WHISTLE BLOWER POLICY

Lives of great men all remind us

We can make our lives
Groupsublime,
No. 10
Chandra kant 16
And, departing, leave behind 23
Pushkar
us
Footprints on the sands of time...
Prashant 27
Magan 57

Satyameva Jayate!
 Satyendra Dubey
“A man does what he must
inspite of personal
consequences,
inspite of obstacles and
dangers and pressures
That is the basis for all
morality... “
• Born in 1973 in the village of Shahpur in the
Sewan district of Bihar.
• B.Tech from IIT Kanpur in 1990.
• Passed Indian Engineering Service (IES) in
1994 and joined the Ministry of Surface
transport in Delhi.
• Join National Highway Authority of India 
(NHAI) in July 2002 as an Assistant Project
Manager at Koderma
• Forced contractor to suspend three
engineers.
• Contracted firm L&T for GQ project
subcontracted work to smaller low technology
group controlled by local mafias.
• NHAI officials showed a great hurry in giving
mobilisation advance to selected contractors for
financial consideration.
• Transferred to Gaya.
• At Gaya he exposed large-scale flouting of
NHAI rules regarding sub-contracting.
• Appointed as Project Director Koderma Project
Implementation Unit (PIU) handling the 5,200-
km stretch at Gaya.
Letter To Prime Minister
• Mobilisation of advances to selected
contractors for financial consideration by
NHAI officials.
• Poor monitoring of the final use of money.
• Sub-contracting by the primary contractors.
"A dream project of unparalleled importance
to the Nation but in reality a great loot of
public money because of very poor
implementation at every state."
 Assassinated on November 27, 2003

The Investigation
• CBI finally concluded that it was a case of an
attempted robbery
Current Status
• Supreme Court is currently overlooking
investigations into the corruption charges
initially raised by the Dubey letter.
• Several official have been indicted and a
technical team is overseeing the actual
construction
• Law ministry was about to introduce legislation
to protect whistleblowers.
• Dubey's murder drew several protests in India and
abroad
• S. K. Dubey Foundation for Fight Against
Corruption in India was launched.
• Satyendra K Dubey Memorial Award, to be given
to an IIT alumnus.
• Whistleblower of the year award from the London-
based Index of sensorship.
• Transparency International's Annual integrity
award and the Service Excellence award from the
All India Management Association.
"My conscience is my biggest virtue, my
wealthiest treasure and my best guide
or friend. I always do what my
conscience tells or compels me to do. I
want to keep this candle of humanity
ever glowing in my heart.”
– S K Dubey
Socrates knew that he had done right
and had been treated unfairly by the
court. He then faced an unenviable
choice: to turn down the offer to
escape and face his punishment as a
good citizen, or to leave Athens for
sanctuary elsewhere and continue to
lead his own life with its pleasures
and satisfaction.
• He chose to stay and be executed on
the ground that there are matters
more important than even life itself.
• That which is most worth living for
may also be worth dying for.
• I would rather die after spoken about my
manners than speak in your manners and
live.
• The difficulty is not to avoid death but
avoid un-righteousness for that runs faster
than death.
• Be a good cheer about death, and know
your character, no evil can happen to a
good man.
• The un-examined life is not worth living.

…….. Socrates………….
 What is whistle blowing?
• Whistle blowing is the disclosure by
organizational members (former or
current) of illegal, immoral or illegitimate
practices under the control of their
employers, to persons or organizations
that may be able to affect action.
• Making information available to public or
other external authorities.
 Kinds of Whistle blowing
• Internal Whistle blowing is made to
someone within the organization.
• Personal Whistle blowing is blowing the
whistle on the offender, here the charge is
not against the organization or system but
against one individual.
• The impersonal, External Whistle Blowing.
 There are four factors in process:
• Occurrence of misdeed or illegal activity in orgz
• Perception that either the management can
prevent it or that it has been initiated by
management or certain employees.
• Presence of an individual or group of people
who want some action against the illegal activity.
• Individuals or group expose the problem to the
authorities who can take action.
 Perception towards whistleblower
• Those did not blow the whistle feel guilty
of immorality.
• They doubt the loyalty of the whistle
blower to the employer.
• The whistleblower is perceived as a traitor,
as someone who has damage the firm -
the working family to which he/she
belongs.
 CRITERIA FOR JUSTIFIABLE
WHISTLEBLOWING:
• The firm through its product or policy will do
serious and considerable harm to the public.
• Once an employee identifies a serious threat
he should report it superior and make his
moral concern known. Unless he or she does
so, the act of Whistle blowing is not
justifiable.
• If superior does nothing effective, the
employee should take the matter up the
managerial ladder.
• Whistleblower must have accessible
documented evidence that would convince
a reasonable, impartial observer.
• The employee must have good reason to
believe that by going public the necessary
changes will be brought about.
• Morally justifiable whistle-blowing are
easier, safer and more efficacious.
 Certain issues for whistleblowing
• Violation of any law or regulations, including but not limited to
corruption, bribery, theft, fraud, coercion and willful omission.
• Pass back of Commission/benefit or conflict of interest.
• Procurement frauds.
• Mismanagement, Gross wastage or misappropriation of
company funds/assets.
• Manipulation of Company data/records.
• Stealing cash/company assets; leaking confidential or
proprietary information.
• Unofficial use of Company’s material/human assets.
• Activities violating Company policies including Code of Ethics
and Conduct.
• A substantial and specific danger to public health and safety.
• An abuse of authority.
• An act of discrimination or sexual harassment.
The above list is only illustrative and should not be considered as
exhaustive.
 Whistleblowing in East & West
• Whistleblowers are murdered or victimised.

• Whistleblowers Protection Act of 1989, U.S.

 Public interest disclosure by federal employees.

• Sarbanes-Oxley Act of 2002, U.S.

 Legal protection to whistle blowers in publicly traded companies.

• Public Interest Disclosure Act of 1998, U.K

Clause 49 of the Listing Agreement between
listed companies and the Stock Exchanges has
been recently amended which, inter alia,
provides for a non-mandatory requirement for
all listed companies to establish a mechanism
called 'Whistle Blower Policy' for employees to
report to the management instances of
unethical behaviour, actual or suspected, fraud
or violation of the Company's code of conduct
or ethics policy.
 WHISTLE BLOWER POLICY
• The Whistle Blower policy is for elimination
of malpractices in the system.
• To report for:
– Violation of a Law or Regulation by the
Company.
– Financial Malpractices
– A danger to public health or safety
• PURPOSE
– To report to the management about violation
of the company’s policy
– To build and strengthen a culture of
transparency and trust in the organization.
– To disclose alleged wrongful conduct to the
team members of the whistle blower policy
• APPLICABILITY
– employees & ex-employees of different dept.
• MAKING A DISCLOSURE
– Either through phone or written
communication, complete with related
evidence.
• DISCLOSURE INVESTIGATION
Ascertaining the correctness and trueness of the
complaint & recommending necessary corrective
measures as follows:
i) Closing the complaint if wrongful conduct remains
largely unsubstantiated.
ii) If the complaint found correct on investigation,
action against concerned persons suggested.
iii) To overcome system weakness/making it more
stringent recommending installation of other
policies, codes or procedures.
iv) Management takes appropriate action
immediately.
• CONFIDENTIALITY
– Disclosure of wrongful conduct may be submitted on
a confidential basis or anonymously and will be kept
confidential.
• PROTECTION AGAINST VICTIMIZATION.
– No adverse action shall be taken against an
employee or business associate in “knowing
retaliation” who makes any good-faith disclosure of
suspect or wrongful conduct.
Whistle Blower Policy for Tata Companies
1. Preface
2. Definitions
3. Scope
4. Eligibility
5. Disqualifications
6. Procedure
7. Investigation
8. Protection
9. Investigators
10. Decision
11. Reporting
12. Retention of documents
13. Amendment
• Preface
Reporting Concerns
“Every employee of a Tata Company shall
promptly report to the management any
actual or possible violation of the Code or
an event he becomes aware of that could
affect the business or reputation of his or
any other Tata Company.”
 Scope
Whistle Blowers should not act on their
own in conducting any investigative
activities, nor do they have a right to
participate in any investigative activities
other than as requested by the Ethics
Counsellor or the Audit Committee or the
Investigators.
• Disqualifications
Whistle Blowers, who make three or more
Protected Disclosures, which have been
subsequently found to be mala fide,
frivolous, baseless, malicious, or reported
otherwise than in good faith, will be
disqualified from reporting further
Protected Disclosures under this Policy. In
respect of such Whistle Blowers, the
Company/Audit Committee would reserve
its right to take/recommend appropriate
disciplinary action.
Protection
• The Company will take steps to minimize
difficulties, which the Whistle Blower may
experience as a result of making the Protected
Disclosure. Thus, if the Whistle Blower is
required to give evidence in criminal or
disciplinary proceedings, the Company will
arrange for the Whistle Blower to receive advice
about the procedure, etc.
• Any other Employee assisting in the said
investigation shall also be protected to the same
extent as the Whistle Blower.
• Decision
If an investigation leads the Audit
Committee to conclude that an improper or
unethical act has been committed, the
Audit Committee shall direct the
management of the Company to take such
disciplinary or corrective action as the
Audit Committee deems fit
 Examples of whistleblowers:
• Satyendra Dubey – NHAI
• S.D.Shinde – MbPT
• Arun Bhatia - IAS
 S.D. Shinde
“The officer is
very sincere
but extra
inquisitive”.
-An entry in annual
confidential report (ACR)
 Noteworthy disclosures and
instances of victimisation
• Exposed pilferage of imported oil between 1994
and 1997.
• Reported theft of chemicals (tetracycline) to the
police in 1997
• Blew the cover on illegal clearance of ship-
stores & other materials from foreign going
vessels using forged documents.
• Discovered and reported a case of fraud in
1998, relating to import of machinery worth Rs.6
crores, involving undeclared & excess cargo.
• Caught Shri Sayyed Karim, red-handed, while
trying to sneak out 150 gold bars valued at about
Rs.70 lacs in 1999.

• Submitted confidential reports about illegal

encroachment in MbPT premises.
• In early 2003, he was chargesheeted on frivolous
grounds such as for assisting customs & CBI (in
violation of Customs Act, CVC Manual & Major
Port Trusts Act) by his corrupt superiors in MbPT)
& suspended in November, 2003.
• In July, 2004 another frivolous chargesheet was
issued to him.
• In February 2005, Shri S.D.Shinde submitted a
well researched report on increase in theft &
smuggling activities in the port area.
• 5 FIRs were registered as a consequence of this
report and another subsequent report by an
importers’ association about short landing in 14
containers.
• As a result conspiracy was hatched against Shri
S.D.Shinde by those very crooks who were
involved in these thefts, with the connivance of
other corrupt MbPT and police officials.
He was not responsible for guarding the
area where the thefts occurred since he
was posted as a security incharge of
MbPT hospital till he was arrested.

He was booked as a chief conspirator as a

result of which his anticipatory bail was
denied and he was falsely arrested &
chargesheeted.
 Arun Bhatia
“InIndia, you
cannot fulfill your
mandate by not
confronting the
system. Honesty
means to enforce
honesty in the
system”.
- In interview to virtualpune.com
• Transfer is an instrument not only of
harassment but also of silencing protest
within the system.

• In 26 years of service (excluding the

training period and service in the UN),
Bhatia was removed from his post
(transferred) 26 times.
 Corruption & mismanagement
detected & addressed
• 1972 – CEO, ZP, Osmanabad
– Political transfers and victimisation of school
teachers.

– Illegal sanctioning of works not prosecuting

village, misappropriating public funds etc.

– Transferred within a year.

• 1982 – Collector, Dhule
– Filed 42 cases against officials of various
departments for corruption in the Employment
Guarantee Scheme.
– Transferred after a year violating the
recommendation of the High Powered
Legislature Committee appointed to report on
the corruption.
• 1984 – Collector, Mumbai city
– Detected and reported corruption in the
implementation of the Urban Land Ceiling Act.
– Detected illegal construction and lodged
police cases against builders in respect of FSI
violations.
 – Departmental enquiry started against Bhatia
for making allegations against senior officers.

– Promotion was denied and Bhatia went to

court, defeated the government, and obtained
his promotion in 1991.

• 1993 Commissioner, FDA,Maharashtra.

– Took action against Glaxo for recycling of
rejected drugs from their factory.

– Was abruptly and prematurely transferred.

• 1997-98 Commissioner, Pune Division.
– Dismissal of Talathis & Circle officers.

– Irregularity in the Irrigation department.

Fake evaluation report.
Issue of work orders without opening of
tenders.
Allotment of excess work.
• 1999 - Commissioner, PMC.
– Dissolution of PMC - Illegal recruitment of
staff by politicians.

– Stopped selective demolition and demolished

illegal buildings of influential persons.

– FIR against the Chief Secretary for corruption.

– Transferred from the PMC after 7 days, the

citizens went to the High Court, defeated the
govt. and had the transfer cancelled.
 RECOMMENDATIONS
• Clause 49 of the listing agreement should make
“Whistle blower policy” mandatory.
• Authorities similar to CVC at the State level.
• Jurisdiction of authority to include Prime Minister
and the Chief Ministers.
• Whistleblower protection for IAS & IPS officers .
• A superior who does not act even when an
irregularity is brought to his notice by a
subordinate be held accountable.
• Guardian authority should protect whistleblowers
from formal & informal retaliatory measures.
• Scandalised public servant should not have to
exhaust all the innumerable hierarchical levels
within government or wait indefinitely for these
level to respond.
• Gagging clause of the employment contract
should be declared void in respect of public
interest disclosure.
 Honesty is the first chapter in
the Book of wisdom --

Let it be our endeavor to merit

the character of a just nation