Federation of Indian Chambers of Commerce and Industry has noted with approval the government attempt to amend the Indian Penal Code to make corruption in private sector a criminal offence.
"We believe that such a provision could be an effective deterrent and help curb corruption," it said.
The Central Government has proposed to make bribery in private sector - both giving and accepting it - a criminal offence by amending the IPC. However, FICCI, said that it was necessary to ensure that the amended law does not cause undue harassment to businessmen in the country.
"It is imperative that such a law be implemented only after a thorough cleansing of the existing regulations
and legal provisions. It is also important to ensure that the amended law does not cause undue harassment to private businessmen in the country," the industry body said.
The government's move was also supported by the Associated Chambers of Commerce and Industry of India. Assocham Secretary General D S Rawat said that the body favours such a law which was the need of the country. Whereas, the Confederation of Indian Industry said it was "examining the matter internally".
The draft Indian Penal Code (Amendments) Bill, 2011, circulated to states and Union Territories by the Centre for their comments, would cover graft by an individual, firm, society, trust, association of individuals, company, whether incorporated or not, which undertakes any economic or financial or commercial activity.
At present, there are no legal provisions to check graft in the private sector.