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.

Report on Khap Panchayats The Law Commission has drafted a consultation paper on caste panchayats.    A draft legislation titled “The Prohibition of Unlawful Assembly (Interference with the Freedom of Matrimonial Alliances) Bill, 2011” has been attached to the consultation paper. The Bill prohibits people from congregating together to condemn a legal marriage on the ground that the said marriage has brought dishonour to the caste or community.     Every member of such a group shall be punished with imprisonment of a minimum term of 6 months and a maximum term of 1 year.   The member may also be liable to a fine of up to Rs 10,000. Under our criminal justice system, the presumption is that the accused person is innocent until proven guilty.   This Bill reverses this presumption.   It provides that if an accused person participated in an unlawful assembly, then it will be presumed that the accused intended to commit an offence under the Bill. The Commission has invited public comments on the consultation paper within 4 weeks.   The comments can be sent by post or email to lci-dla@nic.in.    A copy of the consultation paper is available at http://lawcommissionofindia.nic.in/reports/cp-Honour%20Killing.pdf. Report on compounding of offences including Sec 498A of IPC (harassment for dowry) The Law Commission has also submitted its report on ‘Compounding of (IPC) Offences.    Compoundable offences are offences which allow the parties to enter into a private compromise.   The Supreme Court in some recent cases had asked the Law Commission to identify more offences which could be treated as compoundable.   Section 320 of the Code of Criminal Procedure lists the offences which are compoundable.  Currently under the section there are 56 compoundable offences.   Certain offences can be compounded only with the prior permission of the court. The Commission has recommended that Section 498A of the IPC (cruelty against a married woman by her husband or relatives) should be made compoundable with the permission of the Court.   It has recommended that the magistrate should give a hearing to the woman and then permit or refuse the compounding of the offence.  This has been recommended to ensure that woman is not coerced into compounding the offence. The other IPC offences that the Commission has recommended should be made compoundable include (a) Section 324 (simple hurt); (b) Section 147 (rioting); (c) Section 380 (theft in dwelling house); (d) Section 384 (extortion) and  (e) Section 385 (extortion by threat  to person). A copy of the report is available at http://lawcommissionofindia.nic.in/reports/report237.pdf