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
PROF. Sabha Shaha

SANT RAWOOL MAHARAJ MAHAVIDYALAYA,

KUDAL DIST: - SINDHUDURG (416520)

(2023 -2024)

1
 INDEX
1Sr. No Introduction Particular 3Page No.

2 theoretical background 4

3 What is corruption? 6

4 Causes of corruption 7

5 Corruption in India 9

6 Measures to stop corruption 10

7 Rules and regulation against 11

corruption
8 Anti-corruption organisation 12

9 Suggestion 13

10 Conclusion 14

11 Reference 15

2
 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

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Madras, Kolkata and Mumbai and stationed their cannons and armies there
without permission. In 1756, when the king of Bengal opposed such an 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.

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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.

 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.

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 Corruption happens in the shadows, often with the help of
professional enablers such as bankers, lawyers, accountants.

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Causes of corruption
U ltimately, 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.

9
 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 foe 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 Lokpal and Lokayuktas 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 Lokpal and Lokayuktas Act, 2013
which came into force from 16 January 2014, seeks to provide for the
establishment of the institution of Lokpal to inquire into allegations of
corruption against certain public functionaries in India.
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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 SUGGESTION
◊ The first tool is education. We can minimize corruption with the
help of education. According to a survey conducted by India today the
least corrupt state is Kerala, the reason being that in Kerala literacy rate
is highest in India.

◊ We need to change the government processes. In India there is a

rule that no person as a criminal shall be allowed as the MP or MLA.
Unfortunately, a fairly large number of them are a part of it. Therefore, a
major shift in the government processes and administrative policies can
make them more public oriented.

◊ We can reduce corruption by increasing direct contact between

government and the governed. E-governance could help a lot towards
this direction. Sivraj Patil said that the Right to information can ensure
transparency.

◊ We have legal rights to know any information. According to this

act, (Right to Information Act, 2005), generally people should follow the
procedure of law given to them when there is no transparency and
accountability in the working of public authority. This act would be of
great help in order to control corruption.

◊ Revising the act for its better implementation. Strong and

stringent laws need to be implemented which gives no room for the
guilty to escape.

◊ Individual effort. We should be honest to ourselves. Until and

unless we will not be honest, we cannot control corruption.

Corruption is the enemy of development, and of good

governance. It must be got rid of. Both the government and the
people at large must come together to achieve this national
objective

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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.
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.

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 References
 www.drishtiIAS.com

 ChatGPT.com

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

 Transparency.org

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