A

REPORT ON

“Measures to stop corruption in India”

SUBMITTED
TO
UNIVERSITY OF MUMBAI

FOR

THE DEGREE OF BACHELOR OF ACCOUNT

AND FINANCE

UNDER THE

FACULTY OF ACCOUNT AND FINANCE

THE SUBJECT OF

FOUNDATION COURSE II

F.Y. BAF

BY

NISHANT SAWANT (60)

UNDER THE GUIDANCE
OF
ASST. PROF S.T. SHAHA

SANT RAWOOL MAHARAJ MAHAVIDYALAYA,

KUDAL DIST: - SINDHUDURG (416520)

(2023 -2024)

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 Declaration
I undersigned Mr. Nishant Bhaskar Sawant hereby declared that the work
embodied in this project work title “Measures to stop corruption in India”
forms my own contribution to research work carried out under the guidance of
Asst. prof. S.T. Shaha is a result of my own research work and has been
previously submitted to any other University for any other degree to this or
any other university.

Whenever reference has been made to previous work of others, it has been
clearly indicating as such and include in the refences.

I, hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

Certified by

Asst. Prof. S.T. Shaha Mr. Nishant Bhaskar sawant

Date of Submission

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 INDEX
Sr.no. Contains Page
no.
1 Introduction 3

2 Theoretical background 4

3 Data interpretation and analysis 6

1) What is corruption?
2) Causes of corruption
3) Corruption in India
4) Measures to stop corruption
5) Rules and regulation
4 Findings 15

5 Suggestion 16

6 Conclusion 17

7 References 18

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 INTRODUCTION
“Corruption is a cancer, a cancer that eats away at a citizens faith in
democracy, diminishes the instinct for innovation and creativity.”
Joe Biden

Corruption can be defined as Wrongdoing on the part of an or through that are

illegitimate, immoral or incompatible with. Corruption often from backup and is with. It can
result in the diversion of public resources to private consumption and thus in the overall loss
of the impacts that were intended to be of wider benefit. Thus, it results in social inequality
and widened gap between the rich and poor. 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.

Public opinion suggests that high levels of corruption are associated with lower levels
of investment. 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. Corruption is a very old phenomenon and it can be seen everywhere
these days. Corruption is like a cancer in the public life, which has not become overnight,
but during course of time. The term corruption simply means destruction, ruining, spoiling a
society or a nation.
A corrupt society is characterized by immorality and lack of fear or respect for the
law. It is the abuse of public power for private gain. Corruption comes under many different
ways like bribery, extortion, fraud, embezzlement, misappropriations of public goods,
nepotism (favouring family members for jobs and contracts) cronyism and influence
pending. Corruption is a problem that mainly arises in the interaction between government
and the market.

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 Theoretical Background
The history of corruption in India is very old. In ancient times, Indian farmers were
divided into high and low castes by the kings. This is probably where corruption started due
to which the social structure become the history of corruption in India is very old. In ancient
times, Indian families were divided into high and low castes by the kings.

This is probably where corruption started due to which the social structure became
weak, as a result various invaders and the British were successful in ruling India. Before
India's independence, the British started giving money as a convenience to the rich people
of India to get facilities. By giving money to kings and moneylenders, they got whatever they
wanted from them. The British used to ask the rich people of India to betray their own
country by giving them money and these rich people used to do the same.

The Baburam mentions how a handful of external raiders passed through the streets
of India. Lakhs of people standing on both sides of the road became mute spectators and
watched the show. External aggressors have said that if this crowd of mute spectators had
attacked the attackers, the situation in India would have been different. Similarly, in the
battle of Palais, there was an army of lakhs on one side and a handful of soldiers with the
British on the other side, but the Indians lost.

On one side an army of 50,000 Indians, on the other side 3000 British soldiers. But
the British won. India became a slave again. When Bakhtiyar Khilji attacked Nalanda in the
eleventh century, what were the circumstances? Khilji's army of less than a hundred soldiers
forced more than ten thousand monks of Nalanda to flee. The world-famous library of
Nalanda continued to burn for years.

When the British came to India, they found India politically weak but economically
very prosperous. In such a country, the British usurped the state through fraud, immorality
and corruption, imposed inhumane taxes, pushed crores of people into poverty and
starvation and made Britain rich by looting all the wealth and glory of India. They rented
trading posts from Hindu rulers in Madras, Kolkata and Mumbai and stationed their cannons
and armies there without permission. In 1756, when the king of Bengal opposed such an

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attack and attacked the British fort Fort William and captured it, a year later Robert Clive
defeated Bengal in the battle of Plassey and captured it and a They made the Nawab fight
with others and started looting. In just one year, Clive took a bribe of 11 lakh 70 thousand
dollars and started taking an annual tribute of 1 lakh 40 thousand dollars. The investigation
found him guilty, but he was pardoned in exchange for his service to Britain.

Will Dura writes that goods worth Rs 20 lakh are bought from India and sold in
Britain for Rs 1 crore. The British forced the Nawab of Awadh to give 5 million dollars to the
British by looting the treasure of his mother and grandmother, then captured it and sold it
to another Nawab for 25 million dollars.

In 1991, the Indian economy was linked to the worldwide political-economics of

liberalization and globalization. By then the Soviet Union had disintegrated into a communal
federation. Along with this, a tremendous attack of marketism, materialism, luxury and
consumers culture has also started.

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Data interpretation and analysis
The corruption perception index (CPI) ranks India 85th least corrupt country out of
180 countries and territories for the year 2021. The ranking is deterred mined based on the
perceived levels of public sector corruption. India best score of 35th rank was in the year
1995 when the regulations and law were newly formulated.

Even after several years of amendments, awareness program and levy of fines and
penalties the country’s worst score was 95th rank in the recent year 2011. The prevention of
corruption act (PCA) was enacted to combat corruption in the public sector. The act was
amended in the year 2018 which led to several key changes. The country does not have any
laws or regulation to check on privet-sector corruption.

Statistics on corruption India

39% of Indians paid a bribe at least once in the previous 12 months for public
services, basis a survey conducted from the period June to September 2020 by the
transparency international organisation. This is the highest rate of bribe paid in the Asian
region. The survey revealed serious issues with regards to the penetration of corruption in
India. The key data revealed were: -

 89% of Indians think government corruption is a big problem.

 71% of Indians think corruption levels have increased and/or stayed the same in the
previous 12 months.
 46% of Indians thinks that police and local government officials are corrupt.
 18% of Indians were offered bribes in exchange for votes.

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 What is corruption?
Corruption means any abuse of a position of trust in order to gain an
undue advantage. This involves the conduct of both

sides that of the person who abuses his position of trust as

well as that of the person who seeks to gain an undue

advantage by this abuse. Corruption can occur in relation to

officials as well as between private persons.

Corruption is a form of dishonest

behaviour that has a big impact on
everyone. Corruption erodes trust,
weakens democracy, hampers economic
development and further more. To reduce it
we

Should work together.

 Corruption can happen anywhere : in business, government, the

courts, the media, and in civil society, as well as across all sectors from

health and education to infrastructure and sports.

 Corruption can involve anyone: politicians, government officials,

public servants, business people or members of the public.

 Corruption happens in the shadows, often with the help of

professional enablers such as bankers, lawyers, accountants.

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 Causes of corruption
Ultimately, all parts of society must share the responsibility for containing
corruption because all are willing or unwilling participants. Each corrupt transaction requires
a “buyer” and a “seller.” The government is responsible for dealing with civil servants who
engage in extortion and bribery but it is businesses and individuals who offer bribes to civil
servants to obtain certain advantages.

 Lack of Transparency: -
A lack of transparency in government processes, decision-making, and public
administration provides fertile ground for corrupt practices. When actions and decisions are
shielded from public scrutiny, officials may engage in corrupt activities with reduced fear of
exposure.

 Weak Institutions and ineffective legal frameworks:

Many of India's institutions responsible for enforcing laws and regulations are either
weak or compromised. This includes law enforcement agencies, the judiciary, and oversight
bodies. Weak institutions can fail to hold corrupt individuals accountable and may even

facilitate corruption.

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  Low Salaries and Incentives:
Public officials, especially those in lower-ranking positions, are sometimes
paid low salaries. This can make them more susceptible to bribery and other corrupt
practices, as they may see corruption as a means to supplement their income.

 Bureaucratic Red Tape:

Lengthy and convoluted bureaucratic procedures and excessive regulations
can drive individuals and businesses to engage in corrupt practices to expedite processes or
bypass obstacles.

 Political Interference:
Political interference in administrative matters can compromise the
autonomy of government institutions. Political leaders may pressure officials to engage in
corrupt activities for personal or party gain.

 Lack of Whistleblower Protection:

Inadequate protection for whistleblowers can deter individuals from
reporting corruption. The fear of retaliation can silence potential whistleblowers and allow
corruption to thrive.

 Social Inequality:
Social and economic disparities can contribute to corruption, as individuals
with wealth and power may use their influence to secure preferential treatment and engage
in corrupt practices without repercussions.

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 Corruption in India
A2005 study conducted by Transparency International in India found that
more than 55% of Indians had first-hand experience of paying bribes or

influence peddling to get jobs done in public offices successfully.

 Transparency International estimates that truckers pay US$5

billion in bribes annually.

 In 2011 India was ranked 95th out of 178 countries In

Transparency International's Corruption Perceptions Index.

 The books estimates that corruption has virtually enveloped India

growing annually by over 100 percent and most bribery is accrued

from the transport industry, real estate and "other public services

 The recent scams involving unimaginably big amounts of money,

such as the 2G spectrum scam, are well known.

India’s stellar performance in rankings on growth indicators and its innovative

approaches to poverty alleviation are often compromised by absence of noticeable efforts in
governance reforms for ensuring high levels of integrity, enhanced transparency and probity
in public and corporate life.
Corruption in India is an issue which affect economy of central, state and
local government agencies. Corruption is blamed for stunning the economy of India A study
conducted by transparency international in 2005 recorded that more than 62% of Indians
had at some point or other paid a bribe to public officials to get a job done. In 2008, another
report shows that 50% of Indians had firsthand experience of paying bribes or using
contacts to get service performed by public offices.

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Measures to stop corruption in India
 Lokpal Bill Implementation (Introduced since 1968).
 Anti-corruption police and courts.
 Vigorous punishments
 Anti- corruption websites.
 Anti- corruption Organizations.
 Self-determination of not to give bribe.
 Awareness and campaigns through medias, social networking sites, road shows
etc.

Corruption Perception Index (CPI) extracts a score based on various factors

related with fighting corruption, and India has received a CPI of 40 in 2020, which
were 41 last year. On a scale of 0-100, 0 is perceived as being highly corrupt and 100
is considered as least corrupt. The lowest CPI in India was 26 in 1995 and highest CPI
in India was in 2018 and 2019 respectively. From 2011 continuously CPI has risen till
2019.

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 Rules and regulations against
corruption in India
Anti-corruption laws in India: Public servants in India can be penalised for corruption
under the
 The Prevention of Corruption Act, 1988
 The Benami Transactions (Prohibition) Act, 1988
 Prevention of Money Laundering Act, 2002

 The Companies Act, 2013,

Prevention of corruption Act, 1988

Under this act, A government officer or public servant or any other parties faces six-
month sentence or maximum five-year sentence of jail and fine. He can also be punished
under the law for using illegal means to exert personal influence over another public.

The benami transactions (Prohibition) Act, 1988

The act forbids any Benaim transaction, which he defines as buying anything under
someone else’s name without paying for it, with an exception of with a person buying
something in his wife’s or unmarried daughter’s name.

Prevention of Money Laundering Act, 2002

it aims to prevent instances of money laundering and prohibits use of the 'proceeds
of crime' in India. the Government is considering incorporating provisions for confiscation
or forfeiture of the property of corrupt public servant in the Prevention of Corruption Act,
1988 to make it more self-contained and comprehensive.

The Companies Act, 2013, contains certain provisions to regulate frauds by

corporations, including, increased penalties for frauds, giving more powers to Serious
Fraud Investigation Office, mandatory responsibility of auditors to reveal frauds, and
increased responsibility of independent.

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 Anti-corruption
organization’s
An anti-corruption agency is a special police agency specialised in fighting political
corruption and engaging in general anti-corruption activities. The Anti-Corruption Bureau is
the main investigative unit of the Vigilance Department. The main investigating wing was
started in June, 1967, when the Govt. set up a Special Inquiry Agency (SIA) for enquiring into
corruption related complaints referred to it by the State Government.
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. In 2006, the movement transformed into Lok Satta Party. Goals
Democratization of political parties to make them open, transparent, and accountable in all
aspects. Electoral reforms to make elections truly democratic, fair and transparent; to
facilitate and promote participation of the best men and women in India's political process.
Effective decentralization of governance through empowerment of local
governments as participative tiers of constitutional. Effective functioning of legislature.
Measures to make bureaucracy truly accountable, responsive, and efficient at all levels.
Institutional checks to prevent abuse of office. freedom of information for transparent
governance
The CVC, ACB, Enforcement Directorate were constituted for this purpose. The
agency aims to implement anti-corruption policies and create awareness mainly. These
specialized bodies are entrusted with the power to investigate and prosecute offenders
who have violated any anti- corruption law.

The movement gained momentum from 5 April 2011, when anti-corruption activist
Anna Hazare began a hunger strike at the Jantar Mantar monument in New Delhi. The
movement aimed to alleviate corruption in the Indian government through introduction of
the Jan Lokpal Bill.

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 Findings
 Mostly the corruption is taking place in government sector so, to stop this corruption
we required legal framework like prevention of corruption act.

 The central vigilance commission (CVC) and state level vigilance investigate
corruption cases. So, these agencies should be funded more to increase their
efficiency and progress.

 Digitalisation means, initiatives like E-governance which help to the people to kept
eye on the government monetary practices.

 Public awareness campaign and educational programs raised awareness about

corruption and encourage citizens to report it.

 Sometimes citizens ignore the corruption which happens in society, so to increase

community participation we should encourage them to report any corruption
practices.

 Also, the role of technology Is very important, use of technology like data analysis
and AI for risk assessment and investigation of corruption.

 Cultural shift means, fostering a culture of integrity and zero tolerance for corruption
requires long-term societal change.

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 Suggestion
 The first tool is education. We can minimize corruption with the help of
education. E.g. Kerala is least corrupted state because its literacy rate.

 We need to change the government processes. Thus, a major shift in the

government process and administrative polices can make them public
oriented.

 E-governance could help a lot towards this direction. We can reduce

corruption by increasing contact between government and the
governed.

 We have the legal rights to know any information. We can take help of
Right to information Act 2005; this act would help to reduce corruption.

 Revising the act for its better implementation. Strong laws need to be
implemented which gives no room for the guilty escape.

 Individual efforts. We should be honest to our self. Until and unless we

will not be honest, we cannot control corruption.

 We should create more anti-corruption organisations to which will help

to reduce corruption and help to growth and development.

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 Conclusion
From the above description we can say that corruption spreads all over India under
the root. Although it is not possible to combat the corruption fully, but still Indian
Government had taken many actions to control corruption in India. We can see the efforts
of Government of India in the form of Corruption Index, which regularly controlled from the
last few years. Now corruption is a habit in India. From top to bottom, mostly all the officials
in the government sector, make them habit that they do not do any work without bribe, gift
or some kind.
Corruption, as we know is the criminal thing that do by a person in a certain capacity
especially with negative connotation, they do the illegal thing to make a benefit for them
self. Black money has created a big black hole in Indian economy & the entire burden is
beard by the common people of India. To stop corruption which creates black money, we
the people of India have to come forward to fight against corruption.
So, corruption is an illegal thing that we couldn’t do, because, without corruption we can be
a good generation for our country. And then we can make our country clear from corruption

and make our country better.

India is a fast-developing country in the world where our systems are weak. So, there
is always a chance of corruption. Who is responsible for this? What action should be taken?
What we must keep in mind is “Nothing is Impossible”. If we join our hands together there
can be an end to this deep-rooted evil. The only thing is it takes time. A little progress
everyday leads to a big result one day………. maybe tomorrow. Be Good and Do Good.

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 References
 www.drishtiIAS.com

 ChatGPT.com

 https://www.slideshare.net/GauravKumar1279/
corruption-

 Transparency.org

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