This document summarizes the findings of an empirical survey conducted by students at Symbiosis Law School, Pune on anti-corruption laws in India. Some key findings from the survey include: - Over half of respondents believe corruption has increased a lot in India. Political parties were seen as the most corrupt institution while the judiciary was seen as the least corrupt. - The main reasons for corruption cited were weak institutions/lack of control and greed/ostentatious living. Many respondents also believe the common person bargains and expects to pay bribes. - Around 40% of respondents encounter corruption as victims or witnesses. The estimated losses to the Indian economy due to reported corruption cases from 2011

1. An Empirical Research
CONDUCTED BY STUDENTS OF SYMBIOSIS LAW SCHOOL, PUNE
Anti-corruption laws are not
sufficient and effective to curb
corruption in India

2. About the survey
This survey was conducted in February and March 2014 via an
online questionnaire. The survey was shared via social network
and email from which we received over 100 responses.
Our respondents represented a mix of Indian people with domestic
operations, as well as Indian subsidiaries of foreign
multinationals. They operate in an extensive range of institutions,
and the technology, media and entertainment and manufacturing
sectors.
The survey has been supported by secondary research,
conducted by our team, on bribery and corruption cases reported
in the media from year 2011 to 2014. The impact of some large
alleged scams, including 2G, the Commonwealth Games and
mining, is within its purview.
The case studies included in this report are on the basis of our
experience and incidents reported in news articles.
Note:
 Not all the questions of the survey wereanswered by all
respondent. Hence, all the percentage derived from the total
number of respondents who answered the particular question and
not on the total number of overall respondents.

3. Limitations
---------------------------------------------------------
The primary resource is restricted. For
corporate data, we had to purely rely on
secondary resources i.e. national surveys
appeared in magazines such as the Outlook,
India Today, etc. and several websites.
Furthermore, the survey could not study the
different sectors of the economy i.e. Primary
Sector, Secondary Sector and Tertiary Sector
individually. Further, due to paucity of time,
questionnaire could reach only a specific class
of people that are known to group members.
So the researcher primarily relied on the
empirical study, which is evidenced by the
lack of exhaustive citations in the main body
of the draft.

4. Introduction
The high potential of the domestic market, which is
driven by India’s emerging middle class, cost-
competitiveness and its large talent pool, continues
to make the country one of the most preferred
destinations for investors and businesses1.
However, if we go by recent news reported in
media, most hard-hitting headlines have been
about scams, cases of graft, endemic corruption,
enforcement and whistle-blowers.
We set out to ask India about their perception of
media reports, the country. The responses made
uncomfortable reading. We found that corruption
— real or perceived — is having detrimental effect
on India’s economy. On one hand, it is forcing
investors to rethink their India entry strategy, and
on the other, it is distorting the functioning of free
market and creating unfair competition in it.
Notwithstanding all the skepticism witnessed in
India
today, we believe the recent steps taken by
Government of India to improve governance
standards in the country are encouraging and are
garnering support of various sections of society,
e.g., investors, corporate organizations and
general public. Government is considering the
option of amending the Indian Penal Code (IPC)
to make bribes offered by private sector a
criminal offence that will attract stringent
punishment2. The amendment will make giving
and taking bribes in private sector dealings a
criminal offense under the IPC.
However, while Government is doing its bit to
improve
the business environment in the country, private
sector many organizations demonstrate their
awareness of the compliance initiatives, the
results of this survey indicate that there is still
much to be done. Organizations and people will
have to ensure a high level of transparency in
their daily activities and take a steadfast long-
term decision to resist any pressure or
temptation to pay bribes.
____________________________________________
1. Ready for the transition: India attractiveness survey, EY, 2012
2. Government mulling private sectorcorruption law, PTI, 27 May 2012, via Dow Jones Factiva,
©2012 The Press Trust of India Limited.

5. Some of the specific findings of our survey
include:
 Morethan half of respondents think that
level of corruption as increased, a lot.
 Political party perceivesto be most corrupt
institute of our country whereasJudiciary
followed by CSOs/ NGOsas the least
corrupt institutes.
 35% of our respondentstrustJudiciary the
most to fight corruptionin this country.
 The main reasonfor engaging in
corruptionis weak institutions/lack of
control.
 Majority of our respondentsdisagreethat
commonMan today is strongly fighting
against corruption.
 Almost half of respondentsagreed that
government has not been effective
enough in fighting against corruption.
 Best way to curb corruption accordingto
majority is Arrestand prosecution of people
found guilty of corruption.
We take this opportunity to express our gratitude to the
people and organizations who took time to respond to our
same value without the support of these respondents and
all those who made the survey successful.

6. Foreword
--------------------------------------------------------------------------------
Given the state of India’s economic development, good governance is absolutely critical to give us a
competitive edge and sustain growth. It is becoming increasingly evident that it is impossible to
separate good governance and sustainable development.
Empirical evidence suggests that high levels of corruption are associated with lower levels of
investment. Corruption invariably increases transaction costs and uncertainty entrepreneurs to divert
their scarce time and money to bribery rather than production. It inhibits the development of a
healthy marketplace and imbalances economic and social development by distorting the rule of law
and weakening the institutional foundation on which economic growth depends. Corruption is a
double jeopardy for the poor, who are hardest hit by economic decline, are most reliant on the
provision of public services and are least capable of paying the extra costs associated with bribery,
fraud and the misappropriation of economic privileges.
Today, India is one of the most sought-after investment destinations. Several reports place India
among the top three countries globally in terms of an attractive investment destination ranked by
global corporations. While several positive factors such as a large and growing domestic of a large
pool of skilled manpower, have brought global investors to India, in terms of “ease of doing business”,
India still has a long way to go. For 2012, the World Bank’s Doing Business Report placed India at 134
out of 183 countries that were ranked in terms of ease of doing business.
Clearly, to stay ahead in this competitive world, we need to improve our governance systems. Good
governance in states such as Bihar, Chattisgarh, Madhya Pradesh and Uttar Pradesh is reflected in the
improved growth rates.
Our Government, at both center and state levels, in a bid to introduce governance reforms, has taken
various positive steps in the recent past, such as the implementation of 2005, initiation of electoral
funding reforms, the setting and evaluation system (PMESs) for central ministries and departments.
Despite the positive steps that have been taken to bridge the gaps in the governance infrastructure of
India’s development.
In 2012, India ranked 94 out of 176 countries in the Corruption Perception Index of Transparency
International. Other recent surveys also reveal that, globally, corruption has worsened in the last two
years. Furthermore, if corruption is not contained, it will grow exponentially, and we need to arrest
this inimical growth that is tearing into the social fabric of our economy.
We are pleased to present this joint report, which identifies and analyzes ground realities, while
providing fresh perspectives on combating and wrestling the endemic menace of corruption in India.
The results of the survey indicate that it is extremely important that anti-bribery and anti-corruption
be on the agenda of common people, executives and a comprehensive bribery and corruption risk
assessment is done before undertaking any project. On the other hand, Government must also ensure
the proper and impartial implementation of various anti-social regulations to take strong, deterrent
and timely legal action against the offenders. Such steps are needed to curb the menace of bribery
and corruption, and an atmosphere has to be created where the good come forward to serve the
country with pride and honesty for the welfare of the people of India.
We hope this Study will provide useful insights to all.

7. Contents

8. Report at a glance
Impact of bribery and corruptionon India
 31% of respondents reported that
Greed/Ostentatious living could be
the main reason for engaging in
corruption.
 68% of the common people are
expected to bargain hard and factor
in the cost of corruption at the time
of entering transactions.
 39% of respondents pay bribe to
speed up transaction.
 40% agreed that Common Man is
the primary source of bribe.
 31% respondents encounter bribery
and corruption either as a victim or
a witness in their day-to-day
activity.
 20% tried to report a bribery case
but couldn't make headway.

9. Estimated loss
The potential losses suffered by the
Indian economy (according to reported
corruption cases in the media from
October 2011 to September 2012 stands
at Rs 36,400 crore3
. This includes some
large scams such as 2G, the
Commonwealth Games and mining.
_____________________________
3 Based on secondary research
Figure 1: Reported magnitude of corruption
Oct 2011-Mar 2012 Apr 2012-Sep 2012
Value (INR billion)
Value(INRbillion)
109.6
254.4

10. STATUS OF CORRUPTION IN INDIA:
1. There is no denying the fact that there is widespread corruption in India. Petty
corruption which affects the basic rights and services of the common man is highly
rampant besides the grand corruption scandals which break out every now and then. A
report on bribery in India1
4 states that
- 91% of the bribes were demanded by govt. officials.
- 77% of the bribes demanded were for avoiding harm rather than to gain any advantage.
- Of these 51% were for timely delivery of services to which the individual was already
entitled. Example, clearing customs or getting a telephone connection.
2. Indian economy is 6th largest in the world and it fares pretty well in some of the
global competitive indices. In terms of the strength of the financial institution, business
sophistication and innovation, we are among the first 30 countries in the world, while in
terms of corruption we are ranked 85th by the Corruption Perception Index of
Transparency International. That means half of the countries of the world are less
corrupt than India. The Transparency International’s Bribe Payer Index for 2008 ranks
India in very poor position - 19th among 22 countries. This means that Indian firms are
perceived by international business as highly likely to engage in bribery when doing
business abroad. Most of the corruption as well as governance indicators show that
there is little change in India’s position over the years.
Corruption in Government Offices
In cities and villages throughout India, “mafia raj” consisting of municipal and other
government officials, elected politicians, judicial officers, real estate developers and law
enforcement officials, acquire, develop and sell land in illegal ways. Many state-funded
construction activities in India, such as road building, are dominated by construction
mafia, which are groupings of corrupt public works officials, materials suppliers,
politicians and construction contractors. Shoddy construction and material substitution
(e.g. mixing sand in cement while submitting expenses for cement) result in roads and
highways being dangerous, and sometimes simply washed away when India’s heavy
monsoon season arrives. In government hospitals, corruption is associated with non-
availability of medicines, getting admission through back-door, consultations with
doctors and availing diagnostic services illegally. Civil servants /public officials were
rated by 13 of respondents as the second most corrupt institution in the country. Other
institutions that were polled included Parliament/ legislature, the private sector, media
and the judiciary. The Barometer, now in its sixth edition, surveyed 73,132 people in 69
countries including 12 countries from Asia Pacific. In India, the survey was conducted in
five metros – Delhi, Mumbai, Kolkata, Chennai and Bangalore.
Corruption in Politics
Political parties are perceived to be the most corrupt institutions by Indians2
5. The
Barometer, a global public opinion survey released by Transparency International, found
that 58 per cent Indian respondents identified politicians to be the single most corrupt
individuals. Forty-Five per cent of the people sampled felt that the government is
ineffective in addressing corruption in the country. The survey in India, conducted at the
national level between October and November last year, also indicated that the
perception of government effectiveness in relation to addressing corruption had
4 Published by Trace International in January, 09
5 According to 2009 Global Corruption Barometer

11. improved from 2007. Forty-two per cent respondents analysed that government’s actions
in the fight against corruption was effective.
Corruption in the Private Sector
Almost 9 per cent of those surveyed considers business and private sector to be corrupt.
The private sector used bribes to influence public policy, laws and regulations, believe
over half of those polled for the survey. The business-related findings of the Barometer
sends a powerful signal to the private sector to prove that they are clean and to
communicate this clearly to the public. Forty-five of those polled felt that the existing
channels for making corruption-related complaints were ineffective. Very few lodged
formal complaints, demonstrating serious defects in the perceived legitimacy and
effectiveness of channels for reporting and addressing bribery.
Corruption in Media
As many as 8 per cent of the respondents in India consider that corruption in the media
affects the lives of the people. The media, while not being perceived as clean, scored best
with just over 40 per cent of respondents labelling the sector as corrupt, globally.
Corruption in Judiciary Corruption is rampant in India’s courts. 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, all of which
are exacerbated by a preponderance of new laws”. Almost 3 per cent respondents in
India consider the judiciary to be corrupt. Anti-corruption tools such as the Right to
Information Act (RTI), social audit, citizens’ charters and use of technology are wonderful
tools to check corruption, but majority of the population in the country are not aware of
these instruments. Transparency International has also devised tools such as Integrity
Pact and Development Pact to check corruption in areas of procurement and political
institutions, respectively.
Corruption in Police
Despite state prohibition against torture and custodial misconduct by the police, torture
is widespread in police custody, which is a major reason behind deaths in custody. The
police often torture innocent people until a “confession” is obtained to save influential
and wealthy offenders. G.P. Joshi, the programme coordinator of the Indian branch of
the Commonwealth Human Rights Initiative in New Delhi comments that the main issue
at hand concerning police violence is the lack of accountability on the part of the police.
Corruption in Religious institutions
In India, corruption has also crept into religious institutions. Some members of the
Church are making money by selling baptism certificates. A group of church leaders and
activists has launched a campaign to combat corruption within churches. Among Indian
Muslims, the recent “cash for fatwas scandal” was a major affair that exposed the Imams
of the Islamic ulama accepting bribes for issuing random, often nonsensical fatwas. The
chief economic consequences of corruption are loss to the exchequer, an unhealthy
climate for investment and an increase in the cost of government-subsidised services.
The Transparency International (TI) India study estimates the monetary value of petty
corruption in 11 basic services provided by the government, like education, health-care,
judiciary and police to be around Rs.21,068 crores. India still ranks at the bottom
quartile of developing nations in terms of the ease of doing business, and compared to
China and other lower developed Asian nations, the average time taken to secure the
clearances for a start-up or to invoke bankruptcy is much greater. According to
Transparency International, Bihar is the most corrupt state in India. The Economist
magazine said in 2004 that “Bihar [had] become a byword for the worst of India, of
widespread and inescapable poverty, of corrupt politicians indistinguishable from mafia-
dons they patronise, caste-ridden social order that has retained the worst feudal

12. cruelties”.
IMPACT OF CORRUPTION:
Corruption is a serious economic issue as it adversely affects the country’s economic
development and achievement of developmental goals. It promotes inefficiencies in
utilisation of resources, distorts the markets, compromises quality, destroys the
environment and of late has become a serious threat to national security. It adds to the
deprivation of the poor and weaker sections of the economy.
Various attempts have been made to indicate the impact of corruption in
quantitative terms. Some estimates show that govt. loses about Rs. 2 lakh crores
annually due to tax evasion while about Rs. 40,000 crores is lost due to delay in
projects. Transmission and distribution losses in the Power Sector are estimated to be
about 50%, out of which about 30% is attributed to theft in connivance with the
Electricity Boards employees. According to one estimate if corruption was not there, the
Public Sector Enterprises would have improved their profit margin by almost 20%.
According to a corruption economist (Mauro) if corruption in India is reduced to the level
of the Scandinavian countries, then investment would rise by 12% annually and GDP
would grow at an additional 1.5%.
CAUSES OF CORRUPTION:
The important causes of corruption in India are poor regulatory framework, exclusivist
process of decision making aggravated by discretion and official secrecy, rigid
bureaucratic structures and processes; and absence of effective internal control
mechanism. Social acceptability and tolerance for corruption and absence of a formal
system of inculcating the values of ethics and integrity further propagates corruption.
Significant levels of corruption exist in India despite the existence of a relatively strong
governance structure, institutions, legal framework and policies. The anti-corruption
laws and institutions coupled with a strong oversight system consisting of the CVC, CAG
and the CIC have been well acknowledged. The problem lies in implementation and there
is a huge gap between the policies and practice.
Public procurement is an activity highly prone to corruption and which has serious
impact on the industry as well as the market. According to World Bank estimate, the
average bribe to obtain a public contract is estimated at 15% of the contract value. The
CVC therefore maintains a high focus in this area.
Causes Corruption in India has wings, not wheels. As the nation grows, the corrupt also
grows to invent new methods of cheating the government and public. The causes of
corruption are many and complex. The following are some of the causes of corruption.
 Emergence of a political elite that believes in interest-oriented rather than nation-
oriented programmes and policies.
 Artificial scarcity created by people with malevolent intentions wrecks the fabric of
the economy.
 Corruption is caused as well as increased because of the change in the value
system and ethical qualities of men who administer. The old ideals of morality,
service and honesty are regarded as anachronistic.
 Tolerance of people towards corruption, complete lack of intense public outcry
against corruption and the absence of a strong public forum to oppose corruption

13. allow corruption to reign over people.
 Vast size of population coupled with widespread illiteracy and the poor economic
infrastructure lead to endemic corruption in public life.
 In a highly inflationary economy, low salaries of government officials compel them
to resort to corruption. Graduates from Indian Institutes of Management (IIMs)
with no experience draw a far handsome salary than what government secretaries
draw.
 Complex laws and procedures deter common people from seeking help from the
government.
 Election time is a time when corruption is at its peak. Big industrialists fund
politicians to meet high cost of election and ultimately to seek personal favour.
Bribery to politicians buys influence, and bribery by politicians buys votes. In
order to get elected, politicians bribe poor, illiterate people.
REMEDIAL MEASURES TO COMBAT CORRUPTION
Corruption is a cancer, which every Indian must strive to cure. Many new leaders
declare their determination to eradicate corruption but soon they themselves become
corrupt and start amassing huge wealth. There are many myths about corruption which
have to be exploded if we really want to combat it.
 Foolproof laws should be made so that there is no room for discretion for
politicians and bureaucrats. The role of the politician should be minimised.
Application of the evolved policies should be left in the hands of an independent
commission or authority in each area of public interest. The decision of the
commission or authority should be challenged only in the courts.
 Cooperation of the people has to be obtained for successfully containing
corruption. People should have a right to recall the elected representatives if they
see them becoming indifferent to the electorate.
 Funding of elections is at the core of political corruption. Electoral reforms are
crucial in this regard. Several reforms like state funding of election expenses for
candidates, strict enforcement of statutory requirements like holding in-party
elections, making political parties get their accounts audited regularly and filing
income-tax returns, denying persons with criminal records a chance to contest
elections, should be brought in. Responsiveness, accountability and transparency
are a must for a clean system. Bureaucracy, the backbone of good governance,
should be made more citizen-friendly, accountable, ethical and transparent.
 More and more courts should be opened for speedy and inexpensive justice so that
cases don’t linger in courts for years and justice is delivered on time.
 Local bodies, independent of the government, like Lok pals, Lok adalats and
vigilance commissions should be formed to provide speedy justice with low
expenses.
 With the help of the Right to Information Act, citizens should be empowered to ask
for information related to public services, etc. and this information should be
made available to general public as and when required. Such stringent actions
against corrupt officials will certainly have a deterrent impact.

14. 106responses
Summary
16%
78%
3%
0%
3%
What is the level of corruption in India?
Increased, just a bit
Increased, a lot
Decreased, just a bit.
Decreased, a lot
0%
10%
20%
30%
40%
50%
10%
49%
1%
6%
1%
5% 2% 2%
Which institute do you perceive to be most corrupt?
2%
2%
28%
1%
13%
0%
7%
23%
0% 5% 10% 15% 20% 25% 30%
Public Servants
Political Parties
Judiciary
Executive
Private Sector
Religious Bodies
The Media
CSOs/NGOs
Which institute do you perceive to be less corrupt?

15. 0% 17%
44%
6%
8%
21%
4%
Which institute do you trust most to fight
corruption in this country? Executive
The Media
Judiciary
Parliament
CSOs and NGOs
Individuals
International
Organisations
33%
7%
0%
37%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Which institute do you perceive to be most corrupt?
To avoid
problems with
authorities
To speed
things up To receive a
service which
was an
entitlement
For a contract
or another
favour
19%
34%
11%
2%
What was the reason for paying a bribe the last time
you paid a bribe?

16. 0% 10% 20% 30% 40% 50%
Indian Police
CSOs
Judiciary
Social services
The Executive
Utility providers
Private sector
The Media
The Common man
5%
1%
1%
1%
3%
3%
21%
0%
41%
Which category of income earners pay more bribes?
Very often
25%
Often
39%
Occasionally
29%
Rarely
6%
Never
1%
Other
7%
Howoftendo youencounterbriberyandcorruption
eitheras a victim ora witnessin yourdayto day
activity?
0% 10% 20% 30%
No, It doesn't really
make a difference
No, it would have taken
too much of time
Tried, but couldn't
make a headway
No, didn't know where
to make a complaint
Yes, loads of times!
Have you ever
reported a case of
bribery ?

17. 2%
21%
31%
12%
2%
8%
Extremely
Uncertain
Uncertain Fairly
Certain
Certain Extremely
Certain
No response
How certain will you be that you will get what you want when you
pay a bribe?
0%
20%
40%
Strongly
Agree
Agree
Strongly
Disagree Disagree
No clue!
10% 24%
6%
33%
3%
The Common Man today is strongly fighting against corruption
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Yes,
Extremely
Effective
Yes,
Somewhat
effective
No,
Extemely
Ineffective
No,
Somewhat
Ineffective
No opinion
2%
8%
45%
13%
8%
Has the government been effective enough in fighting aganst
corruption?

18. 0%
5%
10%
15%
20%
25%
Creation of
Jobs and the
motivation
of existing
workers
through
incentives
Arrest and
prosecution
of people
found guilty
of
corruption
Intensificati
on of public
education
and
sentisization
on
corruption
intensificati
on of
internal
audits,
supervision
and control
mechanisms
.
The design
and
implementat
ion of viable
economic
policies and
the
equitable
distribution
of the
national
cake
The
establishme
nt of
ethics/infor
mation
desks
What is the best way to curb
corruption?
9% 22% 1% 10% 9% 5%
What is the best way to curb corruption?