1. Regional Market Overview – INDIA
Jasmeet Wadehra
General Counsel
International Paper – India

3. New DelhiHISTORICAL FACTS:
• 5,300 year old civilization
• Key contributions:
oThe number “0” ; decimal system; value of pi
oChess; calculus, algebra and trigonometry
oFirst university – founded in 700 BC
• Privatization, liberalization and globalization started in
1991
• India has never invaded another country
“We owe a lot to the
Indians, who taught us
how to count, without
which no worthwhile
scientific discovery
could have been
made.”
………Albert Einstein

4.  7th largest country by area
• Only 2.4% of world land area, supporting 15% of world population
 USD$1.85 trillion economy – growing at 6% GDP
• 10th largest by nominal GDP
• 3rd largest by purchasing power parity
 1.2 billion people – growing at 1.58% YOY
• Second largest country by population
• Middle class is poised to grow by 40% over next 20 years, making it
5th largest consumer market in the world

5. 0 50 100 150 200
2009
2010
2011
2012
2013
World
Ranking

6.  1948 – V K Krishna Menon in Jeep scandal (Rs. 80 lacs)
 1956 – BHU misappropriation (Rs. 50 lacs)
 1958 – Mundhra scandal (Rs. 1.2 crore)
 1960 – Teja Loan scandal (Rs. 22 crores)
 1987 – Bofors (Rs. 64 crores)
 1992 – Harshad Mehta (Rs. 5500 crores)
 2001 – Telgi Stamp Paper scam (Rs. 20,000 crores)
 2010 – 2G (Rs. 176,000 crores)
 2012 – Coal Mining scam (Rs. 1,070,000 crores)
…………………… And it goes on

7.  British legacy
 License Raj
 Overregulation
 Judicial delays and lack of enfocement

8. EXISTING LAWS:
INDIAN PENAL CODE, 1860
 PREVENTION OF CORRUPTION ACT, 1988
 THE BENAMI TRANSACTIONS (PROHIBITION) ACT, 1988
 INCOME TAX ACT, 1961
 PREVENTION OF MONEY LAUNDERING ACT, 2002
FORTHCOMING LEGISLATION:
 RATIFIED UN CONVENTION AGAINST CORRUPTION ON MAY 1, 2011 (SIGNED DEC 9, 2005).
UNDER UN CONVENTION, PREVENTION OF BRIBERY OF FOREIGN PUBLIC OFFICIALS AND OFFICIALS OF
PUBLIC INTERNATIONAL ORGANISATIONS BILL, 2011 WAS INTRODUCED IN LOK SABHA
 PUBLIC INTEREST DISCLOSURE AND PROTECTION TO PERSONS MAKING THE DISCLOSURE BILL, 2010
(WHISTLEBLOWER PROTECTION LAW) PASSED BY LOK SABHA IN DEC 2011 PENDING IN RAJYA SABHA
 LOKPAL & LOKAYUKTAS BILL, 2011 PASSED BY LOK SABHA IN DECEMBER 2011 AND PENDING IN RAJYA
SABHA (REFERRED TO SELECT COMMITTEE IN JUNE 2012)
POSSIBLY ON THE CARDS .. PRIVATE SECTOR ANTI-CORRUPTION LAW

9.  Broad definition of “fraud” as a criminal offence
 Serious Fraud Investigation Office (SFIO) empowered to
investigate and make arrests (can involve other prosecuting
agencies such as Income Tax)
 Auditors to report fraud directly to SFIO
 Imprisonment – 6 months to 10 years
 Disgorgement and fines upto 3 times
 Independent directors also made liable
 Whistleblower/Vigil mechanism mandatory
Political donation limits increased !

10.  Right to Information Act 2005
 Escalation
• Police/Central Bureau of Investigation
• Vigilance department of SOEs
• Central Vigilance Commission
• Private party criminal complaint

11.  Increasing enforcement actions overseas in respect of India
businesses:
• Electronic Data Systems Corp (2007)
• Dow Chemical (2007)
• Westinghouse Air Brake Technologies (2008)
• Pride International Inc. (2010)
• Diageo plc (2011)
• Oracle Corporation (2012)
• Tyco (2012)
• Walmart’s Internal Investigation (2012 – present)
• Anheuser-Busch InBev NV Internal Investigation (2013-present)
• Finmeccanica (Augusta Westland) Investigation (2013-present)
 Frank – Dodd Act Whistleblower tips received from India – 33 out of
324 (most from UK followed by Canada, China and India)

12. Q & A