The fight against corruption has been declared a high priority by Prime Minister Man Mohan Singh. However, corruption remains widespread in the country and there have been many instances of political and bureaucratic corruption, public funds embezzlement, fraudulent procurement practices, and judicial corruption. High ranking officials have also been involved in major corruption scandals.
The sectors most affected by corruption include public procurement, tax and customs administration, infrastructure, public utilities, and the police. The latter has been identified as one of the most corrupt institutions by various surveys. The Government has put in place a well developed legal and institutional framework, with institutions including the Central Bureau of Investigation, the Office of the Comptroller and the Auditor General, and the Central Vigilance Commission.
The Supreme Court, in particular, has taken a firm stance against corruption in recent years and made several important rulings. Another achievement in the fight against corruption has been the enactment of the Right to Information (RTI) Act in 2005, which grants citizens access to government information and a mechanism to control public spending. In spite of progress, however, law enforcement remains weak and reforms have a long way to go.
Overview of Corruption in India :
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Since 1991, economic liberalisation in India has reduced red tape and bureaucracy, supported the transition towards a market economy and transformed the economy, with record growth rates of 9.2% in 2007 and 9.6% in 2006.
However, though the Indian economy has become the 6th largest in the world, its growth has been uneven across social and economic groups, with sections of society experiencing some of the highest levels of poverty in the world. Endemic corruption contributes to this uneven distribution of wealth. The cost of corruption, perceptible in public sector inefficiencies and inadequate infrastructure, is undermining efforts to reduce poverty and promote sustainable growth. Forms of Corruption
Most reports and studies emphasise that the country continues to face major governance challenges. There is a lack of transparency in governance rules, procedures are complicated and the bureaucracy enjoys broad discretionary power. Nepotism is embedded in the civil service, journalists are harassed for reporting on corruption and recent years have seen an increase in off-the-books campaign finance arrangements.
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These findings confirm the prevalence of the bureaucratic and administrative forms of corruption that take place at the implementation end of politics, where the public meets public officials. Bureaucratic corruption pervades the Indian administrative system with widespread practices of bribery, nepotism. Political Corruption
The public trust in democratic processes in India is seriously undermined by opaque financing of electoral processes, widespread bribery and other forms of corrupt practices. The 2007 Global Corruption Barometer reveals that political parties are perceived by Indian Citizens as one of the sectors most affected by corruption in the country, with a score of 4. 6 on a 5 point scale.
Freedom House 2008 reports that the system relies on black money obtained means, including tax evasion. Although politicians are regularly involved in major corruption scandals, investigations are rare and very few politicians and civil servants have been convicted.
Circumstantial evidence confirms that practices such as buying votes with bribes or promises, conflicts of interest, or state capture are common in India. In December 2005, 11 members of parliaments were accused of accepting cash for raising specific questions in Lok Sabha sessions and subsequently forced to resign. More recently a Parliamentary Enquiry Committee was established to look into the alleged cash- for-votes scam during a trust vote that took place in July 2008.
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The entry of criminals into politics-despite laws requiring public disclosure of candidates’ assets, criminal records and educational backgrounds-is another alarming facet of political corruption in India. According to The Economist, more than a fifth of federal parliament members in 2008 faced criminal charges. Of the 522 members of India’s current parliament, 120 are facing criminal charges; around 40 of these are accused of serious crimes, including murder and rape.
Vulnerable Sectors and Institutions
Public procurement is especially vulnerable to corruption in most developing countries. In India, there is a reasonably good framework of rules and procedures for public procurement that requires open tenders available to all qualified firms without discrimination, the use of non-discriminatory tender documents, public bid openings and selection of the most advantageous tenders, taking all factors into consideration.
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These regulations are apparently poorly enforced, however, as public contracting continues to be marred by major corruption scandals involving high level politicians. In the 2006 World Enterprise Survey, close to 24% of respondent firms confirmed they were expected to make a gift or payment to secure a government contract.
In addition, companies face different laws in different states, which complicate their operation throughout the country. According to the World Bank Country Procurement Assessment Report 2003, the Indian public procurement system is generally affected by a lack of consistency as well as low credibility and public confidence in the system. Corruption is perceived to be worse at the state level than at the federal level, due to the lack of qualified staff and widespread political interference in state administration. The report further notes that the average bribe to obtain a public contract is estimated at 15% of the contract’s value.
Anti-Corruption Efforts in India :
India’s performance on the 2007 Global Integrity Index indicates a huge gap between anti-corruption policies and practice. The legal and institutional framework to curb corruption is well developed and the country receives high scores in terms of anti-corruption law and institutions. An analysis was conducted by Transparency India in 2007 to identify possible gaps between the UN Convention against Corruption (UNCAC) and the legal and institutional framework in place in the country.
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The report confirmed the good quality of the legal framework against corruption in India, with existing legislation in line with most of the requirements of the UNCAC. The largest-and almost only-substantial gap was identified by the report in the area of whistleblower protection. The Legal Framework
The 1988 Prevention of Corruption Act criminalists’ corruption in the public and private sectors in the form of active and passive bribery, extortion, bribery of foreign officials, abuse of office and money laundering. There is also a 2002 Prevention of Money Laundering Act (amended in 2005). At the local level, state governments have state laws that address specific aspects of corruption.
The 2005 Right to Information (RTI) Act represents one of the country’s most critical achievements in the fight against corruption in recent years. Under the provisions of the Act, any citizen may request information from a “public authority” which is required to reply expeditiously or within 30 days. The Act also requires every public authority to computerise their records for wide dissemination and to proactively publish certain categories of information for easy citizen access.
The Central Bureau of Investigation (CBI) is the prime investigation agency of the central government and is generally referred to as a credible and respected institution in the country. It is placed under the Ministry of Personnel, Pensions & Grievances and consists of three divisions: the Anti-Corruption Division, the Special Crimes Division and the Economic Offences Division.
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These units have the power to investigate cases of alleged corruption in all branches of the central government, but need the permission of state governments to investigate cases at the state level. The Supreme and High Courts can instruct the CBI to conduct investigations. Like the CVC, the CBI has a complaint mechanism on its website.