A landmark judgment issued by the Indian Supreme Court could have the broader effect of significantly expanding the compliance risk that companies face under numerous anti-bribery laws, including the U.S. Foreign Corrupt Practices Act.
In a decision issued Feb. 23, the Indian Supreme Court in the case Central Bureau of Investigation v. Gelli ruled that employees of private banks are “public servants” and, thus, can now be prosecuted for bribery and corruption under the Prevention of Corruption Act (POCA). Up until this ruling, the POCA was used to prosecute government officials who had been engaging in corrupt acts.
