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Posted In: Insight

Posted By: Singularity Legal

Tags: Corruption, Infrastructure, Prateek Bagaria, Singularity legal

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Affixing state liability for Corruption in the Infrastructure sector

Institutional Investors today play an important role in providing the long-term finance that is needed to meet the ever-increasing capital requirement of the infrastructure sector. However, corruption is a key concern for such investors. Corrupt acts of state authorities on many occasions delay, derail or destroy the entire infrastructure project causing severe financial losses to institutional investors. This Insight discusses how injured institutional investors can seek recourse of International Investment Agreements to affix state liability for such corruption by state authorities, as third-parties to the corruption. It also analyses the basis of such liability, standard of proof for such actions and the measure of compensation for such actions.