Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ---- ❯
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ---- ❯
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ---- ❯
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    CBI arrests 'absconding' IRS officer in Rs 40-lakh bribery case
    Haryana plans Rs 2,295-crore rural infra push
    IPL betting syndicate: ED arrests 'principal bookie' in Guwahati money-laundering case
    ED chargesheets EaseMyTrip promoter Nishant Pitti in Mahadev betting app case
    “Sources and Methods for Compilation of National Accounts Statistics”
    Nearly 5 lakh Nagaland voters to receive notices over SIR mapping discrepancies
    India, Canada to hold next round of talks from Oct 5 for proposed trade pact: Goyal
    India's Semiconductor Market Projected to Grow Threefold to USD 200 billion by 2035: EY-IESA Report
    VKDL NPA Advisory Council Chairman V. K. Dubey Felicitated by Uttar Pradesh Women Commission Chairperson Babita Singh Chauhan
    Rupee rises 15 paise to close at 95.81 against US dollar
    Xi to visit US from Sept 23 to 25 for talks with Trump; China calls it ‘milestone of historic significance’
    Supporting PM Modi's call, IIFL Finance's Mayank Sharma believes recycling household gold is the fastest way to cut import bill
    How will tribunals function if no infrastructure? SC directs Centre to identify amenities required
    India-New Zealand trade pact to come into force on Oct 20: Goyal
    China, US hold 'candid, in-depth' talks on tariffs, AI issues ahead of Xi-Trump meeting
    Rupee rises 24 paise to 95.72 against US dollar in early trade
    Advisory on use of version 3.3 of emSigner
    Conference on “Financing India’s Journey towards Viksit Bharat” concludes in New Delhi
    IICA’s Meet the Legend Programme Explores ‘PMLA–IBC Interface’
    IICA hosts important session on ‘IBC as an Evolving Law Through the Amendments’,.
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

News
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
September 21, 2026
Show AI Summary
GST bribery investigation concerns alleged illegal gratification sought to resolve quarry firm's tax and royalty proceedings.
GST-related corruption allegations concern an alleged demand for illegal gratification from a stone-quarrying firm to resolve GST and royalty proceedings. A Customs House Agent was apprehended in a trap operation while allegedly accepting the negotiated amount on behalf of a CGST Superintendent and an Additional Commissioner. Custody proceedings involved written communication of arrest grounds and intimation to relevant family members and advocates.
September 21, 2026
Show AI Summary
Rural infrastructure financing supports irrigation, roads, water supply, warehousing and micro-irrigation through structured lending and implementation oversight.
Haryana's 2026-27 rural infrastructure financing plan comprises six proposals for irrigation, roads, drinking-water supply and warehousing, with loan assistance proposed under the Rural Infrastructure Development Fund. Infrastructure Development Assistance has been sanctioned for the India International Horticulture Market, while further micro-irrigation proposals have been recommended under the Micro Irrigation Fund. Implementation oversight emphasises faster project execution and timely drawal claims, alongside borrowing approval and prospective support for water security, groundwater recharge, efficient irrigation and treated-wastewater reuse.
September 21, 2026
Show AI Summary
Money laundering allegations in illegal cricket betting prompted investigative custody and examination of suspected routing of betting proceeds.
Money-laundering investigation into an organised illegal cricket-betting syndicate concerns the alleged use of online platforms, encrypted messaging channels, and a principal bookie to solicit, accept, and settle bets. Betting-derived funds were allegedly routed through a partnership firm represented as non-operational, whose account recorded substantial corresponding credits and debits. Property and vehicle records, digital data, and statements under the PMLA are relied upon to allege the acquisition, possession, use, transfer, and projection of proceeds of crime as untainted property.
September 21, 2026
Show AI Summary
Money laundering allegations concern foreign portfolio investments, alleged share-price manipulation, attachment, and proposed confiscation of betting proceeds.
PMLA proceedings name Nishant Pitti in relation to allegations that proceeds from illegal online betting were introduced into Indian equity markets as foreign portfolio investments. The allegations attribute to him a role in facilitating and layering such proceeds through pre-arranged share-price manipulation involving Easy Trip Planners Ltd. Property action includes provisional attachment of his DEMAT shares, described as proceeds of crime, and a request for confiscation.
September 21, 2026
Show AI Summary
National accounts modernisation adopts updated data sources, revised sector methods, and proportional Denton benchmarking for improved GDP estimates.
National Accounts Statistics in the new series use base year 2022-23, replacing the 2011-12 series. The series was updated to reflect changes flowing from the new Producer Price Index and Index of Industrial Production series. Methodological modernization expands corporate and financial-sector data coverage, refines general-government treatment, and adopts direct household-sector estimation from the Annual Survey of Unincorporated Sector Enterprises and the Periodic Labour Force Survey. Private Final Consumption Expenditure adopts COICOP 2018, while Quarterly National Accounts use the Proportional Denton approach and greater Goods and Services Tax and administrative-data use.
September 21, 2026
Show AI Summary
Electoral roll verification requires unmapped voters to establish linkage or submit prescribed documents before final enrolment.
Special Intensive Revision of Nagaland's electoral roll applies a mapping and verification process by reference to the 2005 electoral roll. Electors recorded under no-mapping or mapping-anomaly categories, including persons unable to establish linkage to an elector in the 2005 roll, are to receive notices from Electoral Registration Officers or Assistant Electoral Registration Officers. They must furnish prescribed supporting documents, calibrated to their date or year of birth, for verification. Non-registration in the 2005 roll does not itself cause automatic exclusion.
September 21, 2026
Show AI Summary
Trade pact negotiations and Russian energy tariffs shape market-access commitments and potential import-duty exposure for exporters.
India and Canada have accelerated negotiations for a Comprehensive Economic Partnership Agreement to establish a bilateral trade framework for goods and services. A United States law concerning sanctions on Russia and Iran authorises tariffs of up to 100 per cent on imports from leading purchasers of Russian crude oil or natural gas, creating potential tariff exposure for Indian exports. The India-European Union trade pact contemplates immediate duty elimination on 90 per cent of Indian goods and phased elimination on a further three per cent over seven years, subject to ratification.
September 21, 2026
Show AI Summary
Semiconductor ecosystem policy requires predictable regulation, integrated clusters, and coordinated support to convert domestic demand into local value creation.
Semiconductor ecosystem development in India is centred on converting expanding domestic demand into local manufacturing, innovation and supply-chain resilience. A predictable fiscal and regulatory environment, alignment of central and state semiconductor policies, integrated manufacturing clusters and talent-certification programmes are important to project viability and commercialisation. Advanced packaging, compound semiconductors, photonics and chip-to-system integration offer high-potential areas, requiring policy certainty, streamlined approvals and long-term support for research, talent and supplier development.
September 21, 2026
Show AI Summary
Legal and NPA advisory services receive recognition for social welfare, women's employment, legal awareness, and financial dispute-resolution work.
Felicitation of Advocate V. K. Dubey recognised his stated work in women's employment, public welfare, banking, NPA resolution, legal awareness, and social service. His profile encompasses civil, criminal, non-performing asset, banking, corporate, and settlement matters; leadership of bodies engaged in financial-dispute resolution; and legal assistance and public awareness intended to improve access to justice for marginalised persons. Associated initiatives include education and support for disadvantaged communities and wider social empowerment.
September 21, 2026
Show AI Summary
Rupee appreciation reflected lower crude oil prices, stronger domestic equities, and improved risk sentiment amid diplomatic expectations.
Rupee appreciation against the US dollar followed lower crude oil prices, improved global risk sentiment, positive domestic equity markets, and softer US Treasury yields. Dollar index strength, geopolitical developments, and possible increases in oil supplies remained relevant to currency movements. Market commentary anticipated a slight positive rupee bias if crude oil prices continued to ease, while renewed geopolitical tensions could weaken risk sentiment. Net foreign institutional investment and a decline in foreign exchange reserves also formed part of the market context.
September 21, 2026
Show AI Summary
Reciprocal tariffs and AI incident notifications frame bilateral talks on trade, security, technology and arms sales.
US sanctions legislation authorises the President to impose tariffs, including up to 100 per cent, on countries purchasing Russian oil and gas. China rejects tariffs directed at its Russian energy purchases and opposes unilateral sanctions and long-arm jurisdiction absent an international-law basis or a UN Security Council mandate. Washington and Beijing are also negotiating a reciprocal tariff-reduction framework covering products from both sides.
September 21, 2026
Show AI Summary
Gold recycling and financialisation can reduce import dependence by mobilising household holdings through exchange, credit and non-physical investment.
Organised gold recycling, responsible sourcing, gold loans and financialised gold products are identified as ways to reduce reliance on fresh gold imports. Exchanging old jewellery can meet retail demand from existing domestic holdings, while gold loans unlock credit without requiring households to sell their gold. Gold ETFs and digital gold permit exposure to gold's value without physical possession and may reduce physical import demand. Transparency, trust and supporting infrastructure are necessary to integrate household gold into an organised formal economy.
September 21, 2026
Show AI Summary
Tribunal infrastructure and member vacancies: amenities assessment and bench-level data collection address reduced sittings across company-law benches.
The Supreme Court required the Central Government urgently to identify, in consultation with the Tribunal President, infrastructural amenities needed by tribunal benches. The Principal Bench Bar Association was required to compile tabulated infrastructure data for every regional bench. At least 18 benches were asserted to conduct half-day sittings because of member shortages, against a sanctioned complement that remained unchanged despite expanded insolvency jurisdiction.
September 21, 2026
Show AI Summary
Duty-free access for Indian exports under the India-New Zealand trade agreement begins with its entry into force.
The India-New Zealand Free Trade Agreement will grant duty-free access in New Zealand to all Indian exports, displacing existing peak tariffs on products such as ceramics, carpets, automobiles, and auto components. Scheduled to enter into force on 20 October 2026, the agreement also includes New Zealand's long-term investment commitment in India.
September 21, 2026
Show AI Summary
Tariff sanctions and AI trade consultations examine reciprocal tariff reduction amid energy-purchase measures and objections to unilateral sanctions.
Expanded sanctions and tariff measures form the immediate trade-policy backdrop. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 authorises expanded sanctions and tariffs targeting Russia and countries that buy its energy exports. China contests the application of tariffs to its purchases and opposes long-arm jurisdiction and unilateral sanctions asserted without a basis in international law or a UN Security Council mandate. Parallel negotiations contemplate a reciprocal tariff-reduction arrangement.
September 21, 2026
Show AI Summary
Rupee appreciation in early trade reflects lower crude prices and stronger domestic equities despite dollar demand.
Rupee appreciation in early interbank trading saw the currency strengthen by 24 paise to 95.72 per US dollar. Lower Brent crude prices, gains in domestic equities and improved foreign fund sentiment supported the currency, while importer demand for dollars and broader US-dollar strength limited gains. Market commentary identified a broad near-term trading range, and foreign-exchange reserves declined because foreign-currency and gold reserves fell.
September 21, 2026
Show AI Summary
Digital signature compatibility requires updated signing software for newly issued tokens, while functioning existing certificates remain usable until expiry.
Digital-signature users with tokens issued on or after 21 September 2026 must install emSigner v3.3, while users whose existing certificates and tokens function normally may retain their current version. Version 3.3 supports existing tokens and is required where signing fails or certificates cannot be selected despite correctly installed drivers. Certificates downloaded to FIPS 140-2 dongles on or before that date remain valid until expiry; later renewal or fresh issuance generally requires FIPS 140-3 dongles, subject to specified exceptions.
September 21, 2026
Show AI Summary
Private capital mobilisation for development financing requires predictable investment conditions, credible projects, fiscal transparency, and strengthened State capital expenditure.
Development financing for Viksit Bharat is framed as a joint Union-State and private-sector task requiring higher savings and investment, fiscally resilient public finances, and mechanisms to mobilise private capital. Fiscal sustainability requires State-wise debt assessments and fuller disclosure of off-budget borrowings, guarantees, arrears and borrowings through State-owned entities. Public resources are expected to play a catalytic role in attracting private investment, supported by predictable rules, enforceable contracts, faster dispute resolution and stronger investment protections.
September 21, 2026
Show AI Summary
PMLA-IBC interface examines challenges in harmonising insolvency resolution with money-laundering asset attachment, investigation, tracing and enforcement.
The PMLA-IBC interface addresses reconciliation of insolvency resolution with anti-money-laundering enforcement where corporate debtor assets are attached during resolution. Section 32A is central to this interaction, although harmonised implementation remains challenging. The framework also considers money-laundering stages, hawala transactions, financial investigation, asset tracing, and evolving judicial approaches to aligning insolvency objectives with enforcement measures.
September 21, 2026
Show AI Summary
Evolving insolvency law relies on legislative amendments and regulatory mechanisms to respond effectively to changing market conditions.
Subordinate legislation and regulatory mechanisms are important tools for maintaining responsiveness within the insolvency framework. Regulations may be framed for provisions of the Code and for fulfilment of its purposes and objectives, enabling practical responses to emerging issues. The interaction between primary legislation, regulations and market developments supports continuing refinement of insolvency law in line with changing conditions.

News

Back

All News

Showing Results for :
Reset Filters
No Records Found

News

Back

All News

Customs, DGFT & SEZ

Text of the Speech of the Union Finance Minister Shri P.Chidambaram at Xxth Conference of CBI & State Anti Corruption Bureaux on “Building A Criminal Justice System to Deal with Financial Crimes”

November 12, 2013

Contents
Summary
Note

Note

-

Bookmark

Print

Print

Following is the full Text of the Speech of the Union Finance Minister Shri P.Chidambaram at XXth Conference of CBI & State Anti-Corruption Bureaux on “ Building a Criminal Justice System to deal with Financial Crimes” here today :

“I am happy to address this international conference organised by the CBI on “Evolving common strategies to combat corruption and crime”, and I thank you for the invitation.

The Central Bureau of Investigation is the premier investigating agency of India. It owes its existence to the Delhi Special Police Establishment Act, 1946. To begin with, it had a limited mandate, namely, to investigate cases of corruption. Over the years, its mandate has expanded. Today, it has three wings: anti-corruption wing, special crimes wing, and economic offences wing. The offences that may be investigated by the CBI are notified by the Central Government under section 3 of the Act.

Apart from cases of corruption involving public servants and serious conventional crimes, CBI has the power to investigate a number of offences that pertain to what can be broadly described as the financial sector. I may make particular reference to some offences that fall within the jurisdiction of CBI. They are:

Cases in which the interests of the Central Government or of any public sector project or undertaking, or any statutory corporation or body set up and financed by the Government of India are involved

Breaches of import and export control orders

Serious cases of fraud, cheating and embezzlement relating to public joint stock companies

It is evident that the scope of the jurisdiction of CBI is quite large. It extends to the core of the financial system which comprises tax authorities, banks, insurance companies, provident fund and pension fund authorities, regulators such as SEBI, IRDA and PFRDA, and other important players in the financial sector. Besides, there are no financial crimes which do not also attract the provisions of laws dealing with conventional crimes such as the Indian Penal Code. Virtually every serious financial crime will also attract one or more IPC provisions such as section 192 (fabricating false evidence), section 405 (criminal breach of trust), section 415 (cheating), section 463 (forgery) etc.

New Challenges in a Market Economy

Since 1991, we have transited from a closed and controlled economy to an open and market economy. The transition has brought in its wake both new opportunities and new challenges. Our laws have lagged behind. Hence, as you are perhaps aware, in March 2011, Government constituted the Financial Sector Legislative Reforms Commission “with the view to rewriting and cleaning up the financial sector laws to bring them in tune with the current requirements.” The Commission submitted its report in March, 2013. One of the recommendations of the Commission is on ‘market abuse’. ‘Market abuse’ has been defined as meaning insider trading, abuse of information and securities market abuse. The Commission has recommended that market abuse and attempting or abetting market abuse must be made offences and must be punished with penalties extending to three times the illegitimate gains made or losses caused as well as with imprisonment. It will therefore be evident that as new challenges emerge, new laws will be made, new offences will be defined, and new responsibilities will fall on investigating agencies.  

A Time to Dispel Some Myths

Before I continue with the topic of my speech, forgive me for a brief digression. There are several myths about the CBI ranging from the celebrated epithet “caged bird” to the abusive nomenclature “Congress Bureau of Investigation”. None of the descriptions is correct or even well-meaning. Some myths are carefully fostered and propagated in order to serve an immediate or narrow self-interest. In a lighter vein, I may say that sometimes the CBI itself pretends to be a “helpless victim” when it pleads for more powers and greater autonomy! Hardly anyone seems to notice the contradiction when the same person pleads in favour of ‘more powers to CBI’ and also rails against the alleged ‘excesses of the CBI’. And hardly anyone pauses to ask how could the CBI do the bidding of a political party that has not been in government during 12 years out of the last 35 years!

In my view, the CBI is as good an investigating organisation as any other in the world. We are proud of the achievements of the CBI. It has performed a difficult role especially when the primary responsibility for enforcement of laws lies with the State Governments. Let me also remind you that, save in certain cases, an offence falling under the jurisdiction of the State Police cannot be investigated by the CBI without the express consent of the State Government concerned. The best testimony to CBI’s credibility is the numerous demands that are made for cases to be ‘taken over’ by the CBI rather than be investigated by the State Police. Every such demand is a tribute to the CBI.

As we look forward to the next 50 years, the need for an independent, impartial and capable central investigation agency is more imperative than ever. Whether we think about corruption or financial crime or terrorism, the challenges faced by India will be greater than ever. Therefore, it is time to outline the contours of the challenges that an investigating agency will face and what the investigating agency will be required to do in the next 50 years. It is time also to start rethinking the legal foundations of the agency so as to achieve clarity on objectives, powers and accountability.

Financial Crimes

My focus today will be on financial crimes.

Yesterday, the Prime Minister made a thoughtful speech and drew the line between policy-making and policing. I urge all of you to reflect on that speech carefully. In my speech today I wish to go into some detail on the legal and technical issues that are involved in the apparent conflict between policy-making and policing.

Safety is a ‘public good’. Public good is defined around two tests: non-rival and non-excludable. Safety is non-rival: my safety while walking on a street does not reduce your consumption of safety. Safety is non-excludable: when one more child is born into the world, it is not possible to exclude that child from the umbrella of safety. Safety satisfies both tests and it is a public good. A fortiori, safety of the financial system is a public good. Safety is the pre-requisite for an open or market economy, which is the highway to prosperity. If we fail on safety, we will fail to get growth.   Providing safety is the job of the Government. A sound criminal justice system must ensure safety of the financial system. It must protect the financial system against theft, fraud, forgery, mis-selling, money laundering, hacking, cyber attacks etc. Registration and investigation of offences is the starting point of a sound criminal justice system. Hence the need for a first rate investigating agency.

An investigating agency must build capacity. I have no doubt that a trained police officer is capable of handling financial crimes. There is a strong degree of commonality among all kinds of crimes, and enforcement processes are similar. I was told that an IPS officer was brought into SEBI some years ago as an Executive Director and he pioneered many new methods of investigation which yielded permanent improvements in the manner in which SEBI works. The point that I wish to make is the need for bringing a variety of skilled persons into the investigating agency. In the case of CBI, it must recruit bankers, accountants, lawyers, insurers, fund managers and securities experts, train them in the substantive and procedural laws, and turn them into first rate investigators. Conversely, since police officers are highly educated and many hold post graduate or doctoral degrees in a variety of subjects, they could be trained in financial laws and equipped to deal with financial crimes. It is the integration of skills possessed by police officers and skills possessed by subject matter experts that will make the CBI a first rate investigating agency.

The second limb of capacity is technology. Financial crimes are committed using the most advanced technology, including sophisticated software. The investigating agency must have technological capability matching the offender’s capability. It must have software that is able to search millions of pieces of information and locate and unravel the source of the crime, the key persons, and the complex web of activities that constitute the crime.

Financial crimes are no longer confined to the boundaries of a State. Many financial crimes span several countries. Even if the key criminals belong to one country, they use banks, post offices, telecom service providers, servers, satellite links, airlines and money exchanges to rob and cheat people and to launder and stash illegal money. These criminal networks cannot be exposed by an agency acting alone. There must be a robust mechanism for exchange of tax and financial information among the countries of the world. Fortunately, more countries are entering into agreements for tax information exchange and mutual assistance in criminal matters. CBI, as the nodal agency in India for Interpol, is best placed to join a network of investigating agencies around the world for exchange of information and for mutual assistance in criminal matters. The instruments that are now available to CBI, including the agreements referred to, must be strengthened.

I may also point out that there are usually three groups of persons involved in financial crimes. Firstly, there are the core conspirators. Then there are accomplices in the financial system and, finally, there are their accomplices in Government departments or regulatory bodies. Any thorough investigation must uncover all the groups of persons and all the links that made the conspiracy possible. All the groups must suffer punishment. Usually, the face of the crime is the face of the principal offender and with his/her arrest and arraignment the excitement usually dies. Unfortunately, this will let the other conspirators get away – only to commit more financial crimes after lying low for some time. It is therefore important that the investigating agency identifies all the individuals who collaborated in the crime and brings to justice every one of them. That alone will establish deterrence.

Summing up, an investigating agency must have a variety of skilled persons, advanced technology, good collaboration with other investigating agencies and standard operating procedures that will uncover all the participants involved in a financial crime.

Interpreting and Applying Laws

Let me now turn to the vexed question of interpreting and applying criminal laws to financial transactions. As a rule of criminal jurisprudence, a crime requires mens rea, that is a criminal state of mind. I am aware that there are exceptions and some offences are charged on the principle of ‘strict liability’. In my view, the principle of strict liability may not apply without qualification to financial crimes, except in the small number of cases where there is a clear and unambiguous rule of conduct and the law unambiguously stipulates that any violation of that rule would be considered an offence. Ordinarily, a financial crime would arise from either unlawful gain or unlawful loss and, in such cases, the law could either stipulate proof of the state of mind or presume a state of mind to cause the unlawful gain or the unlawful loss. So, in financial crimes, mens rea or the state of mind must be invariably proved or presumed from certain facts. This, in my view, is the correct approach to financial crimes.

There are cases where the CBI – and sometimes the courts – have interpreted provisions of law to exclude mens rea. A frequently cited example is section 13(1)(d)(iii) of the Prevention of Corruption Act 1988. That provision reads as follows:

“If he, while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest”

A close reading of the above provision does not, in my view, rule out mens rea. The words “without public interest” imply that the offender must have committed the act although he knew that there was no public interest. In a case arising under this section, if the accused is able to show that there was indeed some public interest, in my view, the offence would not be made out and the accused would be entitled to an acquittal. I would once again commend the prudent approach to financial crimes that I outlined above, and that is the requirement of mens rea or state of mind, unless it is unambiguously excluded by the express language of the law.

Let me illustrate with reference to certain kinds of financial transactions. Banking is a business, so banks lend. In some cases they lend at the prime lending rate, in some cases below that rate, and in some cases at the base rate. Interest rates can be reset. Similarly, insurance companies invest funds by picking and choosing winners. They buy and sell financial assets. These decisions are taken based on facts and circumstances that are available at the time the decisions are taken. When market conditions change, a loan may turn into a non-performing asset. An investment may collapse in value and result in a loss.   How should one characterise the original decision? It may have been a poor decision, it may be a decision that turned out to be a wrong decision, but does that make the decision an offence or the decision maker a criminal? I think an investigating agency should tread carefully before it reaches the conclusion that a business or commercial decision, taken on the basis of available facts, amounts to a crime. This is where the state of mind comes in. In my view, it would be wholly opposed to common sense and fair play if the investigating agency ignored the state of mind and, absent any motive or criminal intent, jumped to the conclusion that a business or commercial decision amounted to a crime.

Policy Making vs Policing

           Finally, I would caution investigating agencies to respect the line that divides policy-making and policing. An offence is committed when a prescribed rule of conduct is violated. If there is no prescribed rule, or if there is no violation of a prescribed rule, there is no offence. It is not the business of the investigating agency to lay down a rule of conduct; nor is it the business of the investigating agency to presume a rule of conduct. Even where a rule has been prescribed, if there is a policy behind that rule, it is not the business of the investigating agency to question the wisdom of that policy or to suggest a different policy that would be better in the view of the investigating agency. The investigating agency must confine itself to the question whether there has been a violation of a laid-down rule of conduct.

One good test whether a rule of conduct has been wilfully violated is to ask whether there is a speaking order in support of the decision that is the subject matter of investigation. Ordinarily, a speaking order should be a complete answer to a criminal investigation. A speaking order may be right or wrong on the merits of the case, but as long as there are reasons given in support of a decision, such reasons should ordinarily rule out any criminal state of mind. Unfortunately, there are a number of cases where investigating agencies, and other authorities like the C&AG, have overstepped their limits and attempted to convert bona fide executive decisions into either crimes or abuse of authority.

The Three Pillars

In conclusion, let me state the fundamentals of how an investigating agency needs to be constructed in the emerging new India. There are three pillars:

·         Clearly defined objectives

·         Precisely enumerated powers

·         Carefully designed accountability mechanisms

It is this approach which informs the FSLRC report to which I referred earlier. I would commend the same approach while redesigning our investigating agencies, of which the CBI is the premier agency.

           I am happy to see the enthusiastic response to this Conference and the wide coverage it has received in the media. I wish your deliberations success and I wish the CBI many more years of good and dedicated public service.

           Thank you for your patience and courtesy”.

Topics

Acts Income Tax