SC delivers split verdict on Section 17A of PC Act mandating sanction to probe govt servants
New Delhi (PTI): The Supreme Court on Tuesday delivered a split verdict on the constitutional validity of a 2018 provision of the anti-graft law which mandates prior sanction for initiating a probe against a government servant in a corruption case.
While Justice BV Nagarathna said Section 17A of the Prevention of Corruption Act is unconstitutional and needs to be struck down, Justice KV Viswanathan held the provision as constitutional while stressing on the need to protect honest officers.
Section 17A of the Prevention of Corruption Act, 1988, introduced in July 2018, bars any “enquiry or inquiry or investigation” against a public servant for recommendations made in discharge of official duties without prior approval from the competent authority.
The top court's judgement came on a PIL filed by NGO 'Centre for Public Interest Litigation' (CPIL) against the validity of amended section 17A of the Prevention of Corruption Act.
Requirement of prior sanction is contrary to the Prevention of Corruption Act, forecloses inquiry and protects corrupt, Justice Nagarathna said.
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"Section 17A is unconstitutional and it ought to be struck down. No prior approval is required to be taken... The requirement of prior sanction is contrary to the object of the Act, and it forecloses inquiry and protects the corrupt rather than seeking to protect the honest and those with integrity who really do not require any protection," Justice Nagarathna said.
Justice Viswanathan said striking down section 17A will be akin to throwing the baby out with the bath water and the “cure will be worse than the disease”.
"Section 17A is constitutionally valid subject to the condition that the sanction must be decided by the Lok Pal or the Lokayukta of the State...
"The safeguard of this provision will strengthen the hands of honest officers but also ensure that the corrupt are brought to book. It will guarantee that the administrative machinery attracts the best talent for the service of the nation,"Justice Viswanathan said.
The case will now be placed before Chief Justice of India Surya Kant for forming a larger bench to hear the matter for a final decision.
"Having regard to the divergent opinions expressed by us, we direct the Registry to place this matter before the Chief Justice of India for constituting an appropriate bench to consider the issues which arise in this matter afresh," the bench said.
Advocate Prashant Bhushan, appearing for the NGO, had argued that the provisions crippled the anti-corruption law as sanctions were not usually forthcoming from the government, which was the ‘competent authority’.
Solicitor General Tushar Mehta had appeared for the Union government.
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Iran unrest hits basmati rice exports, prices fall sharply as payment delays mount: Industry body
New Delhi (PTI): Civil unrest in Iran has started impacting India's basmati rice exports to the country, leading to a sharp fall in domestic prices, as exporters face payment delays and mounting uncertainties, an industry body said on Tuesday.
The Indian Rice Exporters Federation (IREF) urged exporters to reassess risks on Iranian contracts and adopt secured payment mechanisms, warning against over-leveraging inventories meant for the Iranian market.
India exported USD 468.10 million worth of basmati rice to Iran during April-November of 2025-26 fiscal, totalling 5.99 lakh tonnes, trade data showed.
Iran is India's top basmati rice export destination, but the current financial year has seen growing stress on order flows, payment cycles, and shipment schedules due to the prevailing instability.
The impact is now clearly visible in domestic mandis. Over the past week alone, prices of key basmati varieties have registered a steep decline, reflecting buyer hesitation, delayed contracts and heightened risk perception among exporters.
The domestic price of basmati rice variety 1121 has come down to Rs 80 per kg from Rs 85 per kg last week, while varieties 1509 and 1718 declined to Rs 65 per kg from Rs 70 per kg.
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"Iran has historically been a pillar market for Indian basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and dented buyer confidence," IREF National President Prem Garg said in a statement.
He said exporters must exercise heightened caution, particularly with respect to credit exposure and shipment timelines.
Importers have conveyed their inability to honour existing commitments and remit payments to India, creating uncertainty for exporters, the federation said.
IREF has issued an advisory and appealed to stakeholders to diversify into alternative markets across West Asia, Africa and Europe to cushion any prolonged slowdown in Iran-bound shipments.
"We are not sounding an alarm, but urging prudence. In periods of geopolitical and internal instability, trade is often the first casualty. A calibrated approach is essential to protect both exporters and farmers," Garg noted.
US Tariff Concerns
The federation also addressed concerns over the recent remarks by US President Donald Trump, indicating that countries continuing trade with Iran may face a 25 per cent tariff.
IREF clarified that Indian rice exports to the US are already subject to a 50 per cent tariff, up from 10 per cent earlier.
Despite this, Indian rice exports to the US have remained resilient. India exported 2,40,518 tonnes of Basmati and non-Basmati rice to the US during April-November 2025-26, compared to 2,35,554 tonnes in the entire 2024-25 fiscal.
The US is the 10th largest market for Indian rice globally and the fourth largest for Basmat rice.
"There is limited clarity on whether the proposed 25 per cent tariff would be levied over and above the existing 50 per cent duty," the federation noted, adding that it does not foresee a significant decline in exports even if tariffs rise further, given the unique position of Indian Basmati in global markets.
However, IREF expressed greater concern over developments in Iran, where disruptions in local markets have affected trade settlements. Importers have conveyed their inability to honour commitments and remit payments to India, creating heightened uncertainty.
While similar crises have occurred in the past, the trajectory of the current situation remains unclear and is expected to cause further disturbances in prices, liquidity, and trade sentiment in the weeks ahead, the federation added.
