Corruption In India And Its Causes &
Corruption may defined as the use of public office
for private gain, or in other words, use of official
position, rank or status by an office bearer for his
own personal benefit. Following from this
definition, examples of corrupt behavior would
(a) bribery (f) appropriation of public
(b) extortion assets and property for private
(c) fraud use
(d) embezzlement (g) influence peddling
A corruption equation can be set out as follows (Klitgaard 1998):
In the above equation, C stands for corruption, M for
Monopoly, D for discretionary powers, and A for
In explaining this formula, they state that
accountability. The equation states that the more monopoly(M)
corruption tends to flourish "where officials
exist in a country, the larger willover a good or
have a monopoly power be the corruption.
Similarly, the greater the discretion in deciding whogranted to
service, unlimited discretionary powers (D)
administrators, the greater will be the corruption. However, the
gets that good or service or how much they
more administrators areno accountability whereby
get, and there is held accountable (A) for their actions,
the less will be the corruption, and hence a minus sign in front
others can see what that person is deciding."
In India ( as on 31st January,2012)
• 7172 corruption cases pending in
• CBI registered 600 corruption cases
• CBI registers over 2,200 corruption
cases in past 3 years
Corruption in India
• As with many developing nations, corruption
is widespread in India.
• India is ranked 95 out of a 182 countries in
Transparency International's Corruption
Perceptions Index, its score has degraded from
3.4 in 2008 to 3.1 in 2011.
• Corruption has taken the role of a persistent
aspect of Indian politics and administration.
CORRUPTION PERCEPTIONS INDEX
Here the country having highest
index is most clean and countries
having index are highly corrupt
TRANSPARENCY INTERNATIONAL CORRUPTION
“ Corruption and political instability may be
two sides of the same coin.”
Watch system beaten common man Mussadi Lal try his
level best to tackle different types of officers in different
office and always end-up failed and frustrated.
CAUSES (political level)
1. Continuation of confused Nehruvian Socialism for the last a
few decades and hypocrisy of current Liberalism when large
scale leaking subsidies still continue.
2. Weak and ineffective Local governments inspite of
Amendments 73 and 74 to Constitution of India
3. Fixed and purchased vote bank with manipulated Voters lists.
4. Rusted and fargile steel frame of outdated colonial model of
5. Our fundamental rules in governance, Police, Co-operative
and other welfare Societies etc are still based on 1860 Act as
amended but not implemented.
6. Our private schools/colleges obtain signatures for higher UGC scale salary
but pay nearly 50% of the amount. Thus Corrupt teachers/Professors/
management etc are running the schools/colleges.
7. In I.A.S officers Training Academy (LBSNAA) corruption is prevailing and
brought to the notice of Cabinet Scy, Prime Minister etc.They are all
closing their eyes to save their IAS colleague in LBSNAA.
8. The subsidised domestic LPG cylinders are sold to commercial
organisation/hotels etc at much higher rate in the presence of law enforcing
agencies, no one stops this for their corrupt material gain. All the Deputy
Commissioners of major districts know about it but are helpless.
9. First the government recovers TDS at much higher percentage and when
question of Refund comes, for years Refund is not given unless some
fixed% is given to Income Tax officials. If you complain there is more
harassment in future to make you run from pillar to post.
10. Our spiritual gururs openly accept donation of Black money. Neither the
donor want receipt nor Gurus are keen to give receipts.
…. there is endless list for corrupt practices. i do not know what
LOKPAL/LOKAYUKT will do in such cases
Causes which now become main
reasons for corruptions
1. Lack of effective management and organisation.
2. Lack of economical stability.
3. Lack of support.
4. Lack of values.
5. Lack of love for country
6. Lack of satisfaction
7. Lack of autonomy
8. Lack of good control and vigilance
9. Lack of good remuneration
10. Lack of employment.
11. Lack of seats and educational institutions
12. List is endless………….
1. Indian Black Money
Cost: Rs. 7,280,000 Crores
Face of the Scam: Hassan Ali Khan
This scam can be said to be be an Indian billionaire cause
Hasan Ali Khan is claimed to the almost immediate
businessman.In 2007, authorities began investigatingby the
of the anti-corruption movement being faced Khan
country. The of money laundering .Hehugeasums bank
for suspicion revelation about the has Swiss of money
being stashed 8 Billion Dollars inbanks served as an
account with away in Swiss deposits.He allegedly
impetus away billions into Swiss bank accounts with thebeen
stashed to rally against the government that had
help of theit. The magnanimity of the situation came into
ignoring Kolkata based businessman, Kashinath Tapuria
via hawala channel.
focus when Indian businessman was arrested on money
laundering charges which was to the tune of Rs. 39,120
2. CWG Scam
Cost: Rs. 70,000 crores
Face of the Scam: Suresh Kalmadi
The Commonwealth Games held in India was an even
that was soaked in controversies and corruption to say the
least. While the organizing committee drew flak for
various allegations like child labour, environmental
impact, racism and financial costs, the one that shocked
the nation was the humungous amount of funds that had
been mishandled by them. The chairman of the
organizing committee was, resultantly, arrested on
charges of 'criminal conspiracy and cheating.'
3. 2G Spectrum Scam
Cost: Rs 176,000 crore
Face of the Scam: A. Raja & M. K.
The 2G scam is one of the latest scams that
Have hit our country driving it to incur huge
losses. And caught at the centre of the embarrassing controversy was
the Telecom Minister, A. Raja himself. The scam became bigger with
new revelations of the involvement of politicians, bureaucrats,
corporate personalities, media persons and lobbyists. The granting of
licenses to various companies led to a massive loss to the exchequer.
Also, daughter of political heavyweight, M. Karunanidhi, M.
Kanimozhi was also arrested on charges of being a co-conspirator in
4. Scorpene Submarine
Cost: Rs 18,978 crores
Face of the Scam: Ravi Shankaran
The Scorpene submarines scam was one of the biggest
corruption scandals faced by the country and including
the navy. In the scandal, secret Navy documents were
sold to the makers of the Scorpene submarine.
The Indian government had approved the 19,000 crore
submarine deal with the French company. The purchase
of six Scorpene submarines cost the Indian government
a lot more than its actual price.
5. Stamp Paper Scam
Cost: Rs 20,000 crores
Face of the Scam: Abdul Karim Telgi
The Stamp Paper scam was perhaps the
most innovative scam in the list. Abdul
Karim Telgi, a former fruits and vegetables seller, duped the nation
of crores of rupees by printing fake stamp papers. He began his
counterfeit career by making fake passports after which he started
selling fake stamp papers to banks, insurance companies, share
broking firms and bulk purchases. What was surprising, was the
involvement of many police officers and other government
employees. In fact, one police officer was said to have assets worth
Rs. 100 crores despite earning only Rs. 9000 a month.
6. Bofors Scam
Cost: Rs. 400 million
Face of the Scam: Ottavio Quattrocchi
The Bofors scandal that hit the country
was a major corruption scandal which
changed the fate of the, then ruling,
Congress party. Top politicians like Rajiv
Gandhi and S.K. Bhatnagar and high profile names like Win Chadha
and the Hinduja family were accused of "receiving kickbacks from
Bofors AB for winning a bid to supply India's 155 mm field howitzer."
The scale of the corruption was such that it immediately led to the
defeat of the government headed by Rajiv Gandhi. Italian
businessman Ottavio Quattrocchi, was the prime accused in the
scandal and was chased by the CBI for years.
7. Mining Scam
Cost: Rs. 300,000 crores
Face of the Scam: Naveen Patnaik
This scam was plundering at its best
with the Naveen Patnaik led government exploiting
the state's minerals to the tune of lakhs of crores of
rupees. Apparently, the mine owners had been
illegally using fake Transit Passes to transport
minerals from Orissa to other states. The plundering
was a large scale one and involved many high profile
people from the government and bureaucracy.
8. Fodder Scam
Cost: Rs. 950 crores
Face of the Scam: Lalu Prasad Yadav
Bihar's most famous scam was the
one involving fodder and ex- Chief
Minister Lalu Prasad Yadav. The officials of the Bihar
state government embezzled funds worth Rs. 950 crores
by fabricating vast herds of fictitious livestock for which
fodder, medicines and animal husbandry equipment
were acquired. Soon, Lalu resigned from the post
following immense pressure from all quarters owing to
his close involvement in the case.
9. Hawala Scam
Cost: US$ 18 billion
Face of the Scam: L.K Advani/ Late
Hawala scam was probably the first
scam that gave the public an idea of the the loot of
national treasure that was being implemented by the top
politicians. The scam revolved around the payments that
the politicians received from hawala brokers, who basically
fund terrorism around the globe. Many prominent
politicians like LK Advani, Arjun Singh, Yashwant Sinha,
Kalpnath Roy, VC Shukla, Madhavrao Scindia, Sharad Yadav,
Buta Singh, Natwar Singh and Madan Lal Khurana were
indicted in this case, but no action was taken against them
due to lack of hardcore evidence.
10. Satyam Scam
Cost: Rs. 14,000 crores
Face of the Scam: B. Ramalinga Raju
The Satyam Scam was the biggest corporate scam that
the country ever saw. The founder of the Satyam
Group, Raju, resigned after he admitted to fudging the
account books for years and falsely inflating the profit
figures and revenues of Satyam for years. The
credibility of the company fell hugely, owing to the
scam and it was finally taken over by the Mahindra
Current 3-G scam
• 3G scam of 20000 crores coming?! High court questions
• Delhi High Court sought a reply from the central government on a
petition alleging that some telecom operators gained a back-door
entry into the 3G arena, causing a loss of around Rs.20,000 crore to
• Ofcourse, currently this does not seem to be scam by Government
employees! This seem to be scam by operators via illegal entries to
• The petitioner alleged that the telecom operators entered into a
criminal conspiracy to cheat the government and defraud it of huge
• But question is, do ministers know this? Did they deliberately ignore
the violation (if any)
• "The DOT is keeping silent on the violations of licence conditions
and on loss of more than Rs.20,000 crore to the national exchequer.
Despite the representations, no response was received from the
DoT and the TRAI,"
No wonder Airtel jingle sings – har friend zaroori hota
hai and jo tera hian vo mera hian. The question is
who are these zaroori friends – are they only
Vodafone and Idea, or does the friendship extend
Out of 22 service areas, Vodafone has secured license
for 9, Airtel for 13 and Idea for 9. Against the total
license fee of Rs. 16,750.6 crore, Vodafone has paid
Rs. 11,617.9 crore, Airtel 12,295.5 crore and Idea
only 5,254.6 crore, saving thereby over Rs. 20,000
• According to the CAG draft report, the government extended
undue benefits totalling a Rs 10.67 lakh crore to commercial
entities by giving them 155 coal acreages without auction
between 2004 and 2009.
• Referring to major scams, Javdekar said, "The CWG scam is
(is to the tune) of Rs 70,000 crore, 2G scam is Rs 1.76 lakh
crore. But, now the new coal scam is Rs 10.67 lakh crore. It is
a government of scams... from airways to mining everywhere
the government is involved in scams."
• He said, "In 2006, the government introduced the Bill for
auction of coal blocks...But the government did not pass the
Bill till 2010. 17 billion tonnes of coal reserve in 73 blocks
were distributed to private companies. It is a huge scam. There
are many cases where people have sold the licences."
Corruption In Politics
• Criminalization of Indian politics is a main
• In July 2008 Washington Times reported that
nearly a fourth of the 540 Indian Parliament
members faced criminal charges, "including
human trafficking, immigration rackets,
embezzlement and even murder".
• At state level, things are often worse.
Corruption In administration
• A 2009 survey of the leading economies of
Asia, revealed Indian administration to be not
just least efficient out of Singapore, Hong
Kong, Thailand, South Korea, Japan, etc.
• further it was also found that working with
the India's civil servants was a "slow and
Corruption In Judiciary
• Corruption is rampant in the judicial system of
• According to Transparency International,
judicial corruption in India is attributable to
factors such as "delays in the disposal of cases,
shortage of judges and complex procedures.”
1. Loss of National wealth.
2. Hindrance and obstruction in development
5. Authority and power in wrong hands
6. Brain drain
7. Rise in terrorism and crimes
8. Rise in suicide cases
9. psychological and social disorders
How will corruption scenario in India change in
the next 2 years?