Here's what top CFOs are betting
on to avoid GST notices:
Here's what top CFOs are betting on to avoid GST notices:
Book a demo to find out!
Index

Whistleblower Protection Act 2014: Features, Key Provisions and Highlights

By Tanya Gupta

|

Updated on: Aug 21st, 2024

|

2 min read

A whistleblower is an individual who discloses information about illegal, immoral, or unethical activity within an organisation to the public or authorities. The Indian Government has specific provisions to protect such individuals through the Whistleblower Protection Act 2014. In this blog, we will learn more about the Whistleblower Act India, its features, applicability, and other key highlights in great detail. Let’s get started!

What is the Whistleblower Act? 

In 2001, the Law Commission of India was the first to recognise the importance of a law to protect whistleblower who fight against corruption. 

In this regard, the Government introduced the “Public Interest Disclosure and Protection to Persons Making the Disclosure Bill, 2010” in the Lok Sabha to address corruption complaints and protect whistleblower. 

The Lok Sabha passed the bill on December 27, 2011

Finally, the Rajya Sabha passed it on February 21, 2014, and it became the Whistleblower Protection Act 2014.

Whistleblower Protection Act 2014 Applicability 

Section 4 of the Whistleblower Protection Act 2014 provides clear guidelines for handling public interest disclosures. It states that any disclosure made under this Act should be treated as such.

The Act defines “Disclosure” as a complaint of any of the following natures: 

  • Attempts or acts of corruption as defined by the Prevention of Corruption Act, 1988
  • Wilful misuse of power or discretion that results in an apparent loss to the Government or an unjust benefit to the public servant or someone else
  • Attempt or acts of criminal offences committed by a public servant reported in writing through email or an electronic message.

Methods Prescribed for Disclosure by the Act  

The Whistleblower Protection Act of 2014 has certain guidelines for submitting complaints that ensure the safety of the whistleblower and that the complaints are handled effectively. The stipulated methodologies include but are not limited to: 

  • Submitting a complaint to a designated authority: 

Whistleblower should submit their complaints to a specific authority set up under the law. The authority will be responsible for looking after public servants' subsequent processing of the complaint.

  • Providing supporting evidence: 

The law encourages whistleblower to support their claims with solid evidence such as documents, emails or audiovisual recordings. Such evidence adds credibility to the case and aids the authority with further investigation. 

  • Confidentiality assurance: 

One of the main objectives of this Act is to protect the identity of the whistleblower for safety reasons. This is important to protect them from backlash or harm so that more people will be encouraged to act as whistleblower. 

  • Prohibition of anonymous complaints: 

The Act provides a clear direction to handle complaints about corruption or the intentional misuse of power by public servants. The law ensures whistleblower and their families do not receive unfair treatment or are harmed for making the complaint. 

Key Highlights of the Whistleblower Protection Act 

  • The Act provides a clear direction to handle complaints about corruption or the intentional misuse of power by public servants. The law ensures that whistleblower and their families do not receive unfair treatment or are harmed for making the complaint. 
  • The law allows anyone, including public servants, to report misconduct or corruption to an appropriate authority. 
  • The whistleblower must identify themselves, as the law does not accept anonymous complaints. 
  • The Act does not apply to the Special Protection Group (SPG) personnel and officers constituted under the Special Protection Group Act, 1988.
  • If someone disagrees with the decision made by the authority, they have the right to appeal to the High Court within 60 days. 
  • Suppose someone reveals the identity of the whistleblower by mistake or with any bad intention. In that case, s/he can be imprisoned for up to 3 years and fined up to Rs 50,000. 
  • If someone makes a disclosure knowing it's false, s/he can be imprisoned for up to 2 years and a fine of up to Rs 30,000. 
  • The authority in charge must prepare an annual report on its work and submit it to the Government. This report is then presented to Parliament or the State Legislature. 

Way Forward 

One significant limitation of the Whistleblower Protection Act 2014 is that it applies to whistleblower fighting against corrupt Government. There is no healthy framework to protect corporate employees. The law should include any private and public sector employee who may be subjected to retribution for blowing the whistle against the organisation's misconduct.

Read more - Website Disclosures Under Companies Act, 2013

Frequently Asked Questions

What is the Whistleblower Protection Act 2011 or 2014?

The Whistleblower Protection Bill was introduced in 2011 to address the need for a legal framework for whistleblower. The bill finally became the Act in 2014. 

Is the Whistleblower Act enforced in India?

Yes, the Act was enforced in India after it received the President's assent on May 9, 2014. 

Does the Whistleblower Act protect identity?

Yes, the Act has provisions to punish the person who discloses the identity of the complaint with imprisonment for up to 3 years and a fine of up to Rs 50,000. 

What happens when a whistleblower lies?

Under Section 17 of the Act, any person who knowingly makes a false or misleading disclosure can be imprisoned for up to 2 years and a fine of up to Rs 30,000. 

About the Author

A Chartered Accountant by profession and a content writer by passion, I've dedicated my career to unraveling the complexities of GST. With a firm belief that learning is a lifelong journey, I've honed my skills in simplifying intricate legal jargon into easily understandable content. The satisfaction of transforming complex tax laws into relatable narratives is what drives me. Read more

summary-logo

Quick Summary

The Whistleblower Protection Act 2014 in India safeguards individuals reporting illegal activities. It defines disclosures and methods for reporting. The Act ensures confidentiality, prohibits anonymous complaints, and allows appeals. It focuses on protecting whistleblowers and their families from harm. The Act primarily applies to corruption within the government and has limitations in protecting corporate employees.

Was this summary helpful?
liked-feedbackliked-feedback

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption