INTRODUCTION:

Corruption, as defined by the World Bank, is a form of dishonesty or criminal offense undertaken by a person or organization entrusted with a position of authority, to acquire illicit benefit or abuse power for one’s private gain. 

Corruption may include many activities including bribery and embezzlement, though it may also involve practices that are legal in many countries. Political corruption occurs when an officeholder or other governmental employee acts in an official capacity for personal gain. Corruption is most common in kleptocracies, oligarchies, narco-states, and mafia states.

Why Corruption Occurs:

This section examines why corruption occurs in the infrastructure sector.

Corruption usually occurs because some individuals are willing to use illicit means to maximise personal or corporate gain.  However, in order for these individuals to become involved in corrupt activity, circumstances must exist which do not prevent or discourage them from doing so.

As explained in the introduction, GIACC uses the term “corruption” in the wider sense to include bribery, extortion, fraud, cartels, abuse of power, embezzlement, and money laundering.  Consequently, the discussion in this section applies to all such criminal activity.

The motivation for corruption

Individuals or organizations who participate in corruption may do so as a result of various motivating factors.  Some of these are examined below.

1. Voluntary- In some cases, the corrupt practice may be a voluntary act undertaken by the relevant party with the deliberate intention of gaining a competitive advantage or obtaining an unjustified personal or corporate gain.

2.  To level the playing field- In other cases, the practice may be undertaken to “level the playing field”. For example, a contractor may feel compelled to offer a bribe during tendering if it believes that its competitors will be offering a bribe.  Alternatively, a contractor may feel that it is necessary to inflate a claim artificially if it believes that the project owner will automatically and unjustifiably reduce the contractor’s claim or raise artificial counterclaims against the contractor.

3. Extortion- In some circumstances, a bribe may be extorted from the payer. For example, a contractor may be informed that if it does not pay a bribe, it will not receive a payment to which it is entitled.  Alternatively, a police or immigration official may, in threatening circumstances, demand a bribe.

4. Normal business practice- Some offenses are committed in the mistaken belief that common practices, such as the inflation of claims, or the wrongful withholding of payment, are normal business practices and do not constitute criminal offenses.

Corruption has affected the society in several ways:

• (1) It has retorted economic development of the country.
• (2) It has created violence and lawlessness in society since the corrupt man has the money and power to influence the executors of the law to serve him.
• (3) It has given rise to casteism, linguism and communalism.
• (4) It has dimin­ished morality and destroyed the individual character.
• (5) It has heightened inefficiency, nepotism, and lethargy and has created indiscipline in all fields of administration, making the life of a common man miserable.
• (6) It has reduced the credibility of officials in the eyes of the masses.
• (7) It has increased black money in the country.
• (8) It has led to the adulteration of eatables, spurious drugs, and shortage of many consumer items.
• (9) It has destabilized governments both at the center and in the states. We have, therefore, to focus on both types of visible and hidden corruption cases which stir up our conscience.

Major Factors Responsible for Corruption

1. The most important factor is the nature of the human being. People in general, have a great thirst for luxuries and comforts, and as a result which they get themselves involved in unscrupulous activities that result in monetary or material benefits.

2. Moral and spiritual values are not given utmost importance in the educational system, which is highly responsible for the deterioration of the society.

3. The salary paid to employees is very less and as a result which they are forced to earn money in illegal ways.

4. The punishments imposed on the criminals are inadequate.

1. The political leaders have spoiled the society completely. They lead a luxurious life and do not even care about the society.

2. The people of India are not awakened and enlightened. They fear to raise their voice against anti-social elements prevailing in the society.

Methods Tried to Abolish Corruption

Right to Information Act

The 2005 Right to Information Act required government officials to provide the information requested by citizens or face punitive action, as well as the computerization of services and the establishment of vigilance commissions. This has considerably reduced corruption and opened up avenues to redress grievances.

Right to Public Services laws

Right to Public Services legislation, which has been enacted in 19 states of India, guarantee time-bound delivery of services for various public services rendered by the government to citizen and provides mechanisms for punishing the errant public servant who is deficient in providing the service stipulated under the statute. Right to Service legislation is meant to reduce corruption among government officials and to increase transparency and public accountability.

Anti-corruption laws in India

Public servants in India can be imprisoned for several years and penalized for corruption under the:

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

Punishment for bribery in India can range from six months to seven years of imprisonment.

India is also a signatory to the United Nations Convention against Corruption since 2005 (ratified 2011). The Convention covers a wide range of acts of corruption and also proposes certain preventive policies.

The Lokpal and Lokayuktas Act, 2013

The Lokpal and Lokayuktas Act, 2013 which came into force on 16 January 2014, seeks to provide for the establishment of the institution of Lokpal to inquire into allegations of corruption against certain public functionaries in India.

Whistle Blowers Protection Act, 2011

Whistle Blowers Protection Act, 2011, which provides a mechanism to investigate alleged corruption and misuse of power by public servants and also protect anyone who exposes alleged wrongdoing in government bodies, projects, and offices, has received the assent of the President of India on 9 May 2014, and (as of 2 August) is pending for notification by the Central Government.

At present, there are no legal provisions to check graft in the private sector in India. The government has proposed amendments to existing acts and certain new bills for checking corruption in the private sector. Big-ticket corruption is mainly witnessed in the operations of large commercial or corporate entities.

To prevent bribery on the supply side, it is proposed that key managerial personnel of companies and also the company shall be held liable for offering bribes to gain undue benefits.

The Prevention of Money Laundering Act, 2002

The Prevention of Money Laundering Act, 2002 provides that the properties of corrupt public servants shall be confiscated. However, the Government is considering incorporating provisions for confiscation or forfeiture of the property of corrupt public servants into the Prevention of Corruption Act, 1988 to make it more self-contained and comprehensive.

A committee headed by the Chairman of the Central Board of Direct Taxes (CBDT), has been constituted to examine ways to strengthen laws to curb the generation of black money in India, its illegal transfer abroad, and its recovery.

“The Committee shall examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including inter-alia the following:

• 1. Declaring wealth generated illegally as a national asset;
• 2. Enacting/amending laws to confiscate and recover such assets; and
• 3. Providing for exemplary punishment against its perpetrators.” 

PROVISIONS AGAINST CORRUPTION IN COMPANIES ACT

The Companies Act, of 2013, contains certain provisions to regulate fraud by corporations including increased penalties for fraud, giving more powers to the Serious Fraud Investigation Office, mandatory responsibility of auditors to reveal fraud, and increased responsibilities of independent directors.

The Companies Act, 2013 also provides for mandatory vigil mechanisms that allow directors and employees to report concerns and whistle-blower protection mechanism for every listed company and any other companies that accept deposits from the public or have taken loans of more than 50 crore rupees from banks and financial institutions.

This intended to avoid accounting scandals such as the Satyam scandal which have plagued India. It replaces The Companies Act, of 1956 which was proven outmoded in terms of handling 21st-century problems.

In 2015, Parliament passed the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 to curb and impose penalties on black money hoarded abroad. The Act has received the assent of the President of India on 26 May 2015. It came into effect from 1 July 2015.

Anti-corruption police and courts

The Directorate General of Income Tax Investigation, Central Vigilance Commission, and Central Bureau of Investigation all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Anti-Corruption Bureau, Andhra Pradesh) and Karnataka (Lokayukta) also have their anti-corruption agencies and courts.

Andhra Pradesh’s Anti Corruption Bureau (ACB) has launched a large-scale investigation into the “cash-for-bail” scam.[81] CBI court judge Talluri Pattabhirama Rao was arrested on 19 June 2012 for taking a bribe to grant bail to former Karnataka Minister Gali Janardhan Reddy. A case has also been opened against seven other individuals under the Indian Penal Code and the Prevention of Corruption Act.

Civic anti-corruption organizations

A variety of organizations have been created in India to actively fight against corrupt government and business practices. Notable organizations include:

[Bharat Swabhiman Trust], established by Ramdev, has campaigned against black money and corruption for a decade.

5th Pillar is most known for the creation of the zero rupee note, a valueless note designed to be given to corrupt officials when they request bribes.

India Against Corruption was a popular movement active during 2011–12 that received much media attention. Among its prominent public faces were Arvind Kejriwal, Kiran Bedi, and Anna Hazare. Kejriwal went on to form the Aam Aadmi Party and Hazare established Jan Tantra Morcha.

Jaago Re! One Billion Votes was an organization founded by Tata Tea and Janaagraha to increase youth voter registration. They have since expanded their work to include other social issues, including corruption.

The Lok Satta Movement has transformed itself from a civil organization to a full-fledged political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and Bangalore. In 2009, it obtained its first elected post, when Jayaprakash Narayan won the election for the Kukatpally Assembly Constituency in Andhra Pradesh.

CONCLUSION:

Corruption is a big reason to worry for the Indian government. The Act is technically drafted beautifully, but it has not effectively come to the aid of the government to curb corruption. So the punishment prescribed in the Act shall be much stricter to deter the intending violators.