Consider the following statements regarding Public Interest Disclosure and Protection of Informers Resolution:
1. The PIDPI mechanism is limited to employees of the Central Government and public sector undertakings, excluding state-level government employees from its direct ambit.
2. The Whistle Blowers Protection (Amendment) Bill, 2015, introduced provisions for the protection of national security information and was passed by the Rajya Sabha during the winter session of 2016.
3. The PIDPI Resolution was formally incorporated into the Prevention of Corruption Act, 1988, through the 2004 amendment which established the Central Vigilance Commission as the primary appellate authority.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the PIDPI resolution is restricted to employees of the Central Government and its PSUs, leaving state-level employees under the purview of state-specific legislations. Statement 2 is incorrect because while the 2015 Bill was introduced to amend the 2014 Act, it was never passed by Parliament and eventually lapsed. Statement 3 is incorrect because the PIDPI mechanism was established by an executive resolution in 2004 based on the Supreme Court's directions in the Satyendra Dubey case, not through an amendment to the Prevention of Corruption Act, 1988.
Consider the following statements regarding Whistleblowers Protection Act 2014 provisions:
1. The legislation encompasses the role of the Lokpal as a primary Competent Authority for investigating complaints against members of Parliament, as outlined in the Lokpal and Lokayuktas Act, 2013.
2. The Act includes provisions for the protection of witnesses during investigations and allows the Competent Authority to issue directions to the State Police for providing security to the whistleblower, similar to the Witness Protection Scheme, 2018.
3. The 2014 Act provides for the constitution of a Whistleblowers Protection Council, which is chaired by the Cabinet Secretary and oversees the implementation of disclosure guidelines across all Union Territories.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Whistleblowers Protection Act, 2014, designates specific 'Competent Authorities' (like the CVC or CAG) but does not designate the Lokpal as a primary authority for MPs. Statement 2 is incorrect as the 2014 Act does not contain specific provisions for witness protection or directions to State Police akin to the 2018 Scheme, which was introduced later by the Supreme Court. Statement 3 is incorrect because while the Act mentions a Whistleblowers Protection Council, it is chaired by the Central Vigilance Commissioner, not the Cabinet Secretary, and its mandate is broader than just Union Territories.
Consider the following statements regarding Reporting channels in multi-national corporations:
1. The OECD Anti-Bribery Convention, specifically the 2009 Recommendation, encourages member countries to ensure that companies have internal controls and ethics programs that include reporting mechanisms for suspected bribery.
2. The UN Convention against Corruption (UNCAC) Article 33 provides for the protection of reporting persons, and the 2003 implementation guidelines suggest that multinational firms appoint a government-certified ethics officer to oversee internal reporting channels.
3. The Global Reporting Initiative (GRI) Standards 2021 encompass human rights disclosures, and the GRI 406-1 indicator refers to the number of incidents of discrimination reported through corporate channels to the local labor ministry.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the 2009 OECD Anti-Bribery Recommendation mandates that companies implement internal controls and ethics programs, including secure reporting channels for suspected bribery. Statement 2 is incorrect because while UNCAC Article 33 mandates whistleblower protection, it does not require the appointment of government-certified ethics officers, which would violate corporate autonomy. Statement 3 is incorrect because GRI 406-1 specifically tracks incidents of discrimination reported through internal corporate grievance mechanisms, not reports submitted to local labor ministries.
Consider the following statements regarding The role of the Lokpal in handling whistleblower complaints:
1. The Lokpal and Lokayuktas Act, 2013, designates the Lokpal as the competent authority to receive complaints relating to corruption against public servants.
2. The Lokpal and Lokayuktas Act, 2013, incorporates the provisions of the 2004 PIDPI Resolution, which serves as the primary legal framework for the protection of whistleblowers in the private sector.
3. Section 14 of the Whistleblowers Protection Act, 2014, outlines the procedure for the protection of persons making public interest disclosures before the designated authority.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Lokpal and Lokayuktas Act, 2013, empowers the Lokpal to receive complaints of corruption against public servants. Statement 3 is correct because the Whistleblowers Protection Act, 2014, specifically mandates the protection of whistleblowers and outlines procedures for the designated authority to handle such disclosures. Statement 2 is incorrect because the 2004 PIDPI (Public Interest Disclosure and Protection of Informers) Resolution applies exclusively to public servants and central government employees, not the private sector, and it is an executive resolution rather than a provision incorporated into the 2013 Act.
Consider the following statements regarding Legal safeguards for witnesses and informants:
1. The Whistle Blowers Protection Act, 2011 was introduced in the Lok Sabha by the Ministry of Personnel, Public Grievances and Pensions, and it incorporated the recommendations of the Second Administrative Reforms Commission regarding corporate governance.
2. The Whistle Blowers Protection Act, 2014 received the assent of the President of India on 9 May 2014.
3. The Public Interest Disclosure and Protection of Informers Resolution of 2004 applies to all public sector undertakings and private entities receiving government grants exceeding fifty lakh rupees per annum.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the Whistle Blowers Protection Act, 2014 received Presidential assent on 9 May 2014. Statement 1 is incorrect because the Act was primarily based on the Law Commission's recommendations and the Supreme Court's directions in the Satyendra Dubey case, not the Second ARC's corporate governance report. Statement 3 is incorrect because the 2004 PIDPI Resolution is strictly limited to public servants and public sector undertakings under the Central Vigilance Commission's jurisdiction, and it does not extend to private entities.
Consider the following statements regarding Statutory obligations of directors regarding fraud reporting:
1. Section 143(12) of the Companies Act, 2013 provides that an auditor who has reason to believe an offence involving fraud is being committed against the company shall report the matter to the Central Government.
2. Rule 13 of the Companies (Audit and Auditors) Rules, 2014 specifies that for frauds involving amounts of one crore rupees or more, the auditor shall report the matter to the Secretary of the Ministry of Corporate Affairs.
3. The Companies (Amendment) Act, 2015 introduced a threshold-based reporting mechanism where frauds below one crore rupees are reported to the Board or the Audit Committee within two days of knowledge.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Section 143(12) of the Companies Act, 2013 mandates auditors to report suspected fraud to the Central Government. Statement 2 is correct because Rule 13 of the Companies (Audit and Auditors) Rules, 2014 requires frauds involving ₹1 crore or more to be reported to the Secretary of the Ministry of Corporate Affairs. Statement 3 is correct as the 2015 Amendment clarified the reporting protocol for frauds below the ₹1 crore threshold, requiring auditors to report them to the Board or Audit Committee within two days of knowledge.
Consider the following statements regarding Retaliatory actions and burden of proof in legal proceedings:
1. The 2003 UN Convention against Corruption, which India ratified in 2011, includes Article 33 that suggests domestic legal systems provide protection against unjustified treatment for any person who reports facts in good faith.
2. The 2014 Act contains provisions for the establishment of a National Whistleblower Commission, and this body functions under the administrative control of the Ministry of Law and Justice.
3. The 2011 Whistleblowers Protection Bill was introduced in the Lok Sabha by the Ministry of Personnel, and it incorporated the recommendations of the 2nd Administrative Reforms Commission regarding the anonymity of complainants.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while Article 33 of the UNCAC mandates protection for whistleblowers, India ratified the convention in 2011 with a reservation regarding the implementation of certain provisions, and domestic legislation remains incomplete. Statement 2 is incorrect as the Whistleblowers Protection Act, 2014, designates the Central Vigilance Commission (CVC) as the competent authority to receive complaints, not a separate National Whistleblower Commission under the Ministry of Law and Justice. Statement 3 is incorrect because the 2011 Bill was introduced in the Lok Sabha by the Ministry of Personnel, Public Grievances and Pensions, but it notably excluded the 2nd ARC's recommendation for mandatory anonymity, instead requiring the complainant to disclose their identity.
Consider the following statements regarding Whistleblowing in the private sector vs public sector:
1. The Companies Act of 1956 introduced the first formal requirement for audit committees in Indian corporate law, which was subsequently expanded by the 2013 Act to include mandatory whistleblower protections for all registered startups.
2. The Central Vigilance Commission, established in 1964 based on the Santhanam Committee recommendations, oversees the implementation of internal grievance redressal mechanisms for both public sector undertakings and private multinational corporations.
3. The Whistle Blowers Protection Act, 2014, received the President's assent on 9 May 2014, though its provisions remain largely unnotified for private sector entities.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Whistle Blowers Protection Act, 2014, was enacted to protect public servants, but it does not extend to the private sector, and its provisions remain largely unnotified. Statement 1 is incorrect because the Companies Act, 2013, mandates whistleblower mechanisms for listed companies and specific classes of companies, not all registered startups. Statement 2 is incorrect because the Central Vigilance Commission (CVC) exercises superintendence only over the vigilance administration of public sector undertakings and government bodies, having no jurisdiction over private multinational corporations.
Consider the following statements regarding Whistleblowing in the context of professional codes of conduct:
1. The CVC circular of 2002 regarding the Public Interest Disclosure and Protection of Informers Resolution encompasses the protection of identity for whistleblowers in both public sector undertakings and private banking institutions.
2. The Sarbanes-Oxley Act of 2002 introduced Section 806, which provides federal protection for employees of publicly traded companies who report financial misconduct to the Securities and Exchange Commission or internal supervisors.
3. The 2011 Whistleblowers Protection Bill was introduced in the Lok Sabha by the Ministry of Personnel, Public Grievances and Pensions, and it includes provisions for the establishment of a National Whistleblower Commission to oversee state-level inquiries.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the PIDPI Resolution (2004) applies only to public sector undertakings and government offices, excluding private banking institutions. Statement 2 is incorrect because while the Sarbanes-Oxley Act does include Section 806, it provides protection for reporting misconduct to federal regulators or supervisors, but the Act is a US law, not a framework applicable to Indian professional codes of conduct. Statement 3 is incorrect because the Whistleblowers Protection Act, 2014 (passed in 2014, not 2011) does not establish a National Whistleblower Commission; instead, it designates the Central Vigilance Commission (CVC) as the competent authority to receive and act upon complaints.
Consider the following statements regarding Ethical dilemmas in loyalty vs public interest:
1. The Securities and Exchange Board of India (SEBI) introduced the Prohibition of Insider Trading Regulations in 2015, which includes provisions for informants to receive monetary rewards for reporting violations.
2. The United Nations Convention against Corruption, which India ratified in 2011, includes Article 33 regarding the protection of persons who report in good faith any facts concerning corruption offenses.
3. The Supreme Court of India, in the 2003 judgment of Delhi Metro Rail Corporation Ltd. vs. Bharat Singh, recognized the need for legislative protection for public interest whistleblowers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as SEBI's 2019 amendment to the PIT Regulations introduced the Informant Mechanism, offering rewards up to ₹1 crore for reporting insider trading. Statement 2 is correct because India ratified the UN Convention against Corruption in 2011, and Article 33 explicitly mandates member states to provide protection against retaliation for whistleblowers. Statement 3 is correct as the Supreme Court in the 2003 Delhi Metro Rail Corporation Ltd. vs. Bharat Singh case emphasized the necessity of a legislative framework to protect whistleblowers, which eventually paved the way for the Whistleblowers Protection Act, 2014.
Consider the following statements regarding Role of Central Vigilance Commission in whistleblower cases:
1. The 2004 PIDPI resolution allows the Central Vigilance Commission to initiate suo motu inquiries into the conduct of Cabinet Ministers, provided the complaint is filed within 180 days of the alleged incident.
2. The Central Vigilance Commission operates under the 2003 CVC Act, which includes provisions for the Commission to grant financial rewards to whistleblowers equivalent to 10 percent of the recovered amount in corruption cases.
3. The Whistle Blowers Protection (Amendment) Bill, 2015, sought to expand the scope of the Central Vigilance Commission to include the oversight of non-governmental organizations receiving foreign contributions under the FCRA framework.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the PIDPI resolution does not grant the CVC power to initiate suo motu inquiries into Cabinet Ministers' conduct, nor is there a 180-day filing limit. Statement 2 is incorrect as the CVC Act, 2003, does not contain any provision for financial rewards to whistleblowers; such incentive schemes are not part of the statutory framework. Statement 3 is incorrect because the Whistle Blowers Protection (Amendment) Bill, 2015, primarily aimed to introduce grounds for exemption related to national security and sovereignty, and it did not seek to expand the CVC's oversight to include NGOs under the FCRA framework.
Consider the following statements regarding Ethical dilemmas in loyalty vs public interest:
1. The Whistle Blowers Protection Act of 2014 received presidential assent on 9 May 2014, aiming to establish a mechanism to receive complaints relating to disclosure on any allegation of corruption.
2. Section 4 of the Public Interest Disclosure and Protection of Informers Resolution of 2004 designates the Central Vigilance Commission as the agency to receive written complaints from whistleblowers.
3. The Companies Act of 2013, under Section 177, provides for a vigil mechanism for directors and employees to report genuine concerns in prescribed companies.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Whistle Blowers Protection Act, 2014, received presidential assent on May 9, 2014, to create a legal framework for reporting corruption and misuse of power. Statement 2 is correct because the 2004 PIDPI Resolution empowered the Central Vigilance Commission (CVC) to act as the designated agency for receiving and processing whistleblower complaints to ensure anonymity and protection. Statement 3 is correct as Section 177 of the Companies Act, 2013, mandates that specific classes of companies must establish a vigil mechanism, allowing directors and employees to report unethical behavior or violations without fear of victimization.
Consider the following statements regarding Reporting channels in multi-national corporations:
1. ISO 37002:2021 provides a global framework for whistleblowing management systems, emphasizing the importance of organizational culture and the protection of reporting persons within multinational corporate structures.
2. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the SEC Whistleblower Program offers monetary awards to individuals who voluntarily provide original information leading to successful enforcement actions exceeding $1 million.
3. The European Union Whistleblower Directive (Directive 2019/1937) requires legal entities in the private sector with 50 or more employees to establish internal reporting channels and procedures for follow-up.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
All three statements are correct: ISO 37002:2021 provides international guidelines for whistleblowing management systems, the SEC Whistleblower Program under the Dodd-Frank Act incentivizes reporting by offering 10-30% of monetary sanctions in successful cases exceeding $1 million, and the EU Directive 2019/1937 mandates that private sector entities with 50 or more employees establish secure internal reporting channels to ensure whistleblower protection.
Consider the following statements regarding The concept of 'Good Faith' in disclosure:
1. The Whistleblowers Protection (Amendment) Bill of 2015 was introduced in the Lok Sabha to address national security concerns, and it sought to repeal the 2004 PIDPI Resolution entirely.
2. The 2014 Act defines good faith as a disclosure made by a public servant who has reasonable belief that the information is true, and this definition aligns with the 1998 recommendations of the Santhanam Committee.
3. The Whistleblowers Protection Act of 2014 received presidential assent on 9 May 2014, establishing a framework for reporting corruption or willful misuse of power.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Whistleblowers Protection Act, 2014, received presidential assent on 9 May 2014 to provide a mechanism for reporting corruption. Statement 1 is incorrect because the 2015 Amendment Bill sought to add exemptions related to national security rather than repealing the 2004 PIDPI Resolution, which remains a valid administrative mechanism. Statement 2 is incorrect because the 2014 Act does not explicitly define 'good faith' in the manner described, and the Santhanam Committee (1962-64) predates the 1998 period mentioned.
Consider the following statements regarding Confidentiality clauses vs transparency requirements:
1. The Second Administrative Reforms Commission, in its 4th report on Ethics in Governance, suggests the enactment of a specific law for whistleblowers, and it identifies the Cabinet Secretary as the sole authority for oversight of all central government disclosures.
2. The Right to Information Act, 2005, provides for the protection of whistleblowers under Section 18, and it encompasses the authority of the Central Information Commission to grant immunity from criminal prosecution for any disclosed information.
3. The Companies Act, 2013, under Section 177(9), provides that every listed company and companies belonging to specific classes shall establish a vigil mechanism for directors and employees to report genuine concerns.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as Section 177(9) of the Companies Act, 2013, mandates a vigil mechanism for listed companies to report unethical behavior. Statement 1 is incorrect because the 4th ARC report recommended the Central Vigilance Commission (CVC), not the Cabinet Secretary, as the designated authority for whistleblower disclosures. Statement 2 is incorrect because the RTI Act, 2005, does not contain provisions for whistleblower protection or criminal immunity; such protections are instead governed by the Whistleblowers Protection Act, 2014.
Consider the following statements regarding Statutory obligations of directors regarding fraud reporting:
1. The Companies Act, 1956 included Section 227(A) which introduced the mandatory reporting of fraud to the Securities and Exchange Board of India, a provision later incorporated into the 2013 legislation.
2. The National Financial Reporting Authority (NFRA) was constituted in 2018 under Section 132 of the Companies Act, and it functions as the primary appellate body for whistle-blower grievances filed by independent directors.
3. The Companies (Auditor's Report) Order, 2020 provides for the disclosure of whistleblower complaints in the auditor's report, and it applies to all private limited companies regardless of their paid-up capital or borrowing status.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because Section 143(12) of the Companies Act, 2013 mandates reporting fraud to the Central Government, not SEBI. Statement 2 is incorrect as the NFRA is an independent regulatory body for auditing standards and accounting oversight, not an appellate body for whistleblower grievances. Statement 3 is incorrect because CARO 2020 specifically exempts one-person companies, small companies, and certain private limited companies meeting specific thresholds related to paid-up capital and borrowings.
Consider the following statements regarding Institutional mechanisms for grievance redressal:
1. The Whistle Blowers Protection Act of 2014 received the President's assent on 9 May 2014, aiming to establish a mechanism to receive complaints relating to disclosure on any allegation of corruption or willful misuse of power against any public servant.
2. The Public Interest Disclosure and Protection of Informers Resolution of 2004 was introduced by the Ministry of Personnel, Public Grievances and Pensions to replace the existing Central Vigilance Commission guidelines for handling whistleblower complaints.
3. Section 11 of the Whistle Blowers Protection Act, 2014, empowers the Competent Authority to provide appropriate protection to the complainant, including directions to the concerned public authority to protect the identity of the whistleblower.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Whistle Blowers Protection Act, 2014, was indeed enacted to establish a legal framework for reporting corruption or misuse of power by public servants. Statement 3 is correct because Section 11 explicitly mandates the Competent Authority to ensure the safety of whistleblowers, including the non-disclosure of their identity. Statement 2 is incorrect because the 2004 Resolution (PIDPI) was not introduced to replace CVC guidelines; rather, it was issued by the Government of India in response to the Supreme Court's directive in the Vineet Narain case to designate the CVC as the agency to receive complaints from whistleblowers.
Consider the following statements regarding Retaliatory actions and burden of proof in legal proceedings:
1. In the landmark case of Mahendra Nath Srivastava vs. Union of India (2013), the Supreme Court observed that whistleblowers deserve protection against retaliatory disciplinary proceedings initiated by their employers.
2. The Whistle Blowers Protection Act of 2014 received presidential assent on 9 May 2014, establishing a mechanism to receive complaints relating to disclosure on any allegation of corruption.
3. Section 11 of the Whistle Blowers Protection Act 2014 provides that the Competent Authority has the power to issue directions to the concerned public authority to protect the complainant from victimization.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Supreme Court in Mahendra Nath Srivastava vs. Union of India emphasized the necessity of protecting whistleblowers from vindictive disciplinary actions. Statement 2 is accurate because the Whistle Blowers Protection Act, 2014, received presidential assent on 9 May 2014 to create a legal framework for reporting corruption. Statement 3 is correct as Section 11 empowers the Competent Authority to issue binding directions to public authorities to prevent the victimization of whistleblowers, ensuring their safety during investigations.
Consider the following statements regarding Internal vs External whistleblowing mechanisms:
1. The Companies Act, 2013, introduced Section 177, which provides for the establishment of a vigil mechanism in listed companies and identifies the Securities and Exchange Board of India as the oversight body for all internal grievances.
2. The Central Vigilance Commission issued the PIDPI Resolution in 2004, which provides for the protection of whistleblowers and grants the Commission the power to initiate criminal prosecution against the heads of departments.
3. The Right to Information Act, 2005, includes provisions for whistleblower protection under Section 8, which allows the Information Commissioner to grant immunity from civil litigation to individuals reporting administrative irregularities.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while Section 177 of the Companies Act, 2013 mandates a vigil mechanism, it designates the Audit Committee, not SEBI, as the oversight body. Statement 2 is incorrect because the PIDPI (Public Interest Disclosure and Protection of Informers) Resolution empowers the CVC to act as the designated agency to receive complaints and protect the identity of whistleblowers, but it does not grant the Commission the power to initiate criminal prosecution. Statement 3 is incorrect because the RTI Act, 2005 is a transparency law and does not contain provisions for whistleblower protection or immunity from civil litigation; such protections are instead governed by the Whistleblowers Protection Act, 2014.
Consider the following statements regarding Whistleblowing in the private sector vs public sector:
1. The 2003 UN Convention against Corruption, ratified by India in 2011, includes provisions for the protection of reporting persons, which apply to the private sector through the Securities and Exchange Board of India's 2015 LODR regulations.
2. Section 177 of the Companies Act, 2013, provides that listed companies and specific classes of companies establish a vigil mechanism for directors and employees to report genuine concerns.
3. The 2017 Supreme Court judgment in Justice K.S. Puttaswamy v. Union of India recognized privacy as a fundamental right, which influences the data protection protocols for whistleblowers in both public and private sectors.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because while India ratified the UN Convention against Corruption in 2011, the SEBI (LODR) Regulations 2015 do not directly implement the Convention's whistleblower provisions, which remain governed by domestic statutes like the Companies Act. Statement 2 is correct as Section 177 of the Companies Act, 2013, mandates a vigil mechanism for directors and employees to report unethical behavior in listed companies. Statement 3 is correct because the Justice K.S. Puttaswamy (2017) judgment established privacy as a fundamental right, necessitating that organizational whistleblower policies strictly adhere to data protection and anonymity protocols to prevent the victimization of informants.
Consider the following statements regarding Whistleblowing in the private sector vs public sector:
1. The Public Interest Disclosure and Protection of Informers Resolution of 2004, known as the PIDPI resolution, provides a framework for the Central Vigilance Commission to receive complaints against private entities engaged in government contracts.
2. The Sarbanes-Oxley Act of 2002, enacted in the United States, serves as the legal basis for the whistleblowing clauses found in the Indian Companies Act of 2013, which apply to every private limited company regardless of its annual turnover.
3. The 2011 draft of the Whistle Blowers Protection Bill proposed the inclusion of private sector employees under the jurisdiction of the Lokpal, a provision that was incorporated into the final 2013 Act to ensure parity between public and private reporting.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the PIDPI resolution is strictly limited to whistleblowing within the public sector, specifically for reporting corruption among central government employees. Statement 2 is false as the Companies Act, 2013, mandates whistleblowing mechanisms only for specific classes of companies, such as listed companies, rather than every private limited company. Statement 3 is incorrect because the Whistle Blowers Protection Act, 2014, and the Lokpal and Lokayuktas Act, 2013, do not extend jurisdiction over private sector employees, maintaining a clear distinction between public and private sector oversight.
Consider the following statements regarding Confidentiality clauses vs transparency requirements:
1. The Whistle Blowers Protection Act, 2014, received the President's assent on 9 May 2014, establishing a mechanism to receive complaints relating to disclosure on any allegation of corruption or willful misuse of power.
2. Section 8(1)(j) of the Right to Information Act, 2005, provides an exemption from disclosure of personal information which has no relationship to any public activity or interest, balancing transparency with individual privacy.
3. The Public Interest Disclosure and Protection of Informers Resolution, 2004, encompasses the creation of the Central Vigilance Commission as the designated agency for receiving complaints, and it applies to the entire private sector workforce.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the Whistle Blowers Protection Act, 2014, received presidential assent on 9 May 2014 to provide a legal framework for reporting corruption. Statement 2 is correct because Section 8(1)(j) of the RTI Act protects personal privacy by exempting information that lacks a nexus to public activity, unless the PIO is satisfied that the larger public interest justifies disclosure. Statement 3 is incorrect because the Public Interest Disclosure and Protection of Informers (PIDPI) Resolution, 2004, applies only to employees of the Central Government and its controlled public sector undertakings, explicitly excluding the private sector.
Consider the following statements regarding Organizational culture and the 'Silence' phenomenon:
1. The 2015 amendments to the Whistleblowers Protection Act proposed the exclusion of disclosures related to national security, referencing the Official Secrets Act of 1923.
2. The 2019 Global Business Ethics Survey found that 69 percent of employees who observed misconduct reported it, while the remaining 31 percent cited a fear of organizational reprisal.
3. Under the Companies Act of 2013, Section 177(9) provides that every listed company shall establish a vigil mechanism for directors and employees to report genuine concerns.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 2015 Amendment Bill sought to restrict disclosures related to 10 categories, including national security and sovereignty, by aligning with the Official Secrets Act. Statement 2 is correct, reflecting the 2019 ECI Global Business Ethics Survey findings which highlighted that while reporting rates are high, fear of retaliation remains the primary barrier for the remaining 31% of employees. Statement 3 is correct because Section 177(9) of the Companies Act, 2013, mandates that listed companies and specific classes of companies establish a 'vigil mechanism' to enable directors and employees to report unethical behavior or fraud without fear of victimization.
Consider the following statements regarding Reporting channels in multi-national corporations:
1. The UK Bribery Act 2010 includes provisions for corporate criminal liability, and its guidance notes suggest that companies with fewer than 250 employees maintain an external ombudsman to manage all internal reporting disclosures.
2. The Foreign Corrupt Practices Act of 1977 incorporates the 1998 amendment regarding books and records, which serves as the primary legal basis for the SEC to regulate internal whistleblower hotlines in non-US subsidiaries.
3. The Sarbanes-Oxley Act of 2002 established Section 301, which directs audit committees of publicly traded companies to create procedures for the confidential, anonymous submission of concerns regarding questionable accounting or auditing matters.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as Section 301 of the Sarbanes-Oxley Act (2002) mandates that audit committees establish procedures for the confidential and anonymous reporting of accounting concerns. Statement 1 is incorrect because the UK Bribery Act 2010 does not mandate an external ombudsman for companies with fewer than 250 employees; such requirements are not part of the Act's statutory guidance. Statement 2 is incorrect because the FCPA's 1998 amendments primarily expanded jurisdiction to include foreign nationals and entities, but it does not serve as the specific legal basis for the SEC to regulate internal whistleblower hotlines in non-US subsidiaries.
Consider the following statements regarding Whistleblowers Protection Act 2014 provisions:
1. Section 4 of the Act allows any person, including a public servant, to make a public interest disclosure before the Competent Authority.
2. The Whistleblowers Protection Act, 2014 received the assent of the President of India on 9 May 2014.
3. The Act defines a 'Competent Authority' to include the Central Vigilance Commission for employees of the Central Government or its corporations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Section 4 empowers any person, including public servants, to make disclosures regarding corruption or misuse of power to the Competent Authority. Statement 2 is correct because the Act was indeed enacted and received Presidential assent on 9 May 2014. Statement 3 is correct as the Act designates the Central Vigilance Commission (CVC) as the Competent Authority to receive complaints concerning employees of the Central Government and its subordinate corporations.
Consider the following statements regarding Legal immunity and protection against victimization:
1. The 2011 amendment to the Whistle Blowers Protection Act introduced the provision for anonymous complaints, which the Supreme Court upheld in the 2013 judgment regarding the Right to Information.
2. Under the Companies Act of 2013, the audit committee oversees the vigil mechanism, and the Securities and Exchange Board of India oversees the implementation of these rules for all registered non-profit organizations.
3. The 2004 PIDPI Resolution allows the Central Vigilance Commission to disclose the identity of the complainant during the preliminary inquiry stage if the evidence involves national security concerns.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Whistle Blowers Protection Act was enacted in 2014, not 2011, and it explicitly mandates that complaints must not be anonymous. Statement 2 is incorrect because while the Companies Act 2013 mandates a vigil mechanism for directors and employees, SEBI's oversight is limited to listed companies, not all non-profit organizations. Statement 3 is incorrect because the 2004 PIDPI (Public Interest Disclosure and Protection of Informers) Resolution strictly prohibits the disclosure of the complainant's identity, even in cases involving national security, to ensure the protection of the whistleblower.
Consider the following statements regarding Corporate governance and the role of Audit Committees:
1. Section 177 of the Companies Act, 2013, establishes that every listed company is to constitute a Vigil Mechanism for directors and employees to report genuine concerns.
2. The Whistle Blowers Protection Act, 2014, extends its jurisdiction to private sector corporate entities and provides for the protection of whistle-blowers through the Securities and Exchange Board of India.
3. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specify that the Audit Committee is responsible for reviewing the functioning of the whistle-blower mechanism.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as Section 177 of the Companies Act, 2013, mandates a vigil mechanism for directors and employees to report unethical behavior. Statement 3 is correct because the SEBI (LODR) Regulations, 2015, explicitly empower the Audit Committee to oversee the whistle-blower mechanism. Statement 2 is incorrect because the Whistle Blowers Protection Act, 2014, is exclusively applicable to public sector entities and government officials, not the private corporate sector, and it does not operate under SEBI's jurisdiction.
Consider the following statements regarding International best practices like the Sarbanes-Oxley Act:
1. The Public Company Accounting Oversight Board was created under Title I of the Sarbanes-Oxley Act to oversee auditors of public companies and maintain audit quality.
2. The Sarbanes-Oxley Act of 2002 established Section 806, which provides legal protection for employees of publicly traded companies who report suspected securities fraud.
3. The Whistleblower Protection Act of 1989 in the United States introduced the Office of Special Counsel, which serves as an independent investigative body for private sector employees reporting corporate tax evasion.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the Sarbanes-Oxley Act (2002) established the Public Company Accounting Oversight Board (PCAOB) to regulate auditors and ensure financial transparency. Statement 2 is correct because Section 806 of the Act specifically provides whistleblower protection against retaliation for employees reporting securities fraud or violations of SEC rules. Statement 3 is incorrect because the Whistleblower Protection Act of 1989 applies exclusively to federal employees in the public sector, not private sector employees, and the Office of Special Counsel serves to protect federal whistleblowers from prohibited personnel practices.
Consider the following statements regarding Ethical dilemmas in loyalty vs public interest:
1. The Central Vigilance Commission Act of 2003 empowers the Commission to provide direct police protection to whistleblowers, and this authority was exercised during the 2008 coal block allocation investigations.
2. The Whistle Blowers Protection (Amendment) Bill of 2015 was introduced in the Lok Sabha to expand the scope of the 2014 Act, and it received final parliamentary approval in the winter session of 2016.
3. The Second Administrative Reforms Commission, in its 4th report on Ethics in Governance submitted in 2007, recommended the creation of a National Whistleblower Authority under the direct administrative control of the Prime Minister's Office.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the CVC Act, 2003 does not grant the Commission direct police powers; protection is typically coordinated through state agencies or the Ministry of Home Affairs. Statement 2 is incorrect as the Whistle Blowers Protection (Amendment) Bill, 2015, which sought to restrict disclosures related to national security, lapsed upon the dissolution of the 16th Lok Sabha and never received final parliamentary approval. Statement 3 is incorrect because the Second ARC, in its 4th report, recommended the establishment of an independent National Whistleblower Authority, but explicitly advised against placing it under the control of the PMO to ensure its functional autonomy and impartiality.
Consider the following statements regarding Anonymity protocols and digital security for whistleblowers:
1. The Whistle Blowers Protection Act, 2014 received presidential assent on 9 May 2014, aiming to provide a mechanism for receiving complaints relating to disclosure on any allegation of corruption.
2. The Signal protocol, developed by Open Whisper Systems in 2013, provides for end-to-end encryption and is integrated into the official communication channels of the Indian Ministry of Electronics and Information Technology.
3. The 2014 Whistle Blowers Protection Act includes provisions for the protection of witnesses under Section 19, which links the administrative process to the 2018 Witness Protection Scheme notified by the Ministry of Home Affairs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the Whistle Blowers Protection Act, 2014, received presidential assent on 9 May 2014 to establish a mechanism for reporting corruption. Statement 2 is incorrect because, while the Signal protocol provides end-to-end encryption, it is not officially integrated into the communication channels of the Indian Ministry of Electronics and Information Technology. Statement 3 is incorrect because the 2014 Act does not contain a Section 19 linking it to the 2018 Witness Protection Scheme, as the latter was formulated by the Supreme Court in the Mahendra Chawla case and subsequently notified by the Ministry of Home Affairs.
Consider the following statements regarding Institutional mechanisms for grievance redressal:
1. The Right to Information Act, 2005, contains a specific provision under Section 8(1)(j) that provides legal immunity to whistleblowers who disclose information concerning the personal life of public officials in the interest of the state.
2. The Supreme Court of India, in the 2003 judgment of Delhi Metro Rail Corporation v. S.K. Gupta, directed the government to establish a formal framework for whistleblower protection, which eventually led to the enactment of the 2014 legislation.
3. The Whistle Blowers Protection Act of 2014 provides for the constitution of a National Whistleblower Commission, which serves as the apex body for monitoring the implementation of protection protocols across state-level departments.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because Section 8(1)(j) of the RTI Act actually exempts personal information from disclosure unless it serves a larger public interest, and it offers no legal immunity to whistleblowers. Statement 2 is incorrect as the whistleblower protection framework was prompted by the 2003 murder of Satyendra Dubey, leading to the Public Interest Disclosure and Protection of Informers (PIDPI) resolution, not the cited DMRC case. Statement 3 is incorrect because the Whistle Blowers Protection Act, 2014, designates the Central Vigilance Commission (CVC) as the competent authority to receive complaints, rather than establishing a separate National Whistleblower Commission.
Consider the following statements regarding Corporate governance and the role of Audit Committees:
1. The Voluntary Guidelines on Corporate Governance, 2009, suggest that the Audit Committee is to be chaired by an independent director and holds the power to initiate independent investigations into the conduct of the Chief Financial Officer.
2. The 2017 amendments to the SEBI (Prohibition of Insider Trading) Regulations introduced the Informant Reward Scheme, which allows for a maximum reward of 5 crore rupees to individuals reporting corporate fraud.
3. The National Financial Reporting Authority, established under Section 132 of the Companies Act, 2013, functions as the primary appellate body for whistle-blower complaints regarding audit failures in unlisted companies.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 2009 Guidelines are voluntary and the Companies Act, 2013 mandates the Audit Committee's composition, not the 2009 Guidelines. Statement 2 is incorrect because the Informant Reward Scheme under SEBI (PIT) Regulations, 2019, caps the reward at 1 crore rupees, not 5 crore. Statement 3 is incorrect because the NFRA is an independent regulatory body for auditing standards and oversight, not an appellate body for whistle-blower complaints, which are primarily handled through the Vigil Mechanism under Section 177 of the Companies Act.
Consider the following statements regarding Whistleblowers Protection Act 2014 provisions:
1. The Whistleblowers Protection Act, 2014 was introduced in the Lok Sabha in 2010 and incorporates the recommendations of the Second Administrative Reforms Commission regarding the establishment of a National Judicial Commission.
2. Under the 2014 Act, the identity of the complainant is protected through provisions that prohibit the disclosure of the whistleblower's name during the inquiry process.
3. The legislation provides that no person shall be liable to any civil or criminal proceedings for any disclosure made in good faith under the Act.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Whistleblowers Protection Act, 2014 was based on the recommendations of the Law Commission of India, not the Second ARC's proposal for a National Judicial Commission. Statement 2 is correct as the Act mandates the Competent Authority to conceal the identity of the complainant and the documents provided to prevent victimization. Statement 3 is correct because Section 13 of the Act grants legal immunity from civil or criminal proceedings to whistleblowers for disclosures made in good faith.
Consider the following statements regarding Role of Central Vigilance Commission in whistleblower cases:
1. The Central Vigilance Commission was designated as the agency to receive complaints under the Public Interest Disclosure and Protection of Informers Resolution of 2004.
2. The Whistle Blowers Protection Act, 2014, received Presidential assent on February 21, 2014, and established the Central Vigilance Commission as the primary appellate authority for private sector corporate whistleblowing cases.
3. Section 11 of the Whistle Blowers Protection Act, 2014, empowers the Central Vigilance Commission to provide protection to witnesses and complainants against victimization.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Government of India designated the CVC as the 'Designated Agency' to receive written complaints under the PIDPI Resolution of 2004. Statement 3 is correct because Section 11 of the Whistle Blowers Protection Act, 2014, mandates the Competent Authority (which includes the CVC) to issue directions to protect complainants and witnesses from victimization. Statement 2 is incorrect because the 2014 Act is strictly limited to public servants and public sector undertakings, and it does not cover the private sector, nor does it establish the CVC as an appellate authority for corporate whistleblowing.
Consider the following statements regarding Confidentiality clauses vs transparency requirements:
1. The OECD Anti-Bribery Convention, 1997, includes provisions for the protection of whistleblowers in its Article 12, and it serves as the primary legal instrument governing internal corporate governance standards in India.
2. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, allows for the submission of an Informant Initial Disclosure Form, and it provides a monetary reward of up to 10 crore rupees for all successful enforcement actions.
3. The Whistle Blowers Protection (Amendment) Bill, 2015, refers to the inclusion of national security exemptions for disclosures, and it was passed by both houses of Parliament during the winter session of that year.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the OECD Anti-Bribery Convention does not mandate internal corporate governance standards in India, nor does it contain a specific Article 12 regarding whistleblower protection. Statement 2 is incorrect because while SEBI's PIT regulations do offer rewards, the cap is 1 crore rupees, not 10 crore, and it does not apply to 'all' enforcement actions. Statement 3 is incorrect because the Whistle Blowers Protection (Amendment) Bill, 2015, was never passed by the Rajya Sabha and lapsed following the dissolution of the 16th Lok Sabha.
Consider the following statements regarding Anonymity protocols and digital security for whistleblowers:
1. The SecureDrop platform, maintained by the Freedom of the Press Foundation, utilizes the Tails operating system to ensure digital anonymity and was first deployed by the New York Times in 2010.
2. The 2003 United Nations Convention against Corruption includes Article 33, which provides for the protection of reporting persons and was ratified by India in 2011 to replace the existing 1988 Prevention of Corruption Act.
3. The Whistleblower Protection Directive 2019/1937 of the European Union provides for internal reporting channels and was incorporated into the national laws of all member states by the 2021 deadline.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because SecureDrop was originally created by Aaron Swartz and Kevin Poulsen, and while it uses Tor, it was first deployed by The New Yorker in 2013, not the New York Times in 2010. Statement 2 is incorrect because while India ratified the UN Convention against Corruption in 2011, it did not replace the 1988 Prevention of Corruption Act; that Act remains the primary anti-corruption legislation in India. Statement 3 is incorrect because the EU Directive 2019/1937 set a transposition deadline of December 17, 2021, which many member states failed to meet, leading to infringement procedures by the European Commission.
Consider the following statements regarding The role of the Lokpal in handling whistleblower complaints:
1. The 2013 Lokpal Act provides for the establishment of a Whistleblower Protection Fund, which is administered by the Ministry of Finance to provide financial compensation to informants who report corruption in public sector undertakings.
2. The Central Vigilance Commission acts as the designated agency for receiving written complaints under the Public Interest Disclosure and Protection of Informers Resolution, 2004.
3. The Whistleblowers Protection Act, 2014, received Presidential assent in May 2014 and established the Lokpal as the primary appellate body for cases involving the victimization of whistleblowers in state-level departments.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the CVC is designated as the agency to receive complaints under the PIDPI Resolution, 2004, to ensure the identity of whistleblowers is protected. Statement 1 is incorrect because the Lokpal and Lokayuktas Act, 2013, does not establish a Whistleblower Protection Fund; such provisions are found under the Whistleblowers Protection Act, 2014. Statement 3 is incorrect because the 2014 Act designates the CVC as the competent authority for complaints, and it does not establish the Lokpal as the primary appellate body for state-level victimization cases.
Consider the following statements regarding Legal immunity and protection against victimization:
1. The Law Commission of India's 179th Report recommended the enactment of the Public Interest Disclosure Act, which served as the primary draft for the 2003 Freedom of Information Act.
2. The Whistle Blowers Protection Act provides for the protection of witnesses in criminal proceedings, and the 2018 Witness Protection Scheme covers the identity of whistleblowers in all civil litigation cases.
3. The Whistle Blowers Protection Act of 2014 received presidential assent on May 9, 2014, following its passage through both houses of the Indian Parliament.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Whistle Blowers Protection Act, 2014, received presidential assent on May 9, 2014, after being passed by both houses. Statement 1 is incorrect because the 179th Law Commission Report recommended the Public Interest Disclosure (Protection of Informers) Act, which laid the groundwork for whistleblower legislation, not the Freedom of Information Act, 2003. Statement 2 is incorrect because the 2018 Witness Protection Scheme is specifically designed for witnesses in criminal trials, not for protecting the identity of whistleblowers in civil litigation cases.
Consider the following statements regarding Whistleblowing in the context of professional codes of conduct:
1. The 2004 Public Interest Disclosure and Protection of Informers Resolution, issued by the Government of India, designated the Central Vigilance Commission as the agency to receive written complaints from whistleblowers.
2. The Companies Act, 2013, under Section 177(9), provides that every listed company shall establish a vigil mechanism for directors and employees to report genuine concerns in such manner as may be prescribed.
3. The Indian Penal Code, 1860, contains provisions under Section 166A that allow for the protection of witnesses in corruption cases, provided the information is submitted to the jurisdictional magistrate within 30 days of the incident.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the 2004 PIDPI Resolution empowered the CVC to act as the designated agency for receiving corruption-related disclosures. Statement 2 is correct because Section 177(9) of the Companies Act, 2013, mandates listed companies to establish a vigil mechanism for reporting unethical behavior. Statement 3 is incorrect because Section 166A of the IPC pertains to the punishment for public servants disobeying law, not witness protection, and no such 30-day jurisdictional magistrate provision exists under that section.
Consider the following statements regarding Retaliatory actions and burden of proof in legal proceedings:
1. The Right to Information Act 2005 contains Section 8(1)(j) which relates to personal information, and this section serves as the primary legal basis for the burden of proof shifting to the employer in whistleblower retaliation cases.
2. The 2004 Public Interest Disclosure and Protection of Informers Resolution, issued by the Government of India, designated the Central Vigilance Commission as the agency to receive written complaints from whistleblowers.
3. The 2015 Amendment to the Whistle Blowers Protection Act introduced a clause concerning national security disclosures, and this amendment was passed by the Rajya Sabha during the winter session of that year.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the 2004 PIDPI Resolution formally designated the Central Vigilance Commission (CVC) as the 'Designated Agency' to receive and act on whistleblower complaints. Statement 1 is incorrect because Section 8(1)(j) of the RTI Act pertains to the exemption of personal information from disclosure, not the burden of proof in whistleblower retaliation cases, which is governed by separate legal principles. Statement 3 is incorrect because the Whistle Blowers Protection (Amendment) Bill, 2015, which sought to introduce stringent national security exemptions, was never passed by the Rajya Sabha and eventually lapsed.
Consider the following statements regarding Public Interest Disclosure and Protection of Informers Resolution:
1. The PIDPI Resolution covers disclosures related to corruption, misuse of office, or criminal activity within any department of the Central Government or its subordinate offices.
2. The Government of India issued the Public Interest Disclosure and Protection of Informers (PIDPI) Resolution on April 21, 2004, following the Supreme Court's directions in the Satyendra Dubey murder case.
3. The Central Vigilance Commission (CVC) is designated as the nodal agency to receive complaints under the PIDPI Resolution for the purpose of protecting whistleblowers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
All three statements are correct: the PIDPI Resolution, notified on April 21, 2004, in response to the murder of Satyendra Dubey, empowers the Central Vigilance Commission (CVC) to act as the designated agency to receive and process complaints regarding corruption or misuse of office within Central Government departments and their subordinate offices. The resolution ensures the identity of the whistleblower is kept confidential and provides a mechanism for their protection against victimization. Since all statements accurately reflect the legal and administrative framework of the PIDPI, there are no incorrect statements.
Consider the following statements regarding Internal vs External whistleblowing mechanisms:
1. The 2015 Amendment Bill to the Whistle Blowers Protection Act proposed the inclusion of ten categories of information, including national security and intellectual property, as exemptions from the disclosure process.
2. The OECD Anti-Bribery Convention, which India signed in 2009, provides for the establishment of external whistleblowing channels and grants the Ministry of Finance the authority to review international corruption reports.
3. The 2011 Whistleblowers Protection Bill was introduced in the Lok Sabha by the Ministry of Personnel, Public Grievances and Pensions and refers to the Comptroller and Auditor General as the designated agency for investigating disclosures.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the 2015 Amendment Bill sought to restrict disclosures by introducing ten categories of exemptions, including national security and intellectual property, which critics argued would dilute the Act. Statement 2 is incorrect because India is not a signatory to the OECD Anti-Bribery Convention, and the Ministry of Finance holds no such mandate under the Act. Statement 3 is incorrect because the 2011 Act designated the Central Vigilance Commission (CVC), not the Comptroller and Auditor General, as the competent authority to receive and investigate whistleblowing disclosures.
Consider the following statements regarding Role of Central Vigilance Commission in whistleblower cases:
1. Under the 2004 Resolution, the Central Vigilance Commission possesses the authority to direct the Central Bureau of Investigation to investigate matters involving public servants under the Delhi Special Police Establishment Act, 1946.
2. The Central Vigilance Commission maintains a dedicated portal for the receipt of complaints under the 'Public Interest Disclosure and Protection of Informers' framework, commonly referred to as PIDPI.
3. The Central Vigilance Commission is required to keep the identity of the complainant confidential during the processing of disclosures under the PIDPI resolution.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Central Vigilance Commission (CVC) is empowered by the 2004 'Public Interest Disclosure and Protection of Informers' (PIDPI) resolution to oversee investigations into corruption, including directing the CBI under the DSPE Act, 1946. The CVC maintains the official PIDPI portal to receive complaints while strictly adhering to a mandate that ensures the identity of the whistleblower remains confidential throughout the inquiry process to prevent victimization. As all three statements accurately reflect the CVC's statutory and administrative role in safeguarding whistleblowers, no statements are incorrect.
Consider the following statements regarding The concept of 'Good Faith' in disclosure:
1. The Law Commission of India, in its 179th Report submitted in 2003, recommended the enactment of the Public Interest Disclosure (Protection of Informers) Act to provide legal immunity to whistleblowers.
2. The Second Administrative Reforms Commission, in its 4th Report titled Ethics in Governance, proposed that the definition of good faith should be modeled after the 2002 Sarbanes-Oxley Act of the United Kingdom.
3. The 2003 United Nations Convention against Corruption, specifically Article 33, encourages member states to incorporate measures that provide protection against unjustified treatment for persons reporting facts in good faith.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the 179th Law Commission Report (2003) indeed proposed the Public Interest Disclosure (Protection of Informers) Act to safeguard whistleblowers. Statement 3 is correct because Article 33 of the 2003 UN Convention against Corruption mandates member states to provide protection against unjustified treatment for those reporting corruption in good faith. Statement 2 is incorrect because the Second ARC's 4th Report (2007) did not reference the Sarbanes-Oxley Act (which is a United States law, not a UK law) in the context of defining good faith.
Consider the following statements regarding Institutional mechanisms for grievance redressal:
1. The Central Vigilance Commission acts as the primary appellate body for whistleblowers under the 2014 Act, and it holds the authority to overturn decisions made by the Competent Authority regarding the disclosure of a complainant's identity.
2. The Second Administrative Reforms Commission, in its 4th report titled Ethics in Governance, suggested that the Lokpal should function as the designated agency for receiving complaints under the Whistle Blowers Protection Act.
3. The Prevention of Corruption (Amendment) Act, 2018, incorporates specific clauses for the protection of whistleblowers in the private sector, extending the jurisdiction of the Central Vigilance Commission to corporate entities.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the CVC acts as the designated agency to receive complaints but does not have the power to overturn the Competent Authority's decisions regarding identity disclosure. Statement 2 is incorrect as the 4th ARC report recommended the creation of a 'Public Interest Disclosure Act' and proposed that the Lokpal be empowered to protect whistleblowers, but it did not designate the Lokpal as the sole agency under the 2014 Act. Statement 3 is incorrect because the 2018 Amendment to the Prevention of Corruption Act focuses on criminalizing bribe-giving and enhancing penalties for public servants, without extending the CVC's jurisdiction to the private sector for whistleblower protection.
Consider the following statements regarding Whistleblowing in the context of professional codes of conduct:
1. The Second Administrative Reforms Commission submitted its 4th Report on Ethics in Governance in 2007, which proposed the enactment of the Whistleblowers Protection Bill to cover private sector entities under the jurisdiction of the Lokpal.
2. Section 4 of the Whistle Blowers Protection Act, 2014, specifies that any public servant or any other person including any non-governmental organization may make a public interest disclosure before the Competent Authority.
3. The Whistle Blowers Protection Act, 2014, received the assent of the President of India on 9 May 2014 to provide a mechanism for receiving complaints relating to disclosure on any allegation of corruption.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the 4th Report of the Second ARC (2007) recommended a legal framework for whistleblowers in the public sector, but it did not propose bringing private entities under the Lokpal's jurisdiction. Statement 2 is correct as Section 4 of the 2014 Act explicitly empowers any public servant or person, including NGOs, to make disclosures to the Competent Authority. Statement 3 is correct because the Whistle Blowers Protection Act, 2014, was indeed enacted to establish a mechanism for reporting corruption and received Presidential assent on 9 May 2014.
Consider the following statements regarding Legal immunity and protection against victimization:
1. Section 11 of the Whistle Blowers Protection Act empowers the Central Vigilance Commission to take appropriate action to protect the complainant from victimization.
2. The Public Interest Disclosure and Protection of Informers Resolution of 2004 designated the Central Vigilance Commission as the agency to receive written complaints on corruption.
3. The Central Vigilance Commission maintains a secure portal for digital complaints, and the 2015 amendments to the PIDPI resolution extended protection to include verbal disclosures made to departmental heads.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as Section 11 of the Whistle Blowers Protection Act, 2014, mandates the CVC to provide necessary directions to public authorities to ensure the complainant is not victimized. Statement 2 is correct because the 2004 PIDPI Resolution formally designated the CVC as the 'Designated Agency' to receive and act upon complaints of corruption or misuse of office. Statement 3 is incorrect because the PIDPI resolution strictly requires complaints to be in writing with the identity of the complainant disclosed in a sealed cover; it does not extend protection to verbal disclosures, nor were there any 2015 amendments altering this fundamental requirement.
Consider the following statements regarding Legal safeguards for witnesses and informants:
1. The 2015 amendment bill to the Whistle Blowers Protection Act proposed the inclusion of ten categories of information that are exempted from disclosure on grounds of national security.
2. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, introduced an informant mechanism allowing for monetary rewards up to one crore rupees.
3. In the case of Mahendra Nath Srivastava v. Union of India, the Supreme Court emphasized the necessity of protecting the identity of whistleblowers in departmental proceedings.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 2015 Amendment Bill to the Whistle Blowers Protection Act sought to restrict disclosures by adding ten exemption categories related to national security and sovereignty. Statement 2 is correct because SEBI introduced the 'Informant Mechanism' under the PIT Regulations, 2019 (amended in 2019, effective 2019), offering monetary rewards up to Rs. 1 crore for reporting insider trading. Statement 3 is correct as the Supreme Court in Mahendra Nath Srivastava v. Union of India (2013) underscored the imperative of protecting the identity of whistleblowers to prevent victimization during departmental inquiries.
Consider the following statements regarding The role of the Lokpal in handling whistleblower complaints:
1. Under the 2013 Act, the Lokpal maintains a confidential registry of whistleblowers to prevent the disclosure of their identity during the preliminary inquiry phase.
2. The Whistleblowers Protection (Amendment) Bill, 2015, proposed to introduce ten categories of information that are exempted from disclosure to protect national security and sovereignty.
3. The Lokpal is empowered under the 2013 Act to recommend the transfer or posting of a public servant if the investigation reveals a threat to the whistleblower.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Lokpal and Lokayuktas Act, 2013 mandates strict confidentiality protocols to protect the identity of whistleblowers during preliminary inquiries. Statement 2 is correct because the 2015 Amendment Bill sought to align the Whistleblowers Protection Act, 2014 with the Official Secrets Act by introducing ten specific categories of exemptions related to national security and sovereignty. Statement 3 is correct as the 2013 Act empowers the Lokpal to recommend the transfer or protection of public servants to ensure their safety and prevent victimization when they report corruption.
Consider the following statements regarding Anonymity protocols and digital security for whistleblowers:
1. The Central Vigilance Commission (CVC) issued the Public Interest Disclosure and Protection of Informers (PIDPI) resolution in 2004, which remains the primary administrative framework for protecting whistleblowers in India.
2. The Tor network, originally developed by the United States Naval Research Laboratory in the mid-1990s, utilizes onion routing to facilitate anonymous communication for whistleblowers.
3. Section 13 of the Whistle Blowers Protection Act, 2014 addresses the confidentiality of the identity of the complainant, providing for penalties in cases of unauthorized disclosure.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Government of India authorized the CVC as the designated agency to receive complaints under the 2004 PIDPI resolution. Statement 2 is correct because the Tor network, conceptualized by the US Naval Research Laboratory, uses multi-layered encryption known as onion routing to mask a user's IP address and location. Statement 3 is correct as Section 13 of the 2014 Act explicitly mandates the confidentiality of the whistleblower's identity and prescribes imprisonment and fines for any official who reveals such information without consent.
Consider the following statements regarding International best practices like the Sarbanes-Oxley Act:
1. The Sarbanes-Oxley Act includes Section 404, which focuses on internal control assessments and links executive compensation directly to the successful identification of corporate fraud by external whistleblowers.
2. The False Claims Act, originally enacted in 1863, allows private citizens to file lawsuits on behalf of the government, and it was amended in 1986 to provide specific anti-retaliation protections for employees in the financial services industry.
3. The OECD Anti-Bribery Convention of 1997 encourages member states to adopt internal reporting channels, and it functions as the primary legal instrument for protecting whistleblowers in the banking sector across the European Union.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because Section 404 of the Sarbanes-Oxley Act mandates management and external auditors to report on the adequacy of internal control over financial reporting, but it does not link executive compensation to whistleblower identifications. Statement 2 is incorrect because while the False Claims Act (1863) allows 'qui tam' lawsuits, the 1986 amendments provided anti-retaliation protections generally for employees, not specifically restricted to the financial services industry. Statement 3 is incorrect because the OECD Anti-Bribery Convention focuses on criminalizing the bribery of foreign public officials and is not a legal instrument for protecting whistleblowers across the European Union, which instead relies on the EU Whistleblower Protection Directive (2019).
Consider the following statements regarding Legal safeguards for witnesses and informants:
1. The Central Vigilance Commission acts as the designated agency to receive written complaints under the Public Interest Disclosure and Protection of Informers Resolution of 2004.
2. Section 4 of the Whistle Blowers Protection Act, 2014 outlines the procedure for making a public interest disclosure to the competent authority.
3. The United Nations Convention against Corruption, which entered into force in 2005, contains Article 33 regarding the protection of reporting persons.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the CVC was designated by the Government of India under the 2004 PIDPI Resolution to receive complaints on corruption or misuse of office. Statement 2 is correct because Section 4 of the Whistle Blowers Protection Act, 2014 explicitly prescribes the manner and procedure for making public interest disclosures to the designated competent authority. Statement 3 is correct because Article 33 of the UNCAC, which entered into force in 2005, mandates that signatory states incorporate measures to protect individuals who report corruption-related offenses in good faith.
Consider the following statements regarding The concept of 'Good Faith' in disclosure:
1. Under Section 4 of the Public Interest Disclosure and Protection of Informers Resolution of 2004, the Central Vigilance Commission acts as the designated agency to receive written complaints.
2. The OECD Anti-Bribery Convention of 1997 includes provisions for whistleblower protection in Article 12, which serves as the primary international standard for private sector disclosures in India.
3. The Central Vigilance Commission issued the PIDPI Resolution in 2004, which draws its legal authority from the Prevention of Corruption Act of 1988 and the Right to Information Act of 2005.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because the PIDPI Resolution of 2004 designates the Central Vigilance Commission (CVC) as the agency to receive complaints on corruption or misuse of office. Statement 2 is incorrect as the OECD Anti-Bribery Convention focuses on criminalizing bribery of foreign public officials and does not contain a specific Article 12 dedicated to whistleblower protection. Statement 3 is incorrect because the PIDPI Resolution was issued by the Government of India in 2004 based on the Supreme Court's directions in the Satyendra Dubey case, predating the RTI Act of 2005 and functioning independently of the Prevention of Corruption Act.
Consider the following statements regarding Organizational culture and the 'Silence' phenomenon:
1. The Sarbanes-Oxley Act of 2002 introduced the concept of the 'silent observer' in corporate governance, and the SEC reported a 15 percent increase in whistleblower filings during the 2003 fiscal year.
2. The 2004 Public Interest Disclosure and Protection of Informers Resolution applies to all private sector entities, and the CVC reported receiving over 5,000 whistleblower complaints in the 2005 reporting cycle.
3. The Whistleblowers Protection Act of 2014 received the assent of the President of India on 9 May 2014, aiming to establish a mechanism to receive complaints relating to disclosure on any allegation of corruption.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Whistleblowers Protection Act, 2014, received Presidential assent on 9 May 2014 to provide a mechanism for reporting corruption in public bodies. Statement 1 is incorrect because the Sarbanes-Oxley Act focuses on whistleblower protection and corporate accountability, not the 'silent observer' concept, and the cited 15 percent statistic is factually unsupported. Statement 2 is incorrect because the 2004 PIDPI Resolution is exclusively applicable to the public sector (government employees), not the private sector, and the CVC complaint figures cited do not align with official reporting cycles.
Consider the following statements regarding Corporate governance and the role of Audit Committees:
1. Under the Companies (Meetings of Board and its Powers) Rules, 2014, companies that accept public deposits are to maintain a vigil mechanism for their directors and employees.
2. The Companies (Auditor's Report) Order, 2020, includes provisions for auditors to report instances of fraud to the Central Government if the amount involved exceeds 50 lakh rupees within a period of 30 days.
3. The Companies Act, 2013, provides that the vigil mechanism shall provide for adequate safeguards against victimization of persons who use such a mechanism.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as Section 177 of the Companies Act, 2013, read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, mandates that companies accepting public deposits must establish a vigil mechanism. Statement 3 is correct because Section 177(10) explicitly mandates that the vigil mechanism must include adequate safeguards to protect employees and directors from victimization. Statement 2 is incorrect because, under Section 143(12) of the Companies Act and Rule 13 of the Companies (Audit and Auditors) Rules, 2014, auditors must report fraud to the Central Government if the amount involved is 1 crore rupees or more, not 50 lakh rupees.
Consider the following statements regarding Organizational culture and the 'Silence' phenomenon:
1. The 2013 OECD report on 'Committing to Effective Whistleblower Protection' identifies the 'silence phenomenon' as a cultural barrier where employees fear professional retaliation despite formal reporting channels.
2. Section 4 of the Public Interest Disclosure and Protection of Informers Resolution of 2004 designated the Central Vigilance Commission as the agency to receive written complaints from whistleblowers.
3. The 2014 Whistleblowers Protection Act includes provisions for the protection of witnesses in criminal trials, and the Law Commission of India reviewed these clauses in its 2016 report on judicial accountability.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the 2013 OECD report highlights that cultural norms often override formal policies, leading to 'silence' due to fear of retaliation. Statement 2 is correct because the 2004 PIDPI Resolution officially designated the Central Vigilance Commission (CVC) as the 'Designated Agency' to receive and act upon complaints of corruption or misuse of office. Statement 3 is incorrect because the Whistleblowers Protection Act, 2014, focuses on protecting whistleblowers from victimization in their workplace rather than providing witness protection in criminal trials, and the Law Commission did not review these specific clauses in a 2016 report on judicial accountability.
Consider the following statements regarding International best practices like the Sarbanes-Oxley Act:
1. The UK Public Interest Disclosure Act of 1998 applies to both public and private sector workers, providing a statutory mechanism for reporting malpractice that includes protection for disclosures made to international regulatory bodies.
2. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 expanded the Sarbanes-Oxley framework by offering monetary awards to individuals who provide information leading to successful SEC enforcement actions exceeding one million dollars.
3. Section 301 of the Sarbanes-Oxley Act directs national securities exchanges to prohibit the listing of any company that does not maintain an independent audit committee capable of receiving whistleblower complaints.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct because Section 301 of the Sarbanes-Oxley Act mandates that audit committees of listed companies establish procedures for the receipt and treatment of complaints regarding accounting or auditing matters. Statement 1 is incorrect because the UK Public Interest Disclosure Act (PIDA) 1998 primarily protects disclosures made to internal employers or prescribed persons within the UK, not international regulatory bodies. Statement 2 is incorrect because, while the Dodd-Frank Act introduced a whistleblower bounty program, it is a distinct legislative framework separate from the Sarbanes-Oxley Act, which focused on corporate governance and financial reporting integrity rather than monetary incentives.
Consider the following statements regarding Public Interest Disclosure and Protection of Informers Resolution:
1. Under the PIDPI framework, the identity of the complainant is kept confidential by the CVC and is not disclosed to the concerned organization during the preliminary verification process.
2. Section 4 of the PIDPI Resolution empowers the CVC to request the Central Bureau of Investigation (CBI) or the Chief Vigilance Officer of the concerned organization to conduct a discreet inquiry.
3. The Whistle Blowers Protection Act, 2014, received the President's assent on May 9, 2014, though it has not yet been brought into force through a formal notification.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct because the PIDPI resolution mandates the CVC to act as a designated agency to maintain the confidentiality of the whistleblower's identity to prevent victimization. Statement 2 is correct as the CVC is authorized under the resolution to seek discreet inquiries from the CBI or the relevant CVO to verify the allegations before proceeding further. Statement 3 is correct because while the Whistle Blowers Protection Act, 2014, was passed by Parliament and received Presidential assent on May 9, 2014, the government has not yet issued the notification required to bring the Act into force, leaving the PIDPI resolution as the primary administrative mechanism.
Consider the following statements regarding Statutory obligations of directors regarding fraud reporting:
1. Under Section 177(9) of the Companies Act, 2013, listed companies are directed to establish a vigil mechanism for directors and employees to report genuine concerns in a prescribed manner.
2. The Companies (Management and Administration) Rules, 2014 clarify that the details of whistle-blower complaints and the action taken thereon are to be disclosed in the Board’s Report under Section 134.
3. The Serious Fraud Investigation Office (SFIO) functions under the administrative control of the Ministry of Corporate Affairs and derives its investigative powers from Section 211 of the Companies Act, 2013.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Section 177(9) of the Companies Act, 2013 mandates listed companies to establish a vigil mechanism for reporting genuine concerns. Statement 2 is correct because the Companies (Management and Administration) Rules, 2014 require the Board's Report to include details of the vigil mechanism and actions taken on whistle-blower complaints. Statement 3 is correct as the SFIO operates under the Ministry of Corporate Affairs and is empowered to investigate corporate fraud under Section 211 of the Companies Act, 2013.
Consider the following statements regarding Internal vs External whistleblowing mechanisms:
1. Section 4 of the Whistle Blowers Protection Act, 2014, outlines the procedure for making a public interest disclosure to the Competent Authority, which includes the Central Vigilance Commission for central government employees.
2. The Whistle Blowers Protection Act, 2014, received the President's assent on 9 May 2014, establishing a legal framework for protecting individuals who disclose corruption or misuse of power.
3. The Public Interest Disclosure and Protection of Informers Resolution, 2004, designated the Supreme Court of India as the primary authority to receive complaints regarding corruption in the public sector.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statements 1 and 2 are correct as the Whistle Blowers Protection Act, 2014, received Presidential assent on 9 May 2014 and designates the Central Vigilance Commission as the Competent Authority for central government employees under Section 4. Statement 3 is incorrect because the Public Interest Disclosure and Protection of Informers (PIDPI) Resolution, 2004, designated the Central Vigilance Commission (CVC) as the primary authority to receive such complaints, not the Supreme Court of India.