India inclusive and progressive (Development without short-cuts)

Make in India (not Scams)

Remember our CONSTITUTION?"WE, THE PEOPLE OF INDIA, having solemnly resolved to constituteIndia into a SOVEREIGN DEMOCRATIC REPUBLIC, and to secure to all itscitizens :JUSTICE, social, economic and political;LIBERTY of thought, expression, belief, faith and worship;EQUALITY of status and of opportunity; and to promote among them all;FRATERNITY assuring the dignity of the individual and the unity of the Nation:IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.“

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In the Republic of India there is a widely shared desire in the country to consolidate the gains made now as also to assess our future.• Undoubtedly, the people of the country and the

managers of society can be congratulated on many counts for India's achievements,

• (i) self-sufficiency (in fact surplus generation) in

food-grains, • (ii) a strong industrial base,• (iii) a rising expectancy of life, • (iv) a higher percentage of literacy, • (v) a united and better integrated India and • (vi) a growing recognition by the world of our

capabilities and potential.3

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On the negative side, one can’t ignore the nagging problems of• unemployment, illiteracy and poverty,• accentuated by an irresponsive

population. Also, delay in implementation, inadequate infrastructure, feudalistic tendencies and a pathetic contempt of rule of law and ethics in public life. Finally, an administration which is perceived as lacking in smartness and quick response.

• The Transparency International (TI)

Corruption Perception Index (CPI), ranks

countries in terms of the degree to which

corruption is perceived to exist among public

officials and politicians. It is a composite index

derived from 15 different polls and surveys from

9 independent institutions carried out among

business people and country analysts. 5

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Corruption Perception Index (CPI), defines

corruption as the abuse of public office for private

gains. The index provides an annual snap shot of

the views of business people and analysts like

bribing of public officials, kickbacks in public

procurement or embezzlement of public funds.

• In 2013, India ranked 94th among 177 nations in the

global corruption index released by the Transparency

International.

• As per the 2013 corruption index, Bhutan ranks 31st, Sri

Lanka 91, Nepal 116, Pakistan 127 and Bangladesh

136.

• In 2012, Bhutan stood at 33rd rank, Sri Lanka at 79,

Nepal 139, Pakistan 139 and Bangladesh 144. India,

maintained a status quo with 94 Rank both in 2013 and

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• There is nothing to be proud of India's ranking in the Transparency International's Corruption Perception Index 2014:Rank: 85 /175, Score: 38

• The country ranked low also in the Bribe Payers Index

among emerging economic giants.

• The use of public funds for private gain is common.

• The misuse of power, position and privilege is

widespread, whatever party is in power.

• Corruption seems to be a fact that affects all sections of

society. People seek short-cut paths to goals.

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TYPOLOGY OF CORRUPTION

Corruption is defined as the use of public office for private gains

Scales of corruption can be Grand, Middling or Petty and payment of bribes can be due to collusion between the bribe taker and the bribe giver, due to coercion or even anticipatory. Easy solution to personal issue.

Existence of corruption implies that there are corrupt people, there are also corrupt practices, and there is a corrupt system.

Therefore, all the three have to be fought simultaneously to eliminate the vice of corruption.

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Corruption in public life in India - 2015

As an editorial in a leading newspaper observed: Corruption in public life is one of the daunting issues facing the country.

Edmund Burke: All that is necessary for the forces of evil to triumph in the world is for enough good men to do nothing.

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Mahatma Gandhi:(70 years ago)

Corruption will be out one day, however much one may try to conceal it.

The public can, as its right and duty, in very case of justifiable suspicion, call its servants to strict account, dismiss them, sue them in a

law court or appoint an arbitrator or inspector to scrutinize their conduct, as it likes.(It doesn’t care)

Corruption accentuates poverty, aggravates economic disparity, thwarts development, undermines democracy and is a threat to national security and, destroys the moral fibre of the Nation. Corruption will NOT destroy India. Why Not? Because, much of India functions, 'oiled' by corruption. It damages India, for sure. But just as the average Indian has more of a 'natural immunity' to TB, Asthma, Dengue, Malaria, Conjunctivitis, 'Delhi-Belly' and other 'gastro viruses and bacteria', than other peoples, Indians have found ways of continuing to work around this corrupt system.

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Seven frequently asked questions about public corruption: (1)What is corruption?

(2) What are the common characteristics of countries with

high corruption?

(3) What is the magnitude of corruption?

(4) Do higher wages for bureaucrats reduce corruption?

(5) Can competition reduce corruption?

(6) Why have there been so few (recent) successful

attempts to fight corruption?

(7) Does corruption adversely affect growth?

PEOPLES’ PERSPECTIVEIndians think ( some even hope) that corruption cannot be eliminated in India – at least not in their lifetime. This pessimistic and cynical perception of the people is largely an outcome of confusing corruption with all kinds of illegal actions and activities by individuals.

Corruption arises in the ways people pursue, use and exchange wealth and power, and in the strength or weakness of the state, political and social institutions that sustain and restrain those processes.

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Most illegal actions, many of which are private actions, are confused with corruption. The Prevention of Corruption Act 1988 and Indian Penal Code clearly distinguishes between corruption indulged by public servants for private gains and illegal actions by individuals. There are separate Acts in India for dealing with different kinds of illegal actions of private individuals. For example, if a public servant amasses wealth disproportionate to his known sources of income then he can be tried under Prevention of Corruption Act 1988. However, if a business-person amasses wealth disproportionate to his known source of income he will be dealt under Income Tax Act for concealing his income and not under Prevention of Corruption Act.

Happenings in India Corruption defined by the World Bank as the ‘use of public office for private profit.’ Others are illegal acts of citizen.In India, there are five major players on the corruption scene, interdependent, strengthening and supportive of the vicious cycle. They are the neta, the corrupt politician; the babu, the corrupt bureaucrat; the lala, the corrupting businessman; the jhola, the corrupt NGO; and the dada, the criminal of the underworld !

The Prevention of Corruption Act 1988 and Indian Penal Code _ clearly distinguishes between corruption indulged by public servants for private gains and illegal actions by individuals.

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September 2000: Former President Rao was convicted of criminal

conspiracy and corruption in the 1993 vote buying scandal and became

the first Indian P M to be convicted . He was acquitted on appeal,

March 2001: Following the release by an Indian news website of a

videotape showing 31 politicians, high level officials, bureaucrats and

army officials taking bribes, the Defence Minister and leaders of the

ruling BJP party were forced to resign. Four defence ministry officials

were also suspended.

September 2005: Railway Minister Laloo Prasad Yadav was charged

with misappropriating state funds in the long running “fodder scam”. He

and Bihar C M were charged with embezzling over US$ 40 million in

state funds intended for the purchase of animal fodder.

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In January 2006: A reporter in Assam writing articles accusing local

forestry service officials of having links to timber smuggling was

murdered. Later, some rationalist writers were bumped off.

In March 2006: The BJP alleged corruption in a military contract to buy

six submarines from two French companies, claiming that the

government overpaid by approximately US$ 113 million and used the

excess to pay middle men that helped secure the deal.

In January 2009: Satyam Computer Services Ltd was barred by the

World Bank from bidding for contracts for eight years and top officials

were arrested after a major financial fraud over several years was

disclosed.

In 2010: Telecom Minister Andimuthu Raja allegedly rigged the sale of

2G telecoms licenses for lower prices to the companies he favored.

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In 2010: There was a scam involving homes for war widows. The

CM's relatives, army officers and bureaucrats are among those

who allegedly acquired apartments. He denied any wrongdoing in

relation to the Mumbai housing project.

In 2010: Suresh Kalmadi, the much-maligned organising

committee chief of Commonwealth Games in Delhi, quit his post.

An other housing loan scam involving state-owned institutions

and a private company Money Matters Financial Services Ltd had

been exposed. At least three of the four independent directors in

Money Matters, whose CMD and two senior executives were

arrested by the Central Bureau of Investigation (CBI), were ex-

bankers and chairpersons of financial institutions.

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In fact, a non-executive independent director on the board of Money Matters was the chairman of LIC and LIC Housing Finance for more than a year till May 2005. He has served in LIC since 1968 till his retirement in 2005. Money Matters, the CBI has alleged, bribed senior officials in LIC and LIC Housing Finance while mediating and facilitating loans for builders and corporates from these institutions. Among those arrested include the chief executive of LIC Housing Finance. The other two are the former chairman and managing director of state-owned Allahabad Bank and a former CEO and chairman of state-owned financial institution IFCI Ltd.

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Given their understanding and clout in the financial services sector, experts wondered if they took their role of 'independent directors' seriously and asked the right questions. The fourth non-executive independent director in Money Matters is Sanjiv Kapoor, a chartered accountant, who has audited the books of the state-owned insurer LIC. Who will investigate these allegations?• Central Vigilance Commission (CVC)• Central Bureau of Investigation (CBI)• Comptroller and Auditor General (C & AG)

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VYAPAM SCAM IN M P:

An enquiry into death of Shailesh, son of Governor of M

P, whose name figured in the scam, is being conducted

by C B I. More deaths are happening.

CBI has registered more than 10 cases against 200

people in connection with the Vyapam scam, about

irregularities in Police Constable Recruitment Test case,

pre-medical test in 2010, 2008, 2009, and 2011, leaking

model answer key, impersonation in the exams in 2014,

etc.

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LALITH MODI AND CRICKET SCAM

Indian Premier League (IPL) that administered cricket with eight franchise teams since 2008, had Lalith Modi as Commissioner. He brought money to the BCCI and with that came in corruption. The 2010 edition of the IPL came under scrutiny and charges of money laundering put Lalith Mody in a spot.

He was also accused of manipulating the auctions and broadcast deals.

He fled the country and remained defiant.

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BLACK MONEY LAW 2015

“Black Money is the aggregate of incomes which are taxable but not reported to authorities.”

2015: ‘The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015’ has been announced and criticized as harsh. It is commented that officers would harass them. Black money is a serious problem, which needs strict handling.

It needs to be brought into the economic mainstream.

Stringent penalties are applicable under money laundering legislations globally.

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The government will consider the requirement of

furnishing PAN (permanent account number) card

details for cash transactions beyond a limit. The

strategy was to put more money in the pockets of

middle and low income groups by raising

exemption limits and incentivise savings which will

encourage consumption and which, in turn, will

increase volumes of indirect taxation.

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The FM said opening a large number of payment

gateways, internet banking, payment banks and the

emerging reality of e-commerce will prompt the use of

banking transactions and plastic money significantly.

He said those who had declared their undisclosed

assets abroad in the compliance window offered by the

government "can now sleep well" and those who have

failed to file such a declaration will be subjected to penal

provisions.

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GLOBAL CORRUPTION INDEX

 India, 94/177 Rank both in 2013 and 2012.

India - Corruption Perception Index- 38

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Tragic India -2015

Mohammad Akhlaq was lynched over rumours in village Bisara of U P. in September, 2015.His son Danish was injured.

The village returned to normalcy and nine people were arrested by police by October middle.

Anna Hazare claimed that reservation system has become a political tool to woo voters.

Ministry of Drinking Water and Sanitation is not happy with the progress of implementation of Swatch Bharath Mission projects of Ganga Action Plan.

“Corruption can be tackled only if various stakeholders join hands in their effort to clean the country,” said Justice (retired) Kamleshwar Nath, who is the Chair of TII.

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• The present system provides for taking on the corrupt persons through a legal mechanism, which has not been found to be effective.

• Many corrupt practices fall outside the purview of existing laws and need to be tackled by people themselves.

• The responsibility for dealing with corrupt people, corrupt practices and corrupt systems devolves equally on individuals, civil society institutions, legislature, executive, and the judiciary.

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CORRUPTION IN INDIA: A scenario-1

India is a most regulated economy with powers concentrated in few hands. It is a country with high population and scarce resources where demand is always more than supply. The receivers of the public services are largely poor, ignorant, and illiterate. Does service reach them in time?

There was also absence of transparency and accountability of the public servants.

There was no system of rewards and punishments for the public servants.

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CORRUPTION IN INDIA: A scenario-2

There was also no right to information. The license-permit-quota-inspector regime was pervasive in India since independence and continued under a different nomenclature even after liberalization and globalization of 1991.

In addition, there are 3000 central statutes and 10 times as many state statutes plus subsidiary and administrative laws (most of them archaic), with several exemption clauses and discretionary powers sans accountability.

All these conditions were fertile breeding grounds of corruption

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Good Governance Agenda

The growth of civil society networks engaged in anti-corruption work has played a useful role.

The last decade has seen the rise of NGOs involved in a broad range of anti-corruption activity at the village, city, regional and national levels.

These organisations are active on many fronts and are increasingly networking and provide useful role models for anti-corruption campaigners throughout the country.

The rise of civil / judicial activism has been accompanied by demands for greater transparency in public life.

Electronic media with ‘Crime news’ played an active role now 24X7. What will Digital India be?

C o r r u p t i o n f l o u r i s h e s i n o u r s y s t e m b e c a u s e o f f i v e b a s i c r e a s o n s .

T h e s e a r e : ( i ) s c a r c i t y o f g o o d s a n d s e r v i c e s ( u r g e n c y i n

a v a i l a b i l i t y ) ; ( i i ) r e d t a p e a n d c o m p l i c a t e d r u l e s a n d p r o c e d u r e s ; ( i i i )

l a c k o f t r a n s p a r e n c y i n d e c i s i o n - m a k i n g ; ( i v ) l e g a l c u s h i o n s o f s a f e t y

f o r t h e c o r r u p t u n d e r t h e ‘ h e a l t h y ’ p r i n c i p l e t h a t e v e r y o n e i s

i n n o c e n t t i l l p r o v e d g u i l t y ; a n d ( v ) t r i b a l i s m o r b i r a d a r i a m o n g t h e

c o r r u p t w h o p r o t e c t e a c h o t h e r . T h e p o p u l a r p h r a s e i s ‘ t h i c k a s

t h i e v e s ’ n o t ‘ t h i c k a s h o n e s t p e o p l e ’ .

‘Satyameva Jayate’ …. eventually Citizen Charters has been introduced to improve the quality of public services

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N. Vittal spent a four-year term as Central Vigilance Commissioner and he was aware of the challenge which the forces of corruption in our country posed to those who want to fight it. India pays lip service to the principle of honesty. Gandhiji told us before he was killed: truth, non-violence the fundamental principles of existence. Vedic dictum is , ‘Satyam vadha - dharmam charah’. Our nation’s motto is ‘Satyameva Jayate’ or ‘Truth will triumph’.

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The role of the Chief Vigilance Office, may broadly be divided into two parts. i.e. preventive and punitive. The Chief Vigilance Officers have so far been concentrating mainly on the punitive side, i.e. dealing with actual vigilance has not received adequate attention. The word vigilance mainly implies �watchfulness. The role of Vigilance Officer is predominantly preventive. While detection and punishment of corruption and other malpractices is certainly important, what is even more important is the taking of preventive measures which could reduce the number of vigilance cases considerably.

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Corruption is a two-way street. For every bribe taker, there is a bribe giver. The debate on corruption in our country has focused on the demand side of corruption, i.e., on public servants and politicians who demand bribes. There has to be a thundering action on the supply side of corruption,

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i.e., around the business community which bribes

the public servants and politicians.

It is therefore interesting to note the business

community’s focus on the issue of ethics in

business. The CII organised a session on ethics

and corporate integrity. Preventive measures at the source could reduce the number of vigilance cases.

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Corruption is like malaria, handled by either giving medicine to those affected or by preventing the breeding of mosquitoes. Many of our rules and procedures breed corruption. Orders have therefore been issued to check and simplify procedures. One example is a ban on post-tender negotiations in government purchases, except with the lowest bidder. Such negotiations are a flexible source of corruption.

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Corruption flourishes in our system because of five basic reasons. These are: (i) urgent need for goods and services; (ii) impatience with complicated rules and procedures; (iii) lack of transparency in decision-making; (iv) legal cushions of safety for the corrupt under the ‘healthy’ principle that everyone is innocent till proved guilty; and (v) tribalism or biradari among the corrupt and lazy seeker of an urgent service/benefit, who protect each other. If we believe corruption can be eliminated, it can be.

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Given the integration of global markets and the increasing application of information technology, billions of dollars can be transmitted from one market to another at the click of a computer mouse. When foreign financial institutions invest in an emerging market, they want to be sure that not only will the management functions be performed effectively, but that decisions will also be taken in a transparent manner and principles of corporate ethics observed. When the chips are down, integrity and corporate ethics do count in global trade today.

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Business fraudsPreventive and Predictive Maintenance

The level of security in the financial institutions is important. The need is for training in computerisation and using information technology for enhancing the level of security in the financial institutions.

Ultimately, as Oscar Wilde said, the thief is the artist and the policeman only a critic.

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Is eliminating corruption a myth or reality? If we believe corruption can be eliminated, it can be; if not, it will remain a reality. When Vivekananda went to meet Ramakrishna

Paramhansa, he asked directly, ‘Does God exist? Do you

believe in Him?’ Ramakrishna Paramhansa supposedly

replied, ‘Yes, not only do I believe in Him, but I can also

make you see Him?’ Vivekananda has also described the

experience where as Ramakrishna touched him, he felt the

presence of God.

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When it comes to business frauds, it is always better to adopt preventive and predictive maintenance principles rather than the breakdown maintenance principle, which is like locking the stable doors after the horse has bolted. A classic example is the Harshad Mehta scam where because of lack of computerisation in the Public Debt Office of the Reserve Bank of India, a Rs l8,000 crore scam was perpetrated. It was only after the fraud was unearthed that the RBI computerised the Public Debt Office.

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The need for training in computerisation and using

information technology for enhancing the level of security in

the financial institutions becomes especially important

because ultimately, as Oscar Wilde said, the thief is the artist

and the policeman only a critic. What computerisation does

is provide a means of processing a vast amount of data,

which inter alia also give an idea about the modus operandi

of fraudsters. Intelligent application of these concepts can

help in preventing corruption and fraud.

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Ah! put in place effective punishment

Legal systems have to be dilatory in nature, and the guilty often escape even if punishment is meted out, as it takes a long time.

Often, the fraudster has so many resources at his command that he can engage the best legal brains to buy his way to freedom.

Who should rework the punishment regimen and our legal system to ensure speedy punishment to the really corrupt and the guilty?

Democratization of information and knowledge:

The truth is that governments and citizens are fully aware of the corruption which pervades the country. The problem is that the people are ‘powerless’ to stop corruption.

Information, knowledge and patience are critical for realizing all the human aspirations, such as, improvement in quality of life. In the knowledge society, in which we live today, acquisition of information and knowledge and its application have intense and pervasive impact on productivity gains.

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The concept of Citizen Charters had been introduced to

improve the quality of public services. It ensured

accountability, transparency and quality of services

provided by various government / business organistions.

It enabled citizens to avail of services with minimum hassle,

in reasonable time, and at a minimum cost.

Effective implementation of Citizens Charters will go a long

way in controlling corruption.

The Government of India had launched an ambitious

programme for formulation and implementation of Citizens

Charters in all government departments.

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There is need to re-examine our culture, which had

normalised corruption in its many different forms. The

“Seven Nolan Principles of Public Life” — selflessness,

integrity, objectivity, accountability, openness, honesty

and leadership by example — should form the standards

for holding public office. There should be regular and

independent reviews of individual and organisational

functioning.

The challenge is to inspire and change individuals and to

transcend and transform societal norms.

A pluralist society with high ethics in public life: Awake to it, India

Vice of corruption can be overcomeJai Ho

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Adopting this strategy, we can definitely see India becoming a less corrupt, progressive and developed country in the next 10 to 15 years.

Om Shanti! Shanti! Shanti A Prayer for Wisdom

(Let us come together. Let us enjoy together. Let our strengths come together. Let us move from darkness to light. Let us avoid the poison of misunderstanding and hatred. That way lies progress.)

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INDIA can become a Nation, which is best described in the words of Rabindranath Tagore"Where the mind is without fear and the head is held high;Where knowledge is free; Where the world has not been broken up into fragments by narrow domestic walls; Where words come out from the depth of truth; Where tireless striving stretches its arms towards perfection; Where the clear stream of reason has not lost its way into the dreary desert sand of dead habit; Where the mind is led by thee into ever widening thought and action- Into that heaven of freedom, Oh Citizens, let our country awake."Source: Gitanjali, verse XXXV.

From Yoga Vasishta Four means of Salvation

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"We are responsible for what we are, and whatever we wish ourselves to be, we have the power to make ourselves. If what we are now has been the result of our own past actions, it certainly follows that whatever we wish to be in future can be produced by our present actions; so we have to know how to act. " -- Swami Vivekananda

62Right to information act

The Right to Information Act (2005) and equivalent

acts in the states, that require government officials

to furnish information requested by citizens or face

punitive action, computerisation of services and

various central and state government acts that

established vigilance commissions have

considerably reduced corruption or at least have

opened up avenues to redress grievances.

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Ombudsman [LokAyukta]The LokAyukta is an anti-government corruption organization in the Indian states. An amendment to the Constitution has been proposed to implement the Lokayukta uniformly across Indian States as a three-member body, headed by a retired Supreme Court judge or high court chief justice, and comprise of the state vigilance commissioner and a jurist or an eminent administrator as other members . Computerization [Digital India]Bhoomi is a project jointly funded by the Government of India and the Government of Karnataka to digitize the paper land records and create a software mechanism to control changes to the land registry in Karnataka. The project was designed to eliminate the long-standing problem of inefficiency and corruption.Introduction of smart cards for vehicle registration and drivers licenses by Karnataka Regional Transport Organization.Enforcement automation of traffic violations by Bangalore Traffic Police .

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• The world view of an average Indian is averse of vices. The broad masses of the people has simple task to ask for transparency, accept the verdict as the rule of the game what they otherwise do in the name of their fate, burn the real life demon what they do with the mythological ones.

• Get to zero tolerance for the perpetrators beyond all bounds of personal links and likes. Operational side of the campaign calls for making the institutions of democracy efficient. It will handle much of the nexus of political, bureaucratic and criminals.

• Jai-Ho