Human Resource under Constitution of India

The constitution came in force in India on 26.01.1950 which falls under the FY 1949-50 as 1st year of Indian Republic. Currently 67th year of India is running under the operation of Constitution of India. The situation of Human Resources of India in its 1st year is different from the current situation of 67th Year. The structure and organization of civil services were quite different in the 1st year. The constitution of India is having Art 308 to Art 323B which deals with matters pertaining to Human Resource Management of the affairs of the state as defined in Art 12 of constitution of India. 

These Art 308 to Art 323A pertains to Civil Services of the state excluding the appointment by election into public service, appointment by constitutional posts, military  services and judicial services. These Articles governs the framework of management of talent in this 67th year of Indian republic wherein the growth in the communication by means of information network has changed the life of citizens. 

Theoretically the Indian states is composed of the Indian citizens who are having now access to all communication network by means of mobile, computer or any other equipment. The civil service and the laws of the management of civil service must adapt to the modern technologies. The adaptation is inevitable because non adaptation shall create the arbitrage wherein the better adapted adapted nation will get the advantage. So adaptation of civil service is inevitable.. 

--

Art 12. Definition In this part, unless the context otherwise requires, the State includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India

PART XIV SERVICES UNDER THE UNION AND THE STATES CHAPTER I SERVICES

Art 308. Interpretation In this Part, unless the context otherwise requires, the expression State does not include the State of Jammu and Kashmir

Art 309. Recruitment and conditions of service of persons serving the Union or a State Subject to the provisions of this Constitution, Acts of the appropriate Legislature may regulate the recruitment, and conditions of service of persons appointed, to public services and posts in connection with the affairs of the Union or of any State: Provided that it shall be competent for the President or such person as he may direct in the case of services and posts in connection with the affairs of the Union, and for the Governor of a State or such person as he may direct in the case of services and posts in connection with the affairs of the State, to make rules regulating the recruitment, and the conditions of service of persons appointed, to such services and posts until provision in that behalf is made by or under an Act of the appropriate Legislature under this article, and any rules so made shall have effect subject to the provisions of any such Act

Art 310. Tenure of office of persons serving the Union or a State

(1) Except as expressly provided by this Constitution, every person who is a member of a defence service or of a civil service of the Union or of an all India service or holds any post connected with defence or any civil post under the Union, holds office during the pleasure of the President, and every person who is a member of a civil service of a State or holds any civil post under a State holds office during the pleasure of the Governor of the State

(2) Notwithstanding that a person holding a civil post under the Union or a State holds office during the pleasure of the President or, as the case may be, of the Governor of the State, any contract under which a person, not being a member of a defence service or of an all India service or of a civil service of the Union or a State, is appointed under this Constitution to hold such a post may, if the President or the Governor as the case may be, deems it necessary in order to secure the services of a person having special qualifications, provide for the payment to him of compensation, if before the expiration of an agreed period, that post is abolished or he is, for reasons not connected with any misconduct on his part, required to vacate that post

Art 311. Dismissal, removal or reduction in rank of persons employed in civil capacities under the Union or a State

(1) No person who is a member of a civil service of the Union or an all India service or a civil service of a State or holds a civil post under the Union or a State shall be dismissed or removed by a authority subordinate to that by which he was appointed

(2) No such person as aforesaid shall be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges Provided that where it is proposed after such inquiry, to impose upon him any such penalty, such penalty may be imposed on the basis of the evidence adduced during such inquiry and it shall not be necessary to give such person any opportunity of making representation on the penalty proposed: Provided further that this clause shall not apply

(a) where a person is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge; or

(b) where the authority empowered to dismiss or remove a person or to reduce him in rank ins satisfied that for some reason, to be recorded by that authority in writing, it is not reasonably practicable to hold such inquiry; or

(c) where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State, it is not expedient to hold such inquiry

(3) If, in respect of any such person as aforesaid, a question arises whether it is reasonably practicable to hold such inquiry as is referred to in clause ( 2 ), the decision thereon of the authority empowered to dismiss or remove such person or to reduce him in rank shall be final

Art 312. All India Services

(1) Notwithstanding anything in Chapter VI of Part VI or Part XI, if the Council of States has declared by resolution supported by not less than two thirds of the members present and voting that it is necessary or expedient in the national interest so to do, Parliament may by law provide for the creation of one or more all India services (including an all India judicial service) common to the Union and the States, and, subject to the other provisions of this Chapter, regulate the recruitment, and the conditions of service of persons appointed, to any such service

(2) The services known at the commencement of this Constitution as the Indian Administrative Service and the Indian Police Service shall be deemed to be services created by Parliament under this article

(3) The all India judicial service referred to in clause ( 1 ) shall not include any post inferior to that of a district judge as defined in article 236

(4) The law providing for the creation of the all India judicial service aforesaid may contain such provisions for the amendment of Chapter VI of Part VI as may be necessary for giving effect to the provisions of that law and no such law shall be deemed to be an amendment of this Constitution for the purposes of article 368

Art 312A. Power of Parliament to vary or revoke conditions of service of officers of certain services

(1) Parliament may by law

(a) vary or revoke, whether prospectively or retrospectively, the conditions of service as respects remuneration, leave and pension and the rights as respects disciplinary matters of persons who, having been appointed by the Secretary of State or Secretary of State in Council to a civil service of the Crown in India before the commencement of this Constitution, continue on and after the commencement of the Constitution (Twenty eight Amendment) Act, 1972 , to serve under the Government of India or of a State in any service or post;

(b) vary or revoke, whether prospectively or retrospectively, the conditions of service as respects pension of persons who, having been appointed b the Secretary of State or Secretary of State in Council to a civil service of the Crown in India before the commencement of this Constitution, retired or otherwise ceased to be in service at any time before the commencement of the Constitution (Twenty eight Amendment) Act, 1972 : Provided that in the case of any such person who is holding or has held the office of the Chief Justice or other Judge of the Supreme Court or a High Court, the Comptroller and Auditor General of India, the Chairman or other members of the Union or a State Public Service Commission or the Chief Election Commissioner, nothing in sub clause (a) or sub clause (b) shall be construed as empowering Parliament to vary or revoke, after his appointment to such post, the condition of his service to his disadvantage except in so far as such conditions of his service to his disadvantage except in so far as such condition of service are applicable to him by reason of his being a person appointed by the Secretary of State or Secretary of State in Council to a civil service of the Crown in India

(2) Except to the extent provided for by Parliament by law under this article, nothing in this article shall affect the power of any legislature or other authority under any other provision of this Constitution to regulate the conditions of service of persons referred to in clause ( 1 )

(3) Neither the Supreme Court nor any other court shall have jurisdiction in

(a) any dispute arising out of any provision of, or any endorsement on, any covenant, agreement or other similar instrument which was entered into or executed by any person referred to in clause ( 1 ), or arising out of any letter issued to such person, in relation to his appointment to any civil service of the Crown in India or his continuance in service under the Government of the Dominion of India or a Province thereof; any dispute in respect of any right, liability or obligation under Article 314 as originally enacted The provisions of the article shall have effect notwithstanding anything in Article 314 as originally enacted or in any other provision of this Constitution

Art 313. Transitional provisions Until other provision is made in this behalf under this Constitution, all the laws in force immediately before the commencement of this Constitution and applicable to any public service or any post which continues to exist after the commencement of service or post under the Union or a State shall continue in force so far as consistent with the provisions of this Constitution

Art 314. Provision for protection of existing officers of certain services Rep by the Constitution (Twenty eight Amendment) Act, 1972 , Section 3 (w e f 29 08 1972 ) 

CHAPTER II PUBLIC SERVICE COMMISSION

Art 315. Public Service Commissions for the Union and for the States

(1) Subject to the provisions of this article, there shall be a Public Service Commission for the Union and a Public Service Commission for each State

(2) Two or more States may agree that there shall be one Public Service Commission for that group of States, and if a resolution to that effect is passed by the House or, where there are two Houses, by each House of the Legislature of each of those States, Parliament may by law provide for the appointment of a Joint State Public Service Commission (referred to in this Chapter as Joint Commission) to serve the needs of those States

(3) Any such law as aforesaid may contain such incidental and consequential provisions as may be necessary or desirable for giving effect to the purposes of the law

(4) The Public Service Commission for the Union, if requested so to do by the Governor of a State, may, with the approval of the President, agree to serve all or any of the needs of the State

(5) References in this Constitution to the Union Public Service Commission or a State Public Service Commission shall, unless the context otherwise requires, be construed as references to the Commission serving the needs of the Union or, as the case may be, the State as respects the particular matter in question

Art 316. Appointment and term of office of members

(1) The Chairman and other members of a Public Service Commission shall be appointed, in the case of the Union Commission or a Joint Commission, by the President, and in the case of a State Commission, by the Governor of the State: Provided that as nearly as may be one half of the members of every Public Service Commission shall be persons who at the dates of their respective appointments have held office for at least ten years either under the Government of India or under the Government of a State, and in computing the said period of ten years any period before the commencement of this Constitution during which a person has held office under the Crown in India or under the Government of an Indian State shall be included

(1A) If the office of the Chairman of the Commission becomes vacant or if any such Chairman is by reason of absence or for any other reason unable to perform the duties of his office, those duties shall, until some persons appointed under clause ( 1 ) to the vacant office has entered on the duties thereof or, as the case may be, until the Chairman has resumed his duties, be performed by such one of the other members of the Commission as the President, in the case of the Union Commission or a Joint Commission, and the Governor of the State in the case of a State in the case of a State Commission, may appoint for the purpose

(2) A member of a Public Service Commission shall hold office for a term of six years from the date on which he enters upon his office or until he attains, in the case of the Union Commission, the age of sixty five years, and in the case of a State Commission or a Joint Commission, the age of sixty two years, whichever is earlier: Provided that

(a) a member of a Public Service Commission may, by writing under his hand addressed, in the case of the Union Commission or a Joint Commission, to the President, and in the case of a State Commission, to the Governor of the State, resign his office;

(b) a member of a Public Service Commission may be removed from his office in the manner provided in clause ( 1 ) or clause ( 3 ) of Article 317

(3) A person who holds office as a member of a Public Service Commission shall, on the expiration of his term of office, be ineligible for re appointment to that office

Art 317. Removal and suspension of a member of a Public Service Commission

(1) Subject to the provisions of clause ( 3 ), the Chairman or any other member of a Public Service Commission shall only be removed from his office by order of the President on the ground of misbehaviour after the Supreme Court, on reference being made to it by the President, has, on inquiry held in accordance with the procedure prescribed in that behalf under Article 145, reported that the Chairman or such other member, as the case may be, ought on any such ground to be removed

(2) The President, in the case of the Union Commissionor a Joint Commission, and the Governor in the case of a State Commission, may suspend from office the Chairman or any other member of the Commission in respect of whom a reference has been made to the Supreme Court under clause ( 1 ) until the President has passed orders on receipt of the report of the Supreme Court on such reference

(3) Notwithstanding anything in clause ( 1 ), the President may by order remove from office the Chairman or any other member of a Public Service Commission if the Chairman or such other member, as the case may be,

(a) is adjudged an insolvent; or

(b) engages during his term of office in any paid employment outside the duties of his office; or

(c) is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body

(4) If the Chairman or any other member of a Public Service Commission is or becomes in any way concerned or interested in any contract or agreement made by or on behalf of the Government of India or the Government of a State or participates in any way in the profit thereof or in any benefit or emolument arising therefrom otherwise than as a member and in common with the other members of an incorporated company, he shall, for the purposes of clause ( 1 ), be deemed to be guilty of misbehaviour

Art 318. Power to make regulations as to conditions of service of members and staff of the Commission In the case of the Union Commission or a Joint Commission, the President and, in the case of a State Commission, the Governor of the State may by regulations

(a) determine the, number of members of the Commission and their conditions of service; and

(b) make provision with respect to the number of members of the staff of the commission and their conditions of service: Provided that the conditions of service of a member of a Public Service Commission shall not be varied to his disadvantage after his appointment

Art 319. Prohibition as to the holding of offices by members of Commission on ceasing to be such members On ceasing to hold office

(a) the Chairman of the Union Public Service Commission shall be ineligible for further employment either under the Government of India or under the Government of a State;

(b) the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State;

(c) a member other than the Chairman of th Union Public Service Commission shall be eligible for appointment as the Chairman of the Union Public Service commission or as the Chairman of a State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State;

(d) a member other than the Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or any other member of the Union Public Service Commission or as the Chairman of that of any other State Public Service Commission, but not for any other employment either under the Government of India or under the Government of a State

Art 320. Functions of Public Service Commissions

(1) It shall be the duty of the Union and the State Public Service Commission to conduct examinations for appointments to the services of the Union and the services of the State respectively

(2) It shall also be the duty of the Union Public Service Commission, if requested by any two or more State so to do, to assist those States in framing and operating schemes of joint recruitment for any services for which candidates possessing special qualifications are required

(3) The Union Public Service Commission or the State Public Service Commission, as the case may be, shall be consulted

(a) on all matters relating to methods of recruitment to civil services and for civil posts;

(b) on the principles to be followed in making appointments to civil services and posts and in making promotions and transfers from one service to another and on the suitability of candidates for such appointments, promotions or transfers;

(c) on all disciplinary matters affecting a person serving under the Government of India or the Government of a State in a civil capacity, including memorials or petitions relating to such matters;

(d) on any claim by or in respect of a person who is serving or has served under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, that any costs incurred by him in defending legal proceedings instituted against him in respect of acts done or purporting to be done in the execution of his duty should be paid out of the Consolidated Fund of India, or, as the case may be, out of the Consolidated Fund of the State;

(e) on any claim for the award of a pension in respect of injuries sustained by a person while serving under the Government of India or the Government of a State or under the Crown in India or under the Government of an Indian State, in a civil capacity, and any question as to the amount of any such award, and it shall be the duty of a Public Service Commission to advice on any matter so referred to them and on any other matter which the President, or, as the case may be, the Governor, of the State, may refer to them: Provided that the President as respects the all India services and also as respects other services and posts in connection with the affairs of the Union, and the Governor, as respects other services and posts in connection with the affairs of a State, may make regulations specifying the matters in which either generally, or in any particular class of case or in any particular circumstances, it shall not be necessary for a Public Service Commission to be consulted

(4) Nothing in clause ( 3 ) shall require a Public Service Commission to be consulted as respects the manner in which any provision referred to in clause ( 4 ) of Article 16 may be made or as respects the manner in which effect maybe given to the provisions of Article 335

(5) All regulations made under the proviso to clause ( 3 ) by the President or the Governor of a State shall be laid for not less than fourteen days before each House of Parliament or the House or each House of the Legislature of the State, as the case may be, as soon as possible after they are made, and shall be subject to such modifications, whether by way of repeal or amendment, as both Houses of Parliament or the House or both Houses of the Legislature of the State may make during the session in which they are so laid

Art 321. Power to extend functions of Public Service Commissions An Act made by Parliament or, as the case may be, the Legislature of a State may provide for the exercise of additional functions by the Union Public Service Commission or the State Public Service Commission as respects the services of the Union of the State and also as respects the services of any local authority or other body corporate constituted by law or of any public institution

Art 322. Expenses of Public Service Commission The expenses of the Union or a State Public Service Commission, including any salaries, allowances and pensions payable to or in respect of the members or staff of the Commission, shall be charged on the Consolidated Fund of India or, as the case may be, the Consolidated Fund of the State

Art 323. Reports of Public Service Commissions

(1) It shall be the duty of the Union Commission to present annually to the President a report as to the work done by the Commission and on receipt of such report the President shall cause a copy thereof together with a memorandum explaining, as respects the cases, if any, where the advice of the Commission was not accepted, the reason for such non acceptance to be laid before each House of Parliament

(2) It shall be the duty of a State Commission to present annually to the Governor of the State a report as to the work done by the Commission, and it shall be the duty of a Joint Commission to present annually to the Governor of each of the States the needs of which are served by the Joint Commission a report as to the work done by the Commission in relation to that State, and in either case the Governor shall, on receipt of such report, cause a copy thereof together with a memorandum explaining, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non acceptance to be laid before the Legislature of the State 

PART XIVA TRIBUNALS

Art 323. A Administrative tribunals Parliament may, by law, provide for the adjudication or trial by administrative tribunals of disputes and complaints with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or of any State or of any local or other authority within the territory of India or under the control of the Government of India or of any corporation owned or controlled by the Government

(2) A law made under clause ( 1 ) may

(a) provide for the establishment of an administrative tribunal for the Union and a separate administrative tribunal for each State or for two or more States;

(b) specify the jurisdiction, powers (including the power to punish for contempt) and authority which may be exercised by each of the said tribunals;

(c) provide for the procedure (including provisions as to limitation and rules of evidence) to be followed by the said tribunals;

(d) exclude the jurisdiction of all courts, except the jurisdiction of the Supreme Court under Article 136, with respect to the disputes or complaints referred to in clause ( 1 );

(e) provide for the transfer to each such administrative tribunal of any cases pending before any court or other authority immediately before the establishment of such tribunal as would have been within the jurisdiction of such tribunal if the cause of action on which such suits or proceedings are based had arisen after such establishment;

(f) repeal or amend any order made by the President under clause ( 3 ) of Article 371D;

(g) contain such supplemental, incidental and consequential provisions (including provisions as to fees) as Parliament may deem necessary for the effective functioning of, and for the speedy disposal of cases by, and the enforcement of the orders of, such tribunals

(3) The provisions of this article shall have effect notwithstanding anything in any other provision of this Constitution or in any other law for the time being in force

323B. Tribunals for other matters...............

50% Discount in Tax Recovery

Innovation at its quite best..

Thanks for Visiting & Regards
Open Source Diligence & Law
Investment Economics Foundation
Revenue Does Not Lie... :)


Source: http://www.dnaindia.com/mumbai/report-tax-defaulters-who-pay-dues-by-march-10-to-get-50-discount-2180914

Tax defaulters who pay dues by March 10 to get 50% discount

NAVEETA SINGH | Tue, 23 Feb 2016-07:05am , Thane , dna

In a safer move to collect pending taxes, TMC has announced amnesty scheme for tax payers

After trying to collect tax by shaming and naming tax evaders and playing band outside their homes, the Thane Municipal Corporation (TMC) has now opted for a safer route. The civic body has, now announced, a 50% discount on the penalty amount for Thanekars who have been evading payment of water and property tax. However, there is a condition to it, the dues have to be paid by March 10, this year. The TMC has announced its amnesty scheme for water tax and property tax payers for the year 2016-17. Under this scheme, all those who want to pay the above taxes but have been avoiding them due to huge penalty, can pay the amount along with a 50% off on the penalty.

Sandip Malvi, public relation officer, TMC, said, "The condition is that, the tax payers have to pay their dues and the penalty amount minus the discount at once, by March 2016." Also, the defaulters have to pay the water and property tax for the current year, 2016-17 during the first six months of the billing cycle. A TMC official said, paying the current year tax during first six months after April 2016 is one of the conditions to avail the 50% amnesty on penalty amount. "This is because many people enjoy the discount and do not pay the current year's tax amount. They do this, hoping, when the amnesty is announced next year, they will again take the benefit," added the official.

"If they fail to pay to pay the current year's water tax in the first six months of the billing cycle and property tax in the first three months, then they will be penalised again," he said. The tax evaders then will have to pay the discount availed by them on penalty along with due interest levied on it. Earlier to make people pay their dues on time, TMC had resorted to all possible measures such as playing a band outside their homes, making their names public by issuing a list of defaulters. With the fiscal year approaching its end, it seems the civic body has decided to take the familiar route of discounts as nobody can resist a good discount.

VimpelCom Limited - USA initiates the Forfeiture of $850 Million under Corporate Bribery!!

Another Multinational under Corporate Bribery Charges with safe heaven in offshore accounts..

Thanks for Visiting & Regards
Open Source Diligence & Law
Investment Economics Foundation
Revenue Does Not Lie... :)


Source: http://www.justice.gov/opa/pr/vimpelcom-limited-and-unitel-llc-enter-global-foreign-bribery-resolution-more-795-million. The following is the bare text of the public news by Department of Justice in USA.

Department of Justice

Office of Public Affairs

---

FOR IMMEDIATE RELEASE

Thursday, February 18, 2016

VimpelCom Limited and Unitel LLC Enter into Global Foreign Bribery Resolution of More Than $795 Million; United States Seeks $850 Million Forfeiture in Corrupt Proceeds of Bribery Scheme

Companies Agree to Pay $230 Million U.S. Criminal Fine in Connection with Foreign Corrupt Practices Act Resolution; Largest Case Ever Brought under the Kleptocracy Asset Recovery Initiative

Amsterdam-based VimpelCom Limited, the world’s sixth-largest telecommunications company and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, Unitel LLC, entered into resolutions with the Department of Justice today in which they admitted to a conspiracy to make more than $114 million in bribery payments to a government official in Uzbekistan between 2006 and 2012 to enable them to enter and continue operating in the Uzbek telecommunications market. 

In a related action, the department also filed a civil complaint today seeking the forfeiture of more than $550 million held in Swiss bank accounts, which constitute bribe payments made by VimpelCom and two separate telecommunications companies, or funds involved in the laundering of those payments, to the Uzbek official.  The forfeiture complaint follows an earlier civil complaint filed on June 29, 2015, which seeks forfeiture of more than $300 million in bank and investment accounts held in Belgium, Luxembourg and Ireland that also constitute funds traceable to bribes, or funds involved in the laundering of the bribes, paid by VimpelCom and another telecommunications company to the same Uzbek official.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Clark E. Settles of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C., Field Office.

“These cases combine a landmark FCPA resolution for corporate bribery with one of the largest forfeiture actions we have ever brought to recover bribe proceeds from a corrupt government official,” said Assistant Attorney General Caldwell.  “The Criminal Division’s FCPA enforcement program and our Kleptocracy Initiative are two sides of the same anti-corruption coin.  The FCPA resolution in this case is also one of the most significant coordinated international and multi-agency resolutions in the history of the FCPA, and demonstrates our commitment both to pursuing justice and to bringing about corporate reform.”

“Today we mark the resolution of criminal charges and civil proceedings against corrupt corporate entities that made bribery a foundation of their business model,” said U.S. Attorney Bharara.  “As they have admitted in court filings, VimpelCom, the world’s sixth largest telecommunications company, with securities traded in New York, and its subsidiary, Unitel, built their business in Uzbekistan on over $114 million in bribes funneled to a government official.  Those payments, falsely recorded in the company’s books and records, were then laundered through bank accounts and assets around the world, including through accounts in New York.”

“Today’s admission of guilt by VimpelCom and Unitel to paying bribes to government officials is a victory for all who fight corruption at all levels,” said Chief Weber.  “It also demonstrates the skill and tenacity of IRS Criminal Investigation special agents when it comes to delving underneath layers of financial transactions designed to conceal illegal payments for gain.  The global economy demands a level playing field for all.  When certain VimpelCom and Unitel executives chose to use deception in order to continue this scheme and take advantage of insider knowledge, they also chose to become criminals.  IRS-CI pledges to continue our efforts on the international stage to stop corrupt financial schemes such as this one.”

“HSI special agents and our law enforcement partners will continue to investigate financial crimes committed by corrupt foreign officials,” said Special Agent in Charge Settles.  “We will not permit ill-gotten gains to be laundered through U.S. financial markets.”

The Criminal Resolution

In the criminal case, Unitel pleaded guilty and was sentenced to a one-count criminal information filed today in the Southern District of New York and assigned to U.S. District Judge Edgardo Ramos of the Southern District of New York, charging the company with a conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

VimpelCom entered into a deferred prosecution agreement in connection with a criminal information charging the company with conspiracy to violate the anti-bribery and books and records provisions of the FCPA, and a separate count of violating the internal controls provisions of the FCPA.  Pursuant to its agreement with the department, VimpelCom agreed to pay a total criminal penalty of $230,163,199.20 to the United States, including $40 million in criminal forfeiture.  VimpelCom also agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.

In related proceedings, VimpelCom settled with the U.S. Securities and Exchange Commission (SEC) and the Public Prosecution Service of the Netherlands (Openbaar Ministrie, or OM).  Under the terms of its resolution with the SEC, VimpelCom agreed to a total of $375 million in disgorgement of profits and prejudgment interest, to be divided between the SEC and OM.  VimpelCom agreed to pay the OM a criminal penalty of $230,163,199.20, for a total criminal penalty of $460,326,398.40, and a total resolution amount of more than $835 million.  The department agreed to credit the criminal penalty paid to the OM as part of its agreement with the company.  The SEC agreed to credit the forfeiture paid to the department as part of its agreement with the company.  Thus, the combined total amount of U.S. and Dutch criminal and regulatory penalties paid by VimpelCom will be $795,326,398.40, making it one of the largest global foreign bribery resolutions ever. 

According to the companies’ admissions, VimpelCom and Unitel, through various executives and employees, paid bribes to an Uzbek government official, who was a close relative of a high-ranking government official and had influence over the Uzbek governmental body that regulated the telecom industry.  The companies structured and concealed the bribes through various payments to a shell company that certain VimpelCom and Unitel management knew was beneficially owned by the foreign official.  The bribes were paid on multiple occasions between approximately 2006 and 2012 so that VimpelCom could enter the Uzbek market and Unitel could gain valuable telecom assets and continue operating in Uzbekistan.  VimpelCom and Unitel contemplated additional bribes in 2013, but those bribes were not completed before VimpelCom opened an internal investigation. 

In addition, VimpelCom admitted that it falsified its books and records and attempted to conceal and disguise the bribery scheme by classifying payments as equity transactions, consulting and repudiation agreements and reseller transactions.  VimpelCom also failed to implement and enforce adequate internal accounting controls, which allowed the bribe payments to occur without detection or remediation.  Moreover, when the board of directors sought an FCPA legal opinion assessing corruption risks involved in the transactions, certain VimpelCom management withheld crucial information from outside counsel performing the review that restricted the scope of FCPA opinions, rendering them worthless.  Rather than implement and enforce a strong anti-corruption ethic, certain VimpelCom executives sought ways to give the company plausible deniability of illegality while knowingly proceeding with corrupt business transactions.

A number of significant factors contributed to the department’s criminal resolution with the companies.  Among these, the companies received significant credit for their prompt acknowledgement of wrongdoing after being informed of the department’s investigation, for their willingness to promptly resolve their criminal liability on an expedited basis and for their extensive cooperation with the department’s investigation.  Specifically, the criminal penalty reflects a 45 percent reduction off of the bottom of the U.S. Sentencing Guidelines fine range.  However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose their misconduct to the department after an internal investigation uncovered wrongdoing. 

The Forfeiture Complaints

The department has also filed two civil complaints seeking a total of $850 million in forfeiture.  A complaint filed today seeks forfeiture of approximately $550 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the Uzbek official by VimpelCom and two other telecommunications companies operating in Uzbekistan.  The $550 million is currently located in Swiss bank accounts.  The department also filed a prior complaint seeking forfeiture of an additional $300 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the same Uzbek official.  The assets sought to be forfeited in that complaint are restrained in Belgium, Luxembourg and Ireland.  In that case, on Jan. 11, 2016, the U.S. District Court for the Southern District of New York entered a partial default judgment against all potential claimants other than the Republic of Uzbekistan. 

As alleged in the complaints and as is part of the criminal resolutions announced today, the telecom companies paid a total of more than $800 million in bribes so that the Uzbek official would assist VimpelCom and other telecommunications companies in obtaining and retaining business in Uzbekistan.  Thereafter, the official’s associates laundered the corruption proceeds through accounts held in Latvia, the United Kingdom, Hong Kong, Ireland, Belgium, Luxembourg and Switzerland.  The illicit funds were transmitted through financial institutions in the United States before they were deposited into accounts in these countries, thereby subjecting them to U.S. jurisdiction.  

The department brought these forfeiture actions under the Kleptocracy Asset Recovery Initiative in the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by corruption and abuse of office. 

*          *          *

These cases represent the department’s commitment to both prosecute those who pay bribes and to ensure that the corrupt government officials who receive the bribes cannot use the U.S. financial system to launder their illicit gains.  The IRS-CI and ICE-HSI are investigating the cases, along with the IRS Global Illicit Financial Team in Washington, D.C.  Senior Litigation Counsel Nicola J. Mrazek and Trial Attorney Ephraim Wernick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Edward Imperatore of the Southern District of New York are prosecuting the criminal case, with substantial assistance from AFMLS.  AFMLS Trial Attorney Marie M. Dalton is prosecuting the forfeiture case with substantial assistance from the Fraud Section. 

Law enforcement colleagues within the OM, the Swedish Prosecution Authority, the Office of the Attorney General in Switzerland and the Corruption Prevention and Combating Bureau in Latvia provided significant cooperation and assistance in this matter.  Law enforcement colleagues in Belgium, France, Ireland, Luxembourg and the United Kingdom have also provided valuable assistance.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The SEC referred the matter to the department and provided extensive cooperation and assistance.

Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov

Email links icon

.  

Additional information about the Justice Department’s FCPA enforcement efforts can be found atwww.justice.gov/criminal/fraud/fcpa.  

16-194

Asset Forfeiture Program

Criminal Division

Criminal Fraud

USAO - New York, Southern

Corruption

Download Civil Complaint (2.27 MB)

Download VimpelCom Information 1 (921.25 KB)

Download VimpelCom Information 2 (188.45 KB)

Download Unitel Information 1 (614.51 KB)

Download Unitel Information 2 (210.93 KB)

Download Unitel Plea Agreement (1.56 MB)

Updated February 22, 2016

Coordination of Income Tax Act & Maharashtra Shops and Establishment Act

http://www.thehindu.com/news/cities/mumbai/news/street-vendors-to-come-under-it-scanner/article8263772.ece

Thanks for Visiting & Regards
Open Source Diligence & Law
Investment Economics Foundation
Revenue Does Not Lie... :)

Three Globalizations of the Law

Source: https://www.uniceub.br/media/49625/Three_globalizations_of_law.pdf

Thanks for Visiting & Regards
Open Source Diligence & Law
Investment Economics Foundation
Revenue Does Not Lie... :)

Services Value Chain

#InvestmentSCM #IEFbygirindra #OrganizeEtImpera #TalentAdvantage

This post was previously published in earlier blog of this Investment Economics Foundation:

The Services are supplied at various processes of the value chain of the main Industry. The following process is given in one of the WTO Report:

Thanks for Visiting & Regards
Open Source Diligence & Law
Investment Economics Foundation
Revenue Does Not Lie... :)

Application of Arms Length Principle in National Legal System

#ArmsLengthetc #TransferPricing #NotatArmslength #ContractLaw  #ComparativeLaw #IEFbygirindra

The Arms Length is an interesting phrase in contract law. I dont understand that why there is a discrimination with Leg or Finger or Thumb. Then comes the length of Arm or Arm Span. The boxing is interesting game where longer the arms higher the chance of winning. Similar case is for swimming or kabaddi or basket ball or discuss throw. However, the Arms Length is a well established principle in contract law. The wikipedia Article (https://en.wikipedia.org/wiki/Arm%27s_length_principle) defines it as "The arm's length principle (ALP) is the condition or the fact that the parties to a transaction are independent and on an equal footing. Such a transaction is known as an "arm's-length transaction". It is used specifically in contract law to arrange an equitable agreement that will stand up to legal scrutiny, even though the parties may have shared interests (e.g., employer-employee) or are too closely related to be seen as completely independent (e.g., the parties have familial ties)"  . And the investopedia (http://www.investopedia.com/terms/a/armslength.asp) defines it as "A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm's length transaction is to ensure that both parties in the deal are acting in their own self interest and are not subject to any pressure or duress from the other party."

The most interesting Area of ALP is the Transfer Pricing. The Arms Length Principles gets introduced in National Law by Transfer Pricing Regulations and Advance Pricing Regulations. Afterwards, I compiled the year of introduction of Arm Length Principle in country from internet in National Law. The list of countries is given as below as sorted by Column 4:

Country Name	GDP          2013	GDP             2014	YEAR of Introduction of Transfer Pricing Regulation	YEAR OF Introduction of Advance  Pricing Regulation
[1]	[2]	[3]	[4]	[5]
Norway	522349106383	499817138323	1911
United Kingdom	2712296271990	2988893283565	1915	2010
Sweden	578742001488	571090480171	1928	2010
United States	16768053000000	17419000000000	1935	1991
Switzerland	684919206141	701037135966	1940
Belgium	521402393365	531546586179	1962	2004
Portugal	226073492966	230116912514	1964	2014
Finland	269190106005	272216575502	1965
Luxembourg	61794506556	64873963098	1969	2015
Austria	428698577647	436887543467	1972	2011
Germany	3745317149399	3868291231824	1972	2006
Spain	1369261671179	1381342101736	1978	2007
Australia	1563950959270	1454675479666	1982	2011
Italy	2133539300230	2141161325367	1986	2004
Japan	4919563108373	4601461206885	1986	2001
Hungary	134401774738	138346669915	1992	2007
Czech Republic	208328435109	205269709743	1993	2006
Poland	524059039423	544966555714	1993
Slovak Republic	98033841689	100248607784	1993
Korea, Rep.	1305604981272	1410382988616	1995	2015
South Africa	366243783486	350085020840	1995
Chile	276673695234	258061522887	1997	2013
Mexico	1258773797056	1294689733233	1997	2012
New Zealand			1997	1994
Argentina	614383517370	537659972702	1998
Canada	1838964175409	1785386649602	1998	1993
Denmark	335877548364	342362478768	1998	2002
Estonia	25246787742	26485161116	1998
Colombia	380063456193	377739622866	2002	2004
India	1861801615478	2048517438874	2002	2012
Netherlands	864169242953	879319321495	2002	2014
Egypt, Arab Rep.	271972822883	286538047766	2005	2011
Slovenia	47675804618	49491440620	2005
Israel	292408330564	305674837195	2006
Turkey	823242587404	798429233036	2007	2007
China	9490602600148	10354831729340	2008	2009
Malaysia	323342854423	338103822298	2009
Singapore	302245904260	307859758504	2009	2015
El Salvador	24350900000	25163700000	2010	2012
France	2810249215589	2829192039172	2010	2005
Indonesia	910478729099	888538201025	2010	2010
Ireland	238259956627	250813607686	2010
Russian Federation	2079024782973	1860597922763	2012	2012
Costa Rica	49236710394	49552580683	2013	2013

Thanks for Visiting & Regards
Free and Open Source Intangible Asset Repository
Investment Economics Foundation
Revenue Does Not Lie... :)