Short answer: Yes. Since the 2018 amendment, Section 8 of the Prevention of Corruption Act makes it an offence for any person to give or promise an undue advantage to induce or reward improper performance of a public duty, punishable with up to seven years, fine, or both. A person compelled to pay is protected only if he reports the matter to a law enforcement authority or investigating agency within seven days.
What Section 8 says
Section 8(1) applies to any person who gives or promises to give an undue advantage to another person, intending to induce a public servant to perform a public duty improperly, or to reward such improper performance. The Explanation makes it immaterial whether the advantage goes to the public servant directly or through a third party. “Undue advantage” is defined in Section 2(d) as “any gratification whatever, other than legal remuneration”.
The punishment is imprisonment up to seven years, or fine, or both. Where the offence is by a commercial organisation, the punishment is fine.
The coercion proviso and the seven-day rule
The first proviso says the section does not apply where a person is compelled to give the undue advantage. But the second proviso adds that the person so compelled “shall report the matter to the law enforcement authority or investigating agency within a period of seven days from the date of giving such undue advantage”.
Section 8(2) separately protects a person who gives an undue advantage after informing a law enforcement authority or investigating agency, in order to assist its investigation. This is the legal basis on which a complainant takes part in a trap.
Companies and their officers
Under Section 9, a commercial organisation is liable to fine if a person associated with it gives or promises an undue advantage to a public servant to obtain or retain business, or an advantage in business. It is a defence for the organisation to prove that it had adequate procedures in place, in line with prescribed guidelines, to prevent such conduct.
Under Section 10, where the offence under Section 9 is proved to have been committed with the consent or connivance of a director, manager, secretary or other officer, that person is punishable with three to seven years and fine. Middlemen who take an advantage to influence a public servant are covered separately by Section 7A.
Timing
These provisions came in with the amendment effective 26 July 2018. Acts before that date are assessed under the law then in force, including the earlier abetment provisions.
Related questions
Is a person who paid under pressure automatically safe?
Only if he reports the matter to a law enforcement authority or investigating agency within seven days of giving the undue advantage, as the second proviso to Section 8 requires.
Does sanction apply to a bribe-giver?
Section 19 sanction is required for prosecuting public servants for listed offences. A private person charged under Section 8 does not get the benefit of Section 19.
Can a company be prosecuted for bribery by an agent?
Yes. Section 9 makes the organisation liable to fine for bribery by an associated person, unless it proves adequate procedures were in place to prevent it.
Are directors personally liable?
Under Section 10, a director or officer is liable only where the Section 9 offence is proved to have been committed with his consent or connivance.
Practical points
- If any payment was demanded and made, record the facts and report it within seven days.
- Businesses dealing with government should keep written anti-bribery procedures, training records and approval trails for agents.
- Review agent and consultant contracts for anti-corruption clauses and audit rights.
- If named in an FIR as a giver, examine whether coercion and the reporting timeline can be shown.
Sources: India Code, Prevention of Corruption Act, 1988; India Code, PC Act 1988 (PDF, as amended); LiveLaw, Tejmal Choudhary (2018 amendment date).
For a confidential discussion on bribery allegations against businesses and individuals, see Prevention of Corruption Act, CBI and vigilance matters.
General legal information only; not legal advice or solicitation.
