Ethics (Paper IV)

CORRUPTION

by Prince Luthra Sir (UPSC CSE AIR 577) · 6 August 2025

CORRUPTION

Corruption refers to the abuse of power or position by individuals for personal gain or benefit, often at the expense of the public or the organization. It undermines trust in institutions, obstructs justice, and erodes ethical standards within society.

Forms of Corruption:

Bribery: Offering, giving, receiving, or soliciting something of value to influence a public official’s actions.
Embezzlement: Misappropriation or theft of public funds by officials.
Fraud: Deception to gain unfair advantage, usually financial.
Extortion: Coercion of a person or institution to obtain money or other benefits illegally.
Cronyism & Nepotism: Favouring friends or relatives in political appointments or business dealings.

Understanding Corruption in Indian Public Departments

Corruption in Indian public departments refer to the misuse of public power for private gain. This can take various forms, such as bribery, embezzlement, fraud, nepotism, and abuse of discretion. Corruption undermines the effectiveness of public services, erodes public trust, and hinders economic and social development. Here are some real examples from India to illustrate the different types of corruption in public departments:

Bribery: Bribery involves offering, giving, receiving, or soliciting something of value to influence the actions of an official or other person in a position of authority.

Example: The 2G Spectrum Scam

In 2008, the allocation of 2G spectrum licenses by the Department of Telecommunications was marred by irregularities. Licenses were granted at throwaway prices, allegedly in exchange for bribes.
Impact: The Comptroller and Auditor General (CAG) estimated a loss of up to ₹1.76 lakh crore to the exchequer. The scandal led to significant political upheaval and legal action against several high-profile individuals, including government officials and corporate executives.

Embezzlement: Embezzlement is the act of dishonestly appropriating or misappropriating funds or property entrusted to one’s care.

Example: The Satyam Scandal

Although primarily a corporate scandal, it involved significant collusion with public officials. In 2009, Satyam Computer Services’ founder admitted to inflating the company’s financial statements by approximately ₹7,000 crore. Public sector banks and government agencies were among the stakeholders defrauded.
Impact: The scandal exposed weaknesses in corporate governance and regulatory oversight. It also led to the downfall of a major IT company and affected the livelihoods of thousands of employees.

Fraud: Fraud involves deception intended to result in financial or personal gain.

Example: The Punjab National Bank (PNB) Fraud

In 2018, it was discovered that Nirav Modi, a high-profile jeweller, had orchestrated a massive fraud involving fraudulent Letters of Undertaking (LoUs) issued by PNB officials. The fraud amounted to over ₹13,000 crore.
Impact: The scandal caused a significant financial loss to the bank, led to a loss of investor confidence, and highlighted major lapses in banking oversight and internal controls.

Nepotism and Favouritism: Nepotism and cronyism involve favoring relatives or friends in employment, promotions, or other benefits.

Example: Vyapam Scam

The Vyapam (Vyavsayik Pariksha Mandal) scam involved massive irregularities in the recruitment process for government jobs and admissions to professional courses in Madhya Pradesh. Officials, politicians, and middlemen manipulated entrance exams and recruitment tests by accepting bribes and facilitating impersonation.
Impact: The scam affected thousands of candidates, undermining the merit-based selection process. It led to numerous arrests, deaths under mysterious circumstances, and a loss of credibility for the public examination system.

Abuse of Discretion: This type of corruption involves officials exploiting their discretionary power for personal gain.

Example: Coal Allocation Scam

In 2012, the CAG reported irregularities in the allocation of coal blocks between 2004 and 2009. The report suggested that the process lacked transparency and objectivity, resulting in the arbitrary allocation of coal blocks to private companies.
Impact: The estimated loss to the exchequer was around ₹1.86 lakh crore. The scandal led to criminal investigations, the cancellation of several coal block allocations, and reforms in the allocation process.

Extortion: Extortion involves obtaining something, especially money, through force or threats.

Example: Police Corruption

Instances of police corruption, such as demanding bribes for filing First Information Reports (FIRs) or for not registering criminal cases, are not uncommon. This form of corruption directly affects access to justice and public safety.
Impact: Such practices erode public trust in law enforcement, contribute to the perpetuation of crime, and create an environment of fear and injustice among citizens.

Kickbacks

Kickbacks are payments made to someone in return for facilitating a transaction or appointment.

Example: The Bofors Scandal

In the late 1980s, allegations surfaced that Bofors had paid kickbacks to Indian politicians and defence officials to secure a contract to supply howitzer guns.
Impact: The scandal led to significant political controversy, damaged reputations, and highlighted the need for transparency in defence procurement.

Petty Corruption

Petty corruption involves small-scale, everyday corruption typically encountered in interactions with lower-level officials.

Example: Bribery for Basic Services

Citizens often have to pay bribes for getting basic services like issuing a birth certificate, getting a driving license, or avoiding traffic fines.
Impact: This form of corruption is pervasive and affects the daily lives of ordinary citizens, leading to widespread disenchantment with public services.

Grand Corruption

Grand corruption involves significant acts of corruption at the highest levels of government, often resulting in large-scale misappropriation of funds.

Example: The Commonwealth Games Scam

In 2010, widespread financial irregularities were reported in the organization of the Commonwealth Games in Delhi, including inflated contracts and substandard construction.
Impact: The estimated cost of the scam was around ₹70,000 crore. It led to international embarrassment for India and highlighted the need for greater accountability in public projects.

Political Corruption

Political corruption involves the use of power by government officials for illegitimate private gain.

Example: Cash-for-Votes Scandal

In 2008, allegations emerged that members of parliament were bribed to vote in Favor of the UPA government during a crucial confidence vote.
Impact: The scandal exposed the vulnerability of the political system to corruption and raised questions about the integrity of the democratic process.

Corruption in Indian public departments manifests in various forms, from high-profile scams involving large sums of money to everyday acts of bribery and extortion. Addressing corruption requires a multifaceted approach, including stronger legal frameworks, improved transparency and accountability mechanisms, better enforcement of anti-corruption laws, and a cultural shift towards integrity and ethical behaviour in public service. Public awareness and citizen participation are also crucial in the fight against corruption, helping to hold officials accountable and promote good governance.

Corruption in Various Areas

Corruption is a pervasive issue in various sectors of India, affecting politics, administration, NGOs, the armed forces, the judiciary, the private sector, and the media. Here are some real-life examples illustrating how corruption manifests in each of these areas:

Indian Politics

Example: The Cash-for-Votes Scandal (2008)

In 2008, allegations surfaced that members of the Indian Parliament were bribed to vote in Favor of the United Progressive Alliance (UPA) government during a confidence vote. MPs were allegedly offered cash in exchange for their support.
Impact: The scandal highlighted the extent of political corruption and raised serious questions about the integrity of India’s democratic process. It led to public outrage and calls for greater transparency and accountability in political dealings.

Indian Administration

Example: The Commonwealth Games Scam (2010)

The organization of the Commonwealth Games in Delhi was marred by financial irregularities, including inflated contracts, substandard construction, and misappropriation of funds.
Impact: The estimated loss due to corruption was around ₹70,000 crore. The scandal led to international embarrassment for India and highlighted the need for better oversight and accountability in public administration.

Non-Governmental Organizations (NGOs)

Example: Misuse of Funds by NGOs

Several NGOs in India have been found guilty of misusing funds meant for developmental activities. In some cases, funds received from foreign donors were diverted for personal use by the NGO officials.
Impact: The credibility of the NGO sector was severely damaged, leading to stricter regulations and oversight by the government. Genuine NGOs also faced difficulties in raising funds due to a loss of trust.

Indian Armed Forces

Example: The Adarsh Housing Society Scam

The Adarsh Housing Society was initially meant to provide housing for war widows and defence personnel. However, it was found that top military officials, politicians, and bureaucrats colluded to get flats allotted to themselves and their relatives.
Impact: The scam exposed corruption at high levels within the armed forces and led to several high-profile resignations and legal proceedings. It also prompted a review of land allotment policies in the defence sector.

Indian Judiciary

Example: Cash-for-Judgments Scandal

In 2008, a cash-for-judgments scandal came to light involving the Ghaziabad district court. Court employees were found to have embezzled ₹23 crore from the provident fund accounts of Class III and IV employees.
Impact: The scandal tarnished the image of the judiciary and led to calls for greater transparency and accountability in judicial proceedings. It also highlighted the need for internal vigilance within the judiciary.

Indian Private Sector

Example: The Satyam Scandal (2009)

Ramalinga Raju, the founder of Satyam Computer Services, confessed to inflating the company’s financial statements by ₹7,000 crore. The scandal revealed major corporate governance failures and fraudulent practices within the company.
Impact: The scandal led to the collapse of Satyam, affecting employees, investors, and the IT industry. It prompted reforms in corporate governance and stricter regulatory oversight by agencies like SEBI.

Indian Media

Example: The Radia Tapes Controversy (2010)

The Radia Tapes scandal involved leaked phone conversations between corporate lobbyist Niira Radia and prominent journalists, politicians, and industrialists. The tapes suggested that some journalists were influencing editorial content and political decisions in exchange for favours.
Impact: The scandal exposed the unethical practices within the media and raised questions about the independence and integrity of journalism in India. It led to widespread debate about media ethics and the need for greater transparency.

Corruption in India is a multifaceted problem affecting various sectors, each with its own unique challenges and implications. These real-life examples illustrate the pervasive nature of corruption and its detrimental effects on governance, economic development, and public trust. Addressing corruption requires a comprehensive approach, including stricter regulations, effective enforcement, greater transparency, and a cultural shift towards integrity and accountability. By tackling corruption head-on, India can ensure more equitable and efficient functioning of its institutions and enhance its development trajectory.

Corruption Perception Index (CPI)

The Corruption Perception Index (CPI) is an annual ranking of countries by their perceived levels of public sector corruption. The index is published by Transparency International, a global civil society organization leading the fight against corruption. The CPI scores countries on a scale from 0 to 100, where 0 indicates high corruption and 100 indicates very clean. The rankings are based on data from various surveys and assessments of experts and business people.

India’s Rank in the Corruption Perception Index

Here are India’s rankings in the CPI over the past few years:

Following data can be put in a chart, pics are available

2023: Ranked 93^rd out of 180 countries with a score of 39.
2022: Ranked 85th out of 180 countries with a score of 40.
2021: Ranked 86th out of 180 countries with a score of 40.
2020: Ranked 86th out of 180 countries with a score of 40.
2019: Ranked 80th out of 180 countries with a score of 41.

Analysis of India’s CPI Rank

Consistent Scores: Over the past few years, India’s score has remained relatively consistent around the 40-41 mark. This indicates a persistent perception of moderate levels of corruption.
Comparative Position: India’s rank has fluctuated slightly but has generally stayed around the mid-80s. This positions India behind many developed nations but ahead of several other developing countries.
Implications: The consistent ranking suggests ongoing challenges in combating corruption, despite various measures taken by the government to improve transparency and accountability. Persistent issues include bureaucratic inefficiencies, lack of effective enforcement, and political corruption.

Measures to Improve CPI Rank

Strengthening Anti-Corruption Agencies: Enhancing the capabilities and independence of agencies like the Central Vigilance Commission (CVC) and the Lokpal to investigate and prosecute corruption cases effectively.
Improving Transparency: Ensuring greater transparency in government operations through robust implementation of the Right to Information (RTI) Act and proactive disclosure of information.
Judicial Reforms: Expediting the legal processes related to corruption cases to ensure timely justice and deterrence.
Public Awareness and Participation: Encouraging citizen participation in governance and raising awareness about the detrimental effects of corruption through education and public campaigns.
Technological Integration: Leveraging technology to reduce human discretion in administrative processes, such as through e-governance initiatives, to minimize opportunities for corruption.

The Corruption Perception Index provides valuable insights into how corruption is perceived in different countries, including India. While India has made strides in addressing corruption, the CPI rankings highlight the need for continued efforts and reforms. By focusing on strengthening institutions, enhancing transparency, and fostering a culture of integrity, India can improve its CPI ranking and reduce the prevalence of corruption in the public sector.

Causal Factors of Corruption in India

Corruption in India is driven by a complex mix of cultural, economic, and political factors

Bureaucratic Red Tape and Inefficiency

Cause: The notorious red tape creates opportunities for corruption as citizens and businesses try to expedite processes.

Example: The long-winded process of getting a driving license, where applicants often find themselves in an endless loop of forms, stamps, and signatures.

Imagine standing in a queue for hours, only to be told you need a form that’s available at another counter, which is only open during the hours you’re at work. Frustrated, you might consider slipping a note to the “friendly” clerk who hints that things could move faster for a small fee.

Lack of Transparency and Accountability

Cause: When processes are opaque, it’s easier for officials to exploit their positions.

Example: The Commonwealth Games scam, where funds were misappropriated under the guise of complex contracts and transactions.

Think of it as organizing a neighbourhood potluck where the coordinator keeps all the money, claiming they need it for “administrative purposes” while showing up with store-bought chips and salsa.

Weak Judicial System

Cause: A slow and overburdened judiciary means cases drag on for years, discouraging accountability.

Example: The Bofors scandal, which has been under investigation for decades with little resolution.

It’s like a cricket match that started in the 80s and is still in the first innings. By the time the verdict comes out, everyone’s too old to care about the game, and the players have moved on.

Cultural Factors

Cause: In some cases, corruption is culturally ingrained, viewed as a necessary evil to get things done.

Example: Small “facilitation payments” for getting birth certificates (now a days PH and OBC certificates to get reservation in UPSC exam are in demand!), school admissions, or even hospital beds.

It’s like when you slip the waiter a few extra bucks to get a better table at a crowded restaurant, but here it’s for getting your newborn’s birth certificate without which they apparently don’t “exist” in the government records.

Political Interference

Cause: Politicians often interfere in bureaucratic processes for personal or party gains, leading to corruption.

Example: The Vyapam scam in Madhya Pradesh, where exam seats were sold to the highest bidder with political backing.

It’s like playing musical chairs where the music never stops for those with political connections, leaving the common folks standing and wondering what just happened.

Complex Taxation and Regulatory Systems

Cause: Complicated tax and regulatory systems create loopholes and opportunities for corruption.

Example: The Adarsh Housing Society scam, where rules were bent to allow non-eligible people to obtain flats.

It’s like a club with a strict dress code, but the bouncer lets in anyone with a “special” pass. Soon, everyone in flip-flops and shorts is partying inside, and those in suits are left wondering why they bothered dressing up.

Inadequate Law Enforcement

Cause: Inconsistent and weak enforcement of laws allows corrupt activities to flourish.

Example: Illegal mining operations in various states where enforcement is lax, and local officials are often complicit.

It’s like a beach with “No Swimming” signs everywhere, but the lifeguard is too busy sunbathing to notice everyone splashing around. When asked, he just shrugs and says, “As long as they slip me a cold drink, it’s all good.”

Consequences of Corruption in India

Corruption in India has far-reaching consequences that affect various aspects of society, governance, and the economy. It is a complex and pervasive issue that undermines social and economic development globally. Here’s a detailed examination of its consequences:

Economic Consequences

Reduced Investment: Corruption creates an unpredictable environment for both domestic and foreign investors. The additional costs associated with bribes and the instability caused by corrupt practices deter investment, stifling economic growth.
Inefficient Allocation of Resources: Corruption leads to the misallocation of public resources as funds are diverted to corrupt officials or unproductive projects that serve their interests rather than public needs. This inefficiency is detrimental to the overall economic development.
Increased Costs and Reduced Quality of Goods and Services: In a corrupt system, businesses often have to factor in the costs of bribery and fraud into their operations. This increases the overall cost of goods and services and generally results in compromised quality where corners are cut to maintain profit margins.

Political Consequences

Erosion of Legitimacy: When government officials are involved in corruption, it erodes the legitimacy of the government and undermines the trust citizens have in their elected representatives and public institutions.
Policy Distortion: Corruption can lead to policy distortions as decisions are made that benefit a few at the expense of the many. Laws and regulations might be skewed to serve the interests of a few powerful groups, rather than the public good.
Political Instability: Pervasive corruption can lead to political instability. When the public perceives that leaders are corrupt, it can lead to protests, civil unrest, and in extreme cases, the overthrow of governments.

Social Consequences

Undermined Trust in Institutions: Corruption undermines trust in both the public and private sectors. When citizens believe that they cannot expect fair treatment from the government or businesses without paying bribes, their basic trust in institutions and the rule of law is eroded.
Increased Inequality and Social Division: Corruption tends to benefit the wealthy, who can afford to pay for illicit services, and disenfranchises the poor, who are unable to compete on an uneven playing field. This exacerbates inequality and social divisions.
Weakened Ethical Standards: Widespread corruption can normalize unethical behaviour in all forms of interactions, leading to a general decline in moral and ethical standards in society.

Administrative Consequences

Reduced Effectiveness of Public Services: Corruption in public services (such as healthcare, education, and law enforcement) can lead to reduced quality and accessibility. For example, if teachers or doctors pay bribes to get their jobs, they may not be qualified to provide quality education or medical care.
Loss of Public Funds: Money lost to corruption is money taken away from essential public services. This can lead to a lack of funding for critical infrastructure, healthcare, education, and other services vital for the well-being of the population.

Environmental Consequences

Environmental Degradation: Corruption can lead to environmental destruction. For example, companies might bribe officials to ignore environmental regulations, leading to pollution, deforestation, and other harmful practices that have long-term consequences for the environment.
Resource Depletion: Illegal activities, such as poaching and the unauthorized exploitation of natural resources, are often associated with corrupt practices. This leads to the unsustainable exploitation of resources, harming future generations.

Global Implications

International Reputation: Countries known for high levels of corruption are often less attractive to international partners for trade and cooperation, affecting their global standing and ability to participate effectively on the international stage.
Aid Diversion: Corruption can divert international aid from those who need it most. When aid is misused, it can lead to continued poverty and suffering in communities that rely on external support for development.

Examples of Corruption and Its Impact

Construction Sector: Inflated costs for public infrastructure projects where kickbacks and bribes become part of the budget, leading to substandard construction and increased public safety risks.
Healthcare: In some countries, patients might need to pay bribes to receive treatments which are their legal right, impacting the quality of care and trust in the healthcare system.
Education: Corruption in education can lead to unqualified individuals receiving degrees or positions, diminishing the overall quality of education and its value.

Corruption in India has profound and multifaceted consequences that hinder economic growth, exacerbate social inequalities, and undermine trust in public institutions. Addressing corruption requires comprehensive reforms, including stricter enforcement of anti-corruption laws, greater transparency, and a cultural shift towards accountability and integrity. By tackling corruption head-on, India can pave the way for more equitable and sustainable development.

Recommendations of 2nd Administrative Reform Commission to remove corruption from India

We can try a mindmap here

The 2nd Administrative Reforms Commission (ARC) of India, chaired by Veerappa Moily, provided a comprehensive set of recommendations aimed at tackling corruption and improving governance in its Fourth Report titled “Ethics in Governance.” These recommendations address various aspects of public administration, including institutional reforms, legal frameworks, and administrative measures. Here are the key recommendations:

Institutional Reforms
Lokpal and Lokayuktas

Establish a national institution of Lokpal at the central level and Lokayuktas at the state level to investigate corruption cases involving public officials.
Lokpal should have jurisdiction over all elected representatives, including the Prime Minister (except on matters related to national security, defense, and foreign affairs).

Strengthening the Central Vigilance Commission (CVC)

Empower the CVC to act as the nodal agency for all vigilance activities, including the coordination and supervision of the functioning of vigilance units in government departments.
Ensure the independence and autonomy of the CVC, providing it with adequate resources and manpower.

Legal and Regulatory Reforms
Amendments to the Prevention of Corruption Act, 1988

Amend the Act to redefine the offense of corruption to include collusive corruption and to impose stricter penalties.
Remove the requirement of prior government sanction for prosecuting public servants accused of corruption.

Whistleblower Protection

Enact a law to protect whistleblowers from victimization and harassment.
Set up an independent authority to receive complaints and provide protection to whistleblowers.

Right to Information (RTI) Act

Ensure effective implementation of the RTI Act by training officials and creating awareness among citizens.
Establish mechanisms to proactively disclose information and reduce the need for RTI applications.

Administrative Reforms
Transparent Public Procurement

Introduce e-procurement and e-tendering systems to ensure transparency and reduce opportunities for corruption in government procurement.
Develop a robust public procurement law to standardize procedures and practices.

Simplification of Procedures

Streamline and simplify administrative procedures to reduce discretion and enhance transparency.
Implement single-window systems for service delivery to minimize bureaucratic delays.

Citizen Charters

Mandate the adoption of Citizen Charters by all government departments, outlining the standards of service delivery and the rights of citizens.
Ensure regular monitoring and evaluation of the implementation of Citizen Charters.

Civil Service Reforms
Accountability of Public Servants

Introduce a system of performance appraisal and accountability for public servants, linking promotions and career progression to performance.
Implement mechanisms for quick and effective disciplinary action against corrupt officials.

Training and Capacity Building

Provide regular training to public servants on ethics, transparency, and accountability.
Include modules on anti-corruption laws and procedures in training programs.

Code of Ethics

Develop and enforce a comprehensive code of ethics for public servants, outlining acceptable standards of behaviour and ethical conduct.
Establish ethics committees in government departments to monitor compliance and provide guidance on ethical issues.

Judicial Reforms
Fast-Track Courts

Set up fast-track courts to handle corruption cases and ensure speedy trials.
Ensure that these courts have adequate resources and manpower to function effectively.

Judicial Accountability

Establish a National Judicial Council to oversee the accountability and conduct of judges.
Implement mechanisms to address complaints against judges and ensure transparency in judicial appointments.

Strengthening Anti-Corruption Agencies
Coordination among Agencies

Foster better coordination and cooperation among various anti-corruption agencies, such as the CBI, CVC, and state vigilance commissions.
Create a central database of corruption cases and offenders to facilitate information sharing and joint investigations.

Enhancing Capacity

Provide anti-corruption agencies with adequate resources, training, and technological tools to effectively combat corruption.
Strengthen the legal and investigative capabilities of these agencies to handle complex corruption cases.

Political Reforms
Electoral Reforms

Introduce measures to reduce the influence of money in elections, such as state funding of elections and stricter regulation of election expenses.
Ensure greater transparency in political party financing and donations.

Accountability of Elected Representatives

Implement mechanisms to ensure accountability of elected representatives, such as the Right to Recall for non-performing legislators.
Strengthen the role of parliamentary and legislative committees in overseeing government functioning and expenditure.

The recommendations of the 2nd Administrative Reforms Commission provide a comprehensive framework to address corruption in India. By implementing these reforms, India can enhance transparency, accountability, and ethical conduct in public administration. The effective execution of these recommendations requires political will, public support, and a sustained commitment to improving governance and reducing corruption.

Solving Corruption in Indian Civil Services

The Second Administrative Reforms Commission (ARC) in India was established to propose ways to revamp the public administration system. The commission aimed to combat corruption and improve governance through a series of detailed reports. Here are some of the key recommendations made by the 2nd ARC to tackle corruption effectively:

Strengthening the Legal and Institutional Framework

Establish Fast-Track Courts: Special fast-track courts should be set up to expedite the resolution of corruption cases, ensuring swift justice and deterrent punishment.
Whistleblower Protection: Enact comprehensive legislation to protect whistleblowers who play a crucial role in exposing corruption. This includes mechanisms to keep their identities confidential and protect them from retaliation.
Lokpal and Lokayuktas: Strengthen the role of Lokpal at the national level and Lokayuktas at the state levels by providing them with enough authority and resources to investigate and prosecute cases of corruption independently.

Enhancing Transparency and Accountability

Right to Information Act: Promote the proactive disclosure of information by government departments as mandated under the Right to Information Act to enhance transparency and reduce opportunities for corruption.
E-Governance Initiatives: Expand e-governance projects to minimize human discretion in public services, thereby reducing corruption. This includes the use of online systems for government procurement, licensing, billing, and public service delivery.
Asset Declarations: Require public servants to declare their assets and liabilities, and those of their immediate family members, both at the time of taking office and regularly thereafter.

Public Participation and Involvement

Citizens’ Charters: Implement and strengthen Citizens’ Charters in all government departments to ensure service delivery standards are met, and to establish accountability mechanisms.
Social Audits: Encourage the use of social audits in the implementation of government schemes to ensure community participation in monitoring projects, which helps in detecting and deterring corruption.

Administrative Simplification and Reforms

Reduce Bureaucratic Complexity: Simplify administrative procedures and reduce paperwork to minimize the touchpoints where corruption can occur.
Rotation of Personnel: Implement policies for the periodic rotation of government officials from sensitive posts to prevent the development of vested interests.
Performance Evaluation: Redesign performance evaluation systems to include indices that measure the integrity and ethical behavior of civil servants.

Professional Integrity and Ethics

Ethics Training: Mandate regular training programs on ethics and anti-corruption measures for all government employees.
Code of Ethics: Formulate and enforce a clear and comprehensive code of ethics and conduct for public officials, emphasizing zero tolerance for corruption.

Sectoral Reforms

Sector-Specific Strategies: Develop specific strategies to tackle corruption in high-risk sectors such as mining, real estate, public procurement, and defense.
Regulatory Reforms: Strengthen regulatory bodies across various sectors by ensuring their independence and empowering them with enforcement capabilities.

These recommendations from the 2nd Administrative Reforms Commission represent a comprehensive approach to tackling corruption through legal measures, administrative reforms, enhanced transparency, and public engagement. Implementing these strategies effectively requires strong political will, continuous monitoring, and public support to ensure a significant reduction in corruption levels in India.

The Santhanam Committee Report

The Santhanam Committee, formally known as the Committee on Prevention of Corruption, was established by the Government of India in 1962. The committee, led by K. Santhanam, was one of the earliest efforts aimed specifically at addressing the issue of corruption within the government machinery. Its recommendations laid the foundational framework for anti-corruption measures in India. Here are some of the key recommendations made by the Santhanam Committee to counter corruption:

Establishment of Central Vigilance Commission (CVC)

Recommendation: The committee recommended the establishment of the Central Vigilance Commission as an apex body for dealing with administrative vigilance as a response to the detection of gaps in the existing system.
Purpose: To ensure the integrity of government operations and to oversee the functioning of various government departments to minimize malpractices.

Strengthening of Anti-Corruption Laws

Recommendation: The committee suggested amendments and strengthening of the existing anti-corruption laws to make them more comprehensive and effective.
Purpose: To provide a strong legal framework that would act as a deterrent against corruption.

Code of Conduct

Recommendation: The introduction of a well-defined code of conduct for government officials to follow, which would help clarify what behaviors are unacceptable.
Purpose: To ensure that all government employees are aware of the ethical standards expected of them and the consequences of deviating from these standards.

Discretionary Powers

Recommendation: The committee advised on the reduction of discretionary powers available to government officials wherever possible.
Purpose: To reduce opportunities for corruption by limiting the personal decision-making power of individuals in key positions.

Procedural Improvements

Recommendation: It called for simplification of procedures and practices that were unnecessarily complicated and provided opportunities for corrupt practices.
Purpose: To make government processes more transparent and less prone to abuse.

Use of Publicity

Recommendation: Utilize media and other public platforms to educate the public about corruption and encourage them to participate actively in the fight against corruption.
Purpose: To raise public awareness and involvement, which is essential for deterring corruption and fostering a culture of integrity.

Protective Measures

Recommendation: Protection of whistleblowers and others who report corruption.
Purpose: To encourage more individuals to come forward with information about corruption without fear of reprisal or victimization.

Periodic Checks

Recommendation: The implementation of regular inspections and audits in government departments.
Purpose: To ensure ongoing scrutiny of government functions and quick action on any signs of corruption.

Training and Awareness

Recommendation: Increased focus on training government employees about the ethical standards expected of them and the risks and impacts of corruption.
Purpose: To foster a culture of ethics and integrity within the government workforce.

Implementation and Impact

Many of the Santhanam Committee’s recommendations were implemented, leading to significant institutional changes within the Indian administrative framework. The most notable was the establishment of the Central Vigilance Commission (CVC) in 1964, which plays a critical role in the country’s ongoing efforts to reduce corruption in public life.

Conclusion

The recommendations of the Santhanam Committee Report provide a foundational framework for combating corruption in India. By implementing these recommendations, the government can strengthen anti-corruption mechanisms, promote ethical behaviour, and create a more transparent and accountable public administration. This holistic approach can significantly reduce corruption and enhance public trust in government institutions.

PRACTICE QUESTIONS

Q1: Define corruption in the context of public administration. How does corruption impact the effectiveness of governance and public trust in a democracy?

Q2: Analyse the role of societal culture in perpetuating corruption. Can changing cultural attitudes towards corruption have a significant impact on its prevalence? Support your answer with examples.

Q3: “Power tends to corrupt, and absolute power corrupts absolutely.” Discuss this statement in the light of administrative corruption and suggest mechanisms to mitigate the risks of corruption.

One famous Bollywood movie that portrays corruption is “Nayak: The Real Hero” (2001).

Anil Kapoor plays the role of Shivaji Rao, a TV reporter who is challenged by the corrupt Chief Minister (played by Amrish Puri) to take over the CM’s position for one day. During his one-day tenure, Shivaji exposes widespread corruption in the government, dismisses corrupt officials, and addresses issues like bribery, inefficiency, and misuse of power. The film highlights the deep-rooted corruption in Indian politics and bureaucracy and showcases the struggle to bring about reform.

This movie is a powerful representation of how corruption can permeate governance and how ethical leadership can be a tool to combat it.

Case Study

Raghav Verma is an IAS officer who has recently been appointed as the District Collector (DC) of a region that is undergoing rapid infrastructure development. One of the most significant projects in the district is the construction of a public hospital, funded by both state and central government schemes. During the review of the project, Raghav receives credible information that several contractors have been involved in corrupt practices, such as inflating costs, using substandard materials, and bribing lower-level officials to overlook the deficiencies.

Raghav is determined to maintain transparency and accountability in the project, as it involves public funds and directly affects the well-being of the district’s citizens. However, when he tries to initiate an inquiry, he faces immense political pressure from local leaders and influential businessmen, who are heavily invested in the project. They ask Raghav to look the other way, warning him that proceeding with the inquiry could harm his career and lead to potential transfers to a less desirable position.

Raghav finds himself in a moral dilemma. On one hand, he wants to uphold his ethical duty as a public servant by ensuring the hospital is built correctly and that public funds are used appropriately. On the other hand, the political pressure he faces could derail his career, affect his family’s well-being, and lead to professional isolation.

Ethical Dilemma:

Raghav must choose between:

Upholding Integrity: Initiating an inquiry into the corrupt practices, exposing those involved, and ensuring that the project is completed ethically and responsibly.
Yielding to Political Pressure: Ignoring the corruption, allowing the project to continue as is, and protecting his career from political retaliation.

Stakeholders:

Raghav Verma (District Collector): Responsible for ensuring the project’s transparency, accountability, and successful completion.
Local Politicians and Businessmen: Pressuring Raghav to overlook the corruption to safeguard their interests and maintain political influence.
The Contractors: Engaged in corrupt practices and benefiting from inflated project costs.
Citizens of the District: Relying on the hospital for healthcare, but potentially receiving a substandard facility due to corruption.
Raghav’s Family: Indirectly affected by the decisions he makes, especially if his career faces setbacks.

Question 1: What are the alternatives available to Raghav Verma?

Initiate a Full Investigation into Corruption:
- Pros: Upholds Raghav’s integrity, ensures public funds are used appropriately, and protects the citizens’ interests. Sets an example of ethical governance.
- Cons: Could lead to severe political backlash, risking his career, possible transfer, and even personal safety concerns.
Yield to Political Pressure:
- Pros: Protects his career and avoids immediate conflict with political leaders. Allows the project to continue without delays.
- Cons: Compromises his integrity, permits corruption to persist, and results in a substandard hospital that could harm public trust and health.
Initiate a Discreet Partial Inquiry:
- Pros: Allows Raghav to address some of the corruption issues without attracting too much attention or risking significant political backlash. Provides some accountability and ensures a portion of the project is corrected.
- Cons: Does not fully resolve the corruption, and some unethical practices may continue, leading to an incomplete resolution of the problem.
Report the Matter to Higher Authorities:
- Pros: Escalates the issue to higher authorities, such as the Chief Secretary or Anti-Corruption Bureau, ensuring the inquiry is conducted with greater authority and support. Reduces the direct pressure on Raghav.
- Cons: Delays the resolution, could lead to political and bureaucratic complications, and may still result in political retaliation.

Question 2: What is the best alternative?

The best alternative is for Raghav to initiate a full investigation into corruption while discreetly reporting the issue to higher authorities. This ensures that the project is completed ethically and that public funds are used appropriately, without allowing corruption to flourish unchecked.

Solution:

Raghav should prioritize integrity and public interest by initiating a full investigation into the corruption surrounding the hospital project. As a civil servant, his duty is to ensure that public funds are used efficiently and that citizens receive a high-quality healthcare facility. Compromising on these principles would not only affect his reputation but also harm the welfare of the people who rely on the project.

Steps to Implement the Solution:

Initiate an Independent Inquiry: Raghav should initiate a formal, independent inquiry into the contractors and the officials involved in corrupt practices. The inquiry should be conducted transparently, with a clear focus on uncovering any malpractice.
Involve Anti-Corruption Agencies: If Raghav believes that the local level inquiry might be influenced, he can escalate the matter to higher authorities or anti-corruption agencies like the Vigilance Department or Anti-Corruption Bureau to provide external oversight.
Ensure Public Transparency: Raghav should inform the public and media about the actions being taken to investigate the issue, ensuring that the people know that the government is committed to accountability and transparency.
Maintain Diplomatic Communication with Politicians: While Raghav should not yield to political pressure, he can engage in diplomatic dialogue with the local politicians and business leaders, explaining the long-term benefits of completing the project ethically and emphasizing the positive public perception this could generate.
Focus on Long-Term Integrity: Raghav should keep in mind that while the short-term consequences may include political backlash or transfer, the long-term benefits of upholding ethical principles, integrity, and public welfare will outweigh these challenges. Maintaining an untarnished reputation in public service is crucial.

Justification:

By choosing to initiate an inquiry, Raghav maintains his commitment to integrity, one of the core values of public service. Corruption in public projects not only undermines the government’s credibility but also directly impacts the lives of citizens who depend on these services. Although political backlash and career risks are real, Raghav’s decision to act ethically will serve both his reputation and the public interest in the long run. Moreover, by involving higher authorities and ensuring transparency, Raghav can mitigate some of the risks posed by political pressure.

This case highlights the importance of ethical decision-making in public administration and the challenges civil servants face when balancing personal interests with the larger goal of public welfare.

PE 9 Glossary:

Embezzlement: The act of dishonestly or unlawfully taking money or property entrusted to one’s care, typically by someone in a position of responsibility, for personal gain.

Extortion: The act of obtaining money, property, or services from someone through coercion, threats, or force, typically by exploiting a position of power.

Fraud: A deliberate act of deception intended to secure an unfair or unlawful gain, often by misrepresenting facts or concealing information.

Bribery: The offering, giving, receiving, or soliciting of something of value (usually money) to influence the actions of an individual in a position of authority or power, typically in an illegal or unethical manner.