Narendra Modi has just given India Inc has a new reason to worry

There seems to be a breather for corrupt bureaucrats in the government. If approved in the parliament, a key anti-corruption law will prove a severe blow to India Inc.

As per a news report by The Economic Times, India Inc officers who bribe through government mechanism, once pronounced guilty of graft, officers now face a maximum seven years and minimum three years in prison " up from five years and six months, respectively. And the new law wants speedy trials " to be finished in two years.

Minister of State for Prime Minister's Office and Ministry of Personnel Jitendra Singh told the ET: "We will try to bring the Bill before Parliament in the current session itself. The new provisions will certainly ensure that bureaucrats can work without fear of any wrong prosecution and take decisions promptly...their complaints have been attended to by us."

For India's companies, the potentially troubling change comes via the amendment that makes corporates, not just individuals, liable for acts of bribery.

The news report reads, the government's press release defines these changes as, (a) "Liability of commercial organisations for failure to report bribery is being added to supply side of corruption", and (b) "Expanding the ambit of provision for containing inducement of public servant from individuals to commercial entities". These provisions make companies potentially a targof anti-corruption investigation because an act of bribery by an employee or an associated individual can make the company liable.

Sumit Makhija, senior director at Deloitte in India told the ET, "The proposed amendments in the Act will put additional responsibility on organisations to put measures in place to prevent bribery by employees and agents. This would require organisations to reassess their governance structures to ensure there are mechanisms in place as well as practical guidance for people associated with them to prevent any form of bribery."

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