Whistleblowing in India

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Whistleblowing

Are whistleblowers protected in your jurisdiction?

The Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations 2015 require companies listed on a recognised stock
exchange in India to devise an effective whistleblowing mechanism that enables
stakeholders – including individual employees and their representative bodies – to freely
communicate their concerns about illegal or unethical practices in such companies.

The Whistleblowers Protection Act 2011 establishes protective measures for

whistleblowers (ie, persons making a public interest disclosure relating to an act of
corruption, wilful misuse of power, wilful misuse of discretion or a criminal offence
committed or attempted by a public servant). While the whistleblower must disclose their
identity when making the disclosure, the relevant authorities are statutorily obliged to
ensure the whistleblower’s anonymity and protection from victimisation thereafter.
However, while the Whistleblowers Protection Act has been passed, it has not yet been
brought into effect by the government. A recent clarification by the Ministry of Personnel,
Public Grievances and Pensions indicates that the law may require further amendments
before being introduced.

No legal protection is afforded to whistleblowers who make disclosures in connection with

the private sector, although most companies provide protection to such whistleblowers
through internal policies and programmes.

The government has authorised the Central Vigilance Commission (CVC) as the
designated agency to receive and act on written complaints for the disclosure of
allegations of corruption or misuse of office by employees of:

the central government;

any corporation established under a central act; and
government companies, societies or local authorities owned or controlled by the
central government.

While the CVC does not accept anonymous complaints, it must keep the identity of
complainants confidential and if complainants require witness protection, this may also be
provided.

Self-reporting

Is it common for leniency to be shown to organisations that self-report and/or

cooperate with authorities? If so, what process must be followed?

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The Prevention of Corruption Act 1988 allows for certain defences which can be taken by
organisations in certain situations.

Where an individual has been compelled to give a bribe it may be considered not to
contravene the law if the matter is reported to the law enforcement authorities or relevant
investigative agency within seven days.

Commercial organisations can claim defence if they can prove that they had adequate
procedures in place to prevent such acts by any person associated with them. Such
procedures must comply with the guidelines to be prescribed by the government.

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