Harsh penalty in Jan Lokpal Bill, Indian industry worries

Indian industry is worried over a clause in the Jan Lokpal Bill which seeks to impose a fine of up to five times the loss caused to the public exchequer if a company is found to have been involved in corrupt practice and the charge is proved.

• The Jan Lokpal Bill drafted by the Anna Hazare team lists the various punishments that can be meted out for indulging in corruption. Clause 23 (3) of the Bill says, "If the beneficiary of an offence is a business entity, in addition to the other punishments provided for under this Act and under the Prevention of Corruption Act, a fine of up to five times the loss caused to the public shall be recovered from the accused and the recovery may be made from the assets of the business entity and from the personal assets of its managing directors, if the assets of the accused person are inadequate."
• It also says that if any company or any of its directors is connected to any offence under the Prevention of Corruption Act that company and all companies promoted by any of the company's promoters shall be blacklisted and ineligible for undertaking any government work or contract in future.

"I feel that each case has to be looked upon based on its merit. In case of a provision seeking a fine of five times, the loss caused to the public, I feel that this clause should specify that it has to be up to five times and not always absolute," said R C Bhargava, chairman of Maruti Suzuki India Ltd.

"Then the court has a right to decide the appropriate penalty, taking a practical view and keeping in mind the kind of offence. Too much rigidity in law makes it difficult to implement, I feel," said Bhargava, a former bureaucrat.

 "The Lokpal Bill is not really tackling the cause of corruption; it is only tackling the effect. We need to look at the fundamental aspect of why corruption exists. It's because there are discretionary powers which are being misused," said Harish Mariwala, CMD of Marico. "The system is faulty. We need to rectify the system and then only we will be able to weed out corruption."

Editor's View: Well why industralists are getting worried? why are MP's shouting? This all reflects that the bill has the guts to make corrupts feel the required fear. Even the controversial critic of lokpal Ms Aruna Roy think that bill will take care of an aspect of corruption in governance.


Source:http://articles.timesofindia.indiatimes.com/2011-09-06/india/30118135_1_prevention-of-corruption-act-fight-corruption-corrupt-practice