Pvt cos to come under Lokpal

The Delhi Janlokpal Bill proposes action against private entities, which not only includes imprisonment for top management of the company and five times recovery of losses incurred, but also prescribes blacklisting of firms in future government contracts if found involved in acts of corruption.
The Bill also prohibits public servant to take up "employment, assigsnment or consultancy" for two years after his retirement.
"If any company or any of its officer or Director is convicted for any offence under this Act or the Prevention of Corruption Act, 1988 (49 of 1988) then that company shall be blacklisted and be ineligible for undertaking any Government work or contract in future and where a promoter or Managing Director of a company is convicted for any offence under this Act or the Prevention of Corruption Act, 1988 (49 of 1988) then all companies where such promoter or Managing Director is a promoter or Managing Director shall be blacklisted and be ineligible for undertaking any government work or contract in future," section 17(v) of the Bill states.

It further prescribes attaching the property of top bosses of the business entities. Government sources said the section will come handy in dealing with erring private entities in different sectors.
The AAP government has ordered a CAG inquiry against power discoms.
"If the beneficiary of an offence is a business entity, in addition to the punishment provided for under this Act and or under the Prevention of Corruption Act, 1988 (49 of 1988), a fine of up to five times the loss caused to the public exchequer, but not less than the loss caused, shall be recovered from the convict and the recovery may be made from the assets of the convicted business entity and from the personal assets of its Managing Directors or Directors or any other persons responsible for the management and control of such entity, if the assets of the convicted person are inadequate," section 17(iv) of the Bill states.

It has also prescribed a cooling period for public servants for joining any private entity or doing any consultancy work.
"No public servant, for a period of two years immediately after he ceases to be such public servant, shall be eligible to take up any employment, assignment, consultancy, etc with or for any person, private company or firm or public private partnership or private organisation with which he had substantially dealt with in his official capacity during the last period of five years immediately before he ceased to be the public servant," section 24 of the Bill states.