The US Department of Justice requires, at the minimum, that gifts by companies must be of modest value, appropriate under the circumstances and given in accordance with anti-corruption laws and regulations, including those of the government officials’ home country. In this context, we review briefly legislation to regulate gifts.
Liability in India
In India, a bribe camouflaged as a gift can lead to civil and criminal liabilities under Indian laws as well as foreign laws. India does not have specific legislation to check corruption by way of gifts in the private sector. Under existing legislation, only public servants and middlemen who are citizens of India, and not bribe payers, face direct liability.
In May 2011, India ratified the United Nation Convention Against Corruption, which requires all state parties to take appropriate punitive and preventive measures to address the problem of corruption. India has not signed the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions but has a moral obligation to uphold it.
Nusrat Hassan is the managing partner and Yosham Vardhan is an associate at DH Law Associates.
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