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    Question

    A public servant transferred funds from government

    account to a private account after being promised a share of the profits. The funds were later returned but the servant retained the promised commission. Under PCA, which statements are correct? Statement 1: Taking gratification for misappropriating public funds is a PCA offence. Statement 2: Retention of commission after return of funds exempts the servant from prosecution. Statement 3: Both gratification and misappropriation constitute separate offences. Statement 4: The servant can claim defense if the misappropriation was in company interest. Which statements are correct?
    A Statements 1 and 3 only Correct Answer Incorrect Answer
    B Statements 1, 2, and 3 only Correct Answer Incorrect Answer
    C Statements 2 and 4 only Correct Answer Incorrect Answer
    D Statements 1, 3, and 4 only Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    Solution

    Taking gratification for misconduct is offence—Statement 1 is correct. Retention of benefits despite return of funds doesn't exempt—Statement 2 is incorrect. Gratification and misappropriation are distinct offences—Statement 3 is correct. Company interest doesn't exempt from PCA—Statement 4 is incorrect. Statements 1 and 3 are correct.

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