BRING IN CLEAN BHARATH

Make in BHARATH
2016

Remember our CONSTITUTION?

"WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute
India into a SOVEREIGN
DEMOCRATIC REPUBLIC, and to secure to all its
citizens :
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.

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.

On the negative side, one cant ignore the

nagging problems of
unemployment, illiteracy and poverty,
accentuated by an ever increasing urban
population.
Also, a low per capita income, inadequate
infrastructure, feudalistic tendencies and worst of
all a pathetic contempt of rule of law and ethics in
public life.
Finally, an administration which is perceived as
self seeking and citizen unfriendly.
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 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.
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.

 Of the 102 countries surveyed in 2002, seventy countries

including many of the worlds most poverty stricken

score less than five out of a clean score of ten.

Corruption is perceived to be rampant in Indonesia,
Kenya, Angola, Nigeria, and Bangladesh, countries with a

score of less than two.

Countries with a score of higher than 9, with very low
levels of perceived corruption, are rich countries, namely,
Finland, Denmark, New Zealand, Singapore, and
Sweden.
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 There is nothing to be proud of India's ranking in the

Transparency International's Corruption Perception Index

2009.
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.

Corruption seems to be a fact that affects all sections of
society
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Use of public office for private gains is corruption

Scales of corruption: Grand, Middling or Petty

Payment of bribes: Collusion between the bribe
taker and the bribe giver, due to coercion or
even anticipatory.
Easy solution to personal issue.
There are corrupt people, corrupt practices,
and a corrupt system.
Eliminate the vice of corruption.

Corruption in public life is one of the most

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.

Corruption will not conceal

itself.
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 doesnt care)

Mahatma Gandhi:
(Many years ago)

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Are you aware 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?
No, 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, 'DelhiBelly' 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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Eight frequently asked questions about public

corruption:
(1)What is corruption?

(2) Which countries are the most corrupt?

(3) What are the common characteristics of countries with
high corruption?
(4) What is the magnitude of corruption?
(5) Do higher wages for bureaucrats reduce corruption?
(6) Can competition reduce corruption?
(7) Why have there been so few (recent) successful attempts
to fight corruption?
(8) Does corruption adversely affect growth?
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Corruption arises in the ways people pursue, use

and exchange wealth and power,
in the strength or weakness of the state,
in social institutions that sustain and/ or
restrain those processes.

PEOPLES PERSPECTIVE
Indians 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.

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.
Acts for actions of private individuals: 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.
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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.

Happenings in India
The World Bank defines it as the use of public office for private
profit. In our country, 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 !

Political corruption was not unknown in the 1950s, as the

cases of the Mundhra scandal and the Kairon administration
in the Punjab demonstrated. Some politicians did, however,
gather money for the party from the business sector.
In the 1970s politicians began demanding a commission

when contracting arms deals with foreign suppliers. The

money was assumed to be used in the next elections. By
the 1980s, however, political corruption had shifted from the
institutional to the personal level thus ministers were
deemed to be making money from government contracts,

from postings of officials and by sundry other means.

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1984 was an especially turbulent year. The first week

of June witnessed Operation Bluestar, an
unprecedented attack by the state on a place of
worship occupied by a terrorist group.
The last day of October saw the assassination of Indira
Gandhi, the first major political killing since that of
Mahatma Gandhi. That murder had temporarily
brought a halt to Hindu-Muslim violence;
this one provoked a wave of violence by Hindus on
Sikhs.
In December, 1984, Bhopal Gas Tragedy killed /
harmed many by the release of toxic gas.

Corruption due to Wrong Politics

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In a politico-economic system of mixed economy, in

which the dividing line between mercantilism and
socialism is still very obscure and control over the State

machinery can give glittering prizes to the business as

well as the managerial classes, the moneyed interests
are bound to infiltrate sooner or later into the ruling
cadres of the party in power.

Elections need money and after winning, politics is

concerned with recovering the funds. Hence politics and

corruption are related activities.
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BOFORS SCAM:
A storm broke out over revelations that commissions had
been paid to middlemen in a deal involving the sale of the

Swedish Bofors gun to the Indian army. The news was first
announced over Swedish radio in April 1987.
Over the next two years the press and opposition politicians
kept up the pressure on the government, demanding that it
name and punish the offenders.
The government stonewalled, prompting speculation that the
middlemen were somehow linked to the prime minister
himself.

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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 Prime Minister to be convicted in a criminal case. He was
acquitted on appeal, however, in March 2002.

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 Chief Minister were charged with embezzling over US$ 40 million in
state funds intended for the purchase of animal fodder. In total, 170 persons
were charged in connection with this scandal.

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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.
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: The chief minister of Maharashtra resigned over his alleged

role in a scam involving homes for war widows. He was ordered by the
ruling Congress party to tender his resignation to Maharashtra's
governor while the matter was investigated. Mr. Chavan's relatives,
army officers and bureaucrats are among those who allegedly
acquired apartments. He denies any wrongdoing in relation to the
Mumbai housing project.
In 2010: Suresh Kalmadi, the much-maligned organising committee
chief of Commonwealth Games in Delhi, also quit his post in the
Congress party.
An other housing loan scam involving state-owned institutions and a
private and listed Mumbai-headquartered company Money Matters
Financial Services Ltd has been exposed. This has once again put
independent directors under a cloud 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),
are ex-bankers and chairpersons of financial institutions.
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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.

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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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.

LALITH MODI AND CRICKET SCAM

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2015: The Black Money (Undisclosed Foreign

Income and Assets) and Imposition of Tax Act,
2015 has been announced and criticized as harsh
and 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.

BLACK MONEY LAW 2015

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 2016: Enforcement Directorate registered a

case of money laundering against a liquor
industry businessman who owned a grounded
private airliner company based on a CBI probe
on the airlines default on a Rupees 9000/crores loan from banks.
When global oil prices increased highly in
2012, with high tax on aviation turbine fuel, the
airline had to be grounded owing money to
banks. It was given loans in good days.
Indian banking system is bogged down with gross
NPAs of Rs. 4 lakh crores at present, 90% of
which are with the public sector banks.
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 Is

this true?

On 8 April 2016, The Milan Court of Appeal, in a 225

page judgement overturned a lower court verdict and

convicted Agusta Westland chopper company chief
Giuseppe Orsi to 4 years imprisonment for paying 30
Million Euro bribe to Indian politicians, bureaucrats
and Indian Air Force officials.

Agusta Westland helicopter deal

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Are Voters bribed before elections?

Electoral officials in Tamil Nadu on Saturday (14May-2016) seized about Rs. 570 crore from
three containers during checking in Tirupur
district.
Officials said that personnel accompanying the
containers told them that they were transferring Rs.
570 crore from State Bank of India in Coimbatore to
Vishakhapatnam branches.
The flying squad of the election department, along
with paramilitary forces, seized the cash early
Saturday morning during a routine vehicle check .

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Panama paper lists some Indians as linked to offshore

firms that were set up in tax havens such as British
Virgin Islands and Bahamas.

In 2004, a liberalized Remittance Scheme was

introduced by the RBI which allowed foreign

remittances of up to $ 25000 a year by Indian

citizens.

Secret off shore accounts may not be illegal if not

used for money laundering and tax evasion.

Leak of documents: Panama Papers.

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I C I J, SUDDEEUTSCHE ZEITUNG, INDIAN EXPRESS

Govt. has formed a multiagency group to probe the

P P Expose released in India by the Indian
Express.

The group will be CBDT and RBI officials and will

monitor disclosures as well as act on them. Over
500 Indians figure in the list.

PANAMA PAPERS EXPOSE

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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 very 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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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 plays an active
role now 24X7.

Good Governance Agenda

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Five basic reasons for corruption are:

(i) scarcity of goods and services (urgency

in availability); (ii) red tape and
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 who

p r o t e c t e a c h o t h e r.

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 vigilancemainly
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. While 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 been
a thundering silence on the supply side of
corruption, i.e., around the business community
which bribes the public servants and politicians. It is
therefore interesting to note the business
communitys focus on the issue of ethics in
business. Recently the CII organised a session on
ethics and corporate integrity.
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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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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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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.

Business frauds
Preventive and Predictive Maintenance
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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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Minimize frauds by putting in place effective

punishment systems.
Our legal systems are allowing the guilty to
escape punishment and take 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.
The punishment regimen and our legal system is
now being changed to ensure speedy punishment
to the corrupt and the guilty.

Ah! put in place effective punishment

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The truth is that governments and citizens are fully

aware of the corruption which pervades their
country.
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.

Democratization of information and

knowledge:
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The concept of Citizen Charters has been introduced to

improve the quality of public services. It ensures
accountability, transparency and quality of services provided

by various government / business organistions.

It enables 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 has 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 has

normalised corruption in its many different forms.
We in India need to acknowledge the need for
introspection on our acceptance of the abuse of
power. 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.
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A pluralist society with high ethics

in public life: Awake to it, India
Vice of corruption can be overcome
Jai Ho

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.)

Adopting this strategy, we can definitely see India becoming a less

corrupt, progressive and developed country in the next 10 to 15
years.
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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.
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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
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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.

Right to information act
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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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Growth in services since 1991:

The most significant expansion has been in the

services sector, which grew at an average of 8.1

per cent a year through the 1990s.
Much of this was contributed by the software
industry, whose revenues grew from a paltry $197
million in 1990 to $8,000 million in 2000. In some
years the industry grew at more than 50 per cent a
year.

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Focus on Education: First, there was the District Primary

Education Programme, which focused on 250 districts

where female literacy was less than the national average.

A little later this was superseded by a Sarva Shiksha
Abhiyan (Programme to Educate All). The funds devoted
to primary education from the public exchequer were
increased, and there was also an inflow of money from
foreign donors. Supreme Court directed all state
governments to provide cooked midday meals in schools.

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 There is saving grace that 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
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