Rise in graft cases calls for filling gaps in anti-corruption law

AS India faces corruption menace, the Supreme Court has enlarged the ambit of its anti-corruption law. In a verdict having implication for private/deemed universities, it ruled that employees and trustees of such universities are “public servants” who can be prosecuted for illegal gratification under the Prevention of Corruption Act (PCA), 1988.

The top court expanded the ambit of the term “university” under Section 2(c)(xi) of the PC Act, saying “It cannot be stated that a “Deemed University” and the officials therein, perform any less or any different a public duty, than those performed by a University simpliciter, and the officials therein.”

PC Act scope widened

The top court expanded the ambit of the term “university” under Section 2(c)(xi) of the PC Act, saying “It cannot be stated that a “Deemed University” and the officials therein, perform any less or any different a public duty, than those performed by a University simpliciter, and the officials therein.”

This is the second time in recent years that the Supreme Court has expanded the scope of PCA

This is the second time in recent years that the Supreme Court has expanded the scope of PCA. In Ramesh Gelli’s case in 2016, it had enlarged the ambit of the PCA by holding that two top officials of Global Trust Bank were “public servants” who could be prosecuted for corruption.

The interpretation is in tune with its verdict in Subramanian Swamy versus Manmohan Singh (2012) in which it said an anti¬-corruption law had to be interpreted in a manner that strengthens the fight against corruption.

Of late corruption has reached alarming proportions as reflected in various scams. According to Transparency International’s Corruption Perception Index released at World Economic Forum, Davos, in January 2020, India is ranked 80th among 180 countries.

“Today, corruption in our country not only poses a grave danger to the concept of constitutional governance, it also threatens the very foundation of Indian democracy and the Rule of Law. The magnitude of corruption in our public life is incompatible with the concept of a socialist, secular democratic republic… where corruption begins all rights end,” SC said in Swamy’s case.

India’s anti-corruption law was framed in pre-liberalisation era when the government had a wider role to play in nation building. But post-liberalisation, many of the functions performed by the state, including power distribution, education and health, have been undertaken by private sector. Can an entity performing a “public function” escape the wrath of anti-corruption law applicable to “public servants”?

After India ratified the United Nations Convention Against Corruption (UNCAC) in 2011, Parliament amended PCA in 2018 to address many of the shortcomings.

Whether in public sector of private sector – corruption violates human rights and undermines justice, liberty, equality, fraternity – the core constitutional objectives set out in the preamble.

The Supreme Court has tried to fill the legislative void by giving a purposive interpretation to the pre-liberalisation PCA. It’s time necessary tweaking is done to make it a more effective legal tool in fight against corruption.