“The accomplice to the crime
of corruption is frequently our
CORRUPTION IN INDIA
Several Growth Indicators => Stellar Performance
Integrity, Enhanced Transparency and Probity in public and
corporate life => Failure
FORMS OF CORRUPTION IN INDIA
PETTY CORRUPTION: Collusive or coercive action of a public
official vis-a-vis a member of the public to subvert the system
over relatively small transactions.
GRAND CORRUPTION: Subversion of the system by senior
government officials and formations of the political executive,
usually in collusion with private sector players.
issues of national security.
NEED FOR A NATIONAL ANTI
Holistic, Preventive and
•First ever comprehensive strategy on corruption in India. Important for
India’s overall development strategy
•Provides a framework for developing ways and means of preventing and
combating corruption in a comprehensive, co-ordinated, inclusive, and
STRUCTURE OF CVC…
Apex & Autonomous Indian governmental body created in 1962 to address governmental
The annual report of the CVC not only gives the details of the work done by it but also
System failures which lead to corruption in various departments/organisations
Improvements in which commisssion’s advice was ignored
It is NOT an investigating agency
Secretariat, which consist of Chief Secretary and other secretarial members.
Chief Technical Examiners’ wing, for investigation in civil works doneby
Commissioners, for departmental inquiries.
efforts of all
Tools and Recommendations
NACS (National Anti Corruption
•EFFECTIVENESS AND SUGGESTIONS
Legal & Regulatory Framework
Political & Administrative Corruption
Role of Private Sector
Social Infrastructure & Citizens’ Role
Prevention Of Corruption Act, 1988
PROTECTION OF WHISTLE BLOWERS & WITNESSES
CORRUPTION BY PRIVATE AGENCIES
ACTION AGAINST BRIBING FOREIGN OFFICIALS
CONFISCATION OF PROPERTY
Right to Information Act, 2005
Regulators in India
PC Act, 1988
PRIOR SANCTION :
Long delays in sanctioning due to shielding & challenging the
sanction during the trial stage.
No prior sanction be required where the officer is caught red
Prescribe clear time limits to sanction
Special Judiciary and Courts for
Corruption Cases (as
recommended by the NACS
ahead; in the judiciary
PROTECTION OF WHISTLE-BLOWERS and WITNESSES:
PRESENT STATE: U/S 5 and 24(PC Act, 1988) - very limited extent
US and UK have separate legislations (Whistleblower Protection Act of
1989 in the USA and the Public Interest Disclosure Act of 1998 in the UK
NACS VIEW: Separate legislation or amendments to the PC Act
Whistle blowing against private corporations and business & protection
to the whistle blowers till completion of investigations.
More effective if whistle blowing is outsourced to agent
groups. These groups themselves will remain unknown to each
other and also anonymous to everybody except for the officials
who will constitute these teams. These officials may be from
the CBI or CVC. Also these officials should not have an idea
about ALL the whistle blowing committees formed so that the
ones anonymous to that particular official can keep a check on
him as well.
For the information sharing amongst these groups, the
CBI/CVC officials can act as the intermediaries so that
identities remain undisclosed. Efforts should be taken to
maintain the highest level of secrecy in this case.
Official A Official B
Team 1 Team 2 Team 3 Team 4
Official A appoints teams 1 and 2 for whistle blowing and doesn’t know teams 3
and 4 which are appointed by B.
None of the teams know each other. They only report to their resp. heads-A or B.
Information sharing through intermediaries A and B.
CORRUPTION BY PRIVATE AGENCIES:
PRESENT STATE: A strict legislation against the corruption by private
agencies is not there.
NACS VIEW: A proper provision. However, it may also be useful to
create a distinction between the penalties for commercial bribery for a
benefit and a mere facilitation payment to get the benefit of an existing
EFFECTIVENESS: The effectiveness can be enhanced if private entities
also appoint whistle blowing groups intra-organization.
ACTION AGAINST BRIBING FOREIGN OFFICIALS:
PRESENT STATE: The PC Act doesn’t have any provision for this
type of corruption
NACS VIEW: Legislation should be made regarding this so as to be
in line with the UNCAC’s (United Nations Convention Against
Corruption) mandatory requirements.
EFFECTIVENESS: The effectiveness depends on the extent of the
measures provided in the legislation. A legislation should be
drafted in consultation with similar legislations of other nations.
However, the cases wherein foreign officials have been bribed
shouldn’t be publicized a lot as it will tarnish India’s image and will
make negotiations with foreign diplomats difficult.
CONFISCATION OF PROPERTY:
PRESENT STATE: The provisions of the PC Act in this behalf are
inadequate since confiscation is only permitted after prosecution for
the relevant offence.
NACS VIEW: The properties disproportionate to legal sources of
income of a public servant should be confiscated by state even if the
prosecution is pending. Adequate provisions in this regard need to be
introduced through amendments to the PC Act or through a separate
legislation that allows for civil forfeiture.
EFFECTIVENESS: The confiscated property should be in proper
custody or else some third party may get involved or the confiscating
authorities themselves might get involved into corrupt practices.
PRESENT STATE: Lot of black money parked in foreign banks
Amendment of the Income Tax Act, 1961 to enable the Central
Government to enter into agreements even with non-sovereign
jurisdictions for exchange of information and other purposes.
Steps have already been initiated for negotiations for entering into
agreements for the exchange of information with other nations and
renegotiation of the double tax avoidance treaty with Switzerland is in
process. India is an active participant in the global efforts to facilitate
exchange of tax information and to take action against tax evasion.
NACS VIEW: These efforts need to be strengthened to eliminate
opportunities for investment of wealth earned through corrupt
Currently, by the bilateral negotiations, Swiss banks will share the
information of the Indians’ accounts in Switzerland. But this will
be possible only in SPECIFIC cases, where we have a strong
evidence of wrongdoing. Thus, this clause is effective only upto a
limited extent. For example, if on the basis of WikiLeaks
documents, we have a doubt on an official and want to check his
account information in Swiss banks, it might turn out that the
WikiLeaks might not be accepted as prima facie evidence.
Right To Information Act, 2005
PRESENT STATE: U/S 8(1)(e) and 8(1)(j) of the RTI Act, there are a lot of
exemptions from disclosure of information.
These need to be revised once again and the scope of exemptions should be
Privileged information need not be required to be mandatorily disclosed under
the RTI Act.
EFFECTIVENESS: This is a strong point and will be quite effective if amendments
are made. The qualified exemptions in the RTI, 2005 are subject to Public Interest
Test. This means that the “public authority” possessing the information has the
right to decide whether to disclose the information or not owing to the larger
public interest. But here, there is a hurdle as “public authority” is not defined in
the RTI Act, which may bring in subjectivity and also increase the scope of
corruption on the part of this authority.
PRESENT STATE: A substantial amount of illegal money is stored in
the form of benami immovable property, jewellery, etc.
NACS: It suggests that the Unique Identification Project should be
carried out so that it is possible to trace the details of each particular
transaction involving immovable property and the transactions
involving significant amount of money. Thus, the possibility of buying
property on fictitious names would be curbed.
EFFECTIVENESS: The UID project is an ambitious project which
again needs to be implemented properly. The database of
transactions will have to maintained carefully and on a timely
basis. Additionally, the persons handling the information of
individuals and working at the ground level of this project need to
be watched upon strictly to avoid administrative corruption. Also,
the properties which have been previously acquired through
benami transactions and false identities i.e. before the
implementation of this project, will have to be scrutinized
properly so as to avoid confusion and problems later on. For the
success on UID in this regard, we need to start afresh with a
sound and a clean base so that links with the past illegalities do
not affect the present.
Regulators in India
Recommendations by NASC for Regulators…
REVIEW OF EXISTING FRAMEWORK
Separation of the regulatory and the operating functions like
foreign countries. Govt. may think of having two tier structure
for regulators to avoid concentration of powers in few hands.
Creation of a separate or unified regulator distinct from The
Reserve Bank of India is suggested by the NACS, so that costs
and supervisory burden are reduced.
TRANSPARENCY IN RECRUITMENT
Transparency in selection of heads should be enhanced by
formation of appropriate standing committees for search,
selection and appointment. Independent appointment and
authority of board of directors or trustees will lead to better
internal control and check on those with discretionary powers
and also on those who handle public funds.
DEVELOPING ETHICAL CODE OF CONDUCT
For officers/employees so that there is clarity and consistency in
purpose and approach across all regulators.
WHISTLE BLOWING / GRIEVANCE REPORTING MECHANISMS
COORDINATION WITH OTHER REGULATORS AND AGENCIES AS A
PART OF NACS
Collating information including information on employees’ assets on a
continuous basis and share the same on a periodic basis with other
regulators / agencies. There are certain organisations which come under
multiple regulators like listed insurance or banking company, etc. So in
such cases, mechanisms for information sharing especially for the sharing
of evidence should be suitably developed.
SPECIFIC ADMINISTRATIVE POLICIES
To make the internal functioning of the regulator transparent
COMMUNICATION, EDUCATION and TRAINING ON ANTI-
PRESCRIBING SELF REGULATORY MEASURES FOR STAKEHOLDERS
For example, practicing public accountants and brokers in capital market
are well regulated by their respective regulatory bodies . These measures
serve to promote lesser interventions by the regulator and hence reduce
the potential for corruption through abuse of power. The process of
revising the SROs (Self Regulatory Organisations) contractual agreement
can be a less cumbersome process than having to change statutory laws.
AUTOMATED PAYMENT AND REFUND
EFFECTIVENESS OF THE RECOMMENDED TOOLS
SUGGESTED FOR REGULATORS BY THE NASC
Effective only if properly executed.
If a separate unified regulator is created, its functioning should be
synchronous with the central bank and other policy making bodies.
The transparency in recruitment should be visible to the public as
well. The RTI should facilitate information citing the reasons for
selection or termination of the heads equipped with adequate
The internal codes of conduct formed by all the organisations
should be similar by and large. The codes developed by different
organisations should not be in disagreement with the each other.
The grievance reporting and witness protection can be improved by
anonymous submissions through electronic media as the WikiLeaks
The automated payment and refund processes need to be watched
upon for cyber crimes for efficiency.
“It is said that power corrupts,
but actually it’s more true that
power attracts the corruptible.
The sane are usually attracted
by other things than power.”
Strengthening political will - Need for Top Down & Bottom up
Young parliamentarians/ legislators should put up a clean image and a
strong anti-corruption stance.
Anti-Corruption policies should be mandatory clauses by the election
commission to be included in party manifestoes of all political parties.
Ethics and integrity should be included in the performance review of
Introduction of IT and automated processes for various transactions
reduces the chances of administrative corruption.
Merit based professional non-partisan civil service.
Involving regulators, oversight agencies and organisations like CVC,
CBI etc while drafting new policies.
Involving the private sector on good corporate governance measures.
Strengthening of LokPal institution.
Creation of a State Fund for funding elections with contributions to the
fund being tax exempt.
Refraining large private donors by giving tax incentives and other such
incentives to small private donors only.
Current expenditure ceiling on candidates be abolished. Meaningless
to cap candidate spending while allowing huge loopholes for party and
supporter spending. An overall cap encompassing all such sources of
funds - more appropriate.
State funding in kind as much as possible
Disclosure of donor identities and amounts should be mandatory and
companies which are significant government contractors should be
A system to debar or suspend corrupt politicians
Every day disclosure of receipt and expenditure by political parties
through websites. All political payments through plastic cards/bank
accounts including last mile payments to volunteers & party workers.
Charges of corruption in our legal system not necessarily covered only under the
PC Act, 1988 but also under many other Acts. DRAWBACK: Lokpal restricts its
ambit to the cases under this Act.
The Chairman of the Lokpal is constituted by the present or past chief justices
of the Supreme Court. But the other two members of the Lokpal may also be
from those qualified to be judges of the Supreme Court. The loose end left here
makes countless many from India’s entire judiciary eligible for the post including
those who are also senior party politicians with legal background.
LokAyuktas are already there in a lot of states but the desired effect is not visible.
For example, the Karnataka LokAyukta Santosh Hegde resigned recently as he
was fed up by the government indifference to the illegal mining activity in the
state and corruption that he had objected to. "I don't want to be useless sitting in
a position. It is not enough if I catch people. I need powers to bring cases to
logical conclusion," he said.
Thus, these institutions should be independent of political clutches for prime
• Speedy disposal of corruption cases
A National Judicial Council can be formed for investigating corrupt
activities.Twin goals:increasing judicial responsibility and protecting the
independence of the judiciary.
Integrity checks conducted at the time of elevation of judges to the HC or SC
may be repeated at regular intervals.
Special courts for corruption cases. Despite provision of special judges in the
PC Act, there is considerable backlog of cases in various states as well as the
centre. A mandatory outer time limit of one year should be set for disposal of
In this regard, some of the best practices contained in the special statutes of
Orissa and Bihar,7 as mentioned below, are worth emulating:
A Special Court/Judge shall not normally adjourn any trial;
The Special Court/Judge shall endeavour to dispose of the trial of the case
within a period of one year from the date of its institutions or transfer;
A judge may act on the evidence recorded or partly recorded by his
In addition, the following recommendations of the ARC also may be
considered for implementation, in consultation with the superior judiciary:
Normally special judges shall be entrusted only with the anti corruption
The Supreme Court and the High Courts may lay down guidelines to
preclude unwarranted adjournments and avoidable delays.
EFFECTIVENESS: The tools seem to be quite appropriate in this
direction. Special courts for corruption is indeed a good thought. As
mentioned earlier, the sanctioning committee can also be set up under
this mechanism. These special courts should also cater to the petty
corruption cases to address the grievances of the common people. The
judges’ jurisdiction should be defined exclusively for corruption related
Actual effectiveness would be visible only if the cases are disposed off
in a short time span.
The Santhanam Committee, which was constituted in 1962, laid foundation of one
of the most important institutions for fighting corruption namely the CVC, as well
as reorganisation of the Delhi Special Police Establishment into the CBI.
RECOMMENDATIONS BY NACS
CENTRAL VIGILANCE COMMISSION (CVC)
Amendments and more power back up by the parliament to the CVC Act
Adequate budgetary support and creating of more posts for officials and staff is
CENTRAL BUREAU OF INVESTIGATION (CBI)
Enactment of a CBI Act
Proper coordination mechanism between the CBI and the state anti-corruption
A client satisfaction survey should be conducted for the anti-corruption
COMPTROLLER AND AUDITOR GENERAL (CAG)
Any irregularity detected/suspected by the audit should be immediately
brought to the notice of the government.
Training of staff in forensic auditing.
NATIONAL CRIME RECORDS BUREAU (NCRB)
Creation of a national database, accessible in the public domain, containing
the details of all corruption cases.
STATE ANTI-CORRUPTION AGENCIES
Uniformity in organization structure.
Empowerment to supervise the prosecution of corruption related cases.
COORDINATION AGENCY FOR INTELLIGENCE AND INFORMATION
The government could formally establish a coordination agency or assign
the work to one of the existing agencies as an additional charter of
Increasing Transparency by Information Sharing
Reducing administrative corruption
Putting procedures online so that transactions can be easily monitored
Reducing the gatekeeper role of civil servants eliminating the need for
intermediaries. Example : Procuring the encumbrance certificate and duplicate
copies of land documents through online facilities will be easier and cheaper. If
the officers are approached directly, they try to assert their self-importance,
create a lot of hurdles and we have to shell a lot of money to deal with them and
get our work done.
Providing communities with limited or no access to government with a new channel
to receive government services and information
Improving government finances & accountability
Reducing cost of transactions for government processes
EFFECTIVENESS: E-Governance tools are very effective provided that the cyber
crime is examined properly. Increased online security measures will improve the
efficiency. Also, technology is not widespread in the remotest parts nor does the
majority of Indian population have the training and education to access internet
and computers. These issues need to be addressed.
International cooperation with conventions like UNCAC to avoid
cases like Bofors Scam.
The UNCAC is the only legally binding universal anti-corruption
instrument. The Convention's far-reaching approach and the
mandatory character of many of its provisions make it a unique tool
for developing a comprehensive response to a global problem.
However, India is amongst the very few nations who haven’t ratified
Also, in the light of an absence of legislation for bribing foreign
officials, this would be useful. Uniform laws or conventions all
over the world would definitely be effective. Mutual sharing of best
practices among countries is an easy way of promoting technical
assistance and learning lessons to control corruption.
RECOMMENDATIONS BY NACS
Corporate governance measures
Integrity pacts and communication
of code of ethics
• Creating culture of trust
Small and Mid-Sized Enterprises’ (SMEs) transactions should be
transitioned to IT based media.
EFFECTIVENESS: No appropriate legislation for corporate corruption =>
involving private sector = effective tool
Voluntary principled behaviour and code of conduct on part of private
entities would be very helpful. In India, some of the most successful
organisations and those with huge funds and capital comprise the private
The case of Ratan Tata when he denied to pay corruption to a minister for
permission to run an airlines operation is a good example.
Few suggestions to make this tool more effective:
Blacklisting and debarring guilty firms.
Giving chance to all stakeholders to debate , review and contest the
silence is more
dangerous than ten
Strengthen civil society organisations and NGOs so that they are able to carry out the
social audit effectively. Also, it should be made compulsory for certain sectors such as
healthcare and education so as to ensure greater transparency and accountability.
Access to information to the citizens and keeping them aware of the grievance redressal
system. This however needs to be promoted and needs to have a legal backup in the form
of a legislation.
ROLE OF MEDIA
Code of Conduct
Media Ombudsmen: It can be under the Ministry of Information and Broadcasting
Importance and Role of Education: Ethical Education, Culture and Values, Character
Education, Media Presentations
EFFECTIVENESS: These would be very effective tools and have a scope for lot of creativity and
innovative means. It targets to bring moral changes so that malpractices are checked from the
ROLE OF CITIZENS IN ANTI-CORRUPTION
EFFECTIVENESS: This is one of the most effective tools as NACS seeks to control corruption
and unethical practices right from the grass root level. This is especially useful for curbing
knowledge is weak and
useless, and knowledge
without integrity is
dangerous and dreadful”
There’s not a single time phase in India when the news are
not tainted with corruption reports. Just see the history:
CWG Scams, Adarsh Housing Society Scam, 2G
Spectrum Scam, Telgi Scam, Satyam Scam, Bofors
Scam, Fodder Scam and the list goes on. It is incredible to
know that there are even quiz contests on the various
scams. Such is the plethora of scams and dodgy activities in
Every scam must have
something unique in it to make
money out of it in an
Most Important Tools
•Education (Moral and
Innovation And Ideas
“By unrighteousness, men
may prosper, men may
attain what they desire,
but they perish at the
Integrity principles should be so firmly imbibed in
citizen’s characters that even adverse circumstances in
life also shouldn’t budge them from their core values.
Unethical behavior starts proliferating right from a very young age
due to wrong notions being grasped from the corrupt ambience
Family, iconic figures, corporate people, teachers, officers, etc.
should ideally stand as an exemplar of righteous living.
Children of Today=Citizens of Tomorrow
YOUTH: Strength of this generation as this age group currently
constitutes the maximum proportion of the population.
So, our anti-corruption strategy should primarily target the youth.
UNFORTUNATELY, YOUTH IS NOT BEING
ETHICALLY EDUCATED WITH THE RIGHT
Though the literacy schemes of the government are
somewhat making a difference to education levels, the
atmosphere wherein the children are being reared
and educated is not really conducive for a morally
A Look Through…
WORKING OF STUDENTS’ UNIONS IN COLLEGES
Represents a mini murky political field
Often resort to abductions for extracting money from
students fraternity itself
Seek to acquire votes in the students’ elections by
offering attractions like free movie passes, parties at the
hip and happening joints, etc.
When they organize events, a lot of unaccounted money
is maneuvered illegally
Regional bias during the students’ elections
Kids often bribe policemen for breaking traffic rules
At many places, teachers SELL grades.
THE WORST PART IS THAT THERE IS A SENSE
OF PRIDE WITHIN THE STUDENTS RATHER THAN
GUILT AFTER THIS. THEY FEEL THAT THEY HAVE BEEN
SUCCESSFUL IN LEARNING THE STREET SMART AND
CLEVER WAYS OF BUSINESS FOR GETTING THEIR
WORK DONE. THIS IS INDEED A VERY DANGEROUS
Effects of dishonourable behaviour on part of the seniors has
percolated down the society…..
Hint of Optimism…
By six students (Ravi Yadav, Udit Goyal, Saurabh Singh,
Nikhil Bhaskar, Shantanu Sekhar of IIM Ahmedabad
and Daniel De Luna, an exchange student from Italy)
With the support of former president Mr.APJ Abdul
Kalam and IIM A professor Anil Gupta, they developed a
business model for an anti-corruption helpline
Plan has been forwarded by a politician to the state
department. Gujarat State Anti Corruption Bureau has
shown a keen interest in their model. They have also
enlisted a telecom provider to provide the toll – free
status for the helpline.
Lot of such undertakings are being carried out by the
bright young minds of India; generally, only the ones
from IITs or IIMs are noticed.
So there should be a good platform for such
ingenious and prospective ideas to come to the
knowledge of the right people who can take the right
steps to get the right thing done.
Regarding the tools suggested in the latest NACS, there can be
a lot of additional innovations…
A person should have a single bank account number with
different bank codes. This UID can be universalized in this
era of globalization so that global corruption cases can be
As Prime Minister Manmohan Singh also agreed Crony
capitalism is a very huge threat to India’s future. The
corporate-political nexus is growing up and kin of politicians
growing richer. It’s a natural human tendency that when
power is entrusted with a person, there is a probability of
partial behaviour. So corruption cannot be completely
nullified in Indian political scenario. But political interference
in appointments to government offices must be removed
Must be entrusted with proper powers.
Recruitment must be done in a fair manner. Lately, the CVC has
been in the news for all wrong reasons regarding the appointment of
Political interference must be reduced. It sends a wrong message to
There is a criticism that the government has used CBI as a political
tool to tame its opponents. Thus, more autonomy should be given.
Should be careful enough to air the offending parties to
humiliate them but at the same time it should not have a
Should not change the focus and dilute the important issues.
Eg. The IPL scandal has been reduced to a war between
Tharoor and Modi.
AWARENESS AMONG PEOPLE
Corruption is taken as granted by the people. People
themselves pay bribes to get work done faster.
As it is quoted, “change is you”! Before criticising the
politicians and public officers, people should work upon their
Every person should have the firm conviction that efforts on
the individual basis do make a lot of difference. Drops of
water only make an ocean!
Of the many hurdles that officers who fight corruption face, is
the fear of transfers. Political influence is used very effectively
in these cases. This should not be the case.
Remuneration to government officials compared to
their counter parts in private sector is very less. This
makes them vulnerable to corruption. So reasonable
salaries must be paid.
Political pressure on government officers should be
reduced and they should be provided free environment
Promotion of the officers must not be based on
seniority and political contacts but on efficiency. The
efficient officer must be paid highly and performance
must be monitored.
Railway tickets booking through Tatkal is a model
example. Ideas like this can be adopted by all
government offices so that revenue will rise and middle
men will be eliminated.
There must be proper vigil on government officials who
train people regarding various schemes which actually
remain only as a documented monotonous procedure
only on paper. Eg: Sarva Shiksha Abhiyan wherein a lot
money is spent in vain.
The Anganwadis in villages is also a concern in taming
corruption. Huge amount of funds has been allotted to
these centers but they themselves are not aware and the
money there is sidelined.
Election Commission of India should be
strictly vigilant about the election funds during
Every Registered National/state political
party should have transparency about their
functioning with funds.
Government should control the entire
procedure of elections along with the
disbursement of funds to each party only after
deciding certain criteria.
We should also make the most of the huge human
resource that India possesses. We can have umpteen
suggestions, watch-dogs, regulators, committees and
employment in this field of corruption and administrative
If all the money transactions can be traced using the UID, it
will be the easiest way to track all the income flows and check
tax evasions. Use of plastic money would be beneficial in
place of actual money transactions.
Training of citizens in State Institutes of Rural Development
(SIRD) and Administrative Training Institute (ATI), which in
turn will train school teacher, health workers, village
secretaries in rural areas.
Rotation of auditors once in three years in case of statutory
auditors for top listed entities on BSE/NSE will prevent
malpractices in accounting and auditing and prevent money
laundering scams like Satyam.
“If you think you are too
small an entity to play any
role in the fight against
corruption, think of the
potential of an atom”
For the people
By the people
With the people…..
BIBLIOGRAPHY & REFERENCES…
o Google Images
Presentation prepared by
Shri Ram College Of Commerce (SRCC), Delhi University
B.Com HONOURS Course (I Yr)
Shri Ram College Of Commerce (SRCC), Delhi University
B.A. Economics HONOURS Course (I Yr)