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  1. 1. Corruption In India And Its Causes & Implications
  2. 2. Definition Corruption may defined as the use of public office for private gain, or in other words, use of official position, rank or status by an office bearer for his own personal benefit. Following from this definition, examples of corrupt behavior would include: (a) bribery (f) appropriation of public (b) extortion assets and property for private (c) fraud use (d) embezzlement (g) influence peddling(e) nepotism
  3. 3. Corruption equationA corruption equation can be set out as follows (Klitgaard 1998): C=M+D–A In the above equation, C stands for corruption, M for Monopoly, D for discretionary powers, and A for In explaining this formula, they state that accountability. The equation states that the more monopoly(M) corruption tends to flourish "where officials exist in a country, the larger willover a good or have a monopoly power be the corruption. Similarly, the greater the discretion in deciding whogranted to service, unlimited discretionary powers (D) administrators, the greater will be the corruption. However, the gets that good or service or how much they more administrators areno accountability whereby get, and there is held accountable (A) for their actions, the less will be the corruption, and hence a minus sign in front others can see what that person is deciding." of A.
  4. 4. In India ( as on 31st January,2012)• 7172 corruption cases pending in courts• CBI registered 600 corruption cases in 2011• CBI registers over 2,200 corruption cases in past 3 years
  5. 5. Corruption in India• As with many developing nations, corruption is widespread in India.• India is ranked 95 out of a 182 countries in Transparency Internationals Corruption Perceptions Index, its score has degraded from 3.4 in 2008 to 3.1 in 2011.• Corruption has taken the role of a persistent aspect of Indian politics and administration.
  6. 6. CORRUPTION PERCEPTIONS INDEX 2011 Here the country having highest index is most clean and countries having index are highly corrupt
  8. 8. “ Corruption and political instability may be two sides of the same coin.” Watch system beaten common man Mussadi Lal try his level best to tackle different types of officers in different office and always end-up failed and frustrated.
  9. 9. CAUSES (political level)1. Continuation of confused Nehruvian Socialism for the last a few decades and hypocrisy of current Liberalism when large scale leaking subsidies still continue.2. Weak and ineffective Local governments inspite of Amendments 73 and 74 to Constitution of India3. Fixed and purchased vote bank with manipulated Voters lists.4. Rusted and fargile steel frame of outdated colonial model of IAS Bureaucracy.5. Our fundamental rules in governance, Police, Co-operative and other welfare Societies etc are still based on 1860 Act as amended but not implemented.
  10. 10. 6. Our private schools/colleges obtain signatures for higher UGC scale salary but pay nearly 50% of the amount. Thus Corrupt teachers/Professors/ management etc are running the schools/colleges.7. In I.A.S officers Training Academy (LBSNAA) corruption is prevailing and brought to the notice of Cabinet Scy, Prime Minister etc.They are all closing their eyes to save their IAS colleague in LBSNAA.8. The subsidised domestic LPG cylinders are sold to commercial organisation/hotels etc at much higher rate in the presence of law enforcing agencies, no one stops this for their corrupt material gain. All the Deputy Commissioners of major districts know about it but are helpless.9. First the government recovers TDS at much higher percentage and when question of Refund comes, for years Refund is not given unless some fixed% is given to Income Tax officials. If you complain there is more harassment in future to make you run from pillar to post.10. Our spiritual gururs openly accept donation of Black money. Neither the donor want receipt nor Gurus are keen to give receipts. …. there is endless list for corrupt practices. i do not know what LOKPAL/LOKAYUKT will do in such cases
  11. 11. Causes which now become main reasons for corruptions1. Lack of effective management and organisation.2. Lack of economical stability.3. Lack of support.4. Lack of values.5. Lack of love for country6. Lack of satisfaction7. Lack of autonomy8. Lack of good control and vigilance9. Lack of good remuneration10. Lack of employment.11. Lack of seats and educational institutions12. List is endless………….
  12. 12. Top 10Corruption Scams in India
  13. 13. 1. Indian Black MoneyScamCost: Rs. 7,280,000 CroresFace of the Scam: Hassan Ali KhanThis scam can be said to be be an Indian billionaire cause Hasan Ali Khan is claimed to the almost immediatebusinessman.In 2007, authorities began investigatingby theof the anti-corruption movement being faced Khancountry. The of money laundering .Hehugeasums bank for suspicion revelation about the has Swiss of moneybeing stashed 8 Billion Dollars inbanks served as an account with away in Swiss deposits.He allegedlyimpetus away billions into Swiss bank accounts with thebeen stashed to rally against the government that hadhelp of theit. The magnanimity of the situation came intoignoring Kolkata based businessman, Kashinath Tapuria via hawala channel.focus when Indian businessman was arrested on moneylaundering charges which was to the tune of Rs. 39,120crores.
  14. 14. 2. CWG ScamCost: Rs. 70,000 croresFace of the Scam: Suresh KalmadiThe Commonwealth Games held in India was an eventhat was soaked in controversies and corruption to say theleast. While the organizing committee drew flak forvarious allegations like child labour, environmentalimpact, racism and financial costs, the one that shockedthe nation was the humungous amount of funds that hadbeen mishandled by them. The chairman of theorganizing committee was, resultantly, arrested oncharges of criminal conspiracy and cheating.
  15. 15. 3. 2G Spectrum ScamCost: Rs 176,000 croreFace of the Scam: A. Raja & M. K.KanimozhiThe 2G scam is one of the latest scams thatHave hit our country driving it to incur hugelosses. And caught at the centre of the embarrassing controversy wasthe Telecom Minister, A. Raja himself. The scam became bigger withnew revelations of the involvement of politicians, bureaucrats,corporate personalities, media persons and lobbyists. The granting oflicenses to various companies led to a massive loss to the exchequer.Also, daughter of political heavyweight, M. Karunanidhi, M.Kanimozhi was also arrested on charges of being a co-conspirator inthe scandal.
  16. 16. 4. Scorpene Submarine ScamCost: Rs 18,978 croresFace of the Scam: Ravi ShankaranThe Scorpene submarines scam was one of the biggestcorruption scandals faced by the country and includingthe navy. In the scandal, secret Navy documents weresold to the makers of the Scorpene submarine.The Indian government had approved the 19,000 croresubmarine deal with the French company. The purchaseof six Scorpene submarines cost the Indian governmenta lot more than its actual price.
  17. 17. 5. Stamp Paper ScamCost: Rs 20,000 croresFace of the Scam: Abdul Karim TelgiThe Stamp Paper scam was perhaps the most innovative scam in the list. AbdulKarim Telgi, a former fruits and vegetables seller, duped the nationof crores of rupees by printing fake stamp papers. He began hiscounterfeit career by making fake passports after which he startedselling fake stamp papers to banks, insurance companies, sharebroking firms and bulk purchases. What was surprising, was theinvolvement of many police officers and other governmentemployees. In fact, one police officer was said to have assets worthRs. 100 crores despite earning only Rs. 9000 a month.
  18. 18. 6. Bofors ScamCost: Rs. 400 millionFace of the Scam: Ottavio QuattrocchiThe Bofors scandal that hit the countrywas a major corruption scandal whichchanged the fate of the, then ruling,Congress party. Top politicians like Rajiv Gandhi and S.K. Bhatnagar and high profile names like Win Chadhaand the Hinduja family were accused of "receiving kickbacks fromBofors AB for winning a bid to supply Indias 155 mm field howitzer."The scale of the corruption was such that it immediately led to thedefeat of the government headed by Rajiv Gandhi. Italianbusinessman Ottavio Quattrocchi, was the prime accused in thescandal and was chased by the CBI for years.
  19. 19. 7. Mining ScamCost: Rs. 300,000 croresFace of the Scam: Naveen PatnaikGovernment.This scam was plundering at its best with the Naveen Patnaik led government exploitingthe states minerals to the tune of lakhs of crores ofrupees. Apparently, the mine owners had beenillegally using fake Transit Passes to transportminerals from Orissa to other states. The plunderingwas a large scale one and involved many high profilepeople from the government and bureaucracy.
  20. 20. 8. Fodder ScamCost: Rs. 950 croresFace of the Scam: Lalu Prasad YadavBihars most famous scam was theone involving fodder and ex- Chief Minister Lalu Prasad Yadav. The officials of the Biharstate government embezzled funds worth Rs. 950 croresby fabricating vast herds of fictitious livestock for whichfodder, medicines and animal husbandry equipmentwere acquired. Soon, Lalu resigned from the postfollowing immense pressure from all quarters owing tohis close involvement in the case.
  21. 21. 9. Hawala ScamCost: US$ 18 billionFace of the Scam: L.K Advani/ LateNarasimha RaoHawala scam was probably the firstscam that gave the public an idea of the the loot ofnational treasure that was being implemented by the toppoliticians. The scam revolved around the payments thatthe politicians received from hawala brokers, who basicallyfund terrorism around the globe. Many prominentpoliticians like LK Advani, Arjun Singh, Yashwant Sinha,Kalpnath Roy, VC Shukla, Madhavrao Scindia, Sharad Yadav,Buta Singh, Natwar Singh and Madan Lal Khurana wereindicted in this case, but no action was taken against themdue to lack of hardcore evidence.
  22. 22. 10. Satyam ScamCost: Rs. 14,000 croresFace of the Scam: B. Ramalinga RajuThe Satyam Scam was the biggest corporate scam thatthe country ever saw. The founder of the SatyamGroup, Raju, resigned after he admitted to fudging theaccount books for years and falsely inflating the profitfigures and revenues of Satyam for years. Thecredibility of the company fell hugely, owing to thescam and it was finally taken over by the MahindraGroup.
  23. 23. Current 3-G scam• 3G scam of 20000 crores coming?! High court questions government!• Delhi High Court sought a reply from the central government on a petition alleging that some telecom operators gained a back-door entry into the 3G arena, causing a loss of around Rs.20,000 crore to the exchequer.• Ofcourse, currently this does not seem to be scam by Government employees! This seem to be scam by operators via illegal entries to un-licensed area!• The petitioner alleged that the telecom operators entered into a criminal conspiracy to cheat the government and defraud it of huge revenue.• But question is, do ministers know this? Did they deliberately ignore the violation (if any)• "The DOT is keeping silent on the violations of licence conditions and on loss of more than Rs.20,000 crore to the national exchequer. Despite the representations, no response was received from the DoT and the TRAI,"
  24. 24. No wonder Airtel jingle sings – har friend zaroori hotahai and jo tera hian vo mera hian. The question iswho are these zaroori friends – are they onlyVodafone and Idea, or does the friendship extendmuch further?Out of 22 service areas, Vodafone has secured licensefor 9, Airtel for 13 and Idea for 9. Against the totallicense fee of Rs. 16,750.6 crore, Vodafone has paidRs. 11,617.9 crore, Airtel 12,295.5 crore and Ideaonly 5,254.6 crore, saving thereby over Rs. 20,000crore.
  25. 25. COAL SCAM• According to the CAG draft report, the government extended undue benefits totalling a Rs 10.67 lakh crore to commercial entities by giving them 155 coal acreages without auction between 2004 and 2009.• Referring to major scams, Javdekar said, "The CWG scam is (is to the tune) of Rs 70,000 crore, 2G scam is Rs 1.76 lakh crore. But, now the new coal scam is Rs 10.67 lakh crore. It is a government of scams... from airways to mining everywhere the government is involved in scams."• He said, "In 2006, the government introduced the Bill for auction of coal blocks...But the government did not pass the Bill till 2010. 17 billion tonnes of coal reserve in 73 blocks were distributed to private companies. It is a huge scam. There are many cases where people have sold the licences."
  26. 26. Corruption In Politics• Criminalization of Indian politics is a main problem.• In July 2008 Washington Times reported that nearly a fourth of the 540 Indian Parliament members faced criminal charges, "including human trafficking, immigration rackets, embezzlement and even murder".• At state level, things are often worse.
  27. 27. Corruption In administration• A 2009 survey of the leading economies of Asia, revealed Indian administration to be not just least efficient out of Singapore, Hong Kong, Thailand, South Korea, Japan, etc.• further it was also found that working with the Indias civil servants was a "slow and painful" process.
  28. 28. Index of Corruption by Indian states
  29. 29. Corruption In Judiciary• Corruption is rampant in the judicial system of India.• According to Transparency International, judicial corruption in India is attributable to factors such as "delays in the disposal of cases, shortage of judges and complex procedures.”
  30. 30. Survey corruption impact
  31. 31. 1. Loss of National wealth.2. Hindrance and obstruction in development3. Backwardness4. Poverty5. Authority and power in wrong hands6. Brain drain7. Rise in terrorism and crimes8. Rise in suicide cases9. psychological and social disorders
  32. 32. How will corruption scenario in India change in the next 2 years?