Panel suggests action against corporates for graft

A parliamentary panel has recommended a stringent anti-graft bill that proposes to make corporate entities liable for acts of corruption by its employees.

The Prevention of Corruption (Amendment) Bill, which forms a key component of the anti-graft framework backed by Congress vice-president Rahul Gandhi, has provisions that hold the person in-charge of a commercial organisation responsible if its employees or agents are caught giving bribes.

However, the organisation may escape action if it convincingly proves in a court of law that it had put in place adequate measures to prevent employees from indulging in corrupt practices.

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