The last few months saw a number of allegations of corruption in issues such as contracts for the Commonwealth Games, allocation of  2G Spectrum, and the building of the Adarsh housing society.  Professor Kaushik Basu, the Chief Economic Adviser to the Ministry of Finance, has proposed a modification in order to make the anti-corruption law in the country more effective.  The Prevention of Corruption Act, 1988 penalizes both bribe giving and taking.  Bribe giving is punishable under the Act with imprisonment ranging between six months to five years.  He argues that bribe giving should be legalized. Professor Basu distinguishes “harassment bribes”, which he defines as “bribes that people often have to give to get what they are legally entitled to” from the remaining, “Non-Harassment Bribes” which would involve illegal benefits accruing to the bribe giver at a potential cost to the public interest.  He argues that legalization of harassment bribes would reduce the nexus between the giver (victim) and the taker of a bribe. Giving complete immunity to the bribe-giver would ensure higher reporting and co-operation of the giver in bringing to justice the bribe taker. The present law acts as a deterrent to reporting of bribery. Courts have also highlighted this issue. The High Court of Delhi in the Bharadwaaj Media Case (2007) observed that a “bribe giver is normally on the mercy of the officials and babus who compel him to pay bribe even for lawful work.The Court further observed that “Instead of expressing gratefulness to the persons who expose corruption, if the institutions start taking action against those who expose corruption, corruption is bound to progress day and night.”  It can be inferred from the judgement that steps ought to be taken to provide protection to those exposing bribery. The proposed legalization of bribe-giving may result in increased reporting of bribery and co-operation of the victim during prosecution. The fear that a bribe giver may report the public official could reduce corruption, at least in terms of harassment bribes. However, this proposal may reduce the stigma attached to bribe-giving and result in corrosion of morality. Much of the recent debate around corruption and the Lok Pal Bill revolve around effective prosecution. This paper looks at the incentive structure for reporting bribe-giving, and merits public debate.

The Protection of Women against Sexual Harassment Bill was passed by Rajya Sabha yesterday.  Prior to this, no legislation specifically addressed the issue of sexual harassment at the workplace.  In 1997, the Supreme Court issued directions in Vishakha vs. State of Rajasthan to deal with the issue.  The Supreme Court had also recommended that steps be taken to enact a law on the subject.  The Bill was introduced in Parliament in 2010 and was passed by the Lok Sabha on September 3, 2012.  In order to protect women from harassment, the Bill establishes a mechanism for redressal of complaints related to harassment. Recently, the Verma Committee in its Report on Amendments to Criminal Laws had made recommendations on the Sexual Harassment Bill.  In this blog we discuss some of the key issues raised by the Verma Committee with regard to the issue of sexual harassment at the workplace. Internal Committee:  The Bill requires the establishment of a committee within organisations to inquire into complaints of sexual harassment.  The Committee shall comprise four members: three would be employees of the organisation; and the fourth, a member of an NGO committed to the cause of women.  The Verma Committee was of the opinion that in-house dealing of the complaints would dissuade women from filing complaints.  It recommended that a separate Employment Tribunal outside the organisation be established to receive and address complaints of sexual harassment. Requirement for conciliation:  Once a complaint is made, the Bill requires the complainant to attempt conciliation and settle the matter.  Only in the event a settlement cannot be reached, the internal committee of the organisation would inquire into the matter.  The Verma Committee was of the opinion that this is in violation of the Supreme Court’s judgment.  It noted that in sexual harassment cases, an attempt to conciliate compromises the dignity of the woman. Action during pendency of the case:  As per the Bill, a woman may approach the internal committee to seek a transfer for herself or the respondent or a leave to the complainant.  The Verma Committee had recommended that till the disposal of the case, the complainant and the respondent should not be compelled to work together. False complaints: The Bill allows the employer to penalise false or malicious complaints as per their service rules.  The Committee was of the opinion that this provision was open to abuse. A PRS analysis of the Bill may be accessed here.