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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Business Ethics, Code of Conduct and Anti-Bribery

Orion Foods Inc., incorporated in the United States, carries on part of its business through a branch in Pune. A Pune-based consultant working for it promises an undue advantage to a public servant to retain an advantage in the conduct of its business. Is Orion a 'commercial organisation' under Section 9?

Yes. Section 9 defines a commercial organisation to include a body incorporated outside India that carries on a business, or part of a business, in any part of India. Orion's Pune operations bring it within the definition, and no Indian subsidiary is required.

  1. ANo, because it is not incorporated in India
  2. BNo, because the bribe was promised by a consultant
  3. CYes, because a body incorporated outside India that carries on a business or part of a business in any part of India is coveredCorrect
  4. DYes, but only if it also has an Indian subsidiary

Explanation

Section 9(3)(a)(ii) covers a body incorporated outside India that carries on a business, or part of a business, in any part of India. Orion's Pune branch satisfies this. A subsidiary is not required.

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