Article · 12 min read
Corruption Risks in the Use of Agents in Public Procurement in India
International Bar Association · International Bar Association (IBA) Free Intermediate India
This draws the exact line our answer cares about: an agent who explains the process or front-ends paperwork is legal, an agent who peddles influence is illegal, and it is easy to cross that border without noticing. It is the honest India-specific guide to when a liaison is worth it versus when they are a rent-seeking trap that also creates legal exposure for you, since you are on the hook for what your agent does in your name.
- Structure agent fees as reasonable fixed amounts paid to an Indian bank account, never success-based commissions or offshore payments, both of which are red flags in any probe
- Many tenders and integrity pacts require you to disclose any agent and their fee, and conditional-payment-on-success arrangements are often outright prohibited
- You can be liable if your agent acts corruptly on your behalf even if you never paid a bribe yourself, so contractually restrict what the agent may do and keep documentation