Corruption in India

 Corruption

What is corruption?

According to the corruptie.org the simplest definition is: Corruption is the misuse of public

power (by elected politician or appointed civil servant) for private gain.

In order to ensure that not ony public corruption but also private corruption between individuals

and businesses could be covered by the same simple definition: Corruption is the misuse of

entrusted power (by heritage, education, marriage, election, appointment or whatever else) for

private gain. This broader definition covers not only the politician and the public servant, but

also the CEO and CFO of a company, the notary public, the teamleader at a workplace, the

administrator or admissions-officer to a private school or hospital, the coach of a soccerteam, etc

This misuse of power erodes the trust between two or more parties and makes a democracy

weak.

There are different forms of corruption, including bribery, embezzlement, extortion, networking,

under-the-table transactions, manipulation of the election result, money laundering, and more.

There are different penalties one may face if found guilty of corruption. They can be fined,

imprisoned and suffer a loss of reputation. Apart from personal effects, the organization can also

have a negative impact because of corruption that may be long-lasting.

If gone unchecked, corruption will keep rising in the community, which will result in increased

criminal activities and organized crimes.

Education is one of the most critical steps.

The senior employees in the management department must lead by example and cultivate an

open and transparent culture.

It can be easier to reduce corruption if reporting it becomes simple.

Why corruption is going on in India?

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 4 th 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, comuption have caused maximum suffering to the humankind. In ancient

history the great Indian philosopher Kautilya says “just as it is not possible, not to taste honey or

poison put the surface of the tongue, so it is not possible for the government servant dealing with

money not to taste however small a quantity.”

On the difficulties of comuption 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.”

Causes Of Corruption In India :

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

rampant in our society. Corruption in India has wings, not wheels. As the nation grows, the

corrupt also grow invent new methods of cheating the government and public. The cause of

corruption are many and complex. 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.

A 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.

A 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.

Lead to endemic corruption in public life.

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.

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 poorilliterate 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 comuption 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 gog

and increase poverty.

Country of the world. According to the fundamental comupt of democracy Indian constitution

provides that no taxation can be charged without permission of legislature. The money 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 by every

Indian.

India is largest democratic country of the world. 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

comuption 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 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.

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.

• 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.

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.