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Challenges of Corruption

Last updated on November 16, 2023 by ClearIAS Team

Corruption is defined as the abuse of entrusted power for private gain. There are several challenges and impacts associated with corruption.

India ranked 85th out of 180 countries (score 40) in Corruption Perceptions Index (CPI) 2021, released by Transparency International, which measures the corruption level of a country’s public sector.

Table of Contents

Why Corruption is Unhealthy?

Corruption destroys morale, undermines democracy, represses economic growth, and makes inequality, poverty, social division, and the environmental problem worse.

Causes of Corruption

Before learning about the challenges and impacts of corruption, let’s understand what are the causes of corruption. According to a survey conducted in 2017, the following factors have been attributed as causes of corruption:

• Higher levels of bureaucracy and inefficiency in administrative structures
• Weak property rights
• Low levels of education
• Lack of commitment to society
• Extravagant family
• Low press freedom
• Low economic freedom
• Large ethnic divisions and high levels of in-group favoritism
• The greed of money, and desires.
• Higher levels of market and political monopolization
• Low levels of democracy
• Weak civil participation
• Low political transparency
• Gender inequality
• Contagion from corrupt neighboring countries
• Political instability
• Unemployment
• Lack of proper policies against corruption

Impacts of Corruption

Corruption has a wide-ranging impact on organizations, individuals, and communities as well.

Hampering Sustainable Development Goals

The achievement of the Sustainable Development Goals of the United Nations is hampered by corruption. The SDGs are comprehensive, therefore it is not surprising that corruption might undermine them.

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Countries that lack the capacity to govern effectively are unable to end poverty, eradicate hunger, provide their population with high-quality healthcare and education, ensure gender equality and other human rights, lower inequality, and other goals.

To be more precise,  Goal 16 of the SDGs which is “Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels,”, which is highly relevant, is difficult to achieve if corruption in public services persists.

In addition, resolutions passed by the Conference of the States Parties to UNCAC have consistently stressed the connection between corruption and sustainable development. Therefore, if the global community is serious about achieving the SDGs, it must recognize corruption as a barrier to their achievement and strengthen its anti-corruption measures.

Inefficiency and Economic Loss

Although it is challenging to find precise figures for the economic consequences of corruption, International Monetary Fund (IMF) research from 2016 indicated that the cost of bribery alone varies from $1.5 to $2 trillion annually.

This amounts to an overall economic loss of about 2% of the world’s GDP.

However, it does not account for the financial costs associated with all other types of corruption. In developing nations, corruption may contribute to underdevelopment.

According to a report published by Transparency International, “The Impact of Corruption on Growth and Inequality”, At the macro level, research generally shows that corruption has a detrimental, direct effect on economic development and growth.

Additionally, corruption has an indirect impact on a country’s economic performance by influencing a number of variables that spur economic growth, including investment, taxation, public spending level, composition, and effectiveness.

Rigged Political System

Citizens who uphold high moral standards lose representation, influence, and power.

The World Bank  (2019) estimates that more than 50% of people in the oil-rich country live in extreme poverty. This illustration demonstrates how wealth redistribution occurs when corrupt players use the political and economic systems to their advantage.

Corruption makes it possible for party officials, bureaucrats, and contractors to use funds allocated for elections, health care, education, and poverty assistance as a means of personal gain. As a result, social programs, and political systems’ potential for redistribution degrade.

Violation of Human Rights

The Office of the High Commissioner for Human Rights (OHCHR) of the United Nations has recently attracted attention to important connections between corruption and human rights violations.

Corruption itself reduces the capacity of the State to address violations of civil and political rights and to enact the necessary safeguards, including socioeconomic rights, which frequently call for complex government initiatives.

Dysfunctioning of Public and Private Sector

Dysfunction is the result of several corrupt actions added together. The quality of products and services declines, whether they are provided by the public or private sectors, and accessing them becomes more expensive, time-consuming, and unfair.

Instead of promoting innovation and efficiency, state-owned organizations and sectors are designed to benefit government officials. In organizations, this may result in the loss of intrinsic motivation.  People start to question the worth of effort and innovation.

Partial Justice

People can no longer trust judges and prosecutors to do their jobs when corruption penetrates the legal system.

Citizens may be falsely accused of crimes, denied due process, and wrongfully imprisoned, especially those who lack finances or strong allies.

Organized Crime and Terrorism

Because money can be laundered, funding can be hidden, and judges and politicians can be bribed, nefarious parts of society can flourish. As levels of intimidation rise, so do levels of violence, illicit drug use, prostitution, and sexual slavery.

In addition to being the result of corruption, organized crime can also be brought about by corrupt opportunities created by a weak, ignorant, or inefficient government.

Failure in Infrastructure

It is a well-known fact that the Mafia uses the construction sector as a means of money laundering and a major source of earnings.

Buildings that are fundamentally hazardous are present everywhere throughout the country as a result of obvious violations of land-use and permission restrictions, purportedly accomplished by bribery, favoritism, and influence-peddling.

Damage to Climate and Biodiversity

Funding and measures to combat climate change are hampered by corruption, which is a challenge that undermines programs to conserve forests and manage them sustainably. It also encourages wildlife-related crimes.

Measures to Combat Corruption

The government of India is committed to “Zero Tolerance Against Corruption” and has taken several measures to combat the challenges associated with corruption which include:

Systemic reforms to provide transparency in citizen-friendly services to reduce corruption. That includes:

• The direct and transparent distribution of welfare benefits to citizens under various government programs through the Direct Benefit Transfer project.
• E-tendering is in public procurement.
• Introduction of e-Government and simplification of processes and systems
• Introduction of the Government e-Marketplace (GeM) for government procurement.
• Discontinuation of interviews in the recruitment of Group ‘B’ (Non-Gazetted) and Group ‘C’ posts in the Government Departments.
• The Central Civil Services (Classification, Control, and Appeal) Rules and the All India Services (Disciplinary and Appeal) Rules have both been revised to provide precise timelines for disciplinary processes.
• The Prevention of Corruption Act, 1988 has been amended to clearly criminalizes the act of giving bribe.
• Through a number of decrees and circulars, the Central Vigilance Commission (CVC) encouraged all organizations involved in significant procurement activities to establish an Integrity Pact in order to ensure an effective and prompt inquiry whenever any irregularity or misconduct is identified.
• Under the 1988 Prevention of Corruption Act, Lokpal is legally required to receive and handle complaints about alleged offenses against public employees.
• The Right to Information (RTI) Act was passed in 2005 to establish a practical framework for the right to information, allowing citizens to secure access to data that is under the control of public authorities.

Read:  Corruption in Civil Services

Article Written By: Priti Raj

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Philosophy (Optional) Notes & Mind Maps

1. plato and aristotle: ideas; substance; form and matter; causation; actuality and potentiality.

• 1.2 Plato's Understanding of Substance
• 1.3 Aristotle's Philosophy of Form and Matter
• 1.4 Aristotle's Theory of Substance
• 1.5 Plato's View on Causation
• 1.6 Aristotle's Four Causes
• 1.7 Actuality and Potentiality in Aristotle's Philosophy
• 1.8 Comparative Analysis of Plato and Aristotle's Philosophies
• 2. The Foundations of Rationalism: Method, Substance, God, and Mind-Body Dualism 2.1 Rationalism (Descartes, Spinoza, Leibniz)
• 2.2 Cartesian Method and Certain Knowledge
• 2.3 Substance (Aristotle, Descartes, Spinoza, Leibniz)
• 2.4 Philosophy of God (Descartes, Spinoza, and Leibniz)
• 2.5 Mind-Body Dualism
• 2.6 Determinism and Freedom (Descartes, Spinoza, Leibniz)
• 3. Empiricism (Locke, Berkeley, Hume) 3.1 Introduction to Empiricism
• 3.2.1 John Locke's empiricism
• 3.2.2 George Berkeley's idealism
• 3.2.3 David Hume's Skepticism
• 3.3 Substance and Qualities (Locke, Berkeley, Hume)
• 3.4 Self and God (Locke, Berkeley, Hume)
• 3.5 Scepticism (Locke, Berkeley, and Hume)
• 4. Kant 4.1 Introduction to Kant's Philosophy
• 4.2 Kant: The Possibility of Synthetic a priori Judgments
• 4.3 Kant's Space and Time
• 4.4 Kant's Categories
• 4.5 Kant's Ideas of Reason
• 4.6 Kant's Antinomies
• 4.7 Kant's Critique of Proofs for the Existence of God
• 5. Hegel 5.1 Hegel: Dialectical Method; Absolute Idealism
• 6. Moore, Russell, and Early Wittgenstein 6.1 Defence of Commonsense (Moore, Russell, and Early Wittgenstein)
• 6.2 Refutation of Idealism (Moore, Russell, and Early Wittgenstein)
• 6.3 Logical Atomism (Moore, Russell, and Early Wittgenstein)
• 6.4 Logical Constructions (Moore, Russell, and Early Wittgenstein)
• 6.5 Incomplete Symbols (Moore, Russell, and Early Wittgenstein)
• 6.6 Picture Theory of Meaning (Moore, Russell, and Early Wittgenstein)
• 6.7 Saying and Showing (Moore, Russell, and Early Wittgenstein)
• 7. Logical Positivism 7.1 Verification Theory of Meaning
• 7.2 Rejection of Metaphysics
• 7.3 Linguistic Theory of Necessary Propositions
• 8. Later Wittgenstein 8.1 Meaning and Use (Later Wittgenstein)
• 8.2 Language-games (Later Wittgenstein)
• 8.3 Critique of Private Language (Later Wittgenstein)
• 9. Phenomenology (Husserl) 9.1 Method - Phenomenology (Husserl)
• 9.2 Theory of Essences - Phenomenology (Husserl)
• 9.3 Avoidance of Psychologism - Phenomenology (Husserl)
• 10. Existentialism (Kierkegaard, Sartre, Heidegger) 10.1 Existence and Essence
• 10.2 Choice, Responsibility and Authentic Existence
• 10.3 Being–in–the–world and Temporality
• 11. Quine and Strawson 11.1 Critique of Empiricism (Quine and Strawson)
• 11.2 Theory of Basic Particulars and Persons (Quine and Strawson)
• 12. Cârvâka 12.1 Cârvâka: Theory of Knowledge
• 12.2 Cârvâka: Rejection of Transcendent Entities
• 13. Jainism 13.1 Jainism: Theory of Reality
• 13.2 Jainism: Saptabhaòginaya
• 14. Schools of Buddhism 14.1 Pratîtyasamutpâda (Schools of Buddhism)
• 14.2 Ksanikavada (Schools of Buddhism)
• 14.3 Nairâtmyavâda (Schools of Buddhism)
• 15. Nyāya-Vaiśeṣika 15.1 Theory of Categories (Nyāya-Vaiśeṣika)
• 15.2 Theory of Appearance (Nyâya-Vaiśeṣika)
• 15.3 Theory of Pramâna (Nyâya-Vaiśeṣika)
• 15.4 Self, Liberation, God, Proofs for the Existence of God (Nyâya-Vaiśeṣika)
• 15.5 Theory of Causation & Atomistic Theory of Creation (Nyâya-Vaiśeṣika)
• 16. Sâmkhya 16.1 Prakrti (Sâmkhya)
• 16.2 Purusa (Sâmkhya)
• 16.3 Causation (Sâmkhya)
• 16.4 Liberation (Sâmkhya)
• 17. Yoga 17.1 Introduction to Yoga Philosophy
• 17.2 Citta (Yoga)
• 17.3 Cittavrtti (Yoga)
• 17.4 Klesas (Yoga)
• 17.5 Samadhi (Yoga)
• 17.6 Kaivalya (Yoga)
• 18. Mimâmsâ 18.1 Mimâmsâ: Theory of Knowledge
• 19. Schools of Vedânta 19.1 Brahman (Schools of Vedânta)
• 19.2 Îúvara (Schools of Vedânta)
• 19.3 Âtman (Schools of Vedânta)
• 19.4 Jiva (Schools of Vedânta)
• 19.5 Jagat (Schools of Vedânta)
• 19.6 Mâyâ (Schools of Vedânta)
• 19.7 Avidyâ (Schools of Vedanta)
• 19.8 Adhyâsa (Schools of Vedanta)
• 19.9 Moksa (Schools of Vedanta)
• 19.10 Aprthaksiddhi (Schools of Vedanta)
• 19.11 Pancavidhabheda (Schools of Vedanta)
• 20. Aurobindo 20.1 Aurobindo: Evolution
• 20.2 Aurobindo: Involution
• 20.3 Aurobindo: Integral Yoga
• 21. Socio-Political Ideals 21.1 Equality (Social and Political Ideals)
• 21.2 Justice (Social and Political Ideals)
• 21.3 Liberty (Social and Political Ideals)
• 22. Sovereignty 22. Sovereignty: Austin, Bodin, Laski, Kautilya
• 23. Individual and State 23.1 Rights (Individual and State)
• 23.2 Duties (Individual and State)
• 23.3 Accountability (Individual and State)
• 24. Forms of Government 24.1 Monarchy (Forms of Government)
• 24.2 Theocracy (Forms of Government)
• 24.3 Democracy (Forms of Government)
• 25. Political Ideologies 25.1 Anarchism (Political Ideologies)
• 25.2 Marxism (Political Ideologies)
• 25.3 Socialism (Political Ideologies)
• 26. Humanism; Secularism; Multiculturalism 26.1 Humanism
• 26.2 Secularism
• 26.3 Multiculturalism
• 27. Crime and Punishment 27.1 Corruption
• 27.2 Mass Violence
• 27.3 Genocide
• 27.4 Capital Punishment
• 28. Development and Social Progress 28. Development and Social Progress
• 29. Gender Discrimination 29.1 Female Foeticide
• 29.2 Land, and Property Rights
• 29.3 Empowerment
• 30. Caste Discrimination 30.1 Gandhi (Caste Discrimination)
• 30.2 Ambedkar (Caste Discrimination)
• Philosophy of Religion 31. Notions of God: Attributes; Relation to Man and the World (Indian and Western)
• 32. Proofs for the Existence of God and their Critique (Indian and Western)
• 33. The problem of Evil
• 34. Soul: Immortality; Rebirth and Liberation
• 35. Reason, Revelation, and Faith
• 36. Religious Experience: Nature and Object (Indian and Western)
• 37. Religion without God
• 38. Religion and Morality
• 39. Religious Pluralism and the Problem of Absolute Truth
• 40. Nature of Religious Language: Analogical and Symbolic
• 41. Nature of Religious Language: Cognitivist and Noncognitive

27.1 Corruption

I. introduction – defining corruption, nature and characteristics of corruption.

• Corruption , at its core, is the abuse of power or position for personal gain. It can manifest in various forms, from bribery to embezzlement, and affects public and private sectors alike.
• It disrupts the social order, exacerbates inequality , and hinders development.
• It’s not just confined to financial gains but can also involve non-monetary benefits like influence, status, or information.
• Corruption can be systemic, where it’s entrenched in an entire system or institution, or isolated, where it’s limited to individual cases.

Historical Perspectives on Corruption

• The history of corruption dates back to ancient civilizations. For instance, ancient texts like Arthashastra by Kautilya have references to corrupt practices and ways to counteract them.
• During the medieval period, corruption was evident in the form of nepotism in royal courts and fraudulent practices in trade.
• The colonial period, particularly in India, saw corruption in the form of bureaucratic red tape, and exploitation by officials.
• Post-independence, many nations, including India in 1947, grappled with the challenges of setting up transparent institutions amidst rampant corrupt practices.

Societal Perceptions of Corruption

• Societal perceptions vary across regions and cultures. While some societies may view minor bribes as a necessary evil for smoother processes, others might view them as an outright moral and ethical violation.
• In countries like India, societal norms and pressures sometimes contribute to corruption. For instance, the need to provide lavish weddings can sometimes lead individuals to seek illicit means of income.
• The public often views high-level corruption, especially in politics, as a significant deterrent to progress. The 2G spectrum case and Coal allocation scam in India serve as examples.
• Grassroot movements, like India Against Corruption in 2011, highlight societal intolerance towards corrupt practices.

Philosophical Underpinnings: The Ethical Dilemma of Corruption

• Philosophically, corruption strikes at the heart of ethics and morality.
• From a utilitarian viewpoint, if corruption results in greater overall happiness for the majority, could it ever be justified? This is juxtaposed against the harm it brings to many.
• The deontological perspective considers the act itself rather than the outcome. In this view, corruption, being dishonest, is inherently wrong.
• Relativism introduces the idea that morality can vary between societies. What’s deemed corrupt in one society might be viewed as acceptable in another due to cultural, historical, or social differences.

The Spectrum of Corruption: Petty to Grand Corruption

• Petty Corruption : These are small-scale corrupt practices usually encountered in daily life. Examples include paying a bribe to hasten a license process or to avoid a fine.
• Grand Corruption : This involves significant amounts of money, often at higher levels of government or large corporations. For example, scams involving allocation of natural resources or defense deals.
• Comparing Petty and Grand Corruption:

• The impact of corruption, whether petty or grand, invariably trickles down, affecting the most vulnerable sections of society the most.

II. The Ethical Dimensions of Corruption

Ethical theories and corruption.

Corruption has always been under the microscope of various ethical theories, each offering a unique lens to evaluate its implications. A thorough grasp of these theories is essential to understand the multifaceted ethical dimensions of corruption, especially in a diverse country like India, where cultural nuances can often redefine the lines of morality.

Utilitarian Perspective on Corruption: The Greater Good and The Lesser Evil

• Utilitarianism, founded by thinkers like Jeremy Bentham and John Stuart Mill , is based on the principle of the “greatest good for the greatest number.”
• Under this lens, corruption would be evaluated based on its outcomes rather than the act itself.
• For instance, if a corrupt act led to a greater societal benefit (like faster infrastructural development), it might be viewed as justified under a utilitarian perspective.
• However, it’s essential to account for the hidden costs of corruption, such as mistrust in institutions or long-term societal harm.
• An example in India would be the debate around facilitating certain projects by overlooking environmental regulations, arguing it would boost local economy and employment.

Deontological Perspective: The Inherent Wrongness of Corrupt Practices

• Deontology, championed by philosophers like Immanuel Kant , is rooted in the idea that some actions are inherently right or wrong, regardless of their outcomes.
• From a deontological standpoint, corruption is wrong because it involves dishonesty, deceit, and a breach of duty, irrespective of the consequences.
• For example, accepting a bribe is wrong in itself, even if it leads to a seemingly positive outcome.
• It promotes the idea of duty and obligation over any potential benefits derived from corrupt acts.

Virtue Ethics: The Degradation of Individual Character

• Aristotle was a significant proponent of virtue ethics, which emphasizes the importance of moral character.
• Corruption, when viewed through the prism of virtue ethics, is a degradation of one’s moral character.
• It isn’t just the act, but the transformation of an individual’s character that is of concern.
• Corrupt acts signify a lack of virtues like honesty, integrity, and honor.
• For instance, an officer in India misusing his authority for personal gain not only commits an unethical act but also showcases a lack of virtue in his character.

Relativism: Cultural Variations and Definitions of Corruption

• Ethical relativism posits that moral values and the definition of right and wrong can vary across cultures.
• What might be considered corrupt in one culture or society might be seen as acceptable or even virtuous in another.
• In some Indian communities, gifting officials on specific occasions isn’t viewed as bribery but as a mark of respect. However, this can be perceived differently in another culture or even within different sectors of Indian society.
• While relativism can explain the variations in perceptions, it also poses challenges in establishing a universal code against corruption.

Social Contract Theory: Corruption as a Breach of Societal Trust

• Rooted in the ideas of Jean-Jacques Rousseau , John Locke , and Thomas Hobbes , the social contract theory considers society as a contract between individuals and the governing body.
• Corruption is seen as a breach of this contract. When officials or individuals engage in corrupt practices, they break the trust placed in them by the society.
• The society, in return for giving up certain freedoms, expects fairness, justice, and transparency. Corruption undermines these expectations.
• In the Indian context, major scams or instances of corruption lead to public outrage, not just because of the monetary loss, but due to the betrayal of the societal contract.

III. Sociological and Psychological Underpinnings of Corruption

Sociological roots of corruption.

• Socio-economic Factors : The disparities in wealth and resources, especially in developing nations like India, can be significant drivers of corruption. In regions where there are stark income inequalities, the urge to climb the socio-economic ladder might tempt individuals to engage in corrupt practices. The famous Nirav Modi scam in India in 2018 is an example where socio-economic ambitions led to massive financial fraud.
• Power Dynamics and Hierarchies : Hierarchical systems, whether in corporations or public offices, can create environments conducive to corruption. In such settings, those in superior positions may exploit their authority for personal gain, while those in subordinate roles might resort to corrupt means to ascend the ladder. The coal allocation scandal in India is a testament to how power dynamics can facilitate corruption.
• Groupthink and Collective Corruption : Corruption is not always an individual act. Sometimes, an entire group can collectively engage in corrupt practices due to prevailing group norms and pressures. This groupthink can be particularly prevalent in closed and opaque institutions.
• Role of Institutional Design and Structure : Institutions that lack transparency, accountability, and proper oversight are more prone to corruption. In India, the push for the Right to Information Act (2005) was driven by the need to make institutions more transparent and accountable.
• Social Networks and Corruption : Social and professional networks can play a dual role. While they can foster opportunities and growth, they might also become hubs for corrupt practices. For instance, cartels and syndicates that fix prices and create artificial supply shortages are often formed within tight-knit business networks.
• Anomie Theory : Proposed by the sociologist Émile Durkheim , anomie refers to a societal condition in which there’s a breakdown of social norms and values. This breakdown can lead to increased corruption as individuals feel less bound by societal rules and more driven by personal desires.

Psychological Causes of Corruption

• Cognitive Dissonance in Corrupt Individuals : This refers to the mental discomfort experienced by individuals when they hold two conflicting beliefs or values. For instance, a public servant might believe in public welfare but might also want to secure his family’s future, leading him to accept bribes.
• Moral Disengagement : Individuals, when involved in corrupt acts, often find ways to justify their actions. They might downplay the consequences, dehumanize the victims, or even shift the blame to circumvent the moral consequences of their deeds.
• Psychological Rewards : Corruption is not just driven by material gains. The psychological rewards such as a sense of power, control over others, and the thrill of outsmarting the system can be potent motivators. The rise and fall of several powerful politicians and business tycoons in India, like Vijay Mallya , highlight the allure of these psychological rewards.
• Egoism : Rooted in the belief that one’s self-interest should be the top priority, egoism can be a significant driver of corruption. An individual’s pursuit of personal gain, even at the cost of societal welfare, exemplifies egoistic tendencies.

IV. Corruption and the State

State functioning and corruption.

• State Institutions Compromise : The very pillars that uphold a state, such as the judiciary, legislative, and executive, can be affected by corruption. This undermines their credibility and hampers their effective functioning. In India, there have been instances where officials from key institutions have faced allegations of bribery and misconduct.
• Impact on Governance and Democracy : Corruption leads to misallocation of resources, inefficiencies, and impediments in policy implementation. It distorts the democratic fabric by suppressing the voice of the marginalized and promotes unequal distribution of power and resources. The 2G spectrum scandal in India is an example where misallocation led to massive losses for the exchequer.
• Public Corruption : Involves misuse of official position or resources by public officials. This can range from embezzling funds, favoritism in awarding contracts, or bribery.
• Private Corruption : Refers to misconduct within private enterprises. This can include corporate frauds, cartels, and monopolistic behaviors. An example is the Satyam scandal, where financial irregularities within a private firm came to light.

Comparing Corrupt States

Different states experience varying degrees and types of corruption based on their political and economic structures.

• Failed States : Largely characterized by a complete breakdown in governance and rule of law. These states often lack effective institutions, and corruption is rampant.
• Kleptocracies : Rule by thieves. The ruling class is primarily interested in personal wealth accumulation at the state’s expense.
• Autocracies : These are states where power resides in a single individual or a small group, often leading to unchecked corruption.

Political Corruption

• Lobbying : Influencing policymakers or legislators in favor of specific interests. While lobbying can be legitimate, it sometimes crosses ethical boundaries, especially when done secretly without transparency.
• Campaign Financing : It’s the funding source for political campaigns. Problems arise when undisclosed donations influence policy decisions, undermining democratic values. The electoral bonds scheme in India has raised concerns about anonymous donations.
• Backdoor Deals : These are secret agreements or understandings between politicians and entities (like businesses) that may not always align with public interest. Often, they circumvent regular procedures to favor certain parties.

Bribery and Public Officials

• The Slippery Slope : Accepting bribes, even if small, can lead to a cycle of increasing corruption. The initial justification might be trivial, but it creates a vulnerability that can be exploited later.
• Consequences : Apart from legal implications, it erodes trust in public institutions, making governance inefficient. Moreover, it demotivates honest officials, creating an environment where corruption becomes the norm.

V. Economic Perspectives on Corruption

The cost of corruption: how economies are impacted.

• Corruption, a pervasive issue, significantly influences economies, leading to negative repercussions.
• Countries grappling with corruption witness stunted economic growth and weakened institutional structures.
• The overall economic health deteriorates due to a decline in foreign direct investments caused by the unreliability and unpredictability of the market environment.
• Example : Nigeria, despite being abundant in natural resources, struggles with economic growth due to entrenched corruption.

Corruption as an Economic Drain: Lost Revenues, Inflated Costs, and Reduced Investments

• Example : The black money issue in India, where untaxed money siphoned from the economy undermines the government’s revenue.
• Example : The Commonwealth Games 2010 held in India faced allegations of inflated costs due to corrupt practices.
• Investors fear that corrupt environments might not safeguard their investments or offer predictable returns.

Shadow Economies and Their Relation to Corruption

• Shadow economies, also known as informal or underground economies, operate outside official regulations or governmental oversight.
• Example : In certain regions of India, real estate transactions often involve a significant portion of unaccounted money, leading to a parallel shadow economy.
• These economies contribute to a substantial loss in governmental revenues and can distort official economic metrics, making policymaking challenging.

Corruption and Economic Inequality

• Economic inequality escalates in corruption-plagued societies.
• The wealthy and powerful, with their means to offer bribes, often benefit disproportionately, further widening the wealth gap.
• Those at the lower economic strata find it challenging to break out of poverty cycles, as resources meant for their upliftment might be siphoned off.
• Example : The public distribution system in India, intended to offer subsidized food grains to the needy, has faced instances of grain diversion, resulting in genuine beneficiaries being deprived.

Market Distortions: Monopolies, Cartels, and Crony Capitalism

• Corruption paves the way for market distortions, reducing fair competition and harming consumers.
• Example : Telecom monopolies in certain African nations, achieved through corrupt deals, have led to high call and data rates.
• Example : The cement cartel in India was accused of price-fixing, leading to artificially high prices.
• Such practices not only distort the market but also erode public trust in the system.
• Example : The allocation of coal blocks in India during 2012 raised concerns about crony capitalism due to alleged favoritism in allotment procedures.

VI. Legal Frameworks and Corruption

Laws against corruption: historical evolution.

• Historically, corruption viewed as a societal ill necessitating regulation.
• For example, the Arthashastra by Kautilya, an ancient Indian treatise, touched upon governance and corrupt activities.
• India, during British colonial rule, saw the introduction of various legislations against malpractices.
• Post-independence : Many nations inherited colonial-era laws, later adapting and expanding them.

International Anti-Corruption Conventions and Treaties

• International collaboration is crucial in combating transnational corruption.
• A global framework to combat corruption.
• Emphasizes measures such as asset recovery, international cooperation, and preventive measures.
• Adopted by many nations, including India.
• Focuses on criminalizing bribery of foreign public officials in international transactions.
• Enforced through rigorous peer evaluations.
• Addresses corruption within African countries.
• Stresses on principles of good governance , democracy, and respect for human rights.

National Laws and Their Effectiveness

• Countries have tailored anti-corruption laws suiting local nuances and needs.
• Prevention of Corruption Act (PCA) 1988 : A landmark legislation targeting public officials engaging in corrupt acts.
• Lokpal and Lokayuktas Act 2013 : Established the ombudsman (Lokpal) to inquire into allegations against public functionaries.
• Challenges faced: Implementation gaps, lengthy judicial processes, and issues of political interference.
• Some nations effectively reduce corruption through strict enforcement.
• Others grapple with enforcement challenges, political interference, and public awareness issues.

Whistleblower Protections and Their Importance

• Whistleblowers : Individuals exposing illicit activities within an organization.
• Serve as the first line of defense against corrupt practices.
• Aid in exposing deep-rooted corruption that might otherwise go unnoticed.
• Whistleblowers often face retaliation: job loss, threats, or violence.
• Ensuring safety encourages more individuals to come forward.
• Seeks to protect whistleblowers exposing corruption or willful misuse of power by public officials.
• However, criticisms include lack of a mechanism for anonymous complaints and potential misuse.

Legal Loopholes and Their Exploitation

• Loopholes : Ambiguities or inadequacies in the law that allow individuals to circumvent legal consequences.
• Clever manipulations can lead to corrupt activities escaping legal scrutiny.
• Businesses may engage in unethical practices that aren’t explicitly outlawed.
• The 2G spectrum case, involving alleged underpricing of telecom licenses, highlighted potential legal ambiguities in policy implementation.
• Continuous revision of legal frameworks.
• In-depth analysis of high-profile corruption cases to identify and rectify shortcomings.

VII. Philosophical Arguments for and against Tolerance of Corruption

Defending corruption: realpolitik and the argument for necessary evil.

• Definition: A system of politics based on practical and material factors rather than theoretical or moral considerations.
• Practiced by politicians and leaders who believe in practical solutions over idealistic visions.
• In some situations, bribery and corruption can expedite decision-making processes and stabilize volatile political situations.
• Example: During the Cold War, various nations overlooked internal corruptions to maintain geopolitical alliances.
• Not all corruptions lead to harmful consequences; sometimes, they can achieve greater goods.
• In a system with bureaucratic red-tape, a bribe might speed up essential services.
• Example: In India, small bribes can sometimes expedite processes like obtaining licenses, though it’s ethically debatable.

The Lesser of Two Evils Argument: Stability versus Purity

• A corrupt system might be more stable than a pure one.
• Rooting out corruption suddenly might lead to chaos and societal upheaval.
• Incremental reforms might be preferred over radical purges.
• Example: Some argue that certain African nations maintain political stability through systemic corruption, preventing potential uprisings or civil wars.
• Idealistic stance that believes in zero tolerance for corruption.
• Argues that even if the system destabilizes temporarily, a purer system is worth the initial chaos.
• End goal is a system free from corrupt practices.

Cultural Relativism and the Acceptance of Corruption in Certain Societies

• Definition: The belief that one’s beliefs, values, and practices should be understood based on one’s own culture, rather than be judged against the criteria of another.
• Some societies might view practices, termed corrupt in Western societies, as traditional or customary.
• Gift-giving, for instance, might be a sign of respect in one culture but viewed as bribery in another.
• Example: In India, the tradition of giving gifts during Diwali might be misconstrued as bribery by Western standards, though it’s a cultural norm.

Arguments Against Corruption: The Intrinsic Immorality of Corruption

• Corruption is inherently wrong, regardless of the outcomes or societal norms.
• Corruption erodes trust in the system and is unfair to those who don’t participate in it.
• It undermines the very fabric of society, leading to cynicism and disillusionment.

Corruption as a Violation of Rights

• Every individual has the right to fair treatment and equal opportunities.
• Corruption deprives individuals of these rights, favoring those who can pay over those who can’t.
• It perpetuates inequality and violates the principle of justice.

The Societal Harm Argument

• Even if corruption seems harmless or beneficial in the short term, it has long-term detrimental effects on society.
• Reduces foreign direct investment.
• Erodes trust in public institutions.
• Leads to economic inefficiencies.
• Increases inequality by favoring a select few.
• Example: The coal scam in India not only led to a loss of public funds but also reduced faith in the country’s governance systems.

VIII. Addressing and Combating Corruption

Anti-corruption strategies.

• Involves decision-making from the higher authorities.
• Focuses on institutional reforms and strict regulations.
• Notable examples include regulatory bodies, internal audits, and strict enforcement.
• In India, the Central Vigilance Commission (founded in 1964) acts as an apex body addressing corruption in the government.
• Initiated by the grassroots level or general public.
• Emphasis on empowering communities to challenge corruption.
• Involves whistleblowing, public reporting, and community vigilance.
• The Right to Information Act (2005) in India, allows citizens to demand transparency and hold officials accountable.

The Role of Civil Society and Activism

• Non-governmental organizations and community groups that play a pivotal role in anti-corruption.
• They provide oversight, engage in advocacy, and hold governments accountable.
• Anna Hazare led an anti-corruption movement in India, leading to significant legislative changes.
• Proactive public movements to challenge and address corrupt practices.
• Use tools like protests, campaigns, and media attention.
• The India Against Corruption movement (2011-2012) was instrumental in pushing for the Lokpal and Lokayuktas Act (2013).

Comparing Anti-Corruption Measures Across Nations

Transparency and Accountability Mechanisms

• Programs and regulations that ensure clarity in government operations.
• The use of technology, like e-governance platforms, can aid in transparency.
• India’s Public Procurement Bill (2012) mandates transparent procedures for government procurement.
• Measures ensuring that officials are answerable for their actions.
• External oversight by independent bodies.
• The introduction of performance evaluations and internal checks within government departments.

Education and Awareness Campaigns

• Awareness can act as a preventative measure against corruption.
• Educated citizens are more likely to challenge and report corrupt practices.
• Workshops, seminars, and training sessions.
• Use of media, including social media, for broad outreach.
• Interactive platforms like games, quizzes, and competitions can engage the youth.
• The Vigilance Awareness Week organized annually by the Central Vigilance Commission.
• ‘Bhrashtachar Virodhi’ campaign, focusing on making youth aware of the ill effects of corruption.

IX. Philosophical Implications of Punishing Corruption

Justice and corruption.

• The essence of proportionality is ensuring that the punishment fits the crime.
• In the context of corruption, financial penalties, incarceration, or public shaming might be employed, each calibrated to the severity and impact of the corrupt act.
• For instance, in India, under the Prevention of Corruption Act of 1988, public servants found guilty can face imprisonment from 3 to 7 years depending on the gravity.
• It emphasizes repairing harm and involves offenders, victims, and the community in the healing process.
• In corruption cases, this might entail the corrupt individual compensating victims or communities and participating in anti-corruption initiatives.
• It operates on the principle of “an eye for an eye”, punishing the corrupt proportionally to their wrongs.
• In corruption scenarios, this often means imprisonment, fines, or other punitive measures.
• Some argue that retribution serves as a deterrent, though its effectiveness in curbing corruption is debated.
• Society anticipates that corrupt acts will be punished to maintain social order.
• If corruption goes unpunished, societal trust in institutions may erode.
• This expectation is evident in protests against corruption, like the Indian movement led by Anna Hazare in 2011 demanding the Jan Lokpal Bill.
• Philosophers like Immanuel Kant believed in the categorical imperative, suggesting it’s an intrinsic duty to punish wrongdoing.
• Punishing corruption upholds the moral fabric and ethical standards of society.
• They may control or influence the judiciary, law enforcement, or other mechanisms intended to hold them accountable.
• For instance, in certain nations, political leaders accused of corruption have manipulated legal systems to evade prosecution.
• An example is the Central Bureau of Investigation in India, though it too has faced criticisms and challenges in its autonomy and operations.

X. Case Studies

Contrasting historical cases: corruption in ancient civilizations compared to modern states.

• Egypt : Pharaohs and their administration sometimes indulged in corruption, especially misappropriation of funds meant for large-scale projects like pyramids.
• Rome : Bribing was common in the Roman Republic; politicians often sought votes through gifts or money, known as “Ambitus”.
• Mauryan Empire, India : During the rule of Chandragupta Maurya (around 320 BCE), there were spies to monitor officials and ensure they were not corrupt.
• China : During the Han Dynasty, corruption became widespread, leading to the eventual downfall of the dynasty.
• India : The 2G Spectrum scandal (2008) involved politicians and businessmen in the alleged underpricing of telecom licenses.
• Brazil : The Operation Car Wash (2014) uncovered a massive corruption scheme involving state-controlled oil company Petrobras.
• South Africa : The Gupta family controversy implicated the former president Jacob Zuma in various corruption allegations.
• USA : The Enron scandal (2001) exposed accounting malpractices and corporate fraud, leading to bankruptcy.

High-Profile Cases: Lessons Learned

• Largest financial fraud in U.S. history.
• Importance of regular audits and financial oversight.
• Whistleblowers play a pivotal role in exposing such crimes.
• Fraudulent letters of undertaking were issued from the bank.
• Strengthening of banking regulations.
• Need for rigorous internal and external audits.
• Accusations of bribery and kickbacks for world cup hosting rights.
• Integrity in sports governance is paramount.
• International cooperation can help combat corruption in global organizations.

Countries that Reduced Corruption: Strategies and Outcomes

• Adopted stringent laws and set up Corrupt Practices Investigation Bureau in 1952.
• Zero tolerance for corruption irrespective of position or status.
• Outcome: Consistently ranks among the least corrupt countries in the world.
• Post-genocide, established the Rwanda Revenue Authority (1998) to reform tax collection and reduce corruption.
• Promotion of transparency and accountability.
• Outcome: Significant reduction in corruption and enhanced investor confidence.
• Massive police reform in 2004, dismissing corrupt officers.
• Introduced e-governance to reduce human interference and the scope for bribery.
• Outcome: A sharp decline in petty corruption and improved public services.
• Implementation of the Goods and Services Tax (GST) in 2017 reduced tax evasion.
• Introduction of online services and e-governance minimized face-to-face interactions, reducing opportunities for bribery.
• Outcome: Gradual improvement in Transparency International’s Corruption Perception Index.

XI. Conclusion

Summarizing the philosophical debates.

• Corruption infringes upon the moral fabric of society.
• Every act of corruption compromises individual integrity and challenges ethical standards.
• The role of morality in guiding decision-making processes is evident, with ethical dilemmas central to instances of corrupt behavior.
• Ethics emphasizes the personal responsibility one holds, highlighting the importance of a strong moral compass to prevent corrupt acts.
• Society and its inherent structures play a pivotal role in shaping and influencing corrupt behavior.
• Social norms, values, and societal expectations dictate the acceptance or rejection of corrupt practices.
• Peer influence, cultural dimensions, and societal hierarchies can either suppress or encourage corruption.
• Power dynamics, prevalent in various strata of society, can sometimes be a driving force behind corrupt acts.
• Individual cognitive processes and mental predispositions significantly impact one’s propensity towards corruption.
• Factors such as personal greed, ambition, or perceived inadequacy can be precursors to corrupt behavior.
• The psychological reward system, where immediate gains often overshadow long-term repercussions, can be manipulated to favor corruption.
• Cognitive dissonance, where individuals justify their corrupt acts by reconciling conflicting beliefs, plays a role in perpetuating corrupt behavior.
• The governance mechanisms, legal structures, and political environment within a nation influence the prevalence and type of corruption.
• Robust institutions and transparent governance systems deter corruption by holding individuals accountable.
• On the flip side, fragile state mechanisms can inadvertently encourage corrupt acts by creating loopholes and ambiguities.
• The enforcement of laws and the punitive measures in place act as deterrents, ensuring adherence to state norms and regulations.

The Ongoing Challenge of Corruption in the Global Landscape

• Corruption remains a persistent global challenge, transcending national boundaries and cultures.
• The ramifications of corruption are multifaceted, affecting economic progress, societal trust, and political stability.
• No country is entirely immune; even developed nations grapple with sophisticated forms of corruption.
• Global initiatives, like the United Nations Convention Against Corruption established in 2003, emphasize the universal nature of the challenge and the collective approach required to combat it.
• With globalization and technological advancements, newer forms of corruption emerge, necessitating evolving countermeasures.

The Role of Philosophy in Guiding Future Anti-Corruption Efforts and Understanding the Nature of Corruption

• Philosophy provides a foundational framework for understanding the essence of corruption.
• By delving deep into human nature, societal constructs, and ethical boundaries, philosophy offers a holistic approach to comprehend corruption’s nuances.
• Philosophical discourses aid in shaping anti-corruption policies by embedding moral and ethical considerations into tangible strategies.
• Philosophy reminds us of the timeless nature of the corruption dilemma, drawing parallels from ancient civilizations like the Mauryan Empire in India, where spies were used to monitor officials, to contemporary contexts.
• As society evolves, philosophy will continue to play an instrumental role in guiding reflections on corruption, offering insights, and shaping future strategies to curb it.
• Discuss the psychological causes that lead individuals towards corruption, emphasizing cognitive dissonance and moral disengagement. (250 words)
• Evaluate the arguments both for and against the tolerance of corruption from a philosophical standpoint. (250 words)
• Examine the challenges and effectiveness of national laws and international treaties in combating corruption. (250 words)

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Ethics , Governance

Context: The CBI and Delhi Police’s Economic Offences Wing (EOW) are investigating allegations that the Delhi excise department that allowed a waiver of Rs 144.36 crore to the liquor cartel on the tendered licence fee, and that funds were ‘diverted to public servants’ .

• The CBI has named 15 individuals in its FIR filed in connection with the now-scrapped Delhi excise policy.
• then Delhi Excise Commissioner and two other senior excise department officials were instrumental in recommending and taking decisions pertaining to excise policy for the year 2021-22 without approval of competent authority with an intention to extend undue favours to the licencees post tender.

Corruption in India

“Just as it is impossible not to taste the honey that finds itself in the tip of the tongue, so it is impossible for a government assistant not to eat up, at least a bit of King’s revenue.” – Kautilya

Corruption is dishonest behavior by those in positions of power. It starts with the tendency of using public office for some personal benefit. Moreover, it is unfortunate that corruption has, for many, become a matter of habit. It is so deeply entrenched that corruption is now considered a social norm. Hence, corruption implies the failure of ethics .

Status of corruption in India

• India ranks 85 th rank in corruption perception index of 2021 .
• Country’s score has remained stagnant over the past decade, some of the mechanisms that could help reign in corruption are weakening.
• CPI highlighted that unfair and opaque political financing, undue influence in decision-making and lobbying by powerful corporate interest groups, has resulted in stagnation or decline in the control of corruption.

Causes of corruption

Legacy issues

• Rampant poverty and empty coffers of the government at the dawn of independence leading to chronic low salaries of the government officials
• Pre liberalization license permit raj catered by Monopolies and restrictive trade practices facilitated the corruption.
• The lack of economic freedom led to abuse of the system.
• Necessities of development overshadowed vigilance procedures.

Political system

• Use of black money in elections to win at any cost creates the need for the recovery of that cost through malpractices.
• Election funding is not transparent making it prone to the usage of black money and funding based on quid pro quo.
• It leads to crony capitalism , an unholy nexus between politicians and corporates.
• Criminalization of politics- when the rule-breakers become rule makers, the casualty is the rule of law .

Economic structure

• Low levels of formalization (merely 10%) of the economy breed black money.
• Stringent compliance rules for entry and exit for businesses result in bribery.
• Unequal distribution of wealth – Transparency International data suggests that corruption is directly proportionate to the economic gap in a nation.

Legal lacunae

• Archaic laws like IPC 1860 don’t capture the complexities of administration and lead to the escape of wrongdoers.
• Lacunae in the Lokpal act and delays in the appointments both at the state and central levels
• Dilution of the RTI act and political misuse of CBI and other agencies.

Administrative lacunae

• Loopholes give discretionary powers to the officials making working prone to corruption.
• Lack of resources, funding, infrastructure and manpower in the vigilance institutions.
• Lack of incorporation of standard practices by organizations like Banks, sports organizations which results in multi-billion-rupee scams.
• g. Punjab National Bank scam, commonwealth scam.

Judicial delays

• Lack of protection to good Samaritans
• Targeting of upright and non-corrupt officials and rewards to corrupt officials
• Near non-existent whistleblowers protection

Social problems

• The mindset of the citizenry that doesn’t look at the problems seriously and even accepts it as a necessary part of the system.
• Increasing consumerism in the new middle class that is ready to bribe to get things done.
• Failure of social morality, education system to inculcate the values

Impacts of corruption

Hindrances to developmental process

• Loss of wealth due to corruption and siphoning away of taxpayers’ money leave little to spend in the social sector.
• Corruption in the social sectors like PDS, health and education schemes lead to demographic disadvantage.

Economic loss

• Undermines ease of doing business.
• Corruption in the public services sector carries high risks for conducting good businesses.
• Companies are likely to unwanted red tapes, petty corruption, bribes for finalizing any procedures or deals.
• Wrong allocation policies result in undervaluation of resources like Coal blocks, Hydrocarbon projects, Spectrum allocation. Eg. 2G scam, Coalgate.
• This mismanagement of resources leads to environmental degradation and exploitation.
• Corruption of financial sector officials like Banks, the stock market erodes the strength of the economy. E.g. PNB scam, PMC scam, Harshad Mehta scandal

Social sector losses

• Corruption in government projects targeting poor and vulnerable section of the society increases the economic gap between the rich and the poor
• The corrupt system denies the poor a chance to improve their status rendering them eternally poor

Legal Framework for Fighting Corruption:

• Prevention of Corruption Act, 1988 provides for penalties in relation to corruption by public servants and also for those who are involved in the abetment of an act of corruption.
• Amendment of 2018 criminalised both bribe-taking by public servants as well as bribe giving by any person.
• The Prevention of Money Laundering Act, 2002 aims to prevent instances of money laundering and prohibits use of the ‘proceeds of crime’ in India.
• The Companies Act, 2013 provides for corporate governance and prevention of corruption and fraud in the corporate sector.
• The term ‘fraud’ has been given a broad definition and is a criminal offence under the Companies Act.
• The Indian Penal Code, 1860 sets out provisions which can be interpreted to cover bribery and fraud matters, including offences relating to criminal breach of trust and cheating.
• The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and use of foreign contributions and hospitality by individuals and corporations.

Regulatory Framework:

• The Lokpal and Lokayuktas Act, 2013 provides for an establishment of an ombudsman for the central and state governments (Lokpal and Lokayuktas, respectively).
• These bodies are required to act independently from the government and have been empowered to investigate allegations of corruption against public servants, which include the prime minister and other ministers.
• The Central Vigilance Commission is mandate is to oversee the vigilance administration and to advise and assist the executive in matters relating to corruption.

Way forward

There is a need for windfall reforms in each and every section of the system to fight the menace. Every aspect of governance must be improved for efficiency, economy, and effectiveness .

Electoral reforms

• Imposing limits on the overall expenditure of the political parties .
• Making state funding of elections a reality.
• Empowering ECI by giving legal force to MCC and making paid news a criminal offence.
• Strengthening of autonomous institutions
• Protecting the autonomy of CIC-giving him/her a constitutional status
• Eliminate overlapping of jurisdiction- e.g. Lokpal and CBI

Administrative reforms

• Establishing the Civil Service Board to curb the excessive political control over the administration.
• Conducting periodic sensitivity training for the civil servants.
• Simplifying the disciplinary proceedings and strengthening preventive vigilance within the departments to ensure corrupt civil servant do not occupy the sensitive position.
• Police and judicial reforms – implementation of Prakash Singh recommendations .

Governance reforms

• e-gov apart from advancing the good governance objectives of accountability and transparency also seeks to reduce the manual interface between state and citizen thus preventing the incidences of bribery
• Drives like Digital India projects like Government e-Marketplace must be implemented.
• Enactment of the right to service act. E.g. Rajasthan social accountability bill

Economic reforms

• Negating legal lacunae in banking, stock market legislations.
• Improving corporate governance by implementing corporate governance committee reports
• Formalization of the economy

Social sector improvements

• Awareness of citizenry by training them in RTI act, Citizens charter, social audits .
• Increasing democratization of the masses .
• Curriculum reforms to inculcate values even in higher education by which youngsters acquire high standards of ethical mindset.

Integrity, transparency, and fight against corruption have to be part of the culture. They must be thought of as fundamental values of the society we live in. In India, some recent anti-corruption initiatives have been taken. For example, various Supreme Court’s ruling in pursuit of curbing criminalization of politics, many e-governance initiatives will improve transparency and accountability. These measures are indeed steps in the right direction, but bringing behavioural change in society will act as the most potent weapon against corruption.

Source: Indian Express

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Recent Update

Friday, february 26, 2021, fighting against corruption.

  Why in news?

Recently Odisha government declared that all public servants are mandatorily required to file their property returns with the Lok Ayukta.

• In India, politico-bureaucratic nexus is the cause for systematic corruption & the preventive aspect of it is often neglected.
• Lokpal and Lok Ayuktas Act, 2013 which fights against corruption is existing for more than half a decade.
• But its implementation is uneven and the deadline to file the property declarations is constantly deferred.
• Initially it was set at September 15, 2014, but later this date was extended for six times.

What causes corruption?

• Information asymmetry is the primary culprit behind illegal wealth acquired by bureaucrats and political functionaries.
• Now Odisha government stated that all political and bureaucratic functionaries have to publicly declare their assets at the end of every year.
• This baseline data-base of assets provides significant insights into the asset ownership pattern of officials at different positions.
• It also creates transparency between the citizens and those in power at every level, reduces information asymmetry.
• Moreover lack of accountability is another cause for corruption.

How accountability can be promoted?

• According to Robert Klitgaard, systemic corruption is due to monopoly (M), discretion (D), accountability (A) which can be denoted in formula as C = M + D - A.
• But people’s participation (P) is also critical in preventing, detecting and reducing corruption in the system.
• Hence this formula can be rearranged as C = M + D – A – P.
• Odisha declaration can enhance people’s participation and more the people’s participation; less is the likelihood of corruption.
• People’s participation can also be increased if more information about assets of public officials is published regularly.
• The Odisha government has adopted technology and online transactions to reduce discretion.
• In the last one year alone, state government has either dismissed, removed or compulsorily retired 100’s of non cooperative government servants.

What more can be done?

• Though this declaration is a good preventive step but this cannot alone deter the corrupt.
• Currently monitoring practices rely only on inspections, raids, intelligence reports which has to be a institutional approach in identifying targets of those inspections.
• Randomised audits using technology and artificial intelligence without any human bias in the selection of auditee can be another logical step.
• The anti-corruption exercise should promote and safeguard whistle-blowers & the existing  Whistle Blower Protection Act, 2014  needs to be operationalised.
• Hence Odisha Lok Ayukta should nurture a safe environment for whistle-blowers by maintaining their anonymity.
• It can also notify a separate framework for protection of whistle-blowers.
• Those who enjoy power may try to find ways to escape through family or proxies and they should be subjected to the  Prohibition of Benami Property Transactions Act, 1988 .

What are the takeaways from this?

• According to the UN estimates, developing countries lose approximately $1.26 trillion every year due to corruption, bribery, theft and tax evasion.
• Moreover, government can lose the trust of citizens if the officials and the political masters are not held accountable for wrongdoing.
• Hence public disclosure of information about the officials’ assets, protecting whistle-blowers and certainty of punishment can create conducive environment for clean and efficient governance.

Source: Business Line

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The Prevention Of Corruption (amendment) Act, 2018

• Last Updated : 20-Jan-2023

KEY HIGHLIGHTS OF THE AMENDMENT ACT

The supply side of bribery and corruption is addressed in section 8 of the amendment act as follows:, the following are some examples of guiding documents on what might be considered "adequate procedures": .

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Corruption In India – Causes, Effects of Corruption in India and Types

Introduction.

• Corruption in India is a consequence of the nexus between Bureaucracy, politics and criminals.
• India is now no longer considered a soft state.
• It has now become a consideration state where everything can be had for a consideration.
• Today, the number of ministers with an honest image can be counted on fingers.
• At one time, bribe was paid for getting wrong things done but now bribe is paid for getting right things done at right time.

What is Corruption?

• Corruption is the misuse of public power (by elected politician or appointed civil servant) for private gain.
• In order to ensure that not only public corruption but also private corruption between individuals and businesses could be covered by multifamily investing basics the same simple definition
• Corruption is the misuse of entrusted power (by heritage, education, marriage, election, appointment or whatever else) for private gain.

Causes of Corruption in India

• Low Pay Scales And Wages
• Lack of Stick And Fast Punishments
• Lack of Unity in Public
• Lack of Fundamental Rights Awareness in People of India
• Lack of Transparency in Deals and Affairs
• Lack of Independent detective agency
• Lack of enough powers to the judicial system in India
• Lack of Accountability
• Unhealthy Competition Encouragement in India
• Lack of Effective Management and Implementation
• Lack of Economic Stability In India
• Lack of Effective Leadership in India
• Lack of Autonomy
• Unemployment
• Poverty And Hunger
• Very Less Educational Institute and Medical Infrastructure .
• Vast Size of Population in India Is Biggest Cause of Corruption In India .
• Another Big Cause of Corruption In India Is nexus between political parties and Industrialist.
• Emergence of political elite who believe in interest-oriented rather than nation-oriented programmes and policies is Another Big reason of Corruption in india .
• Tolerance of People Towards Corruption is a Another big reason for Corruption In India.

Consequences of Corruption

• Rise in Unemployment
• Rise in Hunger and poverty
• Loss of Indian Economy Wealth
• Fall in growth of Indian Economy
• Power and Authority in Wrong hands
• Brain Drain is Biggest Consequence for India
• Psychological And Social Disorder
• Corruption is also the main cause of Poverty as Rich are getting richer & poor are getting poorer. Not all the packages, compensation announced by government reach the minorities and backward communities.

How can We Cure Corruption in India

• Give Good salary to Government Employees
• Bring transparency In Indian Economic System
• Try To make Indian Society Cashless
• More Number of Online transactions and provide bill For Every transactions
• Bring Political parties Under RTI
• Set Eligibility For Indian Politician
• Increase in Digital And E Governance
• Transparent tax structure by clean and clear enforcement
• More Police reforms and Power Full Judiciary
• Blacklist Corrupt Businessmen
• Bring More Transparency In Govt Job Recruitment
• Keep Inflation low
• Speed up the judgement and increase the courts
• Citizenship cancellation could be a highest level of punishment if their crime score reaches a certain extent.
• Disrespecting the dishonest

8 Effects of Corruption

• Lack of quality in services
• Lack of proper justice
• Chances of Unemployment
• Poor Health and hygiene
• Low growth rate of Economy
• Low Foreign Direct Investment
• Low Development Rate
• Low Standard of Living

Steps taken by Indian government

• The biggest step is demonetization i.e. banning 500 and 1000 rs notes which is the route of all evil, be it Corruption, Black Money, Terrorism.
• Under “Right to Information Act (RTI)“, citizens can now ask government about how out ta money is spent.
• With “Jan Dhan yojana” & “Direct Benefit Transfer” schemes, bank accounts of millions of people were opened so that they can get subsidies and benefits directly into their account.
• E-Auctions for spectrums and natural resources is a good step towards a corruption less India.
• Government is focusing more on Digitizing, which will lead to more transparency in functioning of government.
• Government introduced self-attestation of certificates and has removed interviews from lower posts, so no one can bribe their way through interview to jobs.
• Another potent check on corruption is Central Vigilance Commission (CVC). It was setup by the Government to advise and guide Central Government agencies in the areas of vigilance.

Anti-corruption laws in India

• Indian Penal Code, 1860
• Prosecution section of Income Tax Act, 1961
• The Prevention of Corruption Act, 1988
• The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions.
• Prevention of Money Laundering Act, 2002.

Shameful Statistics That Prove How India Is The Most Corrupt Country In Asia

1.38% of land and property deals in india involve bribes.

• In India, 38% of land deals involve some form of bribes, mostly because for the buyer, that’s the only option left.
• The entire nexus of government officials, politicians, judicial officers, real estate developers and law enforcement officials control the property trade, wherein they acquire and sell land illegally.

More than 60 Percent Enforcement Officials takes Bribes

• The police actually collect the highest amount of bribes. Passport verification make up 30% of the average bribe paid by a regular Indian in a year, while traffic violations make up 25%.
• The methods are numerous and the amounts far-reaching, ranging from botched breathalyser tests charging Rs. 2500 to Rs. 500 for passport verification.

60% of road stops for truckers are for extorting money

• According to Transparency International, truckers pay ₹222 crore in bribes every year. Authorities such as government regulators, police, forest and sales and excise force stoppages on roads, and 60% of these are for extorting money https://aviator-game-india.in/ .These delays lead to an egregious loss in productivity.
• 60% of people who got their driving license from an agent haven’t taken the driving exam
• 31% of members of parliament have criminal cases against them
• Just about 40% of grain intended for the poor reaches them.
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(Essay) An Essay: Corruption in India

An Essay: Corruption in India :

Introduction Power tends to corrupt, and absolute power corrupts absolutely.      It is not easy to define corruption. But in a narrow sense, corruption is mostly concerned with ‘bribery’ and it takes several forms. Corruption is a global phenomenon and it is omnipresent. Corruption has progressively increased and is now rampant in our society. National scenario      Corruption in India is a consequence of the nexus between Bureaucracy, politics and criminals. India is now no longer considered a soft state. It has now become a consideration state where everything can be had for a consideration. Today, the number of ministers with an honest image can be counted on fingers. At one time, bribe was paid for getting wrong things done but now bribe is paid for getting right things done at right time. Effects of corruption      Indian administration is tainted with scandals. India is among 55 of the 106 countries where corruption is rampant, according to the Corruption Perception Index 2004 Report released by Transparency International India. Corruption in India leads to promotion not prison. It is very difficult to catch ‘big sharks’. Corruption in India has wings not wheels. As nation grows, the corrupt also grow to invent new methods of cheating the government and public. Causes of corruption      The causes of corruption are many and complex. Following are some of the causes of corruption. · Emergence of political elite who believe in interest-oriented rather than nation-oriented programmes and policies. · Artificial scarcity created by the people with malevolent intentions wrecks the fabric of the economy. · Corruption is caused as well as increased because of the change in the value system and ethical qualities of men who administer. The old ideals of morality, service and honesty are regarded as an achronistic. · Tolerance of people towards corruption, complete lack of intense public outcry against corruption and the absence of strong public forum to oppose corruption allow corruption to reign over people. · Vast size of population coupled with widespread illiteracy and the poor economic infrastructure lead to endemic corruption in public life. · In a highly inflationary economy, low salaries of government officials compel them to resort to the road of corruption. Graduates from IIMs with no experience draw a far handsome salary than what government secretaries draw. · Complex laws and procedures alienate common people to ask for any help from government. · Election time is a time when corruption is at its peak level. Big industrialist fund politicians to meet high cost of election and ultimately to seek personal favour. Bribery to politicians buys influence, and bribery by politicians buys votes. In order to get elected, politicians bribe poor illiterate people, who are slogging for two times’ meal. Measures to combat corruption      Is it possible to contain corruption in our society? Corruption is a cancer, which every Indian must strive to cure. Many new leaders when come into power declare their determination to eradicate corruption but soon they themselves become corrupt and start amassing huge wealth.      There are many myths about corruption, which have to be exploded if we really want to combat it. Some of these myths are: Corruption is a way of life and nothing can be done about it. Only people from underdeveloped or developing countries are prone to corruption. We will have to guard against all these crude fallacies while planning measures to fight corruption. · Foolproof laws should be made so that there is no room for discretion for politicians and bureaucrats. The role of the politician should be minimized. Application of the evolved policies should be left in the hands of independent commission or authority in each area of public interest. Decision of the commission or authority should be challengeable only in the courts. · Cooperation of the people has to be obtained for successfully containing corruption. People should have a right to recall the elected representatives if they see them becoming indifferent to the electorate. · Funding of elections is at the core of political corruption. Electoral reforms are crucial in this regard. Several reforms like: State funding of election expenses for candidates; strict enforcement of statutory requirements like holding in-party elections, making political parties get their accounts audited regularly and filing income-tax returns; denying persons with criminal records a chance to contest elections, should be brought in. · Responsiveness, accountability and transparency are a must for a clean system. Bureaucracy, the backbone of good governance, should be made more citizen friendly, accountable, ethical and transparent. · More and more courts should be opened for speedy & inexpensive justice so that cases don’t linger in courts for years and justice is delivered on time. · Local bodies, Independent of the government, like Lokpals, Lokadalats, CVCs and Vigilance Commissions should be formed to provide speedy justice with low expenses. · A new Fundamental Right viz. Right to Information should be introduced, which will empower the citizens to ask for the information they want. Barring some confidential information, which concerns national and international security, other information should be made available to general public as and when required. Stringent actions against corrupt officials will certainly have a deterrent impact. Conclusion      Corruption is an intractable problem. It is like diabetes, can only be controlled, but not totally eliminated. It may not be possible to root out corruption completely at all levels but it is possible to contain it within tolerable limits. Honest and dedicated persons in public life, control over electoral expenses could be the most important prescriptions to combat corruption. Corruption has a corrosive impact on our economy. It worsens our image in international market and leads to loss of overseas opportunities. Corruption is a global problem that all countries of the world have to confront, solutions, however, can only be home grown. We have tolerated corruption for so long. The time has now come to root it out from its roots.

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Prevention of Corruption Act, 1988 | Law Optional Notes for UPSC PDF Download

Introduction

Stealing government money by officials can often go unnoticed, much like a fish's water consumption is hard to track. This quote by Dev Dantreliya highlights the elusive nature of corruption. Corruption has deep roots in India, with opportunistic leaders using their positions for personal gain. This pervasive issue hinders progress, especially in developing countries like India and within government institutions. Even the education sector, which aims to instill ethical values, is not free from corruption's grasp. An example of this is the recent arrest of two senior officials from the Directorate of Higher Education who accepted a bribe from a professor. The fight against corruption began with laws like the Criminal Law (Amendment) Ordinance of 1944, targeting the concealment of ill-gotten property resulting from corrupt practices. In 1964, the Central Vigilance Commission was established to address corruption cases, and various state-specific vigilance commissions were created to tackle this issue.

In response to this challenge, the Prevention of Corruption Act, 1988 (POCA) was enacted to consolidate existing laws, combat corruption within government bodies, and prosecute public officials involved in corrupt activities. This act is a vital tool in the fight against corruption, and its effectiveness is crucial. Under this act, the Central Government has the authority to appoint judges to investigate and adjudicate cases related to offenses outlined in the Act or conspiracies to commit these offenses.

This article delves into the evolution of The Prevention of Corruption Act, 1988, and its key provisions. It also discusses amendments to the legislation and important legal decisions regarding the Act.

Evolution of the Act 

• Initially, matters related to bribery and corruption involving public servants within the Indian justice system were addressed by the Indian Penal Code of 1860. However, by the 1940s, it became apparent that the existing laws were insufficient to effectively address the growing challenges posed by bribery and corruption. This led to the recognition of the need for specific legislation to combat these issues, and as a response, the impressive Prevention of Corruption Act of 1947 was enacted. The 1947 Act underwent two subsequent amendments, first through the Criminal Law Amendment Act of 1952 and then the Anti-Corruption Laws (Amendment) Act of 1964, both of which were based on recommendations made by the Santhanam Committee.
• As a result of this legislative evolution, the 1988 Prevention of Corruption Act, which came into effect on September 9, 1988, was born. This Act was designed to enhance the effectiveness of anti-corruption laws by expanding their scope, strengthening requirements, and making the overall resolution more practical. Its primary goal was to combat corruption within government offices and public sector organizations in India. The Prevention of Corruption Act aimed to not only identify corruption within these entities but also to prosecute and punish public officials involved in corrupt activities. Furthermore, the Act also considered individuals who aided the culprits in committing bribery or corruption offenses.

Distinctive features of the Act 

The following are some of the key features of the Act:

• It has broadened the definition’s application to include terms like “public duty” and “public servant” under Section 2 of the Act’s definition clause.
• According to the Code of Criminal Procedure, 1973, it has transferred the burden of proof from the prosecution to the person accused of the crime.
• The Act’s requirements are very clear: an officer with at least the rank of Deputy Superintendent of Police must conduct the inquiry.
• The 1988 Act broadened the definition of “public servant” to include Central Government personnel, union territories, nationalised banks, University Grants Commission (UGC), vice-chancellors, academics, and others.
• The Act criminalises corrupt conduct like bribery, misappropriation, acquiring a monetary advantage, having assets disproportionate to income, and so on.

Important provisions of the Act 

Important definitions.

Section 2(b) of the Act defines “Public duty” as a duty in the execution of which the state, the public, or society at large has an interest. The term ‘state’ has a broad meaning as well. In this context, state means

• A corporation created or founded by a Central, Provincial, or State Act.
• A government authority or a body controlled or aided by a government company, as defined in Section 617 of the Companies Act of 1956.

The importance of the term “public duty” is that those who are paid by the government for doing public tasks or who otherwise conduct public obligations may also prevent corruption among public workers.

Section 2(c) of the Act defines “public servant” broadly and expressively. Thus the term includes the following:

• Any individual employed by the government, receiving government compensation, or receiving fees or commissions from the government for the performance of any public obligation;
• Any individual who works for or is compensated by a local government;
• Any employee of a firm created by or operating under a Central, Provincial, or State Act, as well as any authority, body, or company owned, controlled, or assisted by the Government, as defined in section 617 of the Companies Act, 1956.
• Any Judge, as well as anyone permitted by law to carry out adjudicatory duties on their own or as a part of any group of people;
• Any individual designated as a liquidator, receiver, or commissioner by a court of justice with the authority to carry out any function related to the administration of justice;
• Any arbitrator or other individual to whom any issue or subject has been submitted by a court of justice or by a competent public authority for judgement or report;
• Any person who occupies a position that gives him the authority to conduct an election or a portion of an election, or to compile, publish, maintain, or update an electoral roll;
• Any individual holding a position that allows or obligates them to carry out public duties;
• Anyone serving as the president, secretary, or other office-holder of a registered cooperative society engaged in agriculture, industry, trade, or banking who is currently receiving or has previously received financial aid from the Central Government, a State Government, or from any corporation created by or operating under a Central, Provincial, or State Act, as well as any authority or body owned, controlled, or assisted by the Government or a Government company as defined in Section 617 of the Companies Act, 1956
• Any individual who serves as the chairman, a member, or an employee of any Service Commission or Board, regardless of its name, or a member of any selection committee chosen by the Commission or Board to conduct any examinations or make any selections on its behalf;
• Any Vice-Chancellor, member of a governing body, professor, reader, lecturer, or other teacher or employee of any university, regardless of their title, as well as any individual whose services have been used by a university or another public authority in connection with the holding or conducting of exams;
• Any official or employee of an educational, scientific, social, cultural, or other institution, regardless of how it was founded, who is receiving or has previously received financial support from the Central Government, any State Government, a local government, or other public authority.

Whether they are public servants or not?- Minister, Chief Minister, and Prime Minister

• Ministers, Chief Ministers, and the Prime Minister fall under the category of public servants as per Clause (12) of Section 21 of the Indian Penal Code, which corresponds to Clause (c) of Section 2 in the Prevention of Corruption Act, 1988. This classification is attributed to their roles and functions within the government.
• Ministers are employed by and are subject to the authority of the Governor.
• They receive compensation for their work and duties, which are carried out on behalf of the public, and their salaries are funded by public resources.
• It's important to note that while Members of the Legislative Assembly (MLAs) are not considered public servants under Section 21 of the Indian Penal Code, they are encompassed within the scope of Clause (c) of Section 2 of the Prevention of Corruption Act, 1988. This implies that the definition of "public servant" in the Prevention of Corruption Act is broader and includes positions such as MLAs.
• The term "public servant" is not limited to the specific instances mentioned in the defining clause, and the courts have adopted an interpretation that allows for the inclusion of additional individuals. In the case of P.V. Narasimha Rao vs. State (1998), the definitions of "public duty" and "public servant" were subject to scrutiny. The Supreme Court's ruling clarified that these terms, "public duty" and "public servant," should be interpreted broadly. Consequently, Members of Parliament (MPs) are subject to Section 2 of the Prevention of Corruption Act, 1988, even if authorities may not always seek authorization for their prosecution under Section 19(1) of the Act. This implies that MPs can be considered public servants under the Act.

Accepting rewards, influencing public officials, and accepting gifts

• Sections 7 to 11 of the Prevention of Corruption Act (POCA) outline offenses related to receiving gratification, influencing public officials, and accepting gifts. These offenses are categorized based on their severity. Additionally, actions such as abetment, conspiracy, agreement, and attempts to commit these offenses have been criminalized to proactively combat bribery and corruption. Various actions are classified as punishable under different sections of the Act.
• It's worth noting that these sections are currently under consideration for significant changes due to India's obligations under the United Nations Convention against Corruption (UNCAC). The existing provisions of the Prevention of Corruption Act are detailed below. Generally, these provisions involve a public servant receiving illicit remuneration in exchange for granting a favor or as an incentive or reward for their actions.
• Section 7: This section pertains to public servants receiving rewards other than their lawful salary in return for performing official acts. Importantly, gratification in this context is not limited to monetary forms; it includes non-monetary benefits. However, it is crucial that the demand for such gratification is initiated by the public servant. The mere possession of valuable property, without evidence of such demand, may not lead to guilt under Section 7.
• Section 8: This section prohibits obtaining gratification through corrupt or criminal means to influence a public servant. The term "whoever accepts or acquires, or agrees to accept, or seeks to obtain" applies to both public servants and non-public servants. The primary distinction from Section 9 is that Section 8 allows for the use of "personal influence" to gain favor or disfavor, whereas Section 9 involves "corrupt or criminal methods." Notably, "corrupt" is not defined in the Prevention of Corruption Act.
• Section 11: This section deals with a public servant receiving valuable items from individuals involved in business or transactions with the public official. To be liable under this provision, public servants must acquire something of value while performing official duties, and these advantages must primarily benefit them or another person.
• Section 12: Whoever aids any crime defined under Sections 7 to 11, regardless of whether the crime is committed as a result of their assistance, may face imprisonment for a minimum of three years and a maximum of seven years, along with an additional five years in prison.
• Section 13: This section enables the prosecution of repeat offenders and, more importantly, targets public servants who receive valuable items or financial gains through corrupt or criminal means, abuse their position as public officials to acquire such items, or obtain them for someone else without serving the public interest. Importantly, without evidence of demand, the mere possession or seizure of money during an investigation does not constitute a violation of Section 7 or Section 13(1)(d) of this Act.
• In the case of P. Satyanarayana Murthy vs. The District Inspector of Police (2015), the Supreme Court clarified that the use of corrupt or illegal means or the abuse of one's position as a public servant to gain valuable items or financial advantages cannot be considered proven in the absence of evidence of a demand for illegal gratification.

Is this Act applicable to private individuals as well

• As previously mentioned, the Prevention of Corruption Act of 1988 primarily targets public servants, but it does have some applicability to certain private individuals. While the Act predominantly addresses offenses committed by public servants, there are specific situations where it extends to private individuals.
• Section 8: This section outlines circumstances in which a person seeks illegal gratification to influence a public servant. Therefore, if a person other than a public servant receives an unlawful payment under the criteria specified in Section 8 of the Act (which mirror those in Section 7), that individual is equally liable for the offense. The Act prescribes penalties ranging from six months to five years of imprisonment, in addition to a fine. Similarly, the Act prohibits actions taken by individuals who leverage their personal influence with public servants to obtain illegal gratification.
• In essence, Section 8 applies to anyone who has connections to public servants engaged in corrupt activities. This provision is crucial in a context where there is a prevalent "V.I.P. mentality" in the country, with many individuals claiming relationships with public servants and attempting to gain unlawful advantages in various areas. Additionally, this regulation discourages public officials from acquiring illicit benefits by concealing their identities behind another person's identity.

Whether it is illegal to abate some offences

• If a public employee who has been charged with an offence under Sections 8 or 9 aids and abets the actions of those other people, the act of aiding is itself criminal under the Act, Whether the crime was done as a result of the abetment, in this case, is irrelevant. The abettor will be subject to a fine in addition to a sentence of imprisonment that must be at least six months long but may not exceed five years.
• As a result, the abettor will face the same form of penalty. It is a positive feature when it comes to preventing people from assisting others to commit crimes under the Act, as it provides the same level of penalty for the abettor regardless of whether the offence aided is committed or not. Similarly, Section 12 makes it a crime to aid and abet an offence described in Sections 7 and 11. Section 7 makes it a crime for a public officer to accept a reward other than lawful pay in exchange for performing an official act.
• Section 11 makes criminal acts of a public officer getting valuable things without compensation from the person involved in the proceeding or transaction undertaken by such a public servant.

Investigation

• Investigations are a crucial aspect of the criminal justice system, typically carried out by the police. Their primary responsibility is to gather evidence and identify the actual perpetrators of crimes. However, the broad powers granted to the police can sometimes be susceptible to abuse, making it important to scrutinize these powers, as they pertain to the administration and conduct of public servants. Not all police officers are allowed to conduct investigations for this reason. Only officers of a certain rank are authorized to handle these matters.
• Delhi Special Police Establishment (CBI): An officer holding the rank of Inspector of Police or higher.
• Metropolitan Areas (e.g., Bombay, Madras, Calcutta): An official with the rank of Assistant Commissioner of Police or higher.
• Elsewhere: An officer holding the rank of Deputy Superintendent of Police or higher is authorized.
• However, no authorized official can conduct investigations or make arrests without obtaining an order from the Metropolitan Magistrate or Magistrate of First Class. Furthermore, as previously mentioned, they may arrest the accused without a warrant from such a Magistrate. This arrangement ensures that not all police officers are empowered to investigate corruption allegations under the Prevention of Corruption Act of 1988. Only designated police personnel with specific ranks are allowed to conduct investigations related to these offenses.
• This structure creates an effective balance between the rights of the accused and the interests of the prosecution, preventing undue harassment of public servants by the police. It serves as an efficient framework for controlling the problem of corruption and upholding the rule of law to achieve the noble goal of natural justice.

Restriction on the investigation in certain cases

Section 17A of the Amendment Act 2018 stipulates that no one may investigate an alleged offence if it involves a recommendation/decision made by a public worker in the course of his official responsibilities. If such an inquiry is to be performed, the following approvals are required:

• Approval of the Central Government is required for offences involving Union matters.
• For offences involving the conduct of state affairs, state government approval is required.

However, if an arrest is conducted on the scene and the offender admits to committing an offence, no such clearance is necessary.

The authority to examine bankers’ books

Section 18 of the Act stipulates that if the investigation officer believes that the bankers’ records need to be examined for the purpose of inquiry, the officer may examine them. This power of inspection extends beyond the offender’s bank accounts and includes the authority to search the bank accounts of anybody whom the officer suspects of holding money on behalf of the criminal.

The function of the bribe provider and the presumption of taint

Punishment or penalty under the Act

• The imposition of penalties or sentences plays a pivotal role in the criminal justice system. Without consequences or retribution, the objectives of the law cannot be realized. Penalties and punishments serve as a deterrent for potential wrongdoers, and their severity, amount, and duration influence the rehabilitation of the accused. Under the Prevention of Corruption Act of 1988, the standard punishment for lower-level offenses (under Sections 7 to 12) ranges from three to seven years in prison, in addition to a fine. More serious offenses, such as those outlined in Section 13, incur harsher penalties.
• Specifically, the offense of criminal misconduct, as defined in Section 13, results in imprisonment for a period of no less than four years but not exceeding ten years, along with a fine. Individuals committing the offenses outlined in Section 14, which pertain to the habitual commission of offenses specified in Sections 8, 9, and 12, are subject to a five-year prison term, extendable to 10 years, and are required to pay a court-determined fine. The Act also criminalizes attempts to commit offenses, stating that anyone attempting to engage in offenses mentioned in Section 13(c) or (d) of subsection (1) faces a minimum two-year imprisonment, extendable to five years, along with a fine.
• Additionally, the Act mandates that the court assess the value or financial interest in the object or property at the center of the committed offense. Previously, the Prevention of Corruption Act of 1988 provided for relatively short prison terms, which were inadequate in effectively combatting corruption. The Lokpal and Lokayuktas Act of 2013 later extended these sentences. This extension was prompted by mounting pressure from various sectors of society to combat the scourge of corruption. Civil society, in recent times, has played a significant role in generating strong public sentiment against corruption. The Lokpal and Lokayuktas Act, 2013, emerged as a result of this awareness, along with the government's legal obligations to implement the terms of the United Nations Convention against Corruption (UNCAC).

The procedure used to investigate and prosecute corrupt public officials

• The Central Vigilance Commission (CVC), the Central Bureau of Investigation (CBI), and the state Anti-Corruption Bureau are the three primary bodies involved in enquiring, investigating, and prosecuting corruption matters. The Directorate of Enforcement and the Financial Intelligence Unit, both of which fall under the Ministry of Finance, look into and prosecute cases involving money laundering by public employees.
• Under the Prevention of Corruption Act of 1988 and the Indian Penal Code of 1860, the CBI and state ACBs investigate charges of corruption. The CBI investigates cases inside the federal government and Union Territories, whilst state ACBs investigate crimes within the states. Cases can be referred to the CBI by states.
• The CVC is a statutory agency that oversees corruption investigations in government agencies. It is in charge of the CBI. The CVC has the authority to recommend matters to the Central Vigilance Officer (CVO) in each department or to the CBI. The CVC or CVO advises disciplinary action against a public worker, but the decision to take such action against a civil servant remains with the department authorities.
• An investigative agency may commence a prosecution only with the prior approval of the national or state government. Prosecutors chosen by the government handle the prosecution process in the courts.
• Under the Prevention of Corruption Act of 1988, all matters are heard by Special Judges chosen by the national or state governments.

Amendments to the Act

The Prevention of Corruption Act of 1988 was recently updated because no further improvements were made to the Act, resulting in its limited success. With this Act’s limited success, a new Act was required. As a result, The Prevention of Corruption Act, 2018 went into effect (the “Amendment Act”). The majority of the revisions are targeted at tightening up the Act’s current provisions and broadening the scope of the offences.

The significant changes to the Act are as follows:

• The word “Prescribed” has been adopted to refer to rules that the Central Government may create under the Act. As a result, we predict the following rules:  Rules requiring organisations and businesses to develop internal policies and procedures to prevent their personnel from giving undue benefit to public officials and rules governing the prosecution of a public servant under the Act.
• “Undue advantage” after this amendment is defined as any reward other than legal payment. Similarly, the term “gratification” has been defined to embrace all types of monetary gratification other than economic gratification.
• The phrase “Legal remuneration” under this amended Act has been defined to cover all pay that a public worker is authorised by the relevant body to receive.
• Under Section 4(4), the courts no longer have to finish trials for Act-related offences within two years, failing which the judges must record the necessity for a time extension. A trial can now be prolonged for six months at a time up to a maximum of four years. 
• The amended Section 8 lays out the consequences for anybody who aids in the payment of a bribe or attempts to engage in corruption alongside a public official. The Amendment Act exempts actions taken under duress as long as the person who was forced to take them files a complaint with the police or an investigative agency within seven days after paying a bribe.
• For business organisations, Section 9 now clearly addresses business organisations and the people connected to them. The phrase “persons affiliated with the commercial organisation” is broad enough to cover workers and suppliers, while the word “commercial organisation” is defined to include all types of corporate organisations.
• For the penalty section under this Act, provides that where the commercial organisation’s directors, officers in default, or a person with power over the organisation has consented to the corrupt act breaking the Act’s requirements, Section 10 now sets specific periods for imprisonment and a fine. 
• When Sections 10 and 9 are amended together, it may be helpful to keep in mind that the amended Act appears to punish both commercial organisations for violating the Act by levying a fine and the officers in charge of such commercial organisations under Section 10 by subjecting them to criminal liability.
• For provisions related to public servant corruption, it appears that the Amendment Act has reduced the circumstances in which a public employee may be charged with suspected criminal misbehaviour. Only the misappropriation of property and unjust enrichment are included as reasons for misconduct in the modified Section 13 of the Act, which is assessed by disproportionate assets. In the past, Section 13 included broad propensities to engage in corrupt behaviour or seek bribes as grounds for criminal wrongdoing.
• The Amendment Act seems to make it more challenging to bring charges against government personnel. According to the change made under Section 19, to prosecute a public employee under Sections 7, 11, 13, and 15 of the Act, a sanction must first be acquired from a body that has the power to fire them. Second, an authorization request must be made by the investigating authority such as a police officer or else other complaints must be satisfied before the court may declare an offence to have occurred.

Act-related constitutional provisions

• The codified laws additionally provide statutory and legal provisions against corruption. The provision of Writ Jurisdiction is also included in the supreme law, namely the Indian Constitution. The office of the Comptroller and Auditor General (CAG) is established to control money and economic offences; in addition, there are authorities at the Central and state levels such as the Central Vigilance Commission, the Committee on Parliament Accounts, the Central Bureau of Investigation (CBI), and the Anti-Corruption Bureau of State (ACBS).
• Writ of Habeas Corpus;
• Writ of Mandamus;
• Writ of Prohibition;
• Writ of Certiorari; and
• Writ of Quo-Warranto
• All of these writs have their own influence and authority in various domains, and they are nothing more than powers in the hands of the judiciary to restrict administrative discretion. The preamble of the Indian Constitution guarantees the residents of India the right to justice. The Constitution established a federal government, which consists of a Central government and state governments at the state level. Crime is included as a state issue, although law and order are listed concurrently. A number of measures in the Constitution have been enacted to combat corruption in society. Article 311 of the Indian Constitution and the judicial reform process seek to remove corruption from society.

Judicial pronouncements 

Parkash singh badal and anr vs state of punjab and ors, (2006).

The Supreme Court ruled in the case of Parkash Singh Badal And Anr vs State Of Punjab And Ors, (2006) that if a public servant received compensation for persuading another public servant to perform or refrain from performing any official act, he would be subject to the provisions of Sections 8 and 9 of the Prevention of Corruption Act. In the same case, the Supreme Court determined that satisfaction might be of any form for Sections 8 and 9, indicating that the scope of their applicability was broad. In this instance, the Court was investigating the relationship between offences under Sections 8 and 9 and Section 13(1)(d) on the one hand.

Subash Parbat Sonvane vs State of Gujarat (2002)

Similar to Section 7, Section 13(1)(d) has been the focus of extensive litigation. The Supreme Court in the case of Subash Parbat Sonvane vs State of Gujarat (2002) held that to be found guilty under Section 13(1)(d), there must be proof that the subject of the investigation, i.e the person under investigation, obtained something valuable or financially advantageous for himself or another person through dishonest or illegal means, by abusing his position as a public servant, or by obtaining something valuable or financially advantageous for another person without any consideration of the public interest.

Bhupinder Singh Sikka vs CBI (2011)

The Delhi High Court in the case of Bhupinder Singh Sikka vs CBI, (2011) found that an employee of an insurance company established by an Act of Parliament was inherently a public servant and that no evidence was necessary in this regard. The Supreme Court’s wide definitions may result in unpredictability and confusion in the law.

Habibulla Khan vs State of Orissa (1995)

It was decided in this case, Habibulla Khan vs State of Orissa,(1995) that, while an M.L.A. falls under the definition of a “public servant,” he is not the type of “public servant” for whom the prior sanction is necessary for prosecution. This paradox was further resolved by a five-judge bench of the Hon’ble Supreme Court in P.V. Narasimha Rao vs State (C.B.I.), 1998, which stated that a Member of Parliament holds an office and is required or accredited to execute responsibilities like public obligations by such office.

As a result, even if no authority may issue approval for his prosecution under Section 19(1) of the Act, an MP would fall within the purview of subparagraph (viii) of clause (c) of Section 2 of the Prevention of Corruption Act, 1988. It was also determined that sanction is not required for the court to take notice of the offences and that the prosecuting agency must obtain permission from the Chairman of the Rajya Sabha or the Speaker of the Lok Sabha, as the case may be, before submitting the charge sheet.

Amrit Lal vs State of Punjab (2016)

Bribery was addressed in Section 7 of the Prevention of Corruption Act of 1988. The complainant’s evidence about the bribe money demand was not validated due to a lack of verification. The amount of money asked as a bribe was challenged in the complaint. Furthermore, two witnesses who testified in front of whom the contaminated money was seized were not interrogated and were unnecessarily released. The Punjab-Haryana High Court, in this case, Amrit Lal vs State of Punjab, (2016) determined that the appellant was entitled to the benefit of the doubt and therefore acquitted of the allegation.

Vasant Rao Guhe vs State of M.P. (2017)

The Supreme Court held in this case of Vasant Rao Guhe vs State of M.P., (2017), that a public official accused of criminal misconduct cannot be expected to explain the absence of evidence to support the claim that he had property or money that was out of proportion to his known sources of income. The bench ruled that the prosecution must prove beyond a reasonable doubt that the public servant, either directly or indirectly through another person, had at any point during his employment had pecuniary resources or property that was out of proportion to his known sources of income. If the prosecution fails to prove this burden, the prosecution will only be able to prove criminal misconduct.

Conclusion 

Thus, the evil of corruption has been endangering the evolution of humanity and civilization. Regardless of the period, evil has persisted due to the hungry character of humans. Humans are drawn to this evil because of the material benefits they gain from engaging in immoral acts. This Act may be useful in developing an efficient system to combat the evil of corruption. As a result, the Prevention of Corruption Act of 1988 is an important statute to combat corruption. However, an Act alone will always lose this battle against corruption; it is also the performance of our lawmakers that will give us an advantage in controlling this menace. Be aware that nothing in the universe could be perfect, and that this Act is subject to the same rule. Further, if needed, effective amendments have to be passed, but the investigating agencies’ effectiveness and efficiency are also crucial in this respect. With the most recent revisions, it is now facing blisters from legal heavyweights, but this should be avoided, and lawmakers should work to find the gap in the law and close it as completely as possible.

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UPSC GS Paper – 4: Q2a. “Corruption is the manifestation of the failure of core values in the society.” In your opinion, what measures can be adopted to uplift the core values in the society?

Explore measures to uplift core values in society to combat corruption. Essential insights for UPSC GS Paper 4

Q2a. “Corruption is the manifestation of the failure of core values in the society.” In your opinion, what measures can be adopted to uplift the core values in the society?

Introduction

Corruption involves the misuse of power, authority, or resources for personal gain, often violating ethical principles and values. In contrast, core values represent fundamental beliefs and guiding principles reflecting the central priorities and ethical standards. For example, integrity is a core value directly opposing the corrupt practice of embezzlement.

Corruption as the Manifestation of the Failure of Core Values in Society:

• Erosion of Integrity:   The decline in personal integrity can lead to corrupt practices, as individuals compromise their ethical principles for personal gain. The Enron scandal illustrates how a lack of integrity among top executives can result in dishonest and unethical behavior.
• Disregard for Rule of Law: Corruption often involves powerful individuals manipulating legal processes to protect their interests, undermining the core value of the rule of law. The Brazilian Car Wash operation is a clear example of how corruption can infiltrate legal systems.
• Neglect of Accountability: A lack of accountability in society allows corruption to thrive without consequences, as individuals and institutions evade responsibility for their actions. The Volkswagen emissions scandal is a case where a lack of accountability allowed corrupt practices to persist.
• Loss of Trustworthiness: When trustworthiness erodes, it can lead to corruption as people lose faith in legal and ethical processes. Transparency International’s Corruption Perceptions Index demonstrates the connection between corruption levels and the erosion of public trust in institutions.
• Disregard for Fairness: Corruption often results in unfair advantages and disparities in society, undermining the core value of fairness. The Panama Papers leak reveals how corrupt practices can allow a select few to accumulate wealth at the expense of others, illustrating how corruption is a manifestation of the failure of this core value.

Measures to Uplift Core Values in Society:

• Education and Awareness: Emphasize values-based education from an early age, as demonstrated in Finland where ethics education is integrated into the curriculum, teaching students about societal values, ethical decision-making, and critical thinking.
• Strong Legal Framework: Ensure comprehensive anti-corruption laws with severe penalties, backed by an independent judiciary and anti-corruption agencies, akin to Singapore’s Corrupt Practices Investigation Bureau (CPIB), known for its swift and effective prosecution of corruption cases.
• Transparency and Accountability:  Promote transparency and accountability through open data initiatives, like Norway’s practice of publishing all government contracts online, ensuring transparency and accountability in public procurement processes.
• Whistleblower Protection:   Establish a safe environment for whistleblowers with legal protection and incentives, as seen in India with the Whistleblowers Protection Act, 2014, which encourages individuals to expose corruption.
• Ethical Leadership:  Foster integrity in public and private sectors through ethical leadership, setting high moral standards. Notable examples include Dr. Mariazeena Johnson, Chancellor of Sathyabama Institute of Science and Technology, as a beacon of ethical leadership in the Indian business world.
• Civil Society Engagement:  Empower NGOs and watchdog groups to monitor government activities, advocate for transparency, and mobilize public opinion against corruption, as exemplified by the Ghana Integrity Initiative, engaging citizens in monitoring public services and advocating for anti-corruption reforms.
• Use of Technology: Leverage technology to reduce opportunities for corruption, such as implementing e-government initiatives and blockchain for transparency, to modernize and streamline processes while minimizing corrupt practices.

The deterioration of core values within society creates an ideal environment for corruption to thrive. Nevertheless, collaborative efforts from all sectors—governments, businesses, civil society, and individuals—hold the key to eradicating corruption and nurturing a culture that champions integrity and transparency, thereby securing a fairer and more equitable future.

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Corruption Perception Index 2023

• 01 Feb 2024
• 14 min read
• GS Paper - 2
• Transparency & Accountability
• Government Policies & Interventions
• Important International Institutions

For Prelims: Transparency International , Corruption , World Justice Project (WJP), Least Developed Country (LDC).

For Mains: Corruption Perception Index 2023, Transparency & Accountability in Governance, Common Causes of Corruption and its Prevention in India.

Why in News?

Recently, the 2023 Corruption Perceptions Index (CPI) 2023 has been released by Transparency International showing that most countries have made little to no progress in tackling public sector corruption.

• The CPI ranks 180 countries and territories around the globe by their perceived levels of public sector corruption, scoring on a scale of 0 (highly corrupt) to 100 (very clean).

Transparency International

• It is an international non -governmental organisation founded in 1993 based in Berlin, Germany
• Its non-profit purpose is to take action to combat global Corruption with civil societal anti-corruption measures and to prevent criminal activities arising from corruption.
• Its most notable publications include the Global Corruption Barometer and the Corruption Perception Index.

What are the Key Highlights of the Corruption Perception Index (CPI) 2023?

• Over two-thirds of countries score below 50 out of 100 , which strongly indicates that they have serious Corruption problems. 
• The global average score is stuck at only 43 , while the vast majority of countries have made no progress or declined in the last decade.
• Due to well-functioning justice systems, these countries are also among the top scorers in the Rule of Law Index.
• They are all affected by protracted crises, mostly armed conflicts.
• India was ranked 93 out of 180 countries on the CPI 2023.
• In 2022, India was ranked 85.
• The Rule of Law Index is published by the World Justice Project (WJP) , an independent organization that works to advance the rule of law globally.
• The index provides data on several dimensions of the rule of law, which are further broken down into 44 indicators.
• Countries with the lowest scores in the Rule of Law index are also scoring very low on the CPI, highlighting a clear connection between access to justice and corruption.
• Both authoritarian and democratic leaders are undermining justice. This is increasing impunity for corruption, and even encouraging it by eliminating consequences for criminals.
• Corrupt acts like bribery and abuse of power are also infiltrating many courts and other Judicial institutions across the globe.
• Where corruption is the norm, vulnerable people have restricted access to justice while the rich and powerful capture whole justice systems, at the expense of the common good.
• Corruption will continue to thrive until justice systems can punish wrongdoing and keep governments in check. When corruption persists and justice is influenced by money or politics, it harms the general public.
• It is high time to break the barriers and ensure people can access justice effectively. Everyone deserves fair and inclusive legal systems where victims’ voices are heard at every stage.

What is the State of Indian Neighbours in CPI 2023?

• Pakistan ranked 133 and Sri Lanka ranked 115 out of 180 countries.
• Both countries grappled with their respective debt burdens and political instability.
• The Supreme Court of Pakistan strengthened citizens' right to information by expanding this right under Article 19A of its Constitution to previously restricted institutions.
• Bangladesh (ranked 149) emerges from the Least Developed Country (LDC) status, with economic growth supporting a continued reduction in poverty and improving living conditions.
• The flow of information on the public sector is hindered amidst an ongoing crackdown against the press.
• China (ranked 76) has its aggressive anti-corruption crackdown by punishing more than 3.7 million public officials for corruption over the last decade. In China public officials often use corruption as a way to drive up their income.
• However, the country's heavy reliance on punishment rather than institutional checks on power raises doubts over the long-term effectiveness of such anti-corruption measures.

What is Corruption?

• Collusive Corruption: This occurs when individuals or entities conspire together to achieve dishonest or fraudulent objectives. It involves a cooperative effort between parties, often for mutual benefit, to undermine the integrity of systems or processes.
• Those who abuse their power may be individuals or they may belong to organizations, such as businesses or governments.
• When individuals are appointed based on loyalty rather than merit , it undermines the integrity of public institutions.
• Wage Disparities: Lower wages for civil servants compared to the private sector may create financial pressure. Some employees might resort to taking bribes as a means to offset the income disparity and meet their financial needs.
• This can compel individuals to resort to corruption to obtain or retain positions, perpetuating an unethical cycle.

What are the Implications of Corruption?

• To demand quality, one might need to pay for it. This is seen in many areas like municipality, electricity, distribution of relief funds, etc.
• A crime may be proved as a benefit of the doubt due to a lack of evidence or even the evidence erased.
• Due to corruption in the police system, the investigation process has been going on for decades.
• The denial of timely services, job opportunities, and fair access to resources perpetuates inequality and impedes societal progress.
• Distrust in Government: Voters choose representatives based on trust, but if leaders are implicated in corruption, people lose faith and may abstain from voting next time ( Voter Apathy ).
• Fear of retaliation, social stigma, or lack of effective protection mechanisms hinders the exposure of corrupt practices.
• Normalisation of Corruption: In societies where corrupt practices become normalised, individuals may gradually accept such behavior as a routine part of public life . It weakens ethical fabric, making it challenging to instigate meaningful reforms.
• Lack of Ease of Doing Business: Corruption often involves bribes and kickbacks, adding to the costs of doing business.
• A Decrease in Foreign Investment: Corruption in government bodies has led to many foreign investments going back from developing countries.
• If there are no proper roads, water, and electricity, the companies do not wish to start up there, which hinders the economic progress of that region.
• Red Tapism: Red tapism refers to excessive bureaucratic procedures, complex regulations, and administrative delays, which can create an environment prone to corrupt practices
• Lack of Competition: Corruption often leads to the manipulation of markets, favoring certain businesses or individuals. This can result in monopolies or oligopolies, limiting competition and stifling innovation.
• This limits the government's ability to fund essential public services and infrastructure projects.
• The existence of a large black market can undermine the formal economy, as legal businesses face unfair competition from those operating in the shadows.

What are the Indian Initiatives to Tackle Corruption?

• The Indian Penal Code, 1860
• Prevention of Corruption Act, 1988
• The Prevention of Money Laundering Act, 2002
• The Foreign Contribution (Regulation) Act, 2010
• The Companies Act, 2013
• The Lokpal and Lokayuktas Act, 2013
• Central Vigilance Commission
• Centralised Public Grievance Redress and Monitoring System (CPGRAMS)
• By establishing the Civil Service Board, the government can curb excessive political control. By simplifying the disciplinary process and strengthening preventive vigilance within the departments, it can be ensured that corrupt civil servants do not occupy sensitive positions.
• Government can work on capacity building programmes like iGOT-Karmayogi, which is is a continuous online training platform, which would allow all government servants from assistant secretary to secretary level to undergo continuous training, depending on their domain areas.
• It is important to emphasise value-based training to all civil servants to ensure probity in public life. Professional ethics should be an integral component in all the training courses and called for a comprehensive Code of Ethics for civil servants, based on the recommendations of the 2 nd Administrative Reforms Commission (ARC).

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Q1. With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements: (2017)

• A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
• Properties held benami are liable for confiscation by the Government.
• The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) 1 and 3 only (d) 2 and 3 only

Q.2 Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (2021)

Q. “Institutional quality is a crucial driver of economic performance”. In this context suggest reforms in the Civil Service for strengthening democracy. (2020)

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Essay on Corruption for Students in English [Easy Words]

January 5, 2021 by Sandeep

Essay on Corruption: Breach of honesty and immoral practices of compromising on ethical rights by an individual or group is rightly called corruption. It is a criminal activity involving bribery or improper favours/ gifts for personal gains. Providing or seeking preferential treatment by offering or receiving money by forcefully coercing individuals against lawful means happens in corruption.

Essay on Corruption 500 Words in English

Below we have provided a Corruption Essay in English, suitable for class 5 6, 7, 8, 9 & 10.

Corruption has become a world phenomenon, and it’s even a bigger challenge for under-development countries like India to handle it. In simple words, corruption can be defined as “illegal or dishonest behaviour, especially by the people in power”. Corruption affects the government is all levels from central to the district. Former Prime Minister Late Rajiv Gandhi once said “only 15 paise of every rupee for the welfare of the downtrodden reaches them” and we all know that this magic happens because of corruption.

Here the irony is that Mr. Gandhi said this in 1990 but still, the situation is the same. Indian people are now so used to this corruption practice that they take it easy and use it as a tool to get their things done without any hassle. Many people believe that Indian politicians are the root of corruption in India but in reality, the network of corruption is too vast and it has following main towers; politicians, bureaucrats, and criminals.

Causes of Corruption

Corruption is present in all spheres of our life; politics, judiciary, public, administration, and all the services. Almost all the departments, connected with the welfare of common Indians, are infected with the virus of corruption. When we dig down to know the reason for corruption in India, we find some common reasons like weak management and lack of control system. These reason wee behind the birth of corruption at a smaller scale. Lack of good leadership let the corruption flourished at a larger scale. There is a famous saying in India that if the character is gone, everything is gone, but most of Indians are involved in giving and taking the bribe .

Consequences of Corruption

Corruption is the key factor behind the lack of development in several parts of the country. When the corruption gets high, the economy of the country touches the bottom of the graph. The effects of corruption can be seen on the daily based commodities as with high corruption rate these commodities become out of reach from poor citizens of the country. The country loses some taxpayers when corruption is present in its economy. And the money those taxpayers who pay the tax land in the pocket of corrupted people.

Since independence, India’s government has launched many schemes to throw the poverty out from the country. However, it still shows its presence here, and it’s happening because of corruption only. As Mr Rajiv Gandhi said 15 paise out of 1 rupee, the needy person gets. So the poor became poorer and corrupted become richer.

Cures for Corruption in India

CORRUPTION IN INDIAN JUDICIARY

ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 10th August. Click Here for more information.

Why in the news?

• Recently, an FIR was filed against a retired judge of the Orissa High Court over allegations of bribery to settle a medical college recognition case in the Supreme Court.
• The FIR was filed in the Prasad Education Trust Case headed by Chief Justice of India Deepak Misra.
• The petitioner demanded that CJI stay away from taking any judicial or administrative decision.
• This led to extraordinary accusations of misconduct against India’s most senior judge and corruption in judiciary.

What is Judicial Corruption?

• Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit.
• Corruption may include many activities including bribery and embezzlement.
• Judicial corruption is inimical to judicial independence and to the constitutionally desired social order.

Definition of Corruption  according to the Prevention of Corruption Act:

The Prevention of Corruption Act 1988:

• The Prevention of Corruption Act 1988 is an Act of the Parliament of India enacted to combat corruption in government agencies and public sector businesses in India.
• This law defines who a public servant is and punishes public servants involved in corruption or bribery.”

It also punishes anyone who helps him or her commit the crime corruption or bribery.

What crimes are punished by this law?

• When a public servant accepts money or gifts over and above their salary , in return for favoring a person in their official duty.
• When a public servant accepts gifts from a person with whom they have a business or official relationship without paying them.
• When a public servant is guilty of criminal misconduct such as regularly accepting bribes to favor people during their official duty.
• If any person accepts money or gifts in return for influencing the public servant by using his personal connection or through illegal or corrupt methods, this person can also be punished.
• Any person helping the public servant commit these crimes can also be  punished

Reasons for Judicial Corruption in India:

• Judicial Corruption exists because public trials are almost never heard by the public.
• Lack of accountability breeds corruption.
• Judicial accountability is as important as  accountability of the executive or  legislature .
• Judicial accountability promotes at least  three discrete values :  the rule of law ,  public confidence in the judiciary , and  institutional responsibility .
• The regular evaluation of judicial performance is a springboard for ensuring greater judicial accountability, but unfortunately India do not have any  institutional mechanism  yet to do this.
• Judges become corrupt when they enjoy absolute power and their strong personal agendas dominates over merit of the case.
• Corruption in lower courts: India’s judicial corruption is a cancer that begins at the lower levels and inches its way up.
• According to the Global Corruption Report 2007, t he perception of corruption is higher in India and Pakistan in comparison to Hong Kong, Malaysia, Singapore and Thailand. In Pakistan, 55 per cent of the respondents said the judiciary was corrupt.
• A Transparency International report released in 2007 showed that 77 % per cent of respondents in a survey in India believe the judiciary is corrupt.

Corruption in higher courts:

• India’s higher court judges are selected from lower court judges and lawyers; there is always a possibility of corrupt judges making it to higher courts.
• Judges at the highest level use their “contempt of court” power to suppress allegations of corruption.
• Cumbersome impeachment proceedings.
• No judge has so far been impeached, in spite of serious charges of misconduct or corruption has been raised against some judges.
• The lengthy and cumbersome impeachment provision is, thus, not an  effective tool to ensure judicial accountability .
• Since independence, only three judges have ever faced impeachment for misappropriating public funds.
• The  Judges Inquiry Bill included willful and persistent failure to perform duties within the definition of ‘misconduct’.
• Apart from impeachment, there is  no mechanism  to make  judges accountable or evaluate their performance

Excessive delay:

• India has the world’s largest backlog of cases.
• For 1.7 billion people in India, there are 31 judges in the SC and 1,079 in high courts.
• There are never more than 600 judges in the High Court appointed at any point.
• As of April 2017, there were 430 posts of judges and additional judges lying vacant in high courts, and 5,000 posts vacant at the district level and lower.
• For 2017-18, the Union budget allocated a meagre Rs 1,744 crore to the judiciary — about 0.4 per cent of the total budget.
• Indian judiciary is facing institutional crisis on account of the most ferocious attack ever on the judiciary by the executive.
• Nepotism in judicial appointment is also one of the reason for corruption in judiciary.

The legal framework to curb corruption:

Indian Penal Code (IPC):

• Various sections of the Indian Penal Code (IPC) provide criminal punishment for public servants who disobey relevant laws or procedures, frame incorrect or improper documents, unlawfully engage in trade, or abuse their position or discretion.

The Prevention of Money Laundering Act:

• The Prevention of Money Laundering Act, 2002 seeks to prevent money laundering including laundering of property through corruption and provides for confiscation of such a property.
• It mainly targets banks, financial institutions and intermediaries such stock market intermediaries.

Right to Information (RTI) Act:

• The Right to Information (RTI), 2005 Act represents one of the country’s most critical achievements in the fight against corruption.
• Under the provisions of the Act, any citizen may request information from a public authority which is required to reply within 30 days.
• The Act also requires every public authority to computerize its records for wide dissemination and to proactively publish certain categories of information for easy citizen access.
• This act provides citizens with a mechanism to control public spending.

The Institutional Framework to curb corruption

• There are various bodies in place for implementing anti-corruption policies and raising awareness on corruption issues.
• At the federal level, key institutions include the Supreme Court, the Central Vigilance Commission (CVC),the Central Bureau of Investigation (CBI), the Office of the Controller & Auditor General (C&AG), and the Chief Information Commission (CIC).
• At the State level, there are local anti-corruption bureaus such as the Anti-corruption Bureau of Maharashtra.

Failure to curb corruption:

Failure to enforce laws:

• India lacks by poor enforcement of laws, even where the laws are good.
• Data analysed by the Commonwealth Human Rights Initiative (CHRI) shows that between 2001 and 2015 the government’s National Crime Records Bureau (NCRB) documented the registration of 91 million offences across the country, punishable under the Indian Penal Code and various special laws.

Inefficiency of institutional frameworks:

• The institutional anti-corruption framework generally suffers from a lack of coordination, and overlapping and conflicting mandates between institutions addressing corruption.
• Key institutions often lack the staff and resources to fulfill their principles adequately and struggle to protect themselves from political interference.
• Influential politicians and senior officials are rarely convicted for corruption, eroding public confidence in the political will to effectively tackle corruption.

Thievery and Bribery:

• Thievery is common in real estate.
• It is common for a property developer to flout regulation through bribery.
• This indicate severe lack of public confidence in the ability of the anti-corruption agencies to probe a complaint of corruption, collect evidence and put the case up for trial.
• Bribery and Thievery are only two forms of corruption. The PCA recognizes various offences as corruption.

Limitations for the Whistle Blowers:

In 2015, the government had introduced a bill in the parliament to amend the 2011 act.

The key criticisms of this bill are as follows:

• Whistleblowers should not be allowed to reveal any documents classified under the  Official Secrets Act of 1923, even if the purpose is to disclose acts of corruption, misuse of power or criminal activities.
• It also puts a restriction on disclosure of any information that could prejudicially affect the interest of sovereignty and integrity of India and good relations with foreign State.
• The bill puts bars on the activity of whistle blowing in such a way that only some information obtained through RTI etc. has been kept in its ambit.
• The bill says that the whistleblowers would be entitled to official protection only if these conditions are met; and they could face action if they are not.
• The amendment Bill seeks to remove immunity provided to whistle-blowers from prosecution under the draconian Official Secrets Act (OSA) for disclosures made under the Whistleblower Protection law.

Suggestions:

• Improvements to contempt of court and impeachment proceedings.
• Improvement in judicial infrastructure.
• Enforcing integrity codes of judges and lawyers
• Extending the Right to Information Act to cover the judiciary.
• Opening judicial vacancies to qualified legal scholars.
• Using alternative dispute resolution mechanisms.
• Use of modern technology.
• A review of how court records are handled and the introduction of modern tracking methods can eliminate much of petty corruption existing in lower courts
• Websites and CDs can explain basic law to laymen
• Court files can be computerized
• Video recordings of court proceedings should be maintained

Judicial reforms:

• There is urgent need of judicial reforms and justice delivery system. Time bound disposal of cases and disputes.
• In order to reduce the pendency of cases, the Government is in the process of drafting National Litigation Policy .
• The Government has also suggested  audio-video recording of court proceedings which is meant to bring transparency in the justice delivery system and accountability in conduct of judges who allow too many adjournments.
• Protection of whistleblowers: Effective protection of whistleblowers will support an open enterprise culture where employees not only have confidence in reporting but also aware of the reporting procedures.

Creating transparency:

• It will provide less opportunity for malfeasance and abuse.
• The need is to bring CJI under RTI.
• Judiciary needs to ensure Open Court System and make judgment audible.
• Curbing political interference in judicial appointments.
• The steps like Lok Adalat, e-court, digitalization of courts, National Crime and Criminal Records, e-records of courts cases and coordination among courts using big data etc can be useful.
• Educating ethical and moral values: The country needs to develop a sense of moral character in citizens, starting with the family, and all other institutions in society.
• Remove nepotism in judicial appointment.

Judges accountability:

• Judges must be subject to judicial review.
• Judges must follow a code of conduct.
• Bar associations must act against corrupt members.
• A public body must keep an eye on the judicial system.
• An Indian judicial service must be created.
• The proposed National Judicial Commission should have powers to remove judges.
• Judges should declare their assets and those of their family.
• Reduce the gap
• Provide alternative methods of dispute redressal to lighten burden on courts.
• Increase number of judicial officers and number of fast track courts.
• Create a vigilance cell for redressal of public grievances.

Recent developments:

Collegium system:

• The Supreme Court has evolved the collegium system.
• The collegium system has ensured theindependence of the judiciary.
• It provides keeping the final power of appointmentin the hands of the CJI and a collegium consisting of senior judges.
• The collegiums system has come under lots of criticism on the grounds that it lacks objectivity and impartiality.
• As a solution, the executive sought to bring in the  National Judicial Appointments Commission (NJAC) , which the Supreme Court has struck down.

National Judicial Appointment Commission (NJAC):

• In 2014, the Parliament passed  the National Judicial Appointments Commission Act and the   99th Constitution Amendment Act .
• The Commission is composed of the  CJI, two senior-most judges of the Supreme Court , the  Law Minister  and two eminent persons , to be selected by a  selection committee  consisting of the  Prime Minister , the  CJI ,  Leader of the Opposition  in the Lok Sabha or where   no leader of Opposition , the  leader of the largest single opposition party.

Memorandum of Procedure   (MoP):

• The Supreme Court directed the Executive to draft a Memorandum of Procedure ( MoP) on appointment of judges to the High Courts and the Supreme Court, in consultation with the President and the CJI.

Judicial Standards and Accountability Bill, 2010:

• The Bill tries to lay down enforceable standards of conduct of judges.
• It also requires judges to declare details of their and their family member’s assets and liabilities.
• It creates mechanisms to allow any person to complain against judges on grounds of misbehavior or incapacity.

Judicial crisis in India: An overview

Apart from judicial corruption Indian judiciary is also facing following crisis:

• The Supreme Court of India is facing its worst crisis of credibility since the Emergency.
• Strength of judges in courts is lower than required to fill up the seats. This shortage leads to delay in judgment.
• Frequent transfers of judges   take the interest out of them to hear the cases that their successor may give judgment to, after the transfer. Such arrears mustn’t exist.
• Vacancies of judiciary aren’t filled up due to unavailability of good judges.
• Fast-track special courts   for commercial disputes are established, thus  disregarding the poor entirely .
• Appellate courts are falling short in dealing with the cases hence passing the burden to civil and criminal justice system.
• Higher number of holidays, lack of time management  is the problem which lies to the base of judiciary.
• Poor dispute resolution mechanism .
• Poor manpower and crumbling infrastructure, coupled with a boom in litigation, made the judiciary underperform.
• Filing of the frequent government litigation  keeps the courts busy instead of serving justice to the people speedily.
• Frequent adjournments and indiscriminate use of writ jurisdiction.

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Quotes on Corruption

• Corruption is like a ball of snow. Once it sets rolling, it must increase. – Charles Colton
• Power corrupt and absolute power corrupts absolutely. –  Lord Acton
• “Power does not corrupt men; fools, however, if they get into a position of power, corrupt power.” – George Bernard Shaw
• Power does not corrupt. Fear corrupts, perhaps the fear of a loss of power. – John Steinbeck
• The worst disease in the world today is corruption. And there is a cure: transparency. – Bono
• Fighting corruption is not just good governance. It’s self-defense. It’s patriotism. – Joe Biden
• Corruption is worse than prostitution. The latter might endanger the morals of an individual, the former invariably endangers the morals of the entire country. – Karl Kraus

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Corruption is like a ball of snow, once it’s set a rolling it must increase. [Essay Question]

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Essay on Corruption in India for Students 1000 Words

All important details about “Essay on  Corruption in India” are discussed in this article . Aspirants are advised to read the complete article for all important information about Corruption.

This long Essay on Corruption in English is beneficial for School Students of classes 5, 6, 7, 8, 9, 10, 11, Competitive Exam Aspirants, and UPSC Aspirants.

After reading this article about Corruption Essay in India, you will be able to answer all important questions related to it. CBSE Digital Education provides complete information about what is corruption, the presence of corruption in ancient times, types of corruption, causes of corruption, and eradication of corruption.

1000+ Words Essay on Corruption in English for Students

Corruption Essay in English – Corruption is a widespread infectious parasite that is sucking the lives of systems, departments, institutions, individuals, or groups and has penetrated into all walks of life, be it social, religious, cultural, educational, or moral. Corruption is a favor or benefit demanded, offered, or produced for official work. It is an informal payment or favor for an official benefit.

It is really a matter of shame that India is one of the most corrupt countries in the world. There will hardly be any area of life in our country where we do not have to face this hydra-headed menace. Most of us, if not all of us, are either corrupt or victims of this malaise.

Presence of Corruption from Ancient Age

Corruption is a very old social evil. It has always existed in some form or the other in human society. It is important to note that ‘Atharva Veda warns people to stay away from corruption. Kautilya’s ‘Arthashastra’ mentions forty methods adopted by corrupt people for misusing government funds.

The Sultan of Delhi, Alauddin Khilji had to substantially increase the salary of his land revenue employees to save them from indulging in corruption. Pandit Jawaharlal Nehru in his book ‘The Discovery of India’ has written about the widespread corruption in India during British rule.

Corruption has permeated every fabric of society in such a way that it was the subject of speeches made by the President, Prime Minister, and Lok Sabha Speaker during the Golden Jubilee Celebrations of our Independence . Every Chief Election Commissioner since T.N. Seshan has taken office, advocating the dire need for electoral reforms to attack corruption at the grassroots level and some measures have already been taken by him to make elections fair.

Types of Corruption

Conventional Corruption: It occurs when government officials, whether of high or low rank, illegally obtain or accumulate undue benefits for their personal use and not in relation to the public interest.

Unconventional Corruption: It exists where a public government official acts without consideration for the public interest but there is no apparent monetary or other transaction between the two parties. This includes misappropriation, theft, breach of trust, etc.

Political corruption : It is considered a type of grand corruption because of its seriousness and the involvement of high officials. This includes politicians who prefer certain companies and industries over others. Here, are the companies and organizations that shape and influence laws or government policies.

Systemic corruption : It exists where corruption is rampant in society. It exists where it is regular in practice between government and private businesses. In contrast, personal corruption exists where corruption is rare and has few personal functions.

Public and Private Corruption: Government officials are involved in public corruption while private officials are involved in private corruption. Public corruption involves the misuse of public money whereas private corruption involves corruption in the private sector which hurts the interests of citizens.

Causes of Corruption

• People’s acceptance of corruption and the absence of a strong public platform to oppose corruption allows it to rule over the people.
• Rising corruption in politics is responsible for the rise of political elites who believe in interest-oriented rather than nation-oriented programs and policies.
• Complicated laws and procedures isolate ordinary people from seeking any kind of help from governments.
• With big industrialist funds, politicians will have to pay a high price for elections. Bribing politicians have influenced and bribing politicians to buy votes.
• The sheer size of the population coupled with illiteracy and poor economic infrastructure give rise to endemic corruption in public life.

Biggest Corruption Scam

Some of the most infamous scams are the HD Submarine scam, the Petrol Pump scam, the Churhat lottery scam, the Fodder scam, the Bitumen scam, the JMM bribery case, the Sugar scam, and the Bofors scam. Securities scam (1992) snatched Rs 5000 to 9000 crore from the stock market and financial institutions.

However, ‘the most notorious was the fodder scam in which Rs 950 crore was withdrawn and former Bihar Chief Minister Lalu Prasad Yadav was charged. Even the school uniform scams did not help convert corrupt persons. And recently the scam in the 2G spectrum came into the limelight.

Eradication of Corruption 

It can be possible only when people understand the values ​​of ethics and morality in their life and start believing in them. Fool-proof laws should be made to eradicate corruption from our society so that there is no room for the discretion of politicians and bureaucrats.

The role of politicians should be minimal. Implementation of the developed policies should be left in the hands of an independent commission or authority in every sphere of public interest. The decision of the commission or authority should be challenged only in the courts.

One of the common reasons enabling corruption by public servants is seeking and receiving illegal gratifications commonly known as speed money. To remove this in the administrative process, the Government of Madhya Pradesh passed a law known as the ‘Public Service Guarantee Act’ in 2010, which prescribed reasonable time limits for the delivery of various government services to the people.

In 2011, the Bihar government also passed a similar act called the “Right to Service Act”. All other state governments should also make arrangements to get similar acts done so that no government employee has any scope to withdraw speed money.

Conclusion about Corruption

To combat corruption, the Government of India has enacted the Prevention of Corruption Act 1998 and established the Chief Vigilance Commission, which provides legal authority to deal strictly with corruption. Although these are not enough for the long corridors of the judicial process, the lack of witnesses and corruption in the judiciary can hardly make any difference.

Efficient solutions include public awareness, frequent exposure to corrupt deals, and above all the role of whistleblowers. The concept of the whistleblower is Western, but if a large number of people keep tabs on corrupt officials, spy on them, and consult relevant departments, things can get better.

The government has now stressed accountability and India can be positive for the future because by digitizing everything with programs like Digital India , corruption will be reduced to a higher level as there will be no place for middlemen in the system, and the government will monitor everything. Yes, corruption is a big problem but it can be eradicated with systematic and right efforts.

Frequently Asked Questions (FAQ)

Q1. What is Corruption?

Answer: Corruption is an immoral act that is done by an individual or a group of people by using the power of position or authority for personal gain. It is a social issue that adversely affects the economy of the nation. It has become one of the big factors that hinder the development of the individual and the country. It is like a poison that has spread in the mind of the society, community, and the people of the country and is one of the major reasons for the inequalities in the society and community.

Q2. What are the types of Corruption?

Answer:  The types of Corruption are conventional corruption, unconventional corruption, political corruption, systematic corruption, public and private corruption, and pretty corruption.

Q3. What is the meaning of Corruption?

Answer:  Dishonest or immoral behavior or activities.

Q4. Where can corruption happen?

Answer:  Corruption can happen in government, business, media, courts, civil society, sports, as well as all sectors from health and education.

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My Name is Mukesh Kumar. I am a Teacher, Blogger, Educational Content Writer, and Founder of CBSE Digital Education.

7 thoughts on “Essay on Corruption in India for Students 1000 Words”

GOOD INFORMATIVE CONTEMPORARY

Great job and usefull Wishing you a goodluck and got more blessing

Spreading Awareness is the most important social work which you re doing it now . you inspires students by awarening them from such a truth world . According to me it is some positivity starting from you ……Well Done and Such A great Job …….proud of you …….

Thank you so much Such a good comment motivates me to do more good work

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