. Procedure and powers of special Judge

(1) A special Judge may take cognizance of offences without the accused being committed to him for trial and, in trying the accused persons, shall follow the procedure prescribed by the Code of Criminal Procedure, 1973. for the trial of warrant cases by Magistrates.

(2) A special Judge may, with a view to obtaining the evidence of any person supposed to have been directly or indirectly concerned in or privy to, an offence, tender a pardon to such person on condition of his making a full and true disclosure of the whole circumstances within his knowledge. relating to the offence and to every other person concerned, whether as principal or abettor, in the commission thereof and any pardon so tendered shall, for the purposes of sub-sections (1) to (5) of section 308 of the Code of Criminal Procedure, 1973, be deemed to have been tendered under section 307 of that Code.

(3) Save as provided in sub-sections (1) or sub-section (2), the provisions of the Code of Criminal Procedure, 1973, shall, so far as they are not inconsistent with this Act, apply to the proceedings before a special Judge; and for the purposes of the said provisions, the Court of the special Judge shall be deemed to be a Court of Session and the person conducting a prosecution before a special Judge shall be deemed to be a public prosecutor.

(4) In particular and without prejudice to the generality of the provisions contained in sub-section (3), the provisions of sections 326 and 475 of the Code of Criminal Procedure, 1973, shall, so for as may be, apply to the proceedings before a special Judge and for the purposes of the said provisions, a special Judge shall be deemed to be a Magistrate.

(5) A special Judge may pass upon any person convicted by him any sentence authorised by law for the punishment of the offence of which such person is convicted.

(6) A special Judge, while trying an offence punishable under this Act, shall exercise all the powers and functions exercisable by a District Judge under the Criminal Law Amendment Ordinance, 1944.

6. Power to try summarily

(1) Where a special Judge tries any offence specified in sub-section (1) of section 3, alleged to have been committed by a public servant in relation to the contravention of any special order referred to in sub-section (1) of section 12A of the Essential Commodities Act, 1955 or of an order referred to in clause (a) of sub-section (2) of that section, then, notwithstanding anything contained in sub-section (1) of section 5 of this Act or section 260 of the Code of Criminal Procedure, 1973, the special Judge shall try the offence in a summary way, and the provisions of sections 262 to 265 (both inclusive) of the said Code shall, as far as may be, apply to such trial:

Provided that, in the case of any conviction in a summary trial under this section, it shall be lawful for the special Judge to pass a sentence of imprisonment for a term not exceeding one year:

Provided further that when at the commencement of, or in the course of, a summary trial under this section, it appears to the special Judge that the nature of the case is such that a sentence of imprisonment for a term exceeding one year may have to be passed or that it is, for any other reason, undesirable to try the case summarily, the special Judge shall, after hearing the parties, record an order to that effect and thereafter recall any witnesses who may have been examined and proceed to hear or re-hear the case in accordance with the procedure prescribed by the said Code for the trial of warrant cases by Magistrates.

(2) Notwithstanding anything to the contrary contained in this Act or in the code of Criminal Procedure, 1973, there shall be no appeal by a convicted person in any case tried summarily under this section in which the special Judge passes a sentence of imprisonment not exceeding one month, and of fine not exceeding two thousand rupees whether or not any order under section 452 of the said Code is made in addition to such sentence, but an appeal shall lie where any sentence in excess of the aforesaid limits is passed by the special Judge.

Prevention of Corruption Act, 1988

1. Short title and extent

(1) This Act may be called the Prevention of Corruption Act, 1988.

(2) It extends to the whole of India except the State of Jammu and Kashmir and it applies also to all citizens of India outside India.

2. Definitions

In this Act, unless the context otherwise requires,-

(a) "election" means any election, by whatever means held under any law for the purpose of selecting members of Parliament or of any Legislature, local authority or other public authority;

(b) "public duty" means a duty in the discharge of which the State, the public or the community at large has an interest;

Explanation.-In this clause "State" includes a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956.

(c) "public servant" means-

(i) any person in the service or pay of the Government or remunerated by the Government by fees or commission for the performance of any public duty;

(ii) any person in the service or pay of a local authority ;

(iii) any person in the service or pay of a corporation established by or under a Central, Provincial or State Act, or an authority or a body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956;

(iv) any Judge, including any person empowered by law to discharge, whether by himself or as a member of any body of persons, any adjudicatory functions;

(v) any person authorised by a court of justice to perform any duty, in connection with the administration of justice, including a liquidator, receiver or commissioner appointed by such court;

(vi) any arbitrator or other person to whom any cause or matter has been referred for decision or report by a court of justice or by a competent public authority;

(vii) any person who holds an office by virtue of which he is empowered to prepare, publish, maintain or revise an electoral roll or to conduct an election or part of an election;

(viii) any person who holds an office by virtue of which he is authorised or required to perform any public duty;

(ix) any person who is the president, secretary or other office-bearer of a registered co-operative society engaged in agriculture, industry, trade or banking, receiving or having received any financial aid from the Central Government or a State Government or from any corporation established by or under a Central, Provincial or State Act, or any authority or body owned or controlled or aided by the Government or a Government company as defined in section 617 of the Companies Act, 1956;

(x) any person who is a chairman, member or employee of any Service Commission or Board, by whatever name called, or a member of any selection committee appointed by such Commission or Board for the conduct of any examination or making any selection on behalf of such Commission or Board;

(xi) any person who is a Vice-Chancellor or member of any governing body, professor, reader, lecturer or any other teacher or employee, by whatever designation called, of any University and any person whose services have been availed of by a University or any other public authority in connection with holding or conducting examinations;

(xii) any person who is an office-bearer or an employee of an educational, scientific, social, cultural or other institution, in whatever manner established, receiving or having received any financial assistance from the Central Government or any State Government, or local or other public authority.

Explanation 1.-Persons falling under any of the above sub-clauses are public servants, whether appointed by the Government or not.

Explanation 2.-Wherever the words "public servant" occur, they shall be understood of every person who is in actual possession of the situation of a public servant, whatever legal defect there may be in his right to hold that situation.

Govt may seize properties of corrupt babus

Unable to arrest corruption among government officials despite a special criminal law, Prevention of Corruption Act, 1988, the Centre is now planning to take a drastic step -- amend the Act to allow confiscation of properties of tainted babus.

The PC Act, which provides for a maximum jail term of seven years for a convicted official, has no provision empowering the government to seize the unaccounted for property.

``We are seriously considering a proposal for amending the PC Act to allow the state to confiscate an official's property obtained through corrupt means after a court convicts him,'' law minister Veerappa Moily told TOI.

However, the law ministry is still examining when to invoke this drastic measure -- after a court convicts a corrupt official or after the convicted official exhausts his appeal remedy.

In either case, the amendments will not be as drastic as demanded by Bihar chief minister Nitish Kumar. Kumar had recently met Moily over a proposed state law envisaging confiscation of property by the government immediately after the police files a chargesheet against an official accused of corruption.

The law ministry officials fear that such a provision would surely be misused by vindictive politicians after a regime change to wreak vengeance on officials close to the previous government.

Section 12 of the PC Act provides for a jail term between six months and five years along with a fine for government officials found guilty of corruption charges for the first time. However, the punishment gets a little stringent for habitual offenders under Section 14, which provides for a minimum two years imprisonment and a maximum of seven years in jail.

Chief Justice of India, K G Balakrishnan, at a seminar organized by CBI on September 12 had said that though the PC Act covered substantive acts of corruption among officials, the quantum of punishment appeared inadequate. He had echoed persistent demands for enhancing penalties and punishments under the Act.

``One prominent suggestion is the inclusion of a statutory remedy that will enable confiscation of properties belonging to persons who are convicted of offences under the PC Act. The rationale behind it is that if a public official amasses wealth at the cost of public, then the state is justified in seizing such assets,'' Justice Balakrishnan had said.

However, adding a note of caution, the CJI had said: ``Such proposals need to be thoroughly examined for their constitutional compatibility before being enacted in the form of legislation.'' This is what the law ministry is doing at present.