The Prevention of Corruption Act, 1988

The Prevention of Corruption Act, 1988
• In addition to the categories included in the IPC, the definition of “public servant”
includes office bearers of cooperative societies receiving financial aid from the
government, employees of universities, Public Service Commission and banks.
• If a public servant takes gratification other than his legal remuneration in respect of an
official act or to influence public servants is liable to minimum punishment of six months
and maximum punishment of five years and fine. The Act also penalizes a public servant
for taking gratification to influence the public by illegal means and for exercising his
personal influence with a public servant.
• If a public servant accepts a valuable thing without paying for it or paying inadequately
from a person with whom he is involved in a business transaction in his official capacity,
he shall be penalized with minimum punishment of six months and maximum
punishment of five years and fine.
• It is necessary to obtain prior sanction from the central or state government in order to
prosecute a public servant.
The Benami Transactions (Prohibition) Act, 1988
• The Act prohibits any benami transaction (purchase of property in false name of another
person who does not pay for the property) except when a person purchases property in his
wife’s or unmarried daughter’s name.

• Any person who enters into a benami transaction shall be punishable with imprisonment
of upto three years and/or a fine.
• All properties that are held to be benami can be acquired by a prescribed authority and no
money shall be paid for such acquisition.