Unit : 4

Corruption

Synopsis:
1) Introduction:
2) Meaning and concept:
3)Levels of corruption:
4)Causes of corruption:
5) National scenario
6) Effects of corruption:
7) Measures to combat corruption
8) Corruption laws in India:
9) Key Features of the Acts associated with corruption
10) Conclusion:

1) Introduction:
Every society has its own problems. These are caused
by several factors and characteristics of a particular
society. Some of the problems are corruption, crime in
general, white collar crime, communal crime etc.

2) Meaning and concept:

Corruption is something against law, something
forbidden of law. Corruption is a departure from what is
pure or correct of from the original.
The word “Corrupt” as an adjective means unlawful,
dishonest, without integrity, involving bribery. Corruption
is tainted with vice and is related to bribery. It is not
easy to define corruption.
 In a narrow sense, corruption is mostly concerned
with bribery and it takes several forms. Corruption is a
global phenomenon and it is omnipresent. Corruption
has progressively increased and is now rampant in our
society.

3)Levels of corruption:
Corruption in society takes place at three different
levels:
1)The first level is Petty corruption: which we all
encounter in our daily lives. It is the most widespread
form of corruption and involves paying the occasional
bribe to get a passport or a ration card more quickly.
2)The second level is at the level of enterprise: which
involves paying money to either accelerate the decision
making process or to distort it paying the customs
official a percentage of the cost of imported goods to
clear a consignment.
3)The third level is called political corruption: it can be
illustrated by giving money to obtain large government
contracts or to obtain major licences.

4)Causes of corruption:
1)Various officers commit corrupt practices to grab
money to lead luxurious life to equalise themselves with
higher strata people.
2)Business class practice corrupt methods to enrich
themselves with profits
3)A common man tempts to corrupt others to escape
from inconvenience
4) Emergence of political elite who believe in
interest-oriented rather than nation-oriented
programmes and policies.
5) Artificial scarcity created by the people with malevolent
intentions wrecks the fabric of the economy.
6) Corruption is caused as well as increased because of
the change in the value system and ethical qualities of
men who administer.
7)The old ideals of morality, service and honesty are
regarded as outdated.
8) Tolerance of people towards corruption, complete lack
of intense public outcry against corruption and the
absence of strong public forum to oppose corruption
allow corruption to reign over people.
9) Vast size of population coupled with widespread
illiteracy and the poor economic infrastructure lead to
endemic corruption in public life.
10) In a highly inflationary economy, low salaries of
government officials compel them to resort to the road
of corruption. Graduates from IIMs with no experience
draw a far handsome salary than what government
secretaries draw.
11) Complex laws and procedures alienate common
people to ask for any help from government.
12) Election time is a time when corruption is at its peak
level.

5) National scenario

Corruption in India is a consequence of the nexus

between Bureaucracy, politics and criminals. India is
 now no longer considered a soft state. It has now
become a consideration state where everything can be
had for a consideration. Today, the number of ministers
with an honest image can be counted on fingers. At one
time, bribe was paid for getting wrong things done but
now bribe is paid for getting right things done at right
time.

6) Effects of corruption:
1) Indian administration is tainted with scandals.
1)Corruption in India leads to promotion not prison.
2)It is very difficult to catch.
3) Corruption in India has wings not wheels.
4) As nation grows, the corrupt also grow to invent new
methods of cheating the government and public.
5)Corruption by its very nature generates black money

7)Remedial Measures to combat corruption

1) Fool proof laws should be made so that there is no
room for discretion for politicians and bureaucrats.
2) The role of the politician should be minimized.
3) Application of the evolved policies should be left in
the hands of independent commission or authority in
each area of public interest.
4) Decision of the commission or authority should be
challengeable only in the courts.
5) Cooperation of the people has to be obtained for
successfully controlling corruption.
6) Funding of elections is at the core of political
corruption.
 7) Responsiveness, accountability and transparency are
a must for a clean system.
8) Bureaucracy, the backbone of good governance,
should be made more citizen friendly, accountable,
ethical and transparent.
9) More and more courts should be opened for speedy
& inexpensive justice so that cases do not linger in
courts for years and justice is delivered on time.
10) Local bodies, Independent of the government, like
Lokpals, Lokadalats, CVCs and Vigilance Commissions
should be formed to provide speedy justice with low
expenses.
11) A new Fundamental Right viz. Right to Information
should be introduced, which will empower the citizens
to ask for the information they want.
12) Stringent actions against corrupt officials will
certainly have a deterrent impact.

8) Corruption laws in India:

• Public servants in India are often penalized for
corruption under the Indian Penal Code , 1860 and
the Prevention of Corruption Act, 1988.
• The Benami Transactions (Prohibition) Act, 1988
prohibits benami transactions.
• The Prevention of cash Laundering Act, 2002 penalises
public servants for the offence of cash laundering.
• India is additionally a signatory (not ratified) to the UN
Convention against Corruption since 2005. The
Convention covers a good range of acts of
corruption and also proposes certain preventive policies.
9) Key Features of the Acts associated with corruption
1)Indian legal code , 1860:
• The IPC defines “public servant” as a government
employee, officers within the military, navy or air force;
police, judges, officers of Court of Justice, and
any agency established by a central or state Act.
• Section 169 pertains to a employee unlawfully buying
or bidding for property. The public servant shall be
punished with imprisonment of upto two years or with
fine or both. If the property is purchased, it shall be
confiscated.
• Section 409 pertains to criminal breach of trust by
an employee. the general public servant shall be
punished with captivity or with imprisonment of upto 10
years and a fine.
2)The Prevention of Corruption Act, 1988
• Additionally to the categories included within the IPC,
the definition of “public servant” includes office bearers
of cooperative societies receiving aid from the
government, employees of universities, Public Service
Commission and banks. This Act especially defines the
act of bribery, prescribes its punishment and also deals
with the intricacies of law like appointment of special
judges, their powers, summarily triable cases etc.
The Act describes, defines, discriminates different
forms and stages of corruption and prescribes
punishment for an equivalent .
 Under Section 7 of the Act, any employee expecting or
accepting any gratification aside from his legal
remuneration from a person to favour or disfavour or
service or disservice the other person shall be
punishable with imprisonment not but 6 months but
may reach 5 years and also with fine.
Section 8 deals with the cases of employee s accepting
gratification by illegal means to influence public servant.
an equivalent provision prescribes punishment up to
five years imprisonment and fine. the
utmost punishment prescribed under the Act is up to
seven years imprisonment and fine under
Section 14 that deals with those habitual of getting
involved within the act of corruption in one or the
opposite way.

• If a employee takes gratification aside from his legal

remuneration in respect of an official act or to influence
public servants is susceptible to minimum punishment
of six months and maximum punishment of 5 years and
fine.
• The Act also penalizes a employee for taking
gratification to influence the general public by illegal
means and for exercising his personal influence with
a employee, he shall be penalized with minimum
punishment of six months and maximum punishment of
5 years and fine.
3)The Benami Transactions (Prohibition) Act, 1988
• The Act prohibits any benami transaction (purchase of
 property in alias of another person who doesn’
t buy the property) except when an
individual purchases property in his wife’s or unmarried
daughter’s name.
• a person who enters into a benami transaction shall be
punishable with imprisonment of up to three years
and/or a fine.
• All properties that are held to be benami are
often acquired by a prescribed authority and no
money shall be purchased such acquisition.
4)The Prevention of cash Laundering Act, 2002
• The Act states that an offence of cash laundering has
been committed if an individual may be a party to any
process connected with the proceeds of crime and
projects such proceeds as untainted property.
• The penalty for committing the offence of
cash laundering is rigorous imprisonment for three to
seven years and a fine of upto Rs 5 lakh. If an
individual is convicted of an offence under the
Narcotics Drugs and Psychotropic Substances Act,
1985 the term of imprisonment can extend upto 10
years.
• The Adjudicating Authority, appointed by the central
government, shall decide whether any of the property
attached or seized is involved in concealment . An
Appellate Tribunal shall hear appeals against the
orders of the Adjudicating Authority and the other
authority under the Act.
• The Right to Information Act,2005: The
basic object of the Right to Information Act is to
empower the citizens, promote transparency and
 accountability in the working of the Government,
contain corruption, and make our democracy work
for the people in real sense.

5)The three main authorities involved in inquiring,

investigating and prosecuting corruption
cases are
1)The Central Vigilance Commission (CVC)
2) The Central Bureau of Investigation (CBI)
3) The Anti-Corruption Bureau (ACB).

10) Case law:

In Central Bureau of Investigation, Bank Securities and
Fraud Cell [Link] Gelli and Others CrlApp
1077-1081 of 2013 decided on Feb 23 2016
The Supreme Court of India held that the Chairman and
Directors of private bank would be public servants for
the purpose of Prevention of Corruption Act.

11) Conclusion: