Doing Business in India – Corruption Risks and Responses

Recently the US law firm of Foley and Lardner LLP and MZM Legal, Advocates & Legal Consultants in India jointly released a white paper, entitled “Anti-Bribery and Foreign Corrupt Practices Act Compliance Guide for U.S. Companies Doing Business in India”.

For any compliance practitioner it is a welcome addition to country specific literature on the Foreign Corrupt Practices Act (FCPA), UK Bribery Act and other anti-corruption legislation and includes a section on India’s anti-corruption laws and regulations.

FCPA Enforcement Actions for Conduct Centered in India

Under the FCPA, several notable US companies have been through enforcement actions related to conduct in India. Although not monikered as a ‘Box Score’ the authors do provide a handy chart which lists the companies involved, a description of the conduct and fine/penalty involved.

Company Description Disposition (in USD) Pride International Payment made for favorable administrative judicial decision regarding customs issues $56.1 million Tyco International German subsidiary paid third parties to secure contracts; payments recorded as commissions $26 million Diageo Subsidiary made payments to government official responsible for purchase/authorization of Diageo’s products in India $16.4 million Textron Subsidiaries paid foreign officials to secure contracts; characterized as commission and consulting fees $5.05 million Oracle Corporation Oracle distributor allegedly created “slush” fund to pay third parties $2 million Dow Chemical Company Payments made to India Central Insecticides Board to expedite registration of products $325,000

India Anti-Bribery/Anti-Corruption Laws

The authors identify the principal anti-corruption legislation in India as the Prevention of Corruption Act, 1988 (PCA), which focuses on bribery of public servants ...

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