By November 12, 2015 December 20th, 2019 No Comments
In a country where a sport is considered as sacred as a
religion, match fixing or spot fixing has lead to disappointment and
disenchantment of a number of such people. Fraud in the form of match-fixing is
one of the biggest threats to sports in the 21st Century. Keeping in
view the recent incidents of spot fixing in Cricket tournaments  were brought to the public’s attention,
Government of India began the discussion on Prevention of Sporting Fraud Bill,
2013, herein after referred to as “the Bill”.
The Prevention of Sporting Fraud Bill, 2013 penalises not
only the players and other such rookies involved but also such organizations
and companies who sponsor or own sporting teams. It aims at developing and
adopting a code of conduct for players as well as for the management and
related staff of the sport through a zero tolerance policy to corruption in
With respect to offences committed by companies, every
person who, at the time when the offence was committed, was in charge of and
was responsible to the company shall be deemed to be guilty of the offence and
will be punished accordingly. The key provisions of the Bill are:
In case of manipulation of the sports
result, irrespective of whether the outcome is actually altered or in case of
failure to perform to one’s full potential for economic or other advantage, one
can be fined Rs. 10 Lakh or five times the economic benefit derived, whichever
is greater, and imprisonment up to five years.
In case of disclosure of inside
information which can be used for financial gain or betting or manipulation of
event or omission to inform the appropriate authority of any of the
abovementioned acts would lead to a fine of Rs. 5 lakh or three times of the
benefit so derived, whichever is greater, and imprisonment upto three years.

In case a person attempts to commit the above mentioned
offences, he will be punished in the same manner as if the offence was

Companies involved in sports in the form of sponsors as well
as owners are obligated to report the development and implementation of fraud
risk management policy as per Section 134 of the Companies Act, 2013. Such
companies are often exposed to risks like use of illegal performance enhancing
drugs by players or embedding such drugs in a rival player’s medication,
bribery and corruption of key selectors, inappropriate behaviour such as
cheating and violation of rules of the games, corporate espionage where agents
are often used to spy on rival teams, etc.

The Bill mandates the team sponsors to undertake an integrity
due diligence of the support staff hired to work with the players, monitor
financial transactions of the team and conduct education programs for players
and company employees explaining the obligation to this statute and the
concerned sports authority.

A numbering of companies have adopted their own set of
conduct rules. However, with the introduction of the Bill, it will become
compulsory for all such companies to monitor their players as well as staff and
reduce fraud risk by adopting such measures to mitigate them.

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