Corruption in India
Encyclopedia
Political
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...

, bureaucratic, corporate and individual corruption in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

are major concerns. A 2005 study conducted by Transparency International
Transparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...

 in India found that more than 55% of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

ns had first-hand experience of paying bribes or influence peddling
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...

 to get jobs done in public offices successfully.

Transparency International estimates that truckers pay 5 billion in bribes annually. In 2010 India was ranked 87th out of 178 countries in Transparency International's Corruption Perceptions Index
Corruption Perceptions Index
Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private...

.

“The recent scams involving unimaginably big amounts of money, such as the 2G spectrum scam, are well known. It is estimated that more than trillion dollars are stashed away in foreign havens, while 80% of Indians earn less than 2$ per day and every second child is malnourished. It seems as if only the honest people are poor in India and want to get rid of their poverty by education, emigration to cities, and immigration, whereas all the corrupt ones, li] are getting rich through scams and crime. It seems as if India is a rich country filled with poor people", the organisers of Dandi March II in the United States said.

The Comptroller and Auditor General of India
Comptroller and Auditor General of India
The Comptroller and Auditor General of India is an authority, established by the Constitution of India, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government. The CAG is...

 said, “As on March 31, 2010, unutilised committed external assistance was of the order of Rs.1,05,339 crore.”

History

The economy of India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

 was under socialist-inspired policies for an entire generation from the 1950s until the late 1980s. The economy was characterized by extensive regulation, protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...

, and public ownership, policies vulnerable to pervasive corruption and slow growth
Hindu rate of growth
The Hindu rate of growth is a controversial and derogatory expression used to refer to the low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%....

. License Raj was often at the core of corruption.

The Vohra Report
Vohra Report
The Vohra Report was submitted by the former Indian Union Home Secretary, N.N. Vohra, in October 1993. It studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats in India....

, submitted by the former Indian Union Home Secretary
Home Secretary
The Secretary of State for the Home Department, commonly known as the Home Secretary, is the minister in charge of the Home Office of the United Kingdom, and one of the country's four Great Offices of State...

, N.N. Vohra, in October 1993, studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats in India.

The report contained several observations made by official agencies on the criminal network which was virtually running a parallel government. It also discussed criminal gangs who enjoyed the patronage of politicians — of all political parties — and the protection of government functionaries. It revealed that political leaders had become the leaders of gangs. Over the years criminals had been elected to local bodies, State Assemblies, and even the Parliament. The unpublished annexures to the Vohra Report are believed to contain highly explosive material.
According to Jitendra Singh, "in the bad old days, particularly pre-1991, when the License Raj held sway, and by design, all kinds of free market mechanisms were hobbled or stymied, and corruption emerged almost as an illegitimate price mechanism, a shadowy quasi-market, such that scarce resources could still be allocated within the economy, and decisions could get made. ... These were largely distortions created by the politico-economic regime. While a sea change has occurred in the years following 1991, some of the distorted cultural norms that took hold during the earlier period are slowly being repaired by the sheer forces of competition. The process will be long and slow, however. It will not change overnight." One of the major problems and obstacles to development that many developing countries face is corruption by greedy, power-hungry politicians, which is endemic in certain parts of the world.

Politics

As of December 2008, 120 of India's 522 parliament members were facing criminal charges. Many of the biggest scandals since 2010 have involved very high levels of government, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam
2G spectrum scam
The 2G spectrum scandal involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones...

, the 2010 Commonwealth Games scam
Concerns and controversies over the 2010 Commonwealth Games
A number of concerns and controversies surfaced before the 2010 Commonwealth Games in New Delhi, India, which received widespread media coverage both in India and internationally....

 and the Adarsh Housing Society scam
Adarsh Housing Society Scam
The Adarsh Housing Society is a cooperative society in the city of Mumbai in India. It was reserved for the war widows and veterans of the Kargil War.-Corruption allegations:...

, mining scandal in Karnataka and cash for vote scam.

Bureaucracy

A 2005 study done by Transparency International
Transparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...

 (TI) in India found that more than 50% of the people had firsthand experience of paying bribe or peddling influence to get a job done in a public office. Taxes and bribes are common between state borders; Transparency International estimates that truckers pay annually 5 billion in bribes. A 2009 survey of the leading economies of Asia, revealed Indian bureaucracy to be not just least efficient out of Singapore, Hong Kong, Thailand, South Korea, Japan, Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia; further it was also found that working with India's civil servants was a "slow and painful" process.

Land and property

Officials often steal state property. In cities and villages throughout India, 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.

Tendering processes and awarding contracts

Government officials having discretionary powers in awarding contracts engage in preferential treatment for selected bidders and display negligence in quality control processes . Many state-funded construction activities in India, such as road building, are dominated by construction mafias, 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
Monsoon
Monsoon is traditionally defined as a seasonal reversing wind accompanied by corresponding changes in precipitation, but is now used to describe seasonal changes in atmospheric circulation and precipitation associated with the asymmetric heating of land and sea...

 season arrives.

Medicine

In Government Hospitals, corruption is associated with non availability of medicines (or duplicate/fake medicines), getting admission, consultations with doctors and availing diagnostic services.

Income tax department

There have been several cases of collusion of officials of the income tax department of India
Income tax in India
The government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families , companies, firms, co-operative societies and trusts and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961...

 for a favorable tax treatment in return for bribes.

Preferential award of public resources

As detailed earlier, land in areas with short supply is relatively common with government entities awarding public land to private concerns at negligible rates. Other examples include the award of mining leases
Illegal mining in India
Illegal mining in India is widespread in various ore-rich states of India, and has generated controversy, which spans encroachment of forest areas, underpayment of government royalties, conflict with tribals regarding land-rights...

 to private companies without a levy of taxes that is proportionate to the market value of the ore.

Black money

Black money refers to money removed from the official economy (via corruption, bribery, tax evasion, etc.) and stored outside of the country. A November 2010 report from the Washington
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

-based Global Financial Integrity
Global Financial Integrity
Global Financial Integrity is a non-profit, research and advocacy organization located in Washington, DC. GFI advocates and conducts research on national and multilateral policies, safeguards, and agreements aimed at curtailing illicit financial flows and enhancing global development and security...

 estimates that India lost at least US$462 billion in illicit financial flows
Illicit financial flows
Illicit financial flows, in economics, refers to a form of illegal capital flight and occurs when money is illegally earned, transferred, or utilized. This money is intended to disappear from any record in the country of origin, and earnings on the stock of illicit financial flows outside of a...

, another word for black money, from 1948 through 2008. The report also estimated the size of India's underground economy at approximately US$640 billion at the end of 2008 or roughly 50% of the nation's GDP.

Black Money in Switzerland

According to a 2010 The Hindu
The Hindu
The Hindu is an Indian English-language daily newspaper founded and continuously published in Chennai since 1878. According to the Audit Bureau of Circulations, it has a circulation of 1.46 million copies as of December 2009. The enterprise employed over 1,600 workers and gross income reached $40...

 article, unofficial estimates indicate that Indians had over US$1456 billion in black money stored in Swiss banks (approximately USD 1.4 trillion). While some news reports claimed that data provided by the Swiss Banking Association Report (2006) showed India has more black money than the rest of the world combined, a more recent report quoted the SBA's Head of International Communications as saying that no such official statistics exist. Another report said that Indian-owned Swiss bank account assets are worth 13 times the country’s national debt.

Judiciary

According to Transparency International
Transparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...

, 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".

Armed forces

The Indian Armed Forces
Indian Armed Forces
The Indian Armed Forces are the military forces of the Republic of India. They consist of the Army, Navy and Air Force, supported by three paramilitary forces and various inter-service institutions such as the Strategic Forces Command.The President of India is...

 have witnessed corruption involving senior armed forces officers from the Indian Army
Indian Army
The Indian Army is the land based branch and the largest component of the Indian Armed Forces. With about 1,100,000 soldiers in active service and about 1,150,000 reserve troops, the Indian Army is the world's largest standing volunteer army...

, Indian Navy
Indian Navy
The Indian Navy is the naval branch of the armed forces of India. The President of India serves as the Commander-in-Chief of the Navy. The Chief of Naval Staff , usually a four-star officer in the rank of Admiral, commands the Navy...

 and Indian Air Force
Indian Air Force
The Indian Air Force is the air arm of the Indian armed forces. Its primary responsibility is to secure Indian airspace and to conduct aerial warfare during a conflict...

. A number of scandals in the 2000-2010 period damaged the military's reputation; such scandals included skimming of armed forces money, re-selling of government property, and faking combat missions.

Right to Information Act

The Right to Information Act
Right to Information Act
The Right to Information Act 2005 is an Act of the Parliament of India "to provide for setting out the practical regime of right to information for citizens." The Act applies to all States and Union Territories of India except the State of Jammu and Kashmir. Jammu and Kashmir has its own act...

 (2005) and equivalent acts in the states, that require government officials to furnish information requested by citizens or face punitive action, computerization of services and various central and state government acts that established vigilance commissions have considerably reduced corruption or at least have opened up avenues to redress grievances. The 2006 report by Transparency International puts India at the 70th place and states that significant improvements were made by India in reducing corruption.

Ombudsmen

The Lokayukta
LokAyukta
The Lokayukta is an anti-corruption ombudsman organization in the Indian states.The Administrative Reforms Commission headed by Morarji Desai submitted a special interim report on "Problems of Redressal of Citizen's Grievances' in 1966...

 is an anti-corruption organization in the Indian states. These institutions are based on the Ombudsman in Scandinavian countries. An amendment to the Constitution
Constitution of India
The Constitution of India is the supreme law of India. It lays down the framework defining fundamental political principles, establishes the structure, procedures, powers, and duties of government institutions, and sets out fundamental rights, directive principles, and the duties of citizens...

 has been proposed to implement the Lokayukta uniformly across Indian States as a three-member body, headed by a retired Supreme Court judge or high court chief justice, and comprise of the state vigilance commissioner and a jurist or an eminent administrator as other members.

Social welfare worker Anna Hazare has led a movement to compel the Indian Government to notify the Committee for the implementation of the Lokayukta against corruption as an independent body and also giving enough powers to the Lokayukta to also receive corruption complaints against politicians, bureaucrats and even sitting judges. Anna Hazare is currently pursuing an agenda to pass a bill called Jan Lokpal bill
Jan Lokpal Bill
The Jan Lokpal Bill, also referred to as the citizens' ombudsman bill, is a proposed independent anti-corruption law in India. Anti-corruption social activists proposed it as a more effective improvement to the original Lokpal bill, which is currently being proposed by the Government of India.The...

, and he has gathered the support of many citizens residing in metropolitan cities of India. He was on an indefinite fast at the Ramlila Grounds, Delhi, in order to campaign for the cause.

Whistleblowers

Whistleblowers play a major role in the fight against corruption. India currently does not have a law to protect whistleblowers, which was highlighted by the assassination of Satyendra Dubey
Satyendra Dubey
Satyendra Kumar Dubey was a project director at the National Highways Authority of India . He was murdered in Gaya, Bihar after fighting corruption in the Golden Quadrilateral highway construction project.-Early life:...

. Indian courts are regularly ordering probe in cases of murders or so-called suicide of several whistle blowers. One of the latest case of such murder is of V Sasindran Company Secretary of Palakkad based Malabar Cement Limited, a Government company in Kerala and his two minor children, Kerala High Court ordered CBI probe on 18 February 2011. Initially, CBI showed its unwillingness for probing into such cases citing over-burden as a reason.

Anti-corruption police and courts

The income tax department of India, Central Vigilance Commission
Central Vigilance Commission
Central Vigilance Commission is an apex Indian governmental body created in 1964 to address governmental corruption. It has the status of an autonomous body, free of control from any executive authority, charged with monitoring all vigilance activity under the Central Government of India, and...

 and Central Bureau of Investigation
Central Bureau of Investigation
The Central Bureau of Investigation is a government agency of India that serves as a criminal investigation body, national security agency and intelligence agency. It was established on 1 April 1963 and evolved from the Special Police Establishment founded in 1941...

 all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Andhra Pradesh Anti-corruption Bureau) and Karnataka (Lokayukta
LokAyukta
The Lokayukta is an anti-corruption ombudsman organization in the Indian states.The Administrative Reforms Commission headed by Morarji Desai submitted a special interim report on "Problems of Redressal of Citizen's Grievances' in 1966...

) also have their own anti-corruption agencies and courts.

Anti-corruption organizations

A variety of organizations have been created in India to actively fight against corrupt government and business practices. Notable organizations include:
  • 5th Pillar is most known for the creation of the zero rupee note
    Zero rupee note
    A zero rupee note is a type of fantasy money issued in India as a means of helping to fight systemic political corruption. The notes are paid in protest by angry citizens to government functionaries who solicit bribes in return for services which are supposed to be free...

    , a valueless note designed to be given to corrupt officials when they request bribes.
  • India Against Corruption is a movement created by a citizens from a variety of professions and statuses to work against corruption in India. It is currently headed by Anna Hazare
    Anna Hazare
    Kisan Baburao Hazare , popularly known as Anna Hazare is an Indian social activist and a prominent leader in the 2011 Indian anti-corruption movement, using nonviolent methods following the teachings of Mahatma Gandhi...

    .
  • Jaago Re! One Billion Votes
    Jaago Re! One Billion Votes
    Jaago Re! One Billion Votes is a non-partisan nationwide movement that aims to awaken and enable the citizens of India, especially the youth, to register to vote...

     is an organization originally founded by Tata Tea
    Tata Tea
    Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA...

     and Janaagraha
    Janaagraha
    Janaagraha is a not-for-profit organization that aims to strengthen democracy in India by working for citizen participation in urban local government...

     to increase youth voter registration. They have since expanded their work to include other social issues, including corruption.
  • Association for Social Transparency, Rights And Action (ASTRA)
    Association for Social Transparency, Rights And Action (ASTRA)
    Association for Social Transparency, Rights and Action is a non-profit organization that fights corruption at a grass-roots level in Karnataka, India by working directly with villagers and factory labourers. ASTRA has its headquarters in Abyathamangala Village in Karnataka. It was founded in...

     is an NGO focused on grass-roots work to fight corruption in Karnataka.


One organization, the Lok Satta Movement
Lok Satta Movement
Lok Satta is a non-partisan movement for democratic reforms in the country of India, led by Dr. Jayaprakash Narayan, a former I. A. S. officer and renowned activist from Andhra Pradesh, India. The movement was started in 1996 with the founding of Lok Satta, a non-governmental organization...

, has transformed itself from a civil organization to a full-fledged political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and Bangalore. In 2008, it obtained its first elected post, when Jayaprakash Narayan
Jayaprakash Narayan (Lok Satta)
Dr. Jayaprakash Narayan , widely known as JP, is a noted Indian politician, social reformer, TV commentator and columnist. He is the President of Lok Satta Party and currently a Member of the Legislative Assembly from Kukatpally constituency in Andhra Pradesh.http://www.loksatta.org/cms/index.php?...

 won the election for the Kukatpally
Kukatpally
Kukatpally is a major residential and commercial suburb in Ranga Reddy District, India. It is located on the northwest fringe of Hyderabad city...

 Assembly Constituency in Andrha Pradesh.

Effects of corruption

According to a report by KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....

, "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom".

See also

  • List of politicians in India charged with corruption
  • 2011 Indian anti-corruption movement
    2011 Indian anti-corruption movement
    The 2011 Indian anti-corruption movement is a series of ongoing demonstrations and protests across India intended to establish strong legislation and enforcement against endemic political corruption...

  • Jan Lokpal Bill
    Jan Lokpal Bill
    The Jan Lokpal Bill, also referred to as the citizens' ombudsman bill, is a proposed independent anti-corruption law in India. Anti-corruption social activists proposed it as a more effective improvement to the original Lokpal bill, which is currently being proposed by the Government of India.The...

  • List of scandals in India
  • Corruption Perceptions Index
    Corruption Perceptions Index
    Since 1995, Transparency International publishes the Corruption Perceptions Index annually ranking countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys." The CPI generally defines corruption as "the misuse of public power for private...

  • Licence Raj
    Licence Raj
    Licence Raj, the Permit Raj, refers to the elaborate licenses, regulations and accompanying red tape that were required to set up and run businesses in India between 1947 and 1990....

  • Mafia Raj
    Mafia Raj
    Mafia Raj refers to an economic and political situation in India where public goods, property and funds are controlled and systematically embezzled by a criminalized nexus of government officials, elected politicians, business interests and other entities Mafia Raj (Hindi-Urdu: माफ़िया राज, مافیا...

  • Rent seeking
    Rent seeking
    In economics, rent-seeking is an attempt to derive economic rent by manipulating the social or political environment in which economic activities occur, rather than by adding value...

  • Lok Ayukta
    LokAyukta
    The Lokayukta is an anti-corruption ombudsman organization in the Indian states.The Administrative Reforms Commission headed by Morarji Desai submitted a special interim report on "Problems of Redressal of Citizen's Grievances' in 1966...

  • Socio-economic issues in India
    Socio-economic issues in India
    Since India's Independence in 1947, country has faced several social and economic issues.- Overpopulation :India suffers from the problem of overpopulation. The population of india is very high- 1.2 billion approx. Though India ranks second in population, it ranks 33 in terms of population density...

  • United Nations Convention against Corruption
    United Nations Convention against Corruption
    The United Nations Convention against Corruption is the first legally binding international anti-corruption instrument. In its 8 Chapters and 71 Articles, the UNCAC obliges its States Parties to implement a wide and detailed range of anti-corruption measures affecting their laws, institutions and...


External links

  • CIC – The Central Information Commission is charged with interpreting the Right to Information Act, 2005.
  • DoPT – The Department of Personnel and Training, Ministry of Personnel, Public Grievances, and Pensions, is charged with being the nodal agency for the Right to Information Act, 2005. It has the powers to make rules regarding appeals, fees, etc.
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