corruption in politics in india essay

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An analytical study on political corruption in India in the last 10 years

This article is written by Anand Singh , from the Hidayatullah National Law University (HNLU), Raipur. The article addresses the problem of political corruption in India, what has been the position in the past 10 years, and whether there is a need for a total overhaul of the legal system to curb the incidents of corruption.

Table of Contents

Introduction 

Chronic corruption has severely hampered India’s ardent pursuit of economic dynamism. According to Transparency International’s (TI) Global Corruption Barometer-Asia (GCB), India has the highest share of bribery in Asia (39%), as well as the greatest proportion of citizens exploiting personal connections (46%). India has the highest level of political corruption, which is the primary cause of rising corruption cases. Politics in India has evolved into a pathway to easy wealth and influence peddling. One of the most common kinds of corruption is tax evasion. It is primarily performed by government officials and politicians, which results in the buildup of black money, which lowers people’s confidence in the government. Arguably, the corruption problem in India has weakened institutions and hindered efforts to eliminate poverty and accelerate sustainable growth, more than the country’s weak currency and soaring inflation.

Understanding political corruption 

Corruption is the misuse of authority entrusted to someone. Corruption may occur anywhere and at any time, and it can be perpetrated by anybody. Political corruption is one of the most prevalent types of corruption. Political corruption refers to government officials abusing their legally granted authority for personal benefit. It does not include the abuse of government authority for other objectives, such as oppression of political opponents or general police brutality, nor does it include illegal activities committed by private individuals or businesses that are not directly connected with the government. Only if an officeholder’s unlawful activities are directly connected to their official duties it is considered political corruption.

Nepotism, bribery, extortion, fraud, and misappropriation are examples of political corruption. While organized crime such as drug trafficking, money laundering, and human trafficking may flourish from corruption, it is not limited to these activities. Kleptocracy, which means “government by thieves,” refers to a condition of uncontrolled political corruption.

Political corruption in India

India was considered one of the most promising giants developing markets during the 2000s, due to its expanding economy. However, in 2012 , the country’s fast-paced development slowed to a decade low, with many analysts blaming chronic corruption, including a series of scandals under previous Prime Minister, Manmohan Singh for the decline. Political corruption is most severe in India. The main issue of concern is that corruption is undermining the political body and severely undermining the supremacy of the law that governs society. Small-time politicians establish regional caste-based parties in the same way as businessmen launch businesses to acquire power. Many of these political leaders lead a life that would even make any Hollywood star envious.

Politics nowadays is just for criminals, and criminals are destined to be politicians. Elections have been directly linked with a slew of illegal activities in various regions of the country. Corruption revenues eventually find their way into political campaign financing. To the point where the National Commission to Review the Working of the Constitution (NCRWC) constituted in 2000 observed that electoral compulsions for funding had formed the cornerstone of the whole corruption system.

Major corruption events that took place in the last 10 years

In Transparency International’s Corruption Perception Index, India was placed 86th out of 179 countries in 2020. India’s highest ranking to date is 72nd that too in 2007, the year the report was first released. Several high-profile scandals have also highlighted the severity of the matter. Some of the most notorious instances of political corruption include the following:

Indian coal allocation scam

The coal allocation scam , popularly known as “Coalgate” engulfed the UPA (United Progressive Alliance) government in 2012, incriminating the former Prime Minister, Manmohan Singh and dragging top neta-babus into the investigation. Though many believe that the 2G Spectrum scam is still the largest incident of political corruption in India. However, in terms of the amount of money involved, this coal allocation scam overshadows it. During 2004 and 2009, the government of India was accused of assigning 194 coal blocks to public and private enterprises for captive usage in a fraudulent manner by the Comptroller and Auditor General of India (CAG) .

The underlying premise of this fraud was that the government had improperly allocated coal reserves without resorting to competitive bidding, which would have resulted in significant profits for the government (to the tune of 1.86 Lakh crore).

Vyapam scam

The Vyapam scam revolves around the Madhya Pradesh Professional Examination Board (MPPBP) , a government agency in charge of administering 13 different admission exams in the state, commonly recognized as ‘Vyapam’ (Hindi acronym for Vyavsayik Pareeksha Mandal). These entrance exams are conducted for government job recruitment and admittance to educational institutions throughout the state. Politicians, high government officials, businessmen, and others in Madhya Pradesh were involved in the admissions and recruitment scam. It included employing imposters to give exams regularly, taking advantage of exam hall seating, and providing corrupt officials with forged answer sheets. Many of those responsible for exposing these horrendous revelations — whistleblowers and journalists — have died in a series of mysterious events. Around 77 lakh people are suspected of paying bribes to get into colleges and acquire government employment.

Adarsh Housing Society scam

The story erupted from Adarsh Housing Society , a 31-story apartment building in Colaba, South Mumbai, which was created for the 1999 Kargil war heroes and war widows. The matter had been in the headlines since 2003, but the inquiry began in 2010, after which the Army and the CBI commenced separate investigations. Following revelations that politicians, bureaucrats, and military officials conspired to abuse property ownership rules and other standards to get flats for themselves and their families.

Several flats in the building, which was initially supposed to be a six-story, were supposedly acquired at a tenth of the price in 2010 by defence personnel and families of officials and politicians — but largely listed in the names of proxy owners. The Bombay High Court ordered the building to be demolished in 2016, stating that it was built unlawfully. The society took their case to the Supreme Court, which issued a stay on the demolition in 2018. The Indian army has seized the building after directives from the Supreme Court.

Causes and effects of political corruption in India

There is no one-size-fits-all explanation for political corruption, and the amount of corruption, and the forms it takes, vary consistently with the political environment.  The degree and nature of corruption vary depending on the sort of regime under which it occurs. 

However, the major cause of political corruption in India can be associated with the elections . Elections in India are not financed by the government, and winning elections these days seems to be unrealistic, without spending a hefty amount of money on campaigning. Additionally, there are no restrictions on the amount of money that may be spent on election campaigns. 

The lack of active use of the Right to Information Act, 2005 by the Indian public encourages politicians to engage in blatant corruption. 

All anti-corruption units are directly controlled by the government, which may explain why ministers and lawmakers often obtain a free pass by pressuring the anti-corruption units.

Economic effects

Corruption hampers economic growth by causing significant distortions and inefficiencies. Corruption raises the cost of doing business in the private sector by increasing the price of illicit payments and the managerial cost of dealing with authorities. While some argue that corruption lowers the cost by reducing bureaucracy, the availability of bribes can also lead to more restrictions and delays. The growth of the public sector is also damaged by corruption, as public funds get redirected towards capital projects, where bribes and commissions are easier to come by.

Social effects

Political corruption has considerably more social consequences than economic consequences. It first and foremost, affects the public’s faith in the government, and it also undermines democracy’s position. Political instability and armed conflict are likely to occur in such a country. Furthermore, the judiciary’s inability to prevent instances of political corruption causes the people to lose trust in the judiciary, which is the most essential component for the existence of a democracy.

Future ahead and the ways to curb the growing corruption

Corruption is treated by the public as a more serious problem than poverty, unemployment, rising living costs, and crime. Corruption is a major obstacle to progress and development, according to economic studies. For tackling corruption, strong political will and dedication are required, as well as good governance, administrative accountability, procedural facilitation, and public engagement through public audit committees acting as watchdogs.

Some welcome steps to combat corruption

Right to information act, 2005.

The Indian government has made a few initiatives to tackle corruption at the federal level. Citizens can now seek access to any public information under the Right to Information Act, 2005 and if accepted, they will get it within thirty days. The Act has been regarded as a major milestone in the battle against corruption, as it allows for penalties in any event of disobedience and mandates officials to digitise data.

Active judiciary

A more proactive judiciary has also adopted a tougher stance against corruption, with the Supreme Court ordering all trial courts in the country to expedite corruption cases in early 2011. The present Indian government has also adopted a tough position on the issue of corruption, resulting in the implementation of various legislative measures aimed at combating it, including the formation of an independent ombudsman (the Lokpal) to investigate and prosecute incidents of public officials’ malpractice (including Ministers), the legislation regulating Benami property transactions is being expanded. 

Technological advances

Technology has also aided the process. In certain states, such as Gujarat, online platforms for state contract bidding have been introduced, allowing for better transparency. The government has also implemented the Aadhar system , which allows poor individuals to bypass middlemen and get assistance directly through a bank account.

Thus, it is safe to conclude that new legislative developments, as well as recent government initiatives, are sufficient for the time being; the most important issue currently is their effective implementation, as well as addressing the challenges that may arise in their enforcement.

Conclusion 

Suppressing corruption in a democracy like India is unlikely; instead, it is openly questioned, analysed, and scrutinised. Corruption is a political issue in India with far-reaching economic implications, as seen by the country’s history. For many years, India has been plagued with corruption, which has failed successive governments. Bribes were formerly paid for doing the wrong thing, but today they are compensated for doing the right thing at the right moment. However, these corruption cases eventually get uncovered, and voters react by holding politicians accountable when the opportunity arises.

• https://www.indianmirror.com/corruption/political-corruption.html
• https://www.cfr.org/backgrounder/governance-india-corruption
• https://www.dawn.com/news/1592522
• https://legalaffairs.gov.in/ncrwc-report
• https://m.economictimes.com/news/economy/indicators/indias-rank-slips-to-86th-in-corruption-perception-index-2020/articleshow/80512814.cms
• https://www.transparency.org/en/cpi/2007
• https://www.longdom.org/articles/coal-is-gold-the-coalgate-scam.pdf
• https://www.thehindu.com/topic/2G_Spectrum_Scandal/
• https://cag.gov.in/
• https://www.thehindubusinessline.com/news/all-you-need-to-know-about-the-vyapam-scam/article7402744.ece
• http://peb.mp.gov.in/
• https://indianexpress.com/article/what-is/what-is-the-adarsh-scam-4994206/
• https://www.business-standard.com/about/what-is-adarsh-scam
• https://www.yourarticlelibrary.com/essay/political-corruption-in-india-518-words/24992
• https://rti.gov.in/rti-act.pdf
• https://www.thehindu.com/opinion/op-ed/is-cbi-the-handmaiden-of-the-government/article19272931.ece
• https://www.ndtv.com/india-news/supreme-court-fast-tracks-corruption-cases-447406
• https://thewire.in/government/indias-first-lokpal-appointed-justice-pinaki-chandra-ghose-as-chief-8-members
• https://www.prsindia.org/uploads/media/Benami/Benami%20Transactions%20Act,%202016.pdf
• https://www.prsindia.org/uploads/media/Benami/Benami%20Transactions%20Act,%202016.pdf  

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Corruption in India

• 06 Oct 2023
• 20 min read
• GS Paper - 4
• GS Paper - 2
• Transparency & Accountability
• Ethics and Human Interface
• Ethics in Human Actions
• Ethics in Private & Public Relationships

For Prelims: Corruption Perception Index , Transparency International , Democracy , Corruption

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

What is the Context?

The Prime Minister of India, in his 76 th Independence Day address, targeted the twin challenges of corruption and nepotism and raised the urgent need to curb them . Also, Corruption Perception Index (CPI) 2023 was released by Transparency International.

• Overall, the index shows that control of corruption has stagnated or worsened in most countries over the last decade. India Corruption Perceptions Index was 40 index points in 2023.

What is Corruption?

Corruption is dishonest behaviour 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.

What are the Reasons Behind Corruption in India?

• L ack of Transparency : A lack of transparency in government processes, decision-making, and public administration provides fertile ground for corrupt practices. When actions and decisions are shielded from public scrutiny, officials may engage in corrupt activities with reduced fear of exposure.
• A perception of impunity due to the inadequate punishment of corrupt individuals can encourage further corruption. When individuals believe they can get away with corrupt practices, they are more likely to engage in them.
• Low Salaries and Incentives: Public officials, especially those in lower-ranking positions, are sometimes paid low salaries. This can make them more susceptible to bribery and other corrupt practices, as they may see corruption as a means to supplement their income.
• India's complex economic environment, which involves various licences, permits, and approvals, can create opportunities for corruption. Businesses may resort to bribery to navigate this environment.
• Political Interference: Political interference in administrative matters can compromise the autonomy of government institutions. Political leaders may pressure officials to engage in corrupt activities for personal or party gain.
• Cultural Factors: There can be a cultural acceptance of corrupt behaviour in certain contexts, which perpetuates corruption. The notion that "everyone does it" can lead individuals to engage in corruption without feeling morally compromised.
• Lack of Whistleblower Protection: Inadequate protection for whistleblowers can deter individuals from reporting corruption. The fear of retaliation can silence potential whistleblowers and allow corruption to thrive.
• Social Inequality: Social and economic disparities can contribute to corruption, as individuals with wealth and power may use their influence to secure preferential treatment and engage in corrupt practices without repercussions.

What are the Reasons for the Prevalence of Corruption in Civil Services?

• Politicisation of Civil Services: When civil service positions are used as rewards for political support or swapped for bribes , the opportunities for high levels of corruption increase significantly.
• Lower Wages: Lowering wages for civil servants compared to those in the private sector. Certain employees may resort to taking bribes in order to compensate for the difference in wages.
• Administrative Delays: Delays in the clearance of files are the root cause of corruption as common citizens are coerced to grease the palm of erring officials and authorities for expedited clearance of the files.
• Colonial Legacy of Unchallenged Authority: In a society which worships power, it is easy for public officials to deviate from ethical conduct.
• Weak Enforcement of Law: Various laws have been made to curb the evil of corruption but their weak enforcement has acted as a hindrance in curbing corruption .

What can be the Impact 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.
• These low-quality services are all done to save money by the contractors and the officials who are involved.
• These people sanction the funds for research to those investigators who are ready to bribe them.
• Disregard for Officials: People start disregarding the officials involved in corruption and also the administrative set up which creates distrust in the system.
• Lack of Respect for Government: Top brass leaders of the nation like the President or Prime Ministers lose respect among the public. Respect is the main criteria in social life.
• Lack of Faith and Trust in Governments: People vote for a leader based on their faith in him/ her, but if leaders are found to be involved in corruption, people lose faith in them and may not vote next time.
• Aversion for Joining the Posts Linked to Corruption : Sincere, honest, and hardworking people develop an aversion for the particular posts deemed corrupt.
• A Decrease in Foreign Investment : Corruption in government bodies has led to many foreign investments going back from developing countries.
• This leads to delays in investments, the starting of industries, and also growth.
• Due to lack of proper roads, water, and electricity, the companies do not wish to start up there, which hinders the economic progress of that region.

Image: Changes in Levels of Corruption In India and Other Countries as per the Corruption Perceptions Index over the past decade.

What are the Legal and Regulatory Frameworks for Fighting Corruption in India?

• Amendment of 2018 criminalised both bribe-taking by public servants as well as bribe-giving by any person.
• 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  Benami Transactions (Prohibition) Act, 1988 the Act precludes the person who acquired the property in the name of another person from claiming it as his own.
• They perform the function of an "ombudsman” and inquire into allegations of corruption against certain public functionaries and for related matters.
• Central Vigilance Commission: Its mandate is to oversee the vigilance administration and to advise and assist the executive in matters relating to corruption.
• Amendments in 1964: The definition of ‘Public Servant’ under the IPC was expanded. The definition of ‘criminal misconduct’ was expanded and possession of assets disproportionate to the known sources of income of a public servant was made an offence.

What is the Importance of Ethics in Preventing Corruption?

• Establishing Moral Boundaries: Ethical principles provide a framework for defining what is right and wrong. In the context of corruption, ethics set clear boundaries that distinguish acceptable behaviour from unethical or corrupt conduct.
• Promoting Accountability: Ethics demand that individuals take responsibility for their actions and decisions. When people are guided by ethical principles, they are more likely to be transparent and accountable for their actions, reducing the likelihood of engaging in corrupt behaviour that could harm others.
• Fostering Transparency: Transparency is a core ethical principle. Ethical organisations and individuals are more likely to operate openly and honestly, making it difficult for corruption to thrive in an environment where actions and decisions are subject to scrutiny.
• Building Trust: Trust is a cornerstone of ethical behaviour. When individuals and institutions are perceived as trustworthy, they are less likely to engage in or tolerate corruption. A high level of trust in society reduces the temptation for corruption.
• Encouraging Civic Virtue: Ethical values promote civic virtue, which encourages individuals to act in the best interest of society rather than pursuing personal gain at the expense of others. Civic virtue is a powerful deterrent to corruption.
• Supporting Rule of Law: Ethical behaviour upholds the rule of law and respect for legal and regulatory frameworks. Corrupt practices often involve circumventing or violating the law, and adherence to ethics reinforces respect for legal norms.
• Whistleblower Protection : Ethical organisations and governments prioritise protecting whistleblowers who report corruption. Ethical values encourage reporting unethical behaviour, which is vital for uncovering and addressing corruption.
• Global Reputation: On an international scale, ethical behaviour is essential for a nation's reputation. Countries known for ethical governance and low corruption levels are more attractive to foreign investment and collaboration.
• Long-Term Sustainability : Corrupt practices often provide short-term gains but can lead to long-term harm. Ethical behaviour is essential for the sustainable development and prosperity of societies.

What are Nolan Committee Recommendations on Standards in Public Life and Prevention of Corruption?

Nolan Committee in 1995 in United Kingdom outlined Seven Ethical and Moral values to be incorporated by the Public functionaries, Officials, Civil Servants, Bureaucrats, Civil Society and Citizens in order to weed out corruption:

• Selflessness: Holders of public office should take decisions solely in terms of public interest.
• Integrity: Holders of public office should not place themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance of their official duties.
• Objectivity: In carrying out public business, including making public appointments, awarding contracts or recommending individuals for rewards and benefits, holders of public office should make choices on merit.
• Accountability: Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
• Openness: Holders of public office should be as open as possible about all the decisions and actions they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
• Honesty: Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
• Leadership: Holders of public office should promote and support these principles by leadership and example.

What are the Recommendations of the Second ARC to Tackle Corruption?

The Second Administrative Reforms Commission (2nd ARC), an advisory body in India, made several comprehensive recommendations to address the issue of corruption and improve the integrity and efficiency of the public administration. These recommendations aim to prevent corruption and enhance transparency and accountability in government operations. Here are some of the key recommendations made by the 2nd ARC:

• Whistleblower Protection Act, 2014: The 2nd ARC recommended amendments to the Whistleblowers Protection Act to enhance protection and incentives for whistleblowers. This includes safeguarding them from harassment and providing financial rewards.
• Central Vigilance Commission (CVC): The 2 nd ARC recommended strengthening the CVC's role in preventing and combating corruption by giving it more independence, resources, and authority.
• Central Bureau of Investigation (CBI): The commission suggested measures to ensure the CBI's autonomy and effectiveness in handling corruption cases.
• Standard Operating Procedures (SOPs): The 2 nd ARC recommended the development of clear SOPs for government processes and services to minimise the discretionary powers of officials. This reduces the scope for corruption and arbitrary decision-making.
• Use of Technology: Leveraging technology and e-governance can reduce human interface and discretion in government transactions. The commission encouraged the adoption of electronic methods to reduce corruption opportunities.
• Police Accountability: The commission highlighted the need for comprehensive police reforms to enhance the integrity and effectiveness of law enforcement agencies. This includes measures to increase transparency, accountability, and professionalism in the police force.
• Community Policing: Promoting community policing can build trust between the police and the public, reducing opportunities for corruption and abuse of power.
• Code of Ethics: The commission recommended the development of a code of ethics for public officials and employees to promote ethical behaviour.
• Citizen Charters: Encouraging government departments to adopt citizen charters can enhance accountability and improve public service delivery.
• Media and Education: The commission suggested using media and educational institutions to create awareness about the detrimental effects of corruption and the importance of ethical conduct.
• Parliamentary Committees: Strengthening the role of parliamentary committees in scrutinising government operations and expenditure can help detect and prevent corruption.
• Digital Transformation: The 2 nd ARC recommended a comprehensive digital transformation of government processes to reduce human intervention and opportunities for corruption.

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)

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Corruption in India: Status, Causes & Impacts

From Current Affairs Notes for UPSC » Editorials & In-depths » This topic

The menace of corruption is the most talked-about issue in India which grapples the sphere of public debate very often. The phenomenon touches every human being from the one living in slums to the person occupying the highest echelons of the State system. Just like the fictional Voldemort, corruption grows at every utterance of it. In the words of Kautilya “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.”

What is Corruption?

Transparency International (TI) defines corruption as “The abuse of entrusted power for private gain. It can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs”

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What is the Status of corruption in India?

• In 2021, the country was ranked 85th out of 180 in the Corruption Perceptions Index, with the lowest-ranked countries perceived to have the most honest public sector. Corruption is caused by a variety of factors, including officials stealing money from government social welfare programmes.
• CPI, 2019 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.
• As per the India Corruption Survey 2019, 51% of the respondents admitted to paying bribes. Rajasthan and Bihar fared the worst in the country with 78% and 75% of respondents admitting to paying bribes.

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What are the causes of corruption?

Inquiry into the causes of corruption presents a detailed picture of a socio-political-economic-administrative scenario that breeds corruption on a daily basis.

• 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 (breaching statutory spending limits) 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.
• Faulty process of liberalisation- we first opened ourselves to the world and then took to legislation for various sectors like FDI, resource auction making it easy for foreign companies to manipulate the system.
• Legal lacunae
• Archaic laws like IPC 1860 don’t capture the complexities of administration and lead to the escape of wrongdoers.
• narrows down the definition of corruption,
• increases the burden of proof
• prior approval from the government for inquiry or investigation of officials
• 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.
• 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. E.g. Punjab National Bank scam, commonwealth scam.
• Delays and dying away from the corruption cases at the judicial level due to lack of evidence or faulty investigation. It also showcases politician-public servant-judicial (lower levels) nexus.
• 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.
• Illiteracy, poverty, and inability to understand complex procedures.
• 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.

What are the 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.
• many developmental projects cannot be completed or get dragged for decades because of red-tapism, corruption cases raising the expenditure
• out of pocket expenditure by the poor to get things done creates a vicious cycle of poverty.
• Corruption in the social sectors like PDS, health and education schemes lead to demographic disadvantage.
• It misdirects developmental strategy from decentralized, directed projects to big-budget projects on account of crony capitalism.
• 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.
• Low tax collection due to tax authority- corporate corruption. It results in low spending in the capital building.
• 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
• Rising black money artificially enhances the market capability which is always at the risk of collapse.
• Harmful to national security
• We have a history of corruption in defense procurement and consequent litigation. It undermines the preparedness of the armed.
• Corruption in the border security establishment creates problems of terrorist infiltration. Illegal migration has caused the issue of NRC implementation
• 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
• Corruption is always paid by the poor. The loss of exchequer by the big scams are always recovered by higher taxes. It hampers intergenerational parity in taxation.
• The corrupt system denies the poor a chance to improve their status rendering them eternally poor
• On the political front, corruption is a major obstacle to democracy and the rule of law.
• It then leads to the loss of legitimacy of the political systems and gives free hand to non-state actors. E.g. Left-wing extremism
• Judicial corruption too undermines its legitimacy.

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 .

• Barring the criminals from even participating in the elections as suggested by the election commission.
• 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 a constitutional status
• Provision of required manpower, infrastructure, training of vigilance agencies
• 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
• Reducing the hierarchy levels in the governments
• 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
• Formalisation of the economy
• Refining and speedy implementation of GST
• Social sector improvements

As Transparency International chairman Delia Ferreira Rubio says, “People’s indifference is the best breeding ground to the corruption”. citizen empowerment is a basic need in the fight against corruption

• 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. corruption should not be seen as cancer to be eliminated root and branch for now. A practical approach would be to see it at obsession to be cured.  An incremental approach to the problem will lead to an achievable target-setting and faster completion. People should be aware that they can change the system. India against corruption movement of 2011 was not the last fight as we have seen and it cannot be either. There has to be continuous checks and balances in the system. Corruption can be tackled effectively. But it needs homegrown solutions that eliminate indigenous problems.

• India has dropped to 82nd position in 2021, five places down from 77th rank last year, in a global list that ranks countries based on business bribery risks. The list by TRACE, an anti-bribery standard-setting organization, measures business bribery risk in 194 countries, territories, and autonomous and semi-autonomous regions.
• A strict anti-corruption law is “necessary” because corruption is hollowing out the country, the Centre told a five-judge constitution bench of the Supreme Court, which was considering whether public servants can be prosecuted for bribery if bribe givers fail to record their statements or turn hostile.

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CORRUPTION IN INDIA The development of India and its people and the future is irreparably destroyed due to the massive corruption, bribery and influence peddling. The rule of law is ignored. India is faced with absolute lawlessness, no one is safe and no one’s property is safe. The Higher Judiciary to take stern action against the corrupt politicians, executives and the who’s who of India. In pandemic the leaders have failed its people and caused massive death. Ramesh Mishra Victoria, British Columbia, Canada

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Governance in India: Corruption

It remains unclear whether mounting public anger and flagging growth can catalyze India to address widespread official corruption.

Backgrounder by Beina Xu

Last updated September 4, 2014 8:00 am (EST)

Introduction

With a booming economy throughout the 2000s, India was touted as one of the most promising major emerging markets. But that breakneck growth sputtered to a decade low in 2012, with many observers pointing to the corrosive effect of endemic corruption—including a spate of scandals under former prime minister Manmohan Singh—as a culprit. Perhaps more than India’s weak currency and rising inflation, the graft problem has undermined institutions and thwarted efforts to reduce poverty and catalyze sustainable growth in the world’s largest democracy. Public revelations of corruption, including major scandals in the telecommunications and coal industry, have galvanized a rising middle class with increased demands for better governance. The tide has spurred new political movements, and forced the government to address transparency and marshal reforms.

The Roots of Corruption

Corruption in India can be traced back to the country’s colonial past, analysts say. The British Raj period, beginning in 1858, excluded Indian citizens from political participation by dividing the country into districts with provincial governments controlled by a commissioner. The 1923 Official Secrets Act made it an offense for officials to reveal state information to citizens, ostensibly to protect military and government intelligence.

After India gained independence in 1947, the new regime implemented heavy economic regulations intended to develop domestic markets; the 1951 Industries Act, for instance, required all new industrial operations to obtain a license from the central government. The policy limited foreign investment and stifled competition, and bribery became part and parcel of doing business. The period up to 1991 was dubbed the “License Raj” as a result of the government’s excessive oversight of the economy. The poor often suffered most from the widespread corruption, which diverted large amounts of public revenue intended for public works, aid, and social welfare programs.

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“Historically, the roots of India’s corruption came from the proliferation of licenses,” says former CFR Senior Fellow for International Economics Jagdish Bhagwati. “The idea was to ensure economical use of resources, so you would not waste foreign exchanges. To this day, this is what Indians have been very aware of: that the institution of licenses and permits was responsible for creating corruption on a massive scale.”

The first major law to combat government malfeasance was the Prevention of Corruption Act (PCA) of 1947, enacted to prevent officials from cashing in on postwar reconstruction funding. Parliament also established the Anticorruption Bureau in 1961 to investigate violations of the PCA, which has since been amended twice (most recently in 1988). The latest revision was a direct response to the late-1980s Bofors scandal , in which then prime minister Rajiv Gandhi and other politicians were accused of receiving large kickbacks in a weapons bid from Swedish arms company Bofors. Many observers considered the scandal to be a main reason the Gandhi-led Congress Party was voted out of power in 1989.

Under the PCA, bribery is punishable by a fine and up to five years imprisonment. But many analysts believe India’s sprawling bureaucracy and weak institutions—the police and judiciary were ranked as the second and third most corrupt institutions  in India, respectively, after political parties—have thwarted convictions, and arguably increased incentives for bribery. In recent years, graft pervaded society from small-scale “harassment bribes” (payments for essential social services) to scandals on a national level. At least 42 percent of young Indians have paid a bribe, according to a 2012 Hindustan survey.

“There’s been corruption in India for thousands of years—it’s endemic—but what you see is the kind of corruption changing,” says Milan Vaishnav , a South Asia associate at the Carnegie Endowment for International Peace. “In the past two decades, there’s been a shift toward grand corruption: the recent scandals are just qualitatively and quantitatively bigger than anything we’ve seen. And a big reason for that is India’s rapid growth. Growth has expanded the possibilities for rent-seeking.”

A 2011 report from KPMG stated that 68 percent  [PDF] of India’s total illicit capital loss happened after the country’s economic liberalization in 1991, indicating that the reform and rise of India’s economy has contributed to the transfer of “black money” abroad.

A Spiraling Problem

In 2013, India ranked ninety-fourth out of 176 countries in Transparency International’s Corruption Perception Index , alongside Mongolia and Colombia and below neighbors like China and Sri Lanka. The country has steadily slipped since ranking seventy-second of 179 in 2007, when the report debuted. Several recent high-profile scandals have underscored the extent of the problem. In 2010, allegations emerged surrounding the gross misallocation of funds at the Commonwealth Games , which cost almost eighteen times its budget estimate. Reports surfaced of shoddy infrastructure and financial irregularities regarding contracts, and the scandal led to the resignation of two senior Congress Party members and other government officials. The Central Vigilance Commission cited the total misappropriation of funds to be around $1.8 billion .

There’s been corruption in India for thousands of years, but what you see is the kind of corruption changing.

Soon after, controversy mired the government again when an auditor’s report uncovered a massive telecom scam estimated to have cost the government some $39 billion, making it one of the largest cases of state corruption in Indian history. Telecom minister Andimuthu Raja, accused of orchestrating the sale of licenses below market value, resigned in 2010. (He was arrested in 2011, and was out on bail as of late 2013.) During the affair, outraged opposition parties shut down parliament for three weeks and prompted massive protests in Delhi .

Public anger escalated when the 2012 “ Coalgate ” scandal, in which an estimated $34 billion was lost, implicated the prime minister himself. The breadth of corruption has even touched the U.S. government, as cables released in 2011 by Wikileaks revealed that a Congress Party aide allegedly showed a U.S. diplomat chests of cash intended as  a bribe to secure Parliament’s endorsement of a controversial 2008 U.S.-India nuclear deal.

The Fallout From Corruption

Public outrage peaked by the spring of 2011. A social activist named Anna Hazare emerged as a prominent organizer of the anticorruption movement, vowing a “fast unto death” unless the government established a new anticorruption agency (Lokpal) to review complaints at the highest level. Thousands of citizens took to his cause, and the United Progressive Alliance (UPA)–led government announced in August that it would form a committee to draft the law. After stalling for months in Parliament, India’s lower house finally passed the bill in mid-December 2013 with both Congress and BJP’s support, ending Hazare’s nine-day hunger strike in a rare show of unity.

Mounting graft has stirred not only domestic worries, but has also tarnished the country’s image among international investors. Since 1947, India has lost hundreds of billions of dollars in illegal capital flows  (tax evasion, corruption, bribery, kickbacks, etc.), and was ranked 134th of 189 countries in the World Bank’s 2014 Doing Business Report. At Davos in 2013, NGOs warned  that the hefty investment needed for India’s infrastructure development could breed more corruption.

Some experts note that while there isn’t necessarily a  direct correlation  between corruption levels and India’s economic health, the nature of the graft has been corrosive to its growth. “The way corruption has been practiced in India has been particularly harmful,” says Bhagwati, who contrasts India’s  rent-creating corruption , which carves out monopolies for cronies, with China’s profit-sharing system, which takes an interest in growth. “In the end, the corruption in India is of a form that undermines growth in our institutions. It’s a very expensive way to be corrupt.”

Campaigning for Reform

As India’s economy slowed , successive revelations of graft exacerbated public outrage at the inability of the former Congress-led government to mitigate corruption. In turn, the country saw an uptick of anticorruption rhetoric ahead of state elections in November and December 2013. The Aam Aadmi Party, led by activist Arvin Kejriwal, emerged as a  new political party  that got its start on an anticorruption platform, while the opposition Bharatiya Janata Party (BJP) also emphasized good governance. Meanwhile, Chief Minister Nitish Kumar, who leads one of India’s poorest states, Bihar, also won accolades for  his success  in emphasizing good governance.

“What is new and politically relevant has been, in response to citizen outrage, the rise of parties explicitly focusing on governance,” says CFR’s Alyssa Ayres . “And most importantly, the transformation of campaigning from a mode that focused on a language of empowerment with an appeal to caste, to one focusing on good governance and delivering services to citizens.”

The BJP championed the clean track record of its leader Narendra Modi, whose reform efforts as chief minister of Gujarat, made his home state a key driver of national economic growth, and who went on to win the 2014 national election. Yet corruption remains rife in India’s political landscape. In 2012, criminal cases were pending against 31 percent of members of parliament and the legislative assembly. Campaign spending limits are low, driving expenditure underground and fostering reliance on “black money.” Many experts also point to Indian voters’ complex relationship with corruption; research from a wide range of states finds that political candidates often promote their criminality  as an indication of their ability to defend the interests of their communities.

Prospects for Progress

India’s government has made a few attempts at the federal level to combat corruption. The 2005 Right to Information Act allows citizens to request access to any public record and, if approved, receive it within thirty days. The law, which can penalize noncompliance and requires authorities to digitize records, has been hailed as a pivotal achievement in the fight against corruption. The government is also considering moves to strengthen the national antigraft law, potentially introducing changes  that would punish corporate failure to prevent bribery.

What is new and politically relevant has been the rise of parties explicitly focusing on governance.

An increasingly activist judiciary has also taken a stronger stance against corruption; in early 2011, the Supreme Court asked all trial courts in the country to  fast-track  corruption cases. The next year, it limited the amount of time the government had to decide whether or not to  prosecute a public official  for corruption. And in July 2013, the  top court ruled  that it was illegal for politicians convicted of crimes to continue holding office, although, in a highly controversial move, Singh’s cabinet  withdrew the decree  in October. Modi announced  in an August 2014 speech  that his government will initiate tough initiatives to battle corruption, likening the problem to a “disease.”

Technology has also helped. Some states like Gujarat have implemented online systems for state contract bids, allowing for greater transparency. Others have also put land records and death certificates online, while websites like  IPaidaBribe.com  expose graft associated with common public services. The government is also devising an  electronic ID system , which would allow poor citizens to avoid intermediaries and receive aid directly through a bank account.

But technology can only do so much, says  Jennifer Bussell , assistant professor of public policy at the University of California, Berkeley. Bussell notes that technology’s most important contribution has been granting citizens greater access to information. “Some combination of administrative reforms and local-level technology initiatives to help bring corruption to light—in addition to efforts by organizations like the Comptroller and Auditor General, which is exposing corruption at the highest levels of government—would help. You need all of these things.”

Transparency International India offers statistics and reports about the current state of corruption in India.

Accountability Initiative offers reports and policy briefs using publicly-available data collected from the Right to Information Act.

This CMS India Corruption Study  [PDF] breaks down corruption statistics by state and public service.

This U4 Anticorruption Resource Center report gives an overview of India's corruption problem and efforts to address reform.

This Fair Observer article asks whether computerization of public service transactions could help curb petty corruption in India.

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Corruption in India: An Enduring Threat

• Šumit Ganguly

Select your citation format:

Read the full essay here .

The self-styled Gandhian social activist Kisan Baburao “Anna” Hazare catalyzed a national anticorruption movement with his hunger strike to induce the Indian Parliament to pass a particular piece of anticorruption legislation known as the Jan Lokpal (or Citizen’s Ombudsman’s) Bill. The presence of freedom-of-information laws, effective anticorruption agencies, and a working and independent judicial system can promote transparency and accountability. These may in turn help to restore a modicum of faith that India’s democracy, rather than being a playground for corruption, can be counted on to work for and not against the interests of India’s citizens.

About the Author

Šumit Ganguly   is Distinguished Professor of Political Science and holds the Rabindranath Tagore Chair in Indian Cultures and Civilizations at Indiana University, Bloomington, and is a visiting fellow at the Hoover Institution at Stanford University. He is the author (with William Thompson) of Ascending India and Its State Capacity (2017) .

View all work by Šumit Ganguly

Further Reading

Volume 20, Issue 4

India’s 2009 Elections: The Problem of Corruption

• Ronojoy Sen

Democracy in India remains robust, but the scope and intensity of the corruption that pervades the political system are steadily eroding public trust.

Volume 28, Issue 3

India’s Democracy at 70: Growth, Inequality, and Nationalism

• Ashutosh Varshney

Of late, Indian democracy has been confronted with a new political economy. Strong economic growth over the last three decades has generated the world’s fourth-largest collection of dollar billionaires and…

Volume 19, Issue 2

India’s Improbable Success

A review of India After Gandhi: The History of the World's Largest Democracy by Ramachandra Guha and The Clash Within: Democracy, Religious Violence and India's Future by Martha C. Nussbaum.

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Corruption In India Essay

Corruption refers to dishonest or fraudulent behaviour by individuals in positions of power or authority, such as government officials, politicians, business leaders, or law enforcement officers. Corruption can take many forms, including bribery, embezzlement, nepotism, abuse of power, and fraud. Here are a few sample essays on corruption in India.

100 Words Essay On Corruption In India

200 words essay on corruption in india, 500 words essay on corruption in india, addressing the problem of corruption.

Corruption is a significant problem in India that has been prevalent for decades. It affects all levels of society, from the poorest to the richest. Corruption in India can take many forms, including bribery, embezzlement, nepotism, and misuse of public resources. Corruption in India has resulted in the misallocation of resources, poor governance, and a lack of accountability. It also leads to a loss of trust in public institutions, weakens the rule of law, and hinders economic development. Despite various efforts to curb corruption, it remains a significant challenge for India, requiring continued vigilance and strong political will to address this issue.

Corruption is a widespread problem in India that has been a matter of concern for several decades. It is a menace that plagues all levels of society, from the poorest to the richest. Corruption in India takes various forms, such as bribery, embezzlement, nepotism, and misuse of public resources. The root cause of corruption in India is a lack of transparency, accountability, and a weak legal system.

Consequences | Corruption in India has severe consequences on the country's social and economic development. It has resulted in the misallocation of resources, poor governance, and a lack of essential services to the people. Corruption has also undermined democracy and the rule of law, with political parties and leaders using corruption as a means to maintain power and control.

Measures | The Indian government has taken several measures to address corruption, such as setting up anti-corruption agencies, enacting laws and regulations, and promoting transparency and accountability in public institutions. However, corruption remains a significant challenge in India, requiring continued efforts and political will to combat.

Citizens also have a crucial role to play in fighting corruption by refusing to participate in corrupt practices, reporting corruption, and demanding accountability from their leaders. Addressing corruption in India requires a collective effort from all stakeholders, including the government, civil society, and citizens, to build a more transparent, accountable, and fair society.

Corruption has been a rampant problem in India for decades, plaguing all levels of society, from the poorest to the richest. Corruption in India takes many forms, such as bribery, embezzlement, nepotism, and misuse of public resources. It undermines the country's democratic institutions, weakens the rule of law, and has severe consequences on social and economic development.

Causes For Corruption

Lack of transparency in public institutions provides an environment conducive to corruption. When there is no transparency in government functioning, it is easier for officials to engage in corrupt practices without fear of detection or punishment.

The weak legal system in India is also a significant contributor to corruption. Corrupt officials can evade justice, and the lack of severe punishments acts as a deterrent to corrupt practices.

Political influence is another significant cause of corruption in India. Politicians use their power and influence to benefit themselves and their associates, often at the expense of the public interest.

Poverty and a lack of economic opportunities create an environment where corruption thrives. People in positions of power often exploit the vulnerable to engage in corrupt practices.

Despite various anti-corruption measures, a lack of political will to tackle corruption remains a significant challenge. Corruption often goes unchecked because of a lack of will to enforce laws and regulations.

Addressing the root causes of corruption in India requires a comprehensive approach that involves structural reforms, strengthening of institutions, and a change in societal attitudes towards corruption. It requires a concerted effort from all stakeholders, including the government, civil society, and citizens, to build a more transparent, accountable, and fair society.

Reducing corruption in India is a complex and challenging task that requires a multi-faceted approach. Here are some steps that can be taken to decrease corruption in India.

Strengthening institutions such as the judiciary, law enforcement agencies, and anti-corruption bodies can help reduce corruption. These institutions should be provided with adequate resources, training, and autonomy to perform their functions effectively.

Greater transparency in government functioning can help prevent corruption. Measures such as public disclosure of government contracts, budgets, and decision-making processes can help reduce opportunities for corruption.

Encouraging citizen participation and creating channels for feedback is another method that can help in the eradication of corruption. This can be done by promoting citizen engagement in decision-making processes, creating whistleblower protection laws, and establishing grievance redressal mechanisms.

Strict enforcement of laws and regulations is critical to reducing corruption. This requires political will to prosecute corrupt officials and to ensure that they are held accountable for their actions.

Promoting ethical leadership can help reduce corruption by ensuring that leaders at all levels of government are selected based on their integrity and track record of ethical behavior.

The use of technology can help reduce corruption. For example, e-governance systems, online portals for filing complaints, and digital payment systems can reduce opportunities for corruption.

Educating the public about the negative effects of corruption and promoting ethical behavior is crucial to reduce corruption. This can be done through awareness campaigns, education in schools and colleges, and public service announcements.

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