Report No. 42
66. Insertion of new section 167A.-
After section 167 of the Code, the following section shall be inserted, namely.-
"167A. Public servant knowingly authorising payment in respect of contracts, when the goods supplied or work done is not in accordance with contracts.-Whoever, being a public servant competent to authorise payment on behalf of the Government or other public authority in respect of any contract for the supply of any goods, the construction of any building or the execution of other work, authorises such payment, knowing.-
(a) in the case of a contract for the supply of goods, that the contractor has supplied goods which are less in quality than, or inferior in quality to, those he contracted to supply or which are, in any manner whatever, not in accordance with the contract, or
(b) in the case of a contract for the construction of a building or execution of other work, that the contractor has used materials, which are less in quantity than, or inferior in quality to, those he contracted to use, or which are, in any manner whatever, not in accordance with the contract, shall, in the absence of lawful excuse, the burden of proving which shall be on him, be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Explanation.-In this section, "public authority" mean.-
(a) a corporation established by or under a Central, Provincial or State Act;
(b) a Government company as defined in section 617 of the Companies Act, 1956; and
(c) a local authority."