Corruption in India

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Political and bureaucratic corruption in India are major concerns. A 2005 study conducted by Transparency

International in India found that more than 15% of Indians had first-hand experience of payingbribes or influence

peddling to successfully complete jobs in public office.[1][2] Taxes and bribes are a fact of daily life and common

between state borders; Transparency International estimates that truckers pay US$5 billion in bribes annually.[3] In

2010 India was ranked 87th out of 178 countries in Transparency International's Corruption Perceptions Index.

Contents
 [hide]

1 Overview

2 History

3 Politics

4 Bureaucracy

o 4.1 Land and property

o 4.2 Tendering processes and awarding contracts

o 4.3 Medicine

o 4.4 Income tax

o 4.5 Preferential award of public resources

5 Judiciary

6 Armed forces

7 Media

8 Religious institutions

o 8.1 Right to information act

o 8.2 Ombudsmen

o 8.3 Whistleblowers

o 8.4 Anti-corruption police and courts

o 8.5 Civil sector initiatives

o 8.6 Privatization and Commercialization of Corruption

Overhaul System

9 Effects of corruption

10 See also
 11 References

12 Further reading

13 External links

o 13.1 Indian government

[edit]Overview

Overview of the index of perception of corruption, 2010

Former Prime Minister Indira Gandhi is quoted as saying that corruption is a misuse of power.[4][5] "India needs to deal

with the malice of corruption and improve governance in Asia's third-largest economy." Prime Minister Manmohan

Singh said on March 18, 2011.[6]

Criminalization of Indian politics is a serious problem.[7][8] In July 2008 The Washington Post reported that nearly a

fourth of the 540 Indian Parliament members faced criminal charges, "including human trafficking, immigration

rackets, embezzlement, rape and even murder".[9]

India tops the list for black money in the entire world with almost US$1456 billion in Swiss banks

(USD 1.4 trillion approximately) in the form of black money.[10] According to the data provided by the Swiss Banking

Association Report (2006), India has more black money than the rest of the world combined.[11][12] Indian Swiss bank

account assets are worth 13 times the country’s national debt.[13]

Independent reports have recently[when?] calculated India's traditionally ruling family's (Gandhi's) financial net worth to

be anywhere between $9.41 billion (Rs 42,345 crore) to $18.66 billion (Rs 83,900 crore), most of it in the form of

illegal monies.[14] Harvard scholar Yevgenia Albatscited KGB correspondence about payments to Rajiv Gandhi and

his family, which had been arranged by Viktor Chebrikov,[15][16][17] which shows that KGB chief Viktor Chebrikov sought

in writing an "authorization to make payments in US dollars to the family members of Rajiv Gandhi, namely Sonia

Gandhi, Rahul Gandhi and Paola Maino, mother of Sonia Gandhi" from the CPSU in December 1985. “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, like Hasan Ali Khan are

getting rich through scams and crime. It seems as if India is a rich country filled with poor people,[18]” the organisers

of Dandi March II in the United States said.[19]

The Comptroller and Auditor General of India said, “As on March 31, 2010, unutilised committed external assistance

was of the order of Rs.1,05,339 crore.”[20]

In a most recent example of corruption, even as the Enforcement Directorate (ED) probes US$8 billion worth

transactions allegedly involving suspected money launderer Hasan Ali Khan, evidence available with a news source

in India shows that he had transactions of over  112,000 crore (US$24.86 billion) between years 2005 and 2006.

This amount is enough to fund the national drinking water project in all the six lakh (600,000) villages in India for the

next 10 years.[21]

[edit]History

The economy of India was under socialist-inspired policies for an entire generation from the 1950s until the late

1980s. The economy was subject to extensive regulation, protectionism, and public ownership, leading to pervasive

corruption and slow growth.[22][23][24][25] License Raj was often at the core of corruption.

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.

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. They were connected to the military. 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."[26] 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.

[edit]Politics
 It has been suggested that Corruption and Indian politics be merged into this article or section.
(Discuss)

See also: Corruption in Indian politics,  Indian political scandals, and Black money in Indian politics

Criminalization of Indian politics is a problem.[7][8]

In July 2008 The Washington Post reported that nearly a fourth of the 540 Indian Parliament members faced criminal

charges, "including human trafficking, immigration rackets, embezzlement, rapeand even murder".[9] At state level,

things are often worse. In Uttar Pradesh Assembly elections 2002, candidates with criminal records won the majority.

[edit]Bureaucracy

A 2005 study done by Transparency International (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.[2]Taxes and bribes are common

between state borders; Transparency International estimates that truckers pay annually US$5 billion in bribes.[3] 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.[27]

[edit]Land and property

Officials often steal state property. 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.[28]

[edit]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[citation needed]. 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.[29] 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.[30]

[edit]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.[2]There have been cases of diversion

of medical supplies from government hospitals and clinics[citation needed] as well as supply and distribution of medicines of

inferior quality[citation needed] Some hospitals are charging extra amounts from rich people. In India there is an unfair co-

operation for medi-insurance companies and hospitals.

[edit]Income tax
There have been several cases of collusion of officials of the income tax department of India for a favorable tax

treatment in return for bribes[31][32]

[edit]Preferential award of public resources

See also: Illegal mining in India

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 ofmining leases to private companies

without a levy of taxes that is proportionate to the market value of the ore[citation needed].

[edit]Judiciary

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".[33]

[edit]Armed forces

The Indian Armed Forces have frequently witnessed corruption involving senior armed forces officers from the Indian

Army, Indian Navy and Indian Air Force. Many officers have been caught for allegedly selling defence stores in the

black market in the border districts of Indian states and territories. Recent sukhna land scandal involving four

Indian Lieutenant Generals has shaken public faith in the country's growing military at a time when large sums are

being spent on modernising the armed forces. A string of eye-popping fraud cases has damaged the institution in

recent years.[34][35][36] The latest Adarsh land scam is another example of the nexus between the armed forces ,

bureaucracy and the politicians in the embezzlement of government property.

[edit]Media

See also: Indian media bias in politics

The role of media in systemic corruption can not be undermined at it shows it involvement through paid news and

sometimes unethical support to corrupt.

[edit]Religious institutions

In India, the corruption has also crept into religious institutions. Some of the Church of North India are making money

by selling Baptism certificates.[37] A group of church leaders and activists has launched a campaign to combat the

corruption within churches. The chief economic consequences of corruption are the loss to the economy an unhealthy

climate for investment and an increase in the cost of government-subsidised services. The TI India study estimates

the monetary value of petty corruption in 11 basic services provided by the government, like education, healthcare,

judiciary, police, etc., to be around  21,068 crore (US$4.7 billion). India still ranks in 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 startup or to invoke bankruptcy is much greater.

[edit]Right to information act

Main article: Right to Information Act

The Right to Information 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.[2][38] The 2006 report by Transparency International puts India at the 70th

place and states that significant improvements were made by India in reducing corruption.[39][40]

[edit]Ombudsmen

The LokAyukta is an anti-government corruption organization in the Indian states.[41][42] These institutions are based

on the Ombudsman in Scandinavian countries. An amendment to the Constitutionhas 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.[43]

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 has achieved this big success through his non-violence measures like fasting till death at the Jantar Mantar

place in Delhi Capital City of India . The public also gave nation-wide support to Anna Hazare in his demand for

strong and tough anti-corruption law.[44]

[edit]Whistleblowers

See also: Whistleblower protection in India  and  Whistleblower protection act (India)

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. 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.

[edit]Anti-corruption police and courts

The Enforcement Directorate, Central Vigilance Commission and Central Bureau of Investigation all deal with anti-

corruption initiatives.
There have been calls for the Indian government to create an anti-theft law enforcement agency that investigates and

prosecutes corruption in government at national, state and local levels.[citation needed] Special courts that are more

efficient than the traditional Indian courts with traveling judges and law enforcement agents are being proposed.[citation
needed]
 The proposal has not yet been acted upon by the Indian government.[citation needed] Certain states such as Andhra

Pradesh (Andhra Pradesh Anti-corruption Bureau) and Karnataka (Lokayukta) have similar agencies and courts.[45][41]

[edit]Civil sector initiatives

Main article: Anti-corruption initiatives by civil society in India

Several new initiatives have come up in the civil sector to raise awareness about Corruption related issues and to

build anti-corruption platforms. 5th Pillar is one such organization that is promoting the use of Zero Rupee Notes[46] to

fight corruption by shaming the officials who ask for bribe. Another popular initiative Jaago Re! One Billion
Votes from Tata Tea has now changed its focus from voter registration to fighting corruption.[47] nobribe.org is another

platform for corruption free India and advocates the use of direct and regular measurement of corruption to force the

hands of the leadership into dealing with corruption related issues.[48]

In Karnataka, ASTRA(Association for Social Transparency, Rights and Actions) is leading movement against the

corruption at grass root level by proper and extensive use of RTIA(2005) and by enforcing implementation of Citizen

Charter in all public authorities.

Another platform is http://www.indiaagainstcorruption.com India Against Corruption is a movement created by

concerned citizens from all spheres, and professions, who have come together to fight corruption in

India. http://www.ipaidabribe.com is one such site.

People For Lok Satta has taken the initiative to lead the National Campaign Against Corruption and Dandi March II.

Another site is www.ekakizunj.com, which intends to create a database of all the corruption in India. It includes

names and details of many scams and scamsters since independence. It is inspired by G. R. Khairnar, the erstwhile

Mumbai Municipal Deputy Commissioner who is known for his one man fight against corruption.

[edit]Privatization and Commercialization of Corruption Overhaul System

The Privatization and Commercialization of Corruption Overhaul System (2011) is a proposed solution to remove

organized corruption by privatizing corruption overhaul system, and providing financial motivation to the private

companies working in sector of Corruption finding and probing business. The solution is offered by a group of Indians

named themselves as "Indian Patriots" and they are promoting this solution at their website

page http://bharatswabhimanbachao.com/Our_Solution_of_Corruption. Facebook group- Journey Against Corruption

to bring all those people together who are PASSIONATE ABOUT INDIA
The solution if drafted by the "Indian Patriots" founder and president Bharat Chovatiya and it was made publicly

available on March, 15 2011.

[edit]Effects of corruption
It has been suggested that Effects of corruption in India be merged into this article or section.
(Discuss)

See also: Effects of corruption in India

The corruption is having adverse affects on poverty removal, education, GDP growth, tax collection and overall Indian

economy.

[edit]See also