Interesting facts on Corruption in India

The Corruption Perception Index (CPI) ranks India as the 85th least corrupt country out of 180 countries and territories for the year 2021. The ranking is determined based on the perceived levels of public sector corruption. India’s best score of 35th rank was in the year 1995 when the regulations and laws were newly formulated. Even after several years of amendments, awareness programs, and levy of fines and penalties the country’s worst score was 95th in the recent year 2011.

The Prevention of Corruption Act (PCA) was enacted to combat corruption in the public sector. The act was amended in the year 2018 which led to several key changes. The country does not have any laws or regulations to check on private-sector corruption.

Let us analyze the trends in corruption perception in India, major amendments in PCA, and its implications.

Statistics on corruption in India

39% of Indians paid a bribe at least once in the previous 12 months for public services, basis a survey conducted from the period June to September 2020 by Transparency International organization. This is the highest rate of bribery paid in the Asian region.

The survey revealed serious issues with regard to the penetration of corruption in India. The key data revealed were:

1. 89% of Indians think government corruption is a big problem
2. 71% of Indians think corruption levels have increased and/or stayed the same in the previous 12 months
3. 46% of Indians think that police and local government officials are corrupt
4. 18% of Indians were offered bribes in exchange for votes

The participants cited that the major reason to pay bribes was: it was the only way to get work done and it would have taken a long time/significant effort without the bribe to get the work done.

Key amendments in the Prevention of Corruption Act and its implication

In the year 2018, the PCA was amended and several key changes were made to strengthen the law, prevent corruption, and punish the culprits. Let us understand key amendments:

1. The person offering/giving a bribe shall now be punished: earlier the act was silent on the supply side of bribery. The act only stated that any person aiding or abetting (encouraging or helping) the bribery shall be punished. However, the amendment clearly states that any person who gives or promises to give an undue advantage (bribe) to another person to induce a public servant shall be punished. Exception – In case the giver is extorted (compelled to give bribe) then the giver shall not be punished if he/she reports the matter to enforcement or investigating agency within 7 days from the date of giving such bribe or undue advantage. Implication (Negative) – 63% of Indians think that this amendment will lead to victimization and harassment of innocent people by public officials based on a survey conducted by the organization Local circles.
2. Prior approval of employer government is now required to conduct an inquiry, and investigation against the public servant – earlier such approval was required to conduct prosecution against the public servant. However, the scope now also includes inquiry, and investigation prior to prosecution. Exception – for cases where the public servant is caught red-handed while taking or accepting a bribe or undue advantage this provision shall not be applicable. Implication (Negative)– 49% of Indians think that this amendment will lead to an increase in corruption since the chances of information leakage, and abuse of authority will increase.
3. The businesses shall be punishable if any person associated commits the offence - the act states that any business in any form conducting business in India shall be liable under the act if any person from the business commits the offence. The business cannot plea that the offence was an offence by the individual. Exception – for cases where the business proves that they had adequate procedures and compliances to prevent the offence this provision shall not apply. Implication (Positive)- the businesses will be more cautious and vigilant while associating with any third-party contractor, persons, and employees. The businesses will have to adhere to certain procedures to prevent such offences.

Way forward

The amendment in PCA is applicable from 2018, however, India’s rank in Corruption Perception Index (CPI) still declined from 78th to 85th position in the past 3 years. The public sector is plagued with corruption, abuse of power, red tape, and favoritism. It will take years for the system to clean up and immediate actions are necessary to strengthen the laws and create awareness among citizens. The following suggestions can be followed to help in the fight against corruption:

1. The public sector departments should be automated and payments should only be accepted in digital form over certain thresholds.
2. The public offices should have CCTV cameras and microphones installed at relevant places.
3. The officials should be transferred after every relevant period to minimize the risk of favoritism.
4. The definition of corruption should explicitly include ‘Sextortion.’ 11% of Indians experienced or know someone who has suffered sextortion. It is a demand for sexual favors by public officials to get the work done.
5. The act should include provisions to protect the public against any abuse, and should be encouraged to report the cases of bribery and corruption.