CORRUPTION IN INDIA

PRESENTED BY:- ABHISHEK GUPTA RAHUL CHANDAK

• WORLD BANK “ It is the abuse of public office for private gain.”

• Dishonest or fraudulent conduct by those in power, typically involving bribery.

• CORRUPTION = Authority

+

Monopoly

-

Transparency

DEFINITION

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CORRUPTION EQUATION

C = M + D - A Here , C = Corruption M = Monopoly

D = Discretion A = Accountability

The equation states that the more monopoly (M) exists in a country, the larger will be the corruption.

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CORRUPTION IN INDIA

• India ranks 94 among 176 countries, as per the Transparency International Corruption Perception Index.

• Rs. 600000 Cr. estimated bribe paid by common people in a year.

• 72% business houses provide bribe to politicians to run business/illegal activities.

SECTOR WISE CORRUPTION RISK HEAT MAP

Perceived as most corrupt

Infrastructure & real estate

Metal & Mining

Aerospace & Defence

Power & Utilities

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Perceived as corrupt

Telecom

Oil & Gas

Technology, Media & Entertainment

Financial services

Perceived as less corrupt

Pharmaceutical

Retail & Consumer products

Manufacturing

CORRUPTION PERCEPTIONS INDEX 2013

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INDIARANK-36

FORMS OF CORRUPTIONBribery- An offer of money or favors to influence a public

official.

Collusion-Secret agreement between contractors to increase profit margins.

Frauds- Falsification of records, invoices etc.

Nepotism- Favouring relatives or family friends.

Embezzlement- Misappropriation of corporate or public funds.

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CAUSES OF CORRUPTION

Weak law enforcement

Numerous Government ‘touch points’

Complicated licensing and taxation system

To get unfair advantage in business

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Index of Corruption by Indian States

Most Corrupted

StatesBihar

J &K

TOP 3 SCAMS IN INDIA

1. 2 G Scam2. Common Wealth Games Scam, 20103. Satyam Scam

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Collusion between politicians, industrialists and media with high powered brokers.

2G SPECTRUM SCAM

Cost: Rs. 176000 Cr.Face of the scam: A. Raja & M. K. Kanimozhi

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CWG SCAM,2010

Cost: Rs. 70000 Cr.Face of the scam: Suresh Kalmadi

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Original estimate of India’s CWG is 617.50 Cr. 90% of infrastructure development costs were looted.

SATYAM SCAM

• Cost :

Rs. 14000 Cr.• Face of the scam :

B. Ramalinga Raju

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The rich and poor contrast is so telling in Mumbai where Ambani build 1 billion dollar home (most expensive home in the world with 3 helipads and underground parking for 160 vehicles) versus Mumbai Dharavi slum where nearly half of Mumbai population live without sanitation, drinking water (18,000 people per acre).

Wide contrast between rich and poor

Ambani gave a jet plane as a birthday gift to his wife which Dr. Swamy says is used by Sonia Gandhi as private jet for Italy trips.

Just one 2G Scam, 40 billion dollars loot mean following

loss for nation.1. It is 3% of country’s GDP in just one scam!!!

2. It is 20% of the money needed to create a National Grid (connecting all rivers in India).

3. This one scam alone is believed to exceed the colonial loot of 200 years!!

What is country losing?

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What could India do with 73 lakh crores (1.4 trillion dollars)?

India’s poverty can be wiped out.

Build: 2.4 crore primary healthcare centres

Build: 24.1 lakh Kendriya Vidyalayas

Construct: 14.6 crore low-cost houses

Set up: 2,703 coal-based power plants of 600 MW each

Clean up: 50 major rivers for the next 121 years

Launch: 90 NREGA-style schemes

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What are the solutions?

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• Massive awakening to force laws that have teeth and are not subjected to political interference.

E.g., India’s RTI (Freedom of Information) act has given some power to citizens over

bureaucracy.

•Reduce corruption for Govt services by use of Technology such as E-Governance and reduction of Government control. Transparency in Government contracting etc.

•Encourage people to vote. Educate the poor that the freebies given during elections are stolen money. Encourage citizens to say ‘No’ to bribes.

Do not lose heart

It happened in Peru , 2009

It happened in Tunisia , 2010

It is happening NOW in Egypt

It happened in Hong Kong, 1974

It will happen in India

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Save your country from disintegrating like

impoverished African nations.

Thousands of freedom fighters did not give up

their life for nothing

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REALLY HONEST PERSON WILL NOTCLOSE HIS EYES TO CORRUTIONCLOSE HIS EARS TO COMPLAINTS KEEP QUITE ABOUT CORRUPTION

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