31 March, 2016
On 23 February 2016, India's Supreme Court ruled that chairpersons, directors, and officers of private banks are subject to the country's Prevention of Corruption Act, a law meant to prosecute government employees who commit acts of corruption. . The Supreme Court's decision overturned earlier decisions from the Delhi and Bombay high courts which held that anti-corruption laws do not apply to non-government officials. The Supreme Court explained that bank employees discharge duties which are of state and public interest. Therefore, performance of such public duties by a person is the "sine qua non of the definition of the public servant" contained in the provisions of the Prevention of Corruption Act.
For further information, please contact:
Kyle Wombolt, Partner, Herbert Smith Freehills
kyle.wombolt@hsf.com
