"Setting up of an independent office to probe and prosecute corruption is expected to add transparency and accountability to the decision-making and administrative processes while alleviating systemic malpractices," said Confederation of Indian Industry (CII) President S Gopalakrishnan.

"Industry hopes that the entire suite of related legislation including for whistleblower protection and grievance redressal would also be passed expeditiously. The Lokpal Bill would encourage investments and add to investor confidence,” he added.

The Federation of Indian Chambers of Commerce and Industry (FICCI) on its part said that though it is still studying the bill, the latest legislation can play a positive role in improving confidence across various sections of society and industry.

"FICCI welcomes the passage of the Lokpal Bill in the Rajya Sabha. The endeavour towards enhancing transparency and bringing greater probity in public life would help in the country's overall growth and development," said FICCI president Naina Lal Kidwai.

Earlier, FICCI and consultancy major E&Y jointly conducted a survey on "Bribery and Corruption: Ground Reality in India" which found the high negative impact corruption has on foreign direct investments (FDI) inflows and the investment climate in the country.

After much delay, the Lokpal Bill was passed by the Rajya Sabha on Tuesday, marking a step closer to enactment of a new law under which an anti-corruption ombudsman would be set up.

The Lokpal and Lokayuktas Bill, 2011 was passed in the Rajya Sabha on Tuesday by a voice vote. The bill, which provides for creation of an anti-corruption ombudsman, will be taken up in the Lok Sabha on Wednesday.

(Agencies)

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