CORRUPTION

NAME OF THE STUDENT:

BURIDI DAALU RAJA ASHISH

ROLL NO.: 19LLB027

SEMESTER: 2

NAME OF THE PROGRAM:

5 YEAR (B.A., LL.B. / LL.M.)

NAME OF THE FACULTY MEMBER:

LAKSHMIPATI RAJU

DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

NYAYAPRASTHA “, SABBAVARAM,
VISAKHAPATNAM – 531035, ANDHRA PRADESH

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ACKNOWLEDGEMENT

I’m highly indebted to my Hon’ble Professor, “LAKSHMIPATI RAJU”, for giving me an

opportunity to work on “CORRUPTION” it is because of his excellent knowledge, experience
and guidance, this Research paper is made with great interest and effort. I would also like to thank
my seniors who guided me for researching of the topic.

I would also like to thank my parents for their help at all the times. I would like thank each and
every one who helped me in doing this Research paper.

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 ABSTRACT
Corruption is an age old phenomenon and can be seen everywhere now a days. It is like a cancer
in public life, which has not become to rampant and perpetuated overnight, but is course of time.
The word corruption means destruction, ruining or spoiling a society or nation. A corrupt society
is characterized by immorality and lack of fear or respect for the law. It is the abuse of public
power for private gain. Corruption comes under many different guises like bribery, extortion,
fraud, embezzlement, misappropriations of public goods, nepotism (favoring family members for
jobs and contracts) cronyism and influence pending. Corruption has been defined in many
different ways, each lacking in some aspect. A few years ago, the question of definition absorbed
a large proportion of the time spent on discussion of corruption at conferences and feelings.
However like elephant, even though it may be difficult to describe, it is generally not difficult to
recognize when observed. Unfortunately, the behavior is often difficult to observe directly
because, typically acts of corruption do not takes place in broad day light.

According to Oxford Dictionary – “perversion of destruction of integrity in discharge of public

duties by bribery or favour is called corruption.” The Webster's Dictionary defines corruption as
“inducement to wrong by improper or unlawful means as bribery.” The most popular and
simplest definition of corruption is given by the World Bank. According to this definition
corruption is that it is the “abuse of public power for private benefit”. From this definition it
should not be concluded that corruption cannot exist within private sector activities. Especially in
large private enterprises, this phenomenon clearly exists, as for example in procurement or even
in hiring. It also exist in private activities regulated by the government.

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 TABLE OF CONTENTS
1. SYNOPSIS 6
2. INTRODUCTION 7
3. CORRUPTION IN INDIA 8
4. NATURE OF CORRUPTION 9
5. CAUSES OF CORRUPTION 11
6. CONSEQUENCES OF CORRUPTION 11
7. REMEDIAL MEASURES OF CORRUPTION 13
8. FUNCTIONAL REQUISITES OF TAINTED ADMINISTRATION 14
9. CORRUPTION LAWS IN INDIA 21
10. CONCLUSION 24
11. BIBLIOGRAPHY 25

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 SYNOPSIS
OBJECT OF THE STUDY:
The object of the study is to know about Corruption in India

SCOPE OF THE STUDY:

The scope of study is limited to Corruption in India

SIGNIFICANCE OF THE STUDY:

The study helps to understand the Truths about Corruption in India

LITERATURE REVIEW:
Information is taken from secondary sources like articles, online sources
ARTICLES
1. A. Abdulraheem 2009; Corruption in India: An overview (Cause, consequences and remedial
measures); Social Action Vol. 59 October – December 2009.

[2]. Report of Transparency International 2012.

[3]. U.Myint 2000; Corruption: Cause, consequences and cures; Asia – Pacific Development
Journal Vol. 7, No. 2 December 2000.

[4]. Understanding Corruption in India: Promoting Transparency.

[5]. Vito Tanzi 1998; Corruption around the world: Cause, Consequences, scope and cures: IMF
working paper 1998.

RESEARCH METHODOLOGY:
The research methodology is doctrinal type of research.

TYPE OF RESEARCH:
The research is descriptive, explanatory.

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INTRODUCTION1:
Corruption in India is a problem that has serious implications for both protecting the rule of law
and ensuring access to justice. Corruption is pervasive in the system of governance in India,
undermining the effectiveness of all institutions of governance. Since independence, successive
governments have attempted to take numerous measures to reduce the levels of corruption in the
country, including legislative and institutional measures. However, absence of the political will
and sincerity in taking concrete steps to eliminate corruption has resulted in most of these
measures not achieving the results that were intended. Corruption in India is not merely a law
enforcement issue where the existing laws of the state are violated and can be remedied merely
by more stringent law enforcement. Rather, corruption in India is a much more fundamental
problem that undermines the very social fabric, and political and bureaucratic structure of the
Indian society. Thus, while it is necessary for the law enforcement machinery to be empowered,
the larger issue concerning corruption in India is how it violates the human rights — and, in
particular the constitutional rights — guaranteed under the Constitution of India. Further,
corruption in India violates the constitutional foundations of Indian democracy, on the basis of
which a rule of law society in India was meant to be established. However, the promises made by
the writers of the Indian Constitution have been broken over the years by a scourge of corruption
in every institution, which has led to a blot in the governance apparatus from top to bottom. The
existing anti-corruption framework in India places far too much emphasis on the criminal justice
system for dealing with corruption — a system that in itself is facing a crisis due to corruption
and other problems. Thus, fighting corruption is also essential for restoring the people’s faith in
the Indian criminal justice system. That said however, legal controls relating to corruption should
focus more on the promotion of transparency and accountability in governance. Empowerment
of the citizenry needs to be the foundation for legal and institutional reforms to address
corruption. Generally, the initiatives that have been undertaken so far in this regard have not
been successful. However, the development of the right to information in India with the
objectives of empowering the citizens of India and ensuring transparency is worth mentioning,
given its positive outcomes. A critical analysis of the right to information law and the workings

1
The Introduction is reprinted from a previous work with minor revisions for consistency, C. Raj Kumar, Promoting
Transparency and Good Governance, 625 SEMINAR: COMBATING CORRUPTION (Sept. 2011),
http://www.india-seminar.com/2011/ 625/625_c_raj_kumar.htm.

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of the Central Information Commission (“CIC”) and the State Information Commissions
(“SICs”) shows how these institutions are new initiatives in India that are indeed carving their
own political space, with the power to create transparency and accountability and to enforce the
right to information. However, the need of the hour is to establish an independent commission
against corruption in India in order to provide a stronger and effective legal and institutional
framework for fighting corruption.

CORRUPTION IN INDIA

Corruption is widespread in India. India has been ranked 94th out of 176 countries in
Transparency International's 2012 corruption perception index (CPI). Corruption has taken the
role of a pervasive aspect of Indian Politics and Bureaucracy. The economy of India was under
socialist. Inspired policies for an entire generation from the 1950s until the 1980s. The economy
was shackled by extensive regulation protectionism and public ownership, leading to pervasive
corruption and slow growth. Since 1991, economic liberalization in India has reduced red type
and bureaucracy, supported the transition towards a market economy and transformed the
economy with high growth rate. However, although the Indian economy has become the 4th
largest in the world, the growth has been uneven across social and economic groups and poverty
is still on issue. Endemic and deep rooted corruption is a major factor for most social and
political ills. It is a serious threat not just to sustainable economic growth, but also to the
sociopolitical fabric of the country. In Indian civilization, corruption have caused maximum
suffering to the humankind. In ancient Indian history the great Indian philosopher Kautilya says
“just as it is not possible, not to taste honey or poison put on the surface of the tongue, so it is not
possible for the government servant dealing with money not to taste it in however small a
quantity.” On the difficulties of corruption detection Kautilya says “just as a fish moving under
water cannot possibly be found out either as drinking or not drinking water, so government
servant employed in the government works cannot be found out taking money.

After the independence corruption is widespread in Indian bureaucratic and political system fill
lust small point to apex. According to an international report, the much amount of Indian black
money deposited in Tax Heaven Foreign banks, if which is come out in India. Then the annual
budget of India can be made without tax lies to next 30 years. It is surmisal that the is how much

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widespread in present India after independence probably that high profile scandal was the jeep
scam in 1948, when jeeps were required for the army operation in Kashmir. Other notable
scandals includes the Mudgal case (1951), Mundra case (1957 – 58), Malviya – Sirajuddin
Scandal (1963).

The governing climate in those days can be gauged from the many observations. A.D. Gorwala
committee, set up to suggest ways to improve the system of governance. The Santhanam
committee (1962) examine the problem of corruption observed in 1964 that “there is widespread
impression that failure of integrity is not uncommon among ministers and that some ministers,
who have held office during the last sixteen years have enriched themselves illegitimately,
obtained good jobs for their sons and relations through nepotism and have reaped other
advantages inconsistent with any notion of purity in public life.” In later years corruption will be
gradually widespread in Indian society and no effective measures have yet been installed that
curb the menace. The Lokpal bill could not be passed in last decades, it speaks for the utter lack
of political will in the country.

In recent years so many major scandals involving high level public officials have shaken the
Indian public services. These scandals suggests corruption has become a pervasive aspect of
Indian political and bureaucratic system. Some of them major scams are following –

1 Coal Allotment Scam (Cost – 186000 Crores)

2 2 G Spectrum Scam (Cost – 176000 Crores)

3 Commonwealth Games (CWG) Scam (Cost – 70000 Crores)

4 Mega black money laundering Scam (Cost – 70000 Crores)

5 Adarsh Housing Scam (Cost – 18978 Crores)

6 Stamp Paper Scam (Cost – 20000 Crores)

7 Boforce Scam (Cost – 400 Million)

8 Fodder Scam (Cost – 950 Crores)

9 Hawala Scam (Cost – 8000 Crores)

10 Satyam Scam (Cost – 14000 Crores)

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11 Stock Market Scam (Cost – 3500 Crores)

12 Madhu Koda Scam (Cost – 4000 Crores)

NATURE OF CORRUPTION:-

Under the Indian constitution, the government consists of three branches: the legislative, the
executive and the judiciary with clear mandate for independent functioning of each branch. For
the good governance it is compulsory that each of these units must function with integrity and
efficiency. The legislators are elected representatives of the peoples and responsible for making
laws. The executive branch consisting of ministers, bureaucrats and whole government
machinery, which is responsible for the implementation of laws made up by legislative
assemblies. The judiciary, acts as an impartial watchdog to see if the people are governed as per
the law. It lakes the power to frame any law, it can only interpret the laws passed by the law
makers under the constitutional framework and give its verdicts. But when corruption invades,
governance begins to degrade implying loss of integrity and efficiency both.

Now – a – days corruption is widespread in every segment of Indian government system and
politics. The behaviour of India legislators both at the union and in the state leaves a lot to be
desired. Every time they act motivated by personal gain. Corruption in the assemblies as seen
from this perspective implies floor crossing, case for vote taking money or other benefits to ask
questions, framing rules under the influence of big corporate houses at the cost of common
people. Criminalization of politics is yet another fact of corruption in the current parliament.
These are over a quarter MPs with criminal records. Many with serious charges against them. It
also highlights an area where electoral reforms is urgently needed so that criminals don't enter in
the parliament or state assemblies. In the executive branch, ministers are placed at top of the
hierarchy. They are responsible for the making policies for the public because the public trust on
them and elected by votes to making government. In recent analysis we seen that the level of
corruption in ministers is highest. 2 G spectrum scam, coal allotment scam, commonwealth
games scam, fodder scam etc. are the best examples of it. In Indian parliamentary system, the
responsibility of execution of the policies making by government at ground level is taking hand
over to the bureaucracy. But the report card of the Indian bureaucracy is also not very flattering.
Bureaucratic corruption in India thrives on red tape, complicated procedures and discretionary
power.

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Governance in India is characterized by the lack of transparency in rules. Complicated
procedures and a bureaucracy that enjoys broad discretionary power. According to a recent
analysis of reports of bribery demands in India conducted by trace international was published in
January 2009, 90% demand for bribe came from government officials of which over 65% for
avoiding harassment, 50% bribery was for timely delivery of services to which the individuals
were already entitled, about 10% were meant to provide any advantage. Bureaucratic corruption
pervades the Indian administration system with widespread practices of bribery, nepotism and
misuse of official positions and resources. Independence of the judiciary is guaranteed by
constitution of India. But corruption is also rampant in Indian courts. According to Transparency
International, judicial corruption in India is attributable to factors such as “delays in the disposal
of cases, shortage of judges, and complex procedure, all of which exacerbated by a
preponderance of new laws.” Almost 3% respondents in India consider the judiciary to be
corrupt.

CAUSES OF CORRUPTION IN INDIA:-

Corruption is a global phenomenon and it is omnipotent. It has progressively increased and is

now rampant in our society. Corruption in India has wings, not wheels. As the nation grows, the
corrupt also grow to invent new methods of cheating the government and public. The cause of
corruption are many and complex. The following are some other causes of corruption:-

 Emergence of a political elite which believes in interest oriented rather than nation oriented
programmes and policies.

 Artificial scarcity created by people with malevolent intention wrecks the fabrics 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, services and honesty are regarded as
anachronistic.

 Tolerance of people towards corruption, complete lack of intense public outcry against
corruption and the absence of a strong public forum to oppose corruption allow corruption to
reign our people.

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 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
corruption. Graduates from Indian institutes of management with no experience draw a far
handsome salary than what government secretaries draw.

 Complex laws and procedures deter common people from seeking help from the government.
 Elution time is a time when corruption is at its peak. Big industrialists fund politicians to meet
high cost of election and ultimately to seek personal favour. Bribery to politicians buys
influences and bribery by politicians buys votes. In order to get elected, politicians bribe poor,
illiterate people.

CONSEQUENCE OF CORRUPTION:-

Corruption is as much a moral as a development issues. It can distort entire decision making
processes on investment project and other commercial transactions, and the very social and
political fabric of societies. In India corruption is like a cancer for society. It is destroying Indian
economic, democratic and political system. Corruption reduces public revenue and increases
public spending. It thus, contributes to larger fiscal deficits, making it more difficult for the
government to run a sound fiscal policy. Corruption is likely to increase income inequality
because it allows well positioned individuals to take advantage of the government activity at the
cost of the rest of the population. Corruption distorts markets and the allocation of resources
because it reduces the ability of the government to impose necessary regulatory controls and
inspection to correct for market failures. It acts as an arbitrary tax and reduces the fundamental
role of the government, legitimacy of the market economy and increase poverty. India is the
largest democratic country of the world.

According to the fundamental corrupt of democracy Indian constitution provides that no taxation
can be charged without permission of legislature. The money yield by the taxation process is the
precious wealth of public. But black money is generated through corruption. It black money is
like oxygen for the corruption. According to an international report the much more amount of
black money deposited in the foreign banks. If it money will be taken reverse in India than all the
foreign debt can be removed and after the much will be keep out that about 20000/- rupees gain

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by every Indian or if all the black money will be taken reverse than the budget of India can be
make without any tax for next 30 years. This black money are destroying our democratic system.
Politically, corruption increase injustice and disregard for rule or law. Basic human right and
freedom comes under threat. as key judicial decisions are based on the extent of corrupt bribes
given to court officials rather than on the innocence or guilt of the parties concerned. Police
investigations and arrests may be based on political victimization or personal vendettas rather
than on solid legal grounds. Commenting on the socio – political consequence of corruption the
Supreme Court of India observed that corruption in a civilized society was a disease like cancer.
If not detected in time it was sure to turn the polity malignant leading to “disastrous
consequences.”

REMEDIAL MEASURES (CURE) TO COMBAT CORRUPTION:-

Corruption is a cancer, which every Indian must strike to cure. Many new leaders declare their
determination to eradicate corruption but soon they themselves become corrupt and start
amassing huge wealth. Many people become materialistic and money oriented, there is no
importance of ethics and morals in business dealing. This is because these kinds of people have
no moral accountability to anybody or about society or nation.

There are many myths about corruption which have to be exploded if we really want to combat
it:- Public awareness is must to combat corruption in India, for this it should be must to improve
our education system because education is the best mean to understand fundamental rights and
Right – Wrong conversation. Corruption can be remed if people can understand and start to
believe the value of ethics and morality in their life. People will start to believe that their life is
accountable if they really start to believe in God, in oneness of God and if they really start to live
life on the way which God has chosen for mankind.

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 an independent commission or authority in each area of public
interest. The decision of the commission or authority should be challenged only in the courts.

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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 and 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 Lok pals, Lok adalats and vigilance
commissions should be formed to provide speedy justice with low expenses. The Strongest
lokpal is must to remed corruption in India.

With the help of the Right to Information Act, citizens should be empowered to ask for
information related to public services, etc. and this information should be made available to
general public as and when required. Such stringent actions against corrupt officials will
certainly have a deterrent impact.

FUNCTIONAL REQUISITES OF TAINTED ADMINISTRATION:

One may now begin an inquest into some of the causal factors that facilitate the growth of
corruption below.

1. Erosion of Rule of Law:

Maintenance of law and order through compliance with rules, orders and edicts serves as a
bulwark against corruption. The Indian administrators are too prone to exhibit legal pedantry and
constitutionallogomachy to hoodwink the unillumined but take no steps to prevent an erosion of
rule of law by cunning politicians and their crafty croonies. A distinct proclivity to subvert legal
norms to polevault over the deserving and the meritorious is discernible in this country which

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insulates one against parliamentary and judicial scrutiny and frees him from the control of
invigilatory, interogatory and auditory mechanism. This induces circumvention of accountability
and powers remain securely tied to pro-tem incumbents of authority who ensure the integrality of
system through an invented mechanism of spoils sharing which takes care of every single
political player. Corruption thus is a unifying factor, a bridge between the carpet- beggars of
politics. The most egregious form of political corruption is our ruler penchant for allowing the
law-breakers "de facto amnesty in exchange for political support."In such a situation, nation
building becomes a "handsome neo-classical building in which political prisoners scream in the
basement" and legal system becomes the first casualty.

2. Extension in the Range of Reservations:

It is a new mantra to create societal schism by pole-vaulting some communities over others
similarly placed to create a vote bank whose shaky foundations are mired in political corruption.
Birth, not administrative acumen or skill, being the criterion of recruitment, the list of OBC
faithfals keeps gloating with every change in government and competitive populism resting on
the requirements of vote bank politics determines the range of hopefuls. What was intended to be
reverse discrimination to provide justice to the hitherto neglected sections of society has become
an instrument of appeasement and creating greater discrimination in the Society. The incumbent
in OBC list today include, some of the most affluent sections of society such as Jats and Yadvas
whose claims to OBC membership rest more on convenience and political chicanery than on
social status and economic needs. Policy of enhenced reservations has become a fulcrum of
power politics today.

3. Unholy Alliance between the Politician and the Bureaucrat:

Corruption is rampant in a system run by the uninitiated and the unillumined political leaders
because their proven incompetence and immaturity creates infantile disorder. But the moment
the greed of the politicians receives overt and covert support of the bureaucrat,, corruption
becomes institutionalized and rule-based and this inaugurates a regime of sleeze by power-
hungry opportunists and upstart adventurists whose lack of rectitude in public life has always
been a pet subject of gossip columns, ublic debate and wall writings. Anyl-epistolary
confrontation between the two mega-functionaries would hit them both hard and hence both
invent institutional props to provide legitimacy to their deeds and treat each other with

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worshipful finality to extract their pound of public flesh. They know the value of old maxim-
united we stand and divided we fall. When sinners unite, the people get divided and fall. The
rights of the people are consigned to the star chambers of mounting corruption.

4. Tyranny of Power-brokers:

This class is a necessary component in a system of spoils sharing. These people swear by trite
traditionalism of the Westminister system but in practice, they are free from the slavery of this
genetic code. They are an invisible empire within the empire and liasionise with apex rulers by
offering them the mess of ballot pottage. It is difficult to brush aside these power-brokers
through dilettantist devices or self-serving resolutions. Their credentials are not sacrificial but
instrumental. They did not make any sacrifice during the freedom movement but they know the
utility of political institutions such as state and governments which can be used as instruments
for self-aggrandizement and private welfare. They are not the unsullied charioteers of public
weal but skilled players who draw political and economic mileage through their involvement in
dubious deals, treacherous transactions and sordid bargains. In the name of altruistic acts of
public charity, they petrify the purposes for which public institutions are created and buy social
pacification through acts of moral turpitude, economic sleeze and political bargain and thereby
they taint the system. No one epitomises institutionalized corruption more than this class of
power brokers.

5. Star War:

Corruption receives institutional boost vyhen two rival infallibilities such as the President and
Prime Minister or Governor and chief Minister clash. When two apex functionaries indulge in an
unseemly tussel to settle constitutional niceties such as Presidential thirst for sharing sensitive
classified information matched by an equal resistance by the office of Prime Minister to conceal
information because of the cult of suspicious secrecy, sometimes it may leachs to litigative battle
between the two with the judiciary playing the honest broker as being the guardian of the
constitution. This is the time-honoured caveat against interpretutional unwisdom by either apex
ruler to establish the inerrancy of constitutional status of both or either. After all, one has to pay
the price for retaining power. Jawaharlal Nehru, in his Work Price of Power said "In the world of
politics and economics there is a search for power and yet when power is attained much else of
value has gone. Political trickery and intrigue take the place of idealism, and cowardice and

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selfishness the place of disinterested courage. Form prevails over substance, and power, so
eagerly sought after, somehow fails to achieve what it aimed at."6 With despair deepening and
constitutional edifice shaking owing to this gubernatorial confrontation, the croonies of either
ruler flock around their chosen leader and make necessary noises to exhibit their loyalty and
strengthen the personality cult by demeaning and debasing the rival centre of power. In such as
unseemly wrangle between apex rulers, the corrupt flourish under the protective shield of their
apex patron promoters.

6. Politics of Vote Bank:

With the disintegration of one-party dominant system enshrined in the Congress party, India has
entered an era of coalitional politics and this calls for competitive populism to acquire votes.
Different political formations have their own vote banks composed of castes or religious
followings and a scramble is on to appease and accomodate them through doling out largesses or
offering political posts that carry power and pelf. How important these groups have become for
political parties can be seen through in an inept remark of Dev Kant Barua, who speaking about
the importance of Bangladeshi Muslims and tribal plantation labourers for success at the hustings
for the Congress party in Assam once said II long as the Alis and coolies are with the Congress
party, it did not care for anybody". Statements such as this opens the floodgates of corruption
through minority appeasement.

NEW LEGISLATIVE AND INSTITUTIONAL REFORMS FOR ELIMINATING

CORRUPTION IN INDIA

1. Legislative Measures Required 2

The problem of corruption needs to be addressed urgently if the efforts to improve governance
and seek development are to succeed. Since a number of past efforts in this regard have not
achieved their intended results, there is a need to seek new legislative and institutional reforms
for eliminating corruption. The cornerstone of these new reforms is the empowerment of the
citizenry for the fight against corruption. Past legislative efforts have dealt with corruption as a

2
Section A is reprinted with minor revisions for consistency from C. Raj Kumar, Promoting Transparency and Good
Governance, 625 SEMINAR: COMBATING CORRUPTION (Sept. 2011), available at http://www.india-
seminar.com/2011/625/625_c_raj_kumar.htm.

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crime,3 but not necessarily as a problem that undermines the enforcement of human rights.
Human rights violations of the nature created by corruption require radical reforms of the state
apparatus and galvanized civil society activism in a manner that is not the case with regard to
crimes. Undoubtedly, certain reforms in the Criminal Procedure Code (“CrPC”) are long-awaited
as well. For instance, under section 197 of the CrPC no court can take cognizance of any offense
alleged to have been committed by a public servant without prior sanction of the government in
whose affairs he is employed.6 Thus, Professor Upendra Baxi laments the fact that “the
protection given by the colonial law-makers to the public servants in the Code of 1898, still
continues.” While corruption continues to be a crime and indeed affects the law enforcement
mechanisms, the impact of corruption on the enforcement of human rights in India needs to be
recognized. This recognition will pave the way for developing strategies to fight corruption that
was hitherto not considered.

B. Rights-Based Approaches to Anti-Corruption Measures4

Having recognized that corruption affects human rights and the rule of law, it is important to
develop the right to corruption-free governance through a number of rights-based strategies in
India. Rights-based approaches to governance are those strategies that rest on the conceptual
foundation that social and economic goals do not remain policy objectives, but get transformed
into rights that are vested with the citizenry, thereby increasing incentives for public vigilance. In
this conception there are “right-bearers” and “dutyholders.” Evolving rights-based approaches to
governance will also help India to achieve the Millennium Development Goals. The people of
India would then actually be able to enjoy rights relating to social and economic goals that were
hitherto described as policy objectives. Government representatives will be vested with the duty
of ensuring the protection and promotion of the particular rights. It is not that the rights-based
approaches to anti-corruption measures will automatically ensure corruption-free governance,
nor is it that this approach is itself free from problems relating to enforcement. Rights by their
very nature are claims on the government or its representatives to act in a particular
manner.There are numerous legal, jurisprudential, and philosophical bases for rights to be

3
See UPENDRA BAXI, LIBERTY AND CORRUPTION 53-65 (1989)
4
Section B is reprinted with minor revisions for consistency from C. Raj Kumar, Corruption, Development and
Good Governance: Challenges for Promoting Access to Justice in Asia, 16 MICH. ST. J. INT’L L. 475, 550-51
(2008) [hereinafter Corruption, Development].

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enshrined in the constitution or for that matter to be used effectively for promoting democratic
governance. By the same token, there are criticisms of rights-based approaches to constitutional
governance, particularly in the area of economic, social, and cultural rights. Even while
recognizing the inherent limitations of rights-based approaches, it needs to be noted that the
empowering dimensions of such an approach far outweigh its weaknesses.

C. India’s Domestic Anti-Corruption Legal Framework5

The institutional approach to corruption has been quite successful in Hong Kong due to the work
of the Independent Commission against corruption (“ICAC”). There have been human rights
concerns raised regarding the activities of the ICAC in its law enforcement measures. However,
these concerns have been by and large duly addressed through appropriate checks and balances.
In India, various attempts have been made to tackle the problem of corruption. Institutional
measures have been taken by adopting legal and administrative regulations to ensure that corrupt
individuals are punished under the law. Before India’s independence, the British established the
Delhi Special Police Establishment (“DSPE”) to control corruption, which was rampant during
the Second World War. The Prevention of Corruption Act was passed in 1947 and an
Administrative Vigilance Division (“AVD”) was formed in the Ministry of Home Affairs in
1955. This led to the appointment of vigilance officers in each ministry to inquire into charges of
corruption against employees in various organizations. Interestingly, the First Five Year Plan in
1952 dealt with the issue of integrity in public life, and observed that corruption “not only
inflicts wrongs which are difficult to redress, but it undermines the structure of administration as
well as in public life.

ESTABLISHING AN INDEPENDENT COMMISSION AGAINST CORRUPTION 6

A. Creating the Right Political Environment for Combating Corruption

Fighting corruption has inevitably become the most urgent need for addressing all major
challenges of governance in India. While a number of approaches have been tried to fight

5
Portions of Section C are drawn from C. Raj Kumar, Corruption and Human Rights: Promoting Transparency in
Governance and the Fundamental Right to CorruptionFree Service in India, 17 Colum. J. Asian L. 31, 63-65 (2003)
[hereinafter Corruption and Human Rights].
6
Part II is reprinted with minor revisions for consistency from C. RAJ KUMAR, CORRUPTION IN HUMAN
RIGHTS IN INDIA 171-88 (2011) [hereinafter CORRUPTION IN HUMAN RIGHTS].

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corruption in India, none of them have been very effective so far. Given the complexities of
multi-layered police and other law enforcement agencies that are working in India, it is important
to develop a more focused approach to combating corruption.60 The proposal to establish an
Independent Commission Against Corruption (“ICAC”) in India recognizes the inherent
challenges of any institutional approach to seeking reforms in India, given the bottlenecks and
obstacles for enforcement of the rule of law. A number of institutions entrusted with the
responsibility of fighting corruption and ensuring probity in governance have not been
successful. Establishing an ICAC in India will not be the panacea for all ills relating to
corruption. There has to be a multi-pronged strategy to fight corruption, which will have the
legal framework, the institutional mechanism, the investigation and prosecution machinery, the
public awareness and education strategy, and civil society empowerment approaches. The fight
against corruption will work only if all the above strategies are formulated bearing in mind that
corruption is a serious problem of governance that violates human rights and undermines
development.

Transparency International in its TI Source Book 2000 describes the necessary framework for a
successful anti-corruption agency:

• Committed political backing at the highest levels of government;

• Adequate resources to undertake its mission;

• Political and operational independence to investigate even the highest levels of government;

• Adequate powers of access to documentation and for the questioning of witnesses; • “User-
friendly” laws (including the criminalization of “illicit enrichment”); and

• Leadership which is seen as being of the highest integrity. 7

The proposal to establish an ICAC in India needs to address each of the above institutional
challenges so that the ICAC is duly empowered to fight corruption. It is useful to briefly discuss
these challenges here.

7
TRANSPARENCY INTERNATIONAL SOURCE BOOK 2000, CONFRONTING CORRUPTION: THE
ELEMENTS OF A NATIONAL INTEGRITY SYSTEM 96 (2000) [hereinafter TI SOURCE BOOK 2000],
available at http://archive.transparency.org/publications/sourcebook.

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B. Committed Political Backing at the Highest Levels of Government

There is an urgent need for political backing at the highest levels of government in India. While
civil society activism and the citizenry seeking accountability of the government can help in
creating circumstances for developing a political consensus to fight corruption, the much-needed
political backing is important so that the top political brass in India is convinced of the
seriousness of the problem of corruption, its huge impact on development and governance, and
gives its fullest commitment to find ways to fight corruption.65 This is exactly how it happened
in Singapore when the political leaders made extraordinary efforts to wage a war-footage
exercise against corruption.

D. “User-Friendly” Laws (Including the Criminalization of “Illicit Enrichment”)

The legal framework that establishes the ICAC should include all aspects of dealing with
corruption. In addition to the criminalization of “illicit enrichment,” the law should have
provisions that outline the framework for enforcement of the rule of law. The proposed ICAC
should be able to access other legal and judicial institutions so that the enforcement regime for
fighting against corruption favors the efforts taken by the ICAC.

CORRUPTION LAWS IN INDIA

Public servants in India can be penalized for corruption under the Indian Penal Code, 1860 and
the Prevention of Corruption Act, 1988. The Benami Transactions (Prohibition) Act, 1988
prohibits benami transactions. The Prevention of Money Laundering Act, 2002 penalises public
servants for the offence of money laundering. India is also a signatory (not ratified) to the UN
Convention against Corruption since 2005. The Convention covers a wide range of acts of
corruption and also proposes certain preventive policies.

Key Features of the Acts related to corruption

Indian Penal Code, 1860:

• The IPC defines “public servant” as a government employee, officers in the military, navy or
air force; police, judges, officers of Court of Justice, and any local authority established by a
central or state Act.

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• Section 169 pertains to a public servant unlawfully buying or bidding for property. The public
servant shall be punished with imprisonment of upto two years or with fine or both. If the
property is purchased, it shall be confiscated.

• Section 409 pertains to criminal breach of trust by a public servant. The public servant shall be
punished with life imprisonment or with imprisonment of upto 10 years and a fine.

The Prevention of Corruption Act, 1988

• In addition to the categories included in the IPC, the definition of “public servant” includes
office bearers of cooperative societies receiving financial aid from the government, employees of
universities, Public Service Commission and banks.

• If a public servant takes gratification other than his legal remuneration in respect of an official
act or to influence public servants is liable to minimum punishment of six months and maximum
punishment of five years and fine. The Act also penalizes a public servant for taking gratification
to influence the public by illegal means and for exercising his personal influence with a public
servant.

• If a public servant accepts a valuable thing without paying for it or paying inadequately from a
person with whom he is involved in a business transaction in his official capacity, he shall be
penalized with minimum punishment of six months and maximum punishment of five years and
fine.

• It is necessary to obtain prior sanction from the central or state government in order to
prosecute a public servant.

The Benami Transactions (Prohibition) Act, 1988

• The Act prohibits any benami transaction (purchase of property in false name of another person
who does not pay for the property) except when a person purchases property in his wife’s or
unmarried daughter’s name.

•Any person who enters into a benami transaction shall be punishable with imprisonment of upto
three years and/or a fine.

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• All properties that are held to be benami can be acquired by a prescribed authority and no
money shall be paid for such acquisition.

The Prevention of Money Laundering Act, 2002

• The Act states that an offence of money laundering has been committed if a person is a party to
any process connected with the proceeds of crime and projects such proceeds as untainted
property. “Proceeds of crime” means any property obtained by a person as a result of criminal
activity related to certain offences listed in the schedule to the Act. A person can be charged with
the offence of money laundering only if he has been charged with committing a scheduled
offence.

• The penalty for committing the offence of money laundering is rigorous imprisonment for three
to seven years and a fine of upto Rs 5 lakh. If a person is convicted of an offence under the
Narcotics Drugs and Psychotropic Substances Act, 1985 the term of imprisonment can extend
upto 10 years.

• The Adjudicating Authority, appointed by the central government, shall decide whether any of
the property attached or seized is involved in money laundering. An Appellate Tribunal shall
hear appeals against the orders of the Adjudicating Authority and any other authority under the
Act.

• Every banking company, financial institution and intermediary shall maintain a record of all
transactions of a specified nature and value, and verify and maintain records of all its customers,
and furnish such information to the specified authorities.

PROCESS FOLLOWED TO INVESTIGATE AND PROSECUTE CORRUPT PUBLIC SERVANTS

• The three main authorities involved in inquiring, investigating and prosecuting corruption cases
are the Central Vigilance Commission (CVC), the Central Bureau of Investigation (CBI) and the
state Anti-Corruption Bureau (ACB). Cases related to money laundering by public servants are
investigated and prosecuted by the Directorate of Enforcement and the Financial Intelligence
Unit, which are under the Ministry of Finance.

• The CBI and state ACBs investigate cases related to corruption under the Prevention of
Corruption Act, 1988 and the Indian Penal Code, 1860. The CBI’s jurisdiction is the central

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government and Union Territories while the state ACBs investigates cases within the states.
States can refer cases to the CBI. • The CVC is a statutory body that supervises corruption cases
in government departments. The CBI is under its supervision. The CVC can refer cases either to
the Central Vigilance Officer (CVO) in each department or to the CBI. The CVC or the CVO
recommends the action to be taken against a public servant but the decision to take any
disciplinary action against a civil servant rests on the department authority.

• Prosecution can be initiated by an investigating agency only after it has the prior sanction of the
central or state government. Government appointed prosecutors undertake the prosecution
proceeding in the courts. • All cases under the Prevention of Corruption Act, 1988 are tried by
Special Judges who are appointed by the central or state government.

CONCLUSION

There is a much better grasp today of the extent to which corruption is a symptom of
fundamental institutional weaknesses in Indian society. Instead of tackling such a symptom with
narrow intervention designed to “eliminate” it, it is increasingly understood that the approach
ought to address a broad set of fundamental institutional determinants. However, the challenge of
integrating this understanding with participatory process has barely begun. The implementation
of institutional reforms can benefit significantly from the participatory process that is being
developed for anti-corruption activities. Equally important, any participatory process, however
sophisticated, ought to lead to concrete results beyond enhanced participation and heightened
awareness. Thus, identifying key institutional reforms in India, and mobilising support for such
reforms, needs to be fully integrated into the participatory process from very early on. Such early
convergence is likely to promote a better balance between prevention and enforcement measures
in addressing corruption. Until recently, the pendulum was firmly in the “enforcement” corner.
The gradual swing towards the middle ground has taken place due to recognition of the
limitations to expose legalistic enforcement measures, since the law institutions themselves are
currently part of the corruption problem in India. Therefore, corruption is an intractable problem
in India; it is like diabetes, which 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

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tolerable limits. Honest and dedicated persons in public life, control over electoral expenses,
could be some of the important prescriptions to combat corruption.

BIBLIOGRAPHY

1. A. Abdulraheem 2009; Corruption in India: An overview (Cause, consequences and remedial

measures); Social Action Vol. 59 October – December 2009.

[2]. Report of Transparency International 2012.

[3]. U.Myint 2000; Corruption: Cause, consequences and cures; Asia – Pacific Development
Journal Vol. 7, No. 2 December 2000.

[4]. Understanding Corruption in India: Promoting Transparency.

[5]. Vito Tanzi 1998; Corruption around the world: Cause, Consequences, scope and cures: IMF
working paper 1998.

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