Corruption In India

Political and bureaucratic corruption in India are major concerns. A 2005 study conducted by Transparency International in India found that more than 45% of Indians had first-hand experience of paying bribes or influence peddling to get jobs done in public offices successfully.

Transparenc International estimates that truckers pay US$5 billion in bribes annually.In 2010 India was ranked 87th out of 178 countries in Transparency International's Corruption Perceptions Index.
Although former Prime Minister and Congress party leader Indira Gandhi is quoted as saying that corruption is a misuse of power, she also publicly stated "nonchalantly" that "corruption was a global phenomenon" and her government was no different.[4][5][6] Successive central governments and members of India's famous Nehru-Gandhi political dynasty have often been accused most of corruption and amassing illegal wealth among India's political class.[4][7][8] The year 2011 has proved to be a watershed in the public tolerance of political corruption in India, with widespread public protests and movements led by social activists against corruption and for the return of illegal wealth stashed by politicians and businessmen in foreign banks over the six decades since independence.

Criminalization is also a serious problem in contemporary Indian politics.[9] In July 2008 The Washington Post reported that nearly a fourth of the 540 Indian Parliament members faced criminal charges, "including human trafficking, immigration rackets, embezzlement, rape and even murder".[10]

India tops the list for black money in the entire world with almost US$1456 billion in Swiss banks (approximately USD 1.4 trillion) in the form of black money.[11] According to the data provided by the Swiss Banking Association Report (2006), India has more black money than the rest of the world combined.[12][13] To put things in perspective, Indian-owned Swiss bank account assets are worth 13 times the country’s national debt.[14]

Independent reports published through 1991 to 2011 calculated the financial net worth of India's most powerful and traditionally ruling family (the Nehru-Gandhi political dynasty) to be anywhere between $9.41 billion (Rs 42,345 crore) to $18.66 billion (Rs 83,900 crore), most of it in the form of illegal monies.[4] Harvard scholar Yevgenia Albats cited KGB correspondence about payments to Rajiv Gandhi and his family, which had been arranged by Viktor Chebrikov,[15][16][17] which shows that KGB chief Viktor Chebrikov sought in writing an "authorization to make payments in US dollars to the family members of Rajiv Gandhi, namely Sonia Gandhi, Rahul Gandhi and Paola Maino, mother of Sonia Gandhi" from the CPSU in December 1985.[15][16][17]

“The recent scams involving unimaginably big amounts of money, such as the 2G spectrum scam, are well known. It is estimated that more than trillion dollars are stashed away in foreign havens, while 80% of Indians earn less than 2$ per day and every second child is malnourished. It seems as if only the honest people are poor in India and want to get rid of their poverty by education, emigration to cities, and immigration, whereas all the corrupt ones, like Hasan Ali Khan are getting rich through scams and crime. It seems as if India is a rich country filled with poor people",[18] the organisers of Dandi March II in the United States said.[19]

The Comptroller and Auditor General of India said, “As on March 31, 2010, unutilised committed external assistance was of the order of Rs.1,05,339 crore.”[20]
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History

The economy of India was under socialist-inspired policies for an entire generation from the 1950s until the late 1980s. The economy was subject to extensive regulation, protectionism, and public ownership, leading to pervasive corruption and slow growth.[21][22][23][24] License Raj was often at the core of corruption.

The Vohra Report, submitted by the former Indian Union Home Secretary, N.N. Vohra, in October 1993, studied the problem of the criminalisation of politics and of the nexus among criminals, politicians and bureaucrats in India.


The report contained several observations made by official agencies on the criminal network which was virtually running a parallel government. It also discussed criminal gangs who enjoyed the patronage of politicians — of all political parties — and the protection of government functionaries. It revealed that political leaders had become the leaders of gangs. They were connected to the military. Over the years criminals had been elected to local bodies, State Assemblies, and even the Parliament. The unpublished annexures to the Vohra Report are believed to contain highly explosive material.

According to Jitendra Singh, "in the bad old days, particularly pre-1991, when the License Raj held sway, and by design, all kinds of free market mechanisms were hobbled or stymied, and corruption emerged almost as an illegitimate price mechanism, a shadowy quasi-market, such that scarce resources could still be allocated within the economy, and decisions could get made. ... These were largely distortions created by the politico-economic regime. While a sea change has occurred in the years following 1991, some of the distorted cultural norms that took hold during the earlier period are slowly being repaired by the sheer forces of competition. The process will be long and slow, however. It will not change overnight."[25] One of the major problems and obstacles to development that many developing countries face is corruption by greedy, power-hungry politicians, which is endemic in certain parts of the world.
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Politics

As of December 2008, 120 of India's 522 parliament members were facing criminal charges.[9] Many of the biggest scandals since 2010 have involved very high levels of government, including Cabinet Ministers and Chief Ministers, such as in the 2G spectrum scam and the Adarsh Housing Society Scam.
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Bureaucracy

A 2005 study done by Transparency International (TI) in India found that more than 50% of the people had firsthand experience of paying bribe or peddling influence to get a job done in a public office.[2] Taxes and bribes are common between state borders; Transparency International estimates that truckers pay annually US$5 billion in bribes.[3] A 2009 survey of the leading economies of Asia, revealed Indian bureaucracy to be not just least efficient out of Singapore, Hong Kong, Thailand, South Korea, Japan, Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia; further it was also found that working with India's civil servants was a "slow and painful" process.[26]
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Land and property

Officials often steal state property. In cities and villages throughout India, Mafia Raj consisting of municipal and other government officials, elected politicians, judicial officers, real estate developers and law enforcement officials, acquire, develop and sell land in illegal ways.[27]
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Tendering processes and awarding contracts

Government officials having discretionary powers in awarding contracts engage in preferential treatment for selected bidders and display negligence in quality control processes[citation needed]. Many state-funded construction activities in India, such as road building, are dominated by construction mafias, which are groupings of corrupt public works officials, materials suppliers, politicians and construction contractors.[28] Shoddy construction and material substitution (e.g. mixing sand in cement while submitting expenses for cement) result in roads and highways being dangerous, and sometimes simply washed away when India's heavy monsoon season arrives.[29]
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Medicine

In Government Hospitals, corruption is associated with non availability of medicines (or duplicate/fake medicines), getting admission, consultations with doctors and availing diagnostic services.[2] There have been cases of diversion of medical supplies from government hospitals and clinics[citation needed] as well as supply and distribution of medicines of inferior quality[citation needed]
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Education

A quality required by a candidate to get admission in a private Engineering college is either good marks or good money. Engineering college receives a sum of 2 lakhs to 10 lakhs per seat in the name of donations, Which varies based on the reputation of the college. Some of these colleges are owned by a politician or his/her benami. A seat in private medical college ranges from 15 lakhs(For non reputed college)to 50 lakhs or even more. After admission there would be several other fees which has to be paid compulsory other than tuition fee. No other fees are regulated by the government other than the tuition fee. And government has not taken any action since most of the colleges are owned by politician.
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Income tax Department

There have been several cases of collusion of officials of the income tax department of India for a favorable tax treatment in return for bribes
Religious institutions

In India, the corruption has also crept into religious institutions. Some of the Church of North India are making money by selling Baptism certificates.[36] A group of church leaders and activists has launched a campaign to combat the corruption within churches. The chief economic consequences of corruption are the loss to the economy an unhealthy climate for investment and an increase in the cost of government-subsidised services. The TI India study estimates the monetary value of petty corruption in 11 basic services provided by the government, like education, healthcare, judiciary, police, etc., to be around 21,068 crore (US$4.7 billion). India still ranks in the bottom quartile of developing nations in terms of the ease of doing business, and compared to China and other lower developed Asian nations, the average time taken to secure the clearances for a startup or to invoke bankruptcy is much greater.