Corruption in India

{{See also|Booth capturing}}

Corruption in India is a problem that has serious implications for protecting the rule of law and ensuring access to justice. {{As of|December 2009}}, 120 of India's 542 parliament members were accused of various crimes, under India's First Information Report procedure wherein anyone can allege another to have committed a crime.{{cite news|url=http://www.economist.com/specialreports/displaystory.cfm?story_id=12749771|title=A special report on India: The democracy tax is rising: Indian politics is becoming ever more labyrinthine|date=11 December 2008|newspaper=The Economist|url-status=live|archive-url=https://web.archive.org/web/20081220163843/http://www.economist.com/specialreports/displaystory.cfm?story_id=12749771|archive-date=20 December 2008|df=dmy-all}}

Many of the biggest scandals {{As of|since=yes|lc=yes|2010}} have involved high level government officials, including Cabinet Ministers and Chief Ministers, such as the 2010 Commonwealth Games scam ({{INRConvert|70000|c}}),{{Cite web |title=Commonwealth Games 2010: Corruption And Irregularities |url=https://www.legalserviceindia.com/legal/article-8728-commonwealth-games-2010-corruption-and-irregularities.html |access-date=2024-10-17 |website=legalserviceindia.com}}{{Cite news |date=2020-02-07 |title=Commonwealth Games Scam |url=https://timesofindia.indiatimes.com/miscellaneous/commonwealth-games-scam/articleshow/56032112.cms |access-date=2024-10-17 |work=The Times of India |issn=0971-8257}} the Adarsh Housing Society scam, the Coal Mining Scam ({{INRConvert|1.86|lc}}), the Mining Scandal in Karnataka, and the Cash for Vote scams along with the Electoral Bond scam. There have also been decades of numerous state and local level scams, for example: the Saradha group financial scandal, the Narada sting operation, the Rose Valley financial scandal, West Bengal teacher recruitment scam, 2024 Sandeshkhali violence, the NEET 2024 scam and the 2024 Pune Porsche car crash.

Since the anti-corruption departments in India exist as defunct outfits, the corrupt bureaucrats and politicians keep committing acts of corruption with impunity. This fact is also stated in its annual country report released in April 2022 by the U.S. Department of State.{{Cite web |title=India |url=https://www.state.gov/reports/2021-country-reports-on-human-rights-practices/india/ |access-date=2022-08-07 |website=United States Department of State |language=en-US}}{{PD-notice}}

In an exclusive section, "Corruption and Lack of Transparency in Government", the report asserts that the law provides criminal penalties for corruption by officials at all levels of government in India. However, officials frequently engaged in corrupt practices with impunity while there were numerous reports of government corruption during the year.

The U.S. report further reveals that a lack of accountability for official misconduct persisted at all levels of government in India, contributing to widespread impunity. While investigations and prosecutions of individual cases took place, lax enforcement, a shortage of trained police officers, and an overburdened and under-resourced court system contributed to a low number of convictions, the report said.

The U.S. report adds that corruption in India happens at different levels including the payment of bribes to expedite services such as police protection, school admission, water supply, and government assistance.

[[File:India Corruption Survey 2019.png|thumb|right|upright=1.35|

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A 2005 study done by the Transparency International in India found that more than 62% of the people had firsthand experience of paying bribes or peddling influence to get services performed in a public office. Taxes and bribes are common between state borders; Transparency International estimates that truckers annually pay {{INRConvert|222|c}} in bribes.{{cite news|title=Cops turn robbers on India's roads|publisher=Asia Online|date=27 August 2009 |url=http://www.atimes.com/atimes/South_Asia/KH27Df03.html|archive-url=https://web.archive.org/web/20091028070930/http://www.atimes.com/atimes/South_Asia/KH27Df03.html|url-status=unfit|archive-date=28 October 2009}}

Both government regulators and police share in bribe money, to the tune of 43% and 45% each, respectively. The route stoppages at checkpoints and entry-points can take up to 11 hours per day. About 60% of these (forced) stoppages on roads by concerned authorities such as government regulators, police, forest, sales and excise, octroi and weighing and measuring departments are for extorting money. The loss in productivity due to these stoppages is an important national concern; the number of truck trips could increase by 40%, if forced delays are avoided. According to a 2007 World Bank published report, the travel time for a Delhi-Mumbai trip could be reduced by about 2 days per trip if the corruption and associated regulatory stoppages to extract bribes were eliminated.{{cite web |title= Corruption in Trucking Operations in India |author= MDRA |publisher= The World Bank |date= February 2007 |url= http://info.worldbank.org/etools/ANTIC/docs/Resources/Sectors/Transport/CorrTruckingIndia.pdf |url-status= dead |archive-url= https://web.archive.org/web/20120410073806/http://info.worldbank.org/etools/ANTIC/docs/Resources/Sectors/Transport/CorrTruckingIndia.pdf |archive-date= 10 April 2012 |df= dmy-all }}{{cite news|url=http://articles.economictimes.indiatimes.com/2011-12-09/news/30498171_1_corruption-indian-economy-bribery |title=How much do the corrupt earn? |work=The Economic Times|date=11 September 2011 |accessdate=11 December 2011}}{{dead link|date=October 2024|bot=medic}}{{cbignore|bot=medic}}{{cite news |title= UP trucker won't give bribe, pays with his life |work= Indian Express |date= 27 September 2011 |url= http://www.indianexpress.com/news/up-trucker-wont-give-bribe-pays-with-his-life/852415/ }}

A 2009 survey of the leading economies of Asia, revealed Indian bureaucracy to be not only the least efficient among Singapore, Hong Kong, Thailand, South Korea, Japan, Malaysia, Taiwan, Vietnam, China, Philippines and Indonesia, but that working with India's civil servants was a "slow and painful" process.[http://timesofindia.indiatimes.com/India/Indian-bureaucracy-ranked-worst-in-Asia-Survey/articleshow/4612918.cms Indian bureaucracy ranked worst in Asia: Survey] {{webarchive|url=https://web.archive.org/web/20090615000205/http://timesofindia.indiatimes.com/India/Indian-bureaucracy-ranked-worst-in-Asia-Survey/articleshow/4612918.cms |date=15 June 2009 }} The Times of India, 3 June 2009.

{{See also|Illegal housing in India}}

Officials are alleged to steal state property. In cities and villages throughout India, groups 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.K.R. Gupta and J.R. Gupta, Indian Economy, Vol #2, Atlantic Publishers & Distributors, 2008, {{ISBN|81-269-0926-9}}. Snippet: ... the land market already stands subverted and an active land mafia has already been created ... Such officials and politicians are very well protected by the immense power and influence they possess. Apart from this, slum-dwellers who are allotted houses under several housing schemes such as Pradhan Mantri Gramin Awaas Yojana, Rajiv Awas Yojna, Pradhan Mantri Awas Yojna, etc., rent out these houses to others, to earn money due to severe unemployment and lack of a steady source of income.

{{update|section|date=May 2023}}

{{also|Government procurement#India}}

A 2006 report claimed that state-funded construction activities in Uttar Pradesh, such as road building, were dominated by construction mafias, consisting of cabals of corrupt public works officials, materials suppliers, politicians and construction contractors.{{cite web |url=http://archives.digitaltoday.in/indiatoday/20061016/state-up.html |title=Mulayam Hits Mafia Hard |website=India Today |date=16 October 2006 |access-date=30 October 2008 |url-status=live |archive-url=http://archive.wikiwix.com/cache/20110705052538/http://archives.digitaltoday.in/indiatoday/20061016/state-up.html |archive-date=5 July 2011 |df=dmy-all }} Snippet: ... The road sector has always been the main source of income for the mafia. They either ask their men directly to grab the contracts or allow an outsider to take the contract after accepting a hefty commission

Problems caused by corruption in government-funded projects are not limited to the state of Uttar Pradesh. The World Bank study finds that the public distribution programs and social spending contracts have proven to be a waste due to corruption.{{cite news|title=India aid programme 'beset by corruption' – World Bank|work=BBC News|date=18 May 2011|url=https://www.bbc.co.uk/news/world-south-asia-13447867|url-status=live|archive-url=https://web.archive.org/web/20120303065531/http://www.bbc.co.uk/news/world-south-asia-13447867|archive-date=3 March 2012|df=dmy-all}}

For example, the government implemented the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on 25 August 2005. The Central government outlay for this welfare scheme is {{INRConvert|400|c}} in FY 2010–2011.[http://www.nrega.nic.in/netnrega/home.aspx Mahatma Gandhi National Rural Employment Guarantee Act] {{webarchive|url=https://web.archive.org/web/20120621141533/http://nrega.nic.in/netnrega/home.aspx |date=21 June 2012 }}. Govt of India After 5 years of implementation, in 2011, the programme was widely criticised as no more effective than other poverty reduction programmes in India. Despite its best intentions, MGNREGA faces the challenges of corrupt officials reportedly pocketing money on behalf of fake rural employees, poor quality of the program infrastructure, and unintended destructive effect{{clarify|date=May 2013}} on poverty.{{cite news|title=Indian rural welfare – Digging holes|newspaper=The Economist|date=5 November 2011|url=http://www.economist.com/node/21536642|url-status=live|archive-url=https://web.archive.org/web/20120609205426/http://www.economist.com/node/21536642|archive-date=9 June 2012|df=dmy-all}}{{cite news|title=India's Boom Bypasses Rural Poor|newspaper=The Wall Street Journal|date=29 April 2011|author=Tom Wright and Harsh Gupta|url=https://www.wsj.com/articles/SB10001424052748704081604576143671902043578|url-status=live|archive-url=https://web.archive.org/web/20170716054442/https://www.wsj.com/articles/SB10001424052748704081604576143671902043578|archive-date=16 July 2017|df=dmy-all}}

CSIR, the Council of Scientific and Industrial Research, has been flagged in ongoing efforts to root out corruption in India.{{cite web|last=Reddy|first=Prashant|title=CSIR Tech. Pvt. Ltd: Its controversial past and its uncertain future|url=http://spicyipindia.blogspot.com/2012/05/csir-tech-pvt-ltd-its-controversial.html|access-date=11 March 2013|publisher=SpicyIP.com|date=20 May 2012|url-status=live|archive-url=https://web.archive.org/web/20120523142420/http://spicyipindia.blogspot.com/2012/05/csir-tech-pvt-ltd-its-controversial.html|archive-date=23 May 2012|df=dmy-all}} Established with the directive to do translational research and create real technologies, CSIR has been accused of transforming into a ritualistic, overly-bureaucratic organisation that does little more than churn out papers.{{cite web|url=http://news.sciencemag.org/sciencenow/1998/01/23-02.html|title=Indian Scientists Claim Lab Corruption|publisher=ScienceNOW|date=23 January 1998|url-status=dead|archive-url=https://web.archive.org/web/20130606190909/http://news.sciencemag.org/sciencenow/1998/01/23-02.html|archive-date=6 June 2013|df=dmy-all}}{{cite web|last=Singh|first=Mahendra Pratap|url=http://www.groundreportindia.com/2010/02/without-prejudice-fingers-point-to-rs.html|title=GROUND REPORT INDIA: Without prejudice, fingers point to Rs. 50.00 Lakhs financial embezzlement by Dr. R. Tuli, Director|date=13 February 2010|url-status=live|archive-url=https://web.archive.org/web/20130430153623/http://www.groundreportindia.com/2010/02/without-prejudice-fingers-point-to-rs.html|archive-date=30 April 2013|df=dmy-all}}

There are many issues facing Indian scientists, with some calling for transparency, a meritocratic system, and an overhaul of the bureaucratic agencies that oversee science and technology.{{cite journal |last=Jayaraman |first=K.S. |title=Report row ousts top Indian scientist |volume=462 |issue=7270 |pages=152 |journal=Nature |date=9 November 2009 |df=dmy-all |pmid=19907467 |doi=10.1038/462152a |doi-access=free }}{{cite web|last1=Ayyadurai|first1=VA Shiva|last2=Sardana|first2=Deepak|title=CSIR-TECH Path Forward|url=http://innovationdemandsfreedom.com/pdf/report-on-CSIR-by-VA-Shiva.pdf|access-date=15 April 2013|date=19 October 2009|url-status=live|archive-url=https://web.archive.org/web/20140114001509/http://innovationdemandsfreedom.com/pdf/report-on-CSIR-by-VA-Shiva.pdf|archive-date=14 January 2014|df=dmy-all}}{{cite web |last=Ayyadurai |first=VA Shiva |url=http://vashiva.com/va-shivas-lecture-at-indian-science-congress-association-centenary/ |title=VA Shiva's Lecture at Indian Science Congress Centenary |work=V.A. Shiva Ayyadurai, Inventor of Email |date=16 December 2012 |url-status=live |archive-url=https://web.archive.org/web/20130324024913/http://vashiva.com/va-shivas-lecture-at-indian-science-congress-association-centenary/ |archive-date=24 March 2013 |df=dmy-all }} Sumit Bhaduri stated, "The challenges of turning Indian science into part of an innovation process are many. Many competent Indian scientists aspire to be ineffectual administrators (due to administrative power and political patronage), rather than do the kind of science that makes a difference".{{cite news|last= Bhaduri|first= Sumit|url=https://timesofindia.indiatimes.com/home/opinion/edit-page/Indian-science-must-break-free-from-the-present-bureaucratic-culture-to-come-up-with-big-innovative-ideas/articleshow/17930219.cms |archive-url=https://web.archive.org/web/20130121072652/http://articles.timesofindia.indiatimes.com/2013-01-08/edit-page/36193413_1_indian-science-innovations-ideas |url-status=live |archive-date=21 January 2013 |newspaper= The Times of India|title=Indian science must break free from the present bureaucratic culture to come up with big innovative ideas|date=8 January 2013}} Prime minister Manmohan Singh spoke at the 99th Indian Science Congress and commented on the state of the sciences in India, after an advisory council informed him there were problems with "the overall environment for innovation and creative work" and a "war-like" approach was needed.{{cite journal|last=Jayaraman|first=K.S.|url=http://www.nature.com/news/indian-science-in-need-of-overhaul-1.9750|title=Indian science in need of overhaul|journal=Nature|date=6 January 2012|doi=10.1038/nature.2012.9750|s2cid=153672234|url-status=live|archive-url=https://web.archive.org/web/20130105173745/http://www.nature.com/news/indian-science-in-need-of-overhaul-1.9750|archive-date=5 January 2013|df=dmy-all}}

{{See also|Illegal mining in India}}

In August 2011, an iron ore mining scandal became a media focus in India. In September 2011, elected member of Karnataka's legislative assembly Janardhana Reddy, was arrested on charges of corruption and illegal mining of iron ore in his home state. It was alleged that his company received preferential allotment of resources, organised and exported billions of dollars' worth of iron ore to Chinese companies in recent years without paying any royalty to the state government exchequer of Karnataka or the central government of India, and that these Chinese companies made payment to shell companies registered in Caribbean and north Atlantic tax havens controlled by Reddy.{{cite web|title= Dredging out mineral piracy, 7 September 2011|work= The Hindu Business Line|date= 7 September 2011|publisher= The Hindu, Business Line|url= http://www.thehindubusinessline.com/opinion/editorial/article2430063.ece|url-status= live|archive-url= https://web.archive.org/web/20121010055711/http://www.thehindubusinessline.com/opinion/editorial/article2430063.ece|archive-date= 10 October 2012|df= dmy-all}}{{cite news|title = Full Report of Karnataka Lokayukta on Illegal Mining of Iron Ore, 27 July 2011|publisher = The Hindu, Business Line|url = http://www.thehindu.com/multimedia/archive/00736/Report_on_the_refer_736286a.pdf|location = Chennai, India|url-status = live|archive-url = https://web.archive.org/web/20121026100525/http://www.thehindu.com/multimedia/archive/00736/Report_on_the_refer_736286a.pdf|archive-date = 26 October 2012|df = dmy-all}}

It was also alleged that corrupt government officials cooperated with Reddy, starting from government officials in charge of regulating mining to government officials in charge of regulating port facilities and shipping. These officials received monthly bribes in exchange for enabling the illegal export of illegally mined iron ore to China. Such scandals have led to a demand in India for consensually driven action plan to eradicate the piracy of India's mineral resources by an illegal, politically corrupt government officials-business nexus, removal of incentives for illegal mining, and the creation of incentives for legal mining and domestic use of iron ore and steel manufacturing.

A study conducted between 2004 and 2005 found that India's driver licensing procedure was a hugely distorted bureaucratic process and allows drivers to be licensed despite their low driving ability through promoting the usage of agents. Individuals with the willingness to pay make a significant payment above the official fee and most of these extra payments are made to agents, who act as an intermediary between bureaucrats and applicants.{{cite journal |last1=Bertrand |first1=M. |last2=Djankov |first2=S. |last3=Hanna |first3=R. |last4=Mullainathan |first4=S. |title=Obtaining a Driver's License in India: An Experimental Approach to Studying Corruption |journal=The Quarterly Journal of Economics |date=November 2007 |volume=122 |issue=4 |pages=1639–1676 |doi=10.1162/qjec.2007.122.4.1639 }}

The average licensee paid Rs 1,080, approximately 2.5 times the official fee of Rs 450, in order to obtain a licence. On average, those who hired agents had a lower driving ability, with agents helping unqualified drivers obtain licences and bypass the legally required driving examination. Among the surveyed individuals, approximately 60% of the licence holders did not even take the licensing exam and 54% of those licence holders failed an independent driving test.Corruption in Driver licensing Process in Delhi {{cite web|url=http://www.economics.harvard.edu/faculty/mullainathan/files/Corruption.in.Driving.Licensing.Process.in.Delhi.pdf |title=Archived copy |access-date=2012-02-15 |url-status=dead |archive-url=https://web.archive.org/web/20120307101937/http://www.economics.harvard.edu/faculty/mullainathan/files/Corruption.in.Driving.Licensing.Process.in.Delhi.pdf |archive-date=7 March 2012 |df=dmy }}

Agents are the channels of corruption in this bureaucratic driver licensing system, facilitating access to licences among those who are unqualified to drive. Some of the failures of this licensing system are caused by corrupt bureaucrats who collaborate with agents by creating additional barriers within the system against those who did not hire agents.

Professor Bibek Debroy and Laveesh Bhandari claim in their book Corruption in India: The DNA and RNA that public officials in India may be cornering as much as {{INRConvert|921|b}}, or 1.26 per cent of the GDP, through corruption.{{cite news |author= |date=10 September 2011 |title=How much do the corrupt earn? |url=https://www.hindustantimes.com/books/how-much-do-the-corrupt-earn/story-G8YpodmaTNjksg6ClmpdsK.html |work=Hindustan Times |location=Delhi |access-date=2023-11-07 |quote=Public officials in India may be cornering as much as Rs.92.122 crore, or 1.26 percent of the GDP, through corruption, says a new book by two economic experts.}}{{Failed verification|date=November 2023|reason=The news story does not mention the Debroy and Bhandari book or the cited Rs.92,1 crore statistic}} The book claims most bribery is in government delivered services and the transport and real estate industries.

Bribery and corruption are pervasive, but some areas tend to have more issues than others. A 2013 EY (Ernst & Young) Study{{cite web|url=http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services/Bribery-and-corruption-ground-reality-in-India|title=Bribery and corruption: ground reality in India|url-status=live|archive-url=https://web.archive.org/web/20130823035504/http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services/Bribery-and-corruption-ground-reality-in-India|archive-date=23 August 2013|df=dmy-all}} reports the industries perceived to be the most vulnerable to corruption as: Infrastructure and Real Estate, Metals and Mining, Aerospace and Defence, and Power and Utilities. There is a range of specific factors that make a sector more susceptible to bribery and corruption risks than others. High use of middlemen, large value contracts, liaisoning activities, etc. drive the depth, volume, and frequency of corrupt practices in vulnerable sectors.

A 2011 KPMG study reports India's real estate, telecommunications, and government-run social development projects as the three top sectors plagued by corruption. The study found India's defence, information technology, and energy sectors to be the most competitive and least corruption-prone sectors.

CMS India claims in its 2010 India Corruption Study report that socio-economically weaker sections of Indian society are the most adversely affected by government corruption. These include the rural and urban poor, although the study claims that nationwide perception of corruption decreased between 2005 and 2010. Over the 5-year period, a significantly greater number of people surveyed from the middle and poorest classes in all parts of India claimed government corruption had dropped over time, and that they had fewer direct experiences with bribery demands.{{cite web|title=India Corruption Study 2010 |author=Roy and Narayan |publisher=CMS Transparency |year=2011 |url=http://www.cmsindia.org/India%20Corruption%20Study%202010.pdf |url-status=dead |archive-url=https://web.archive.org/web/20111216170147/http://www.cmsindia.org/India%20Corruption%20Study%202010.pdf |archive-date=16 December 2011 }}

The table below compares the perceived anti-corruption effort across some of the major states in India. A rising index implies higher anti-corruption effort and falling corruption. According to this table, the states of Bihar and Gujarat have experienced significant improvements in their anti-corruption efforts, while conditions have worsened in the states of Assam and West Bengal. Consistent with the results in this table, in 2012 a BBC News report claimed the state of Bihar has transformed in recent years to become the least corrupt state in India.{{cite news|title=British aid to India: Helping Bihar's poor|author=David Loyn|date=1 March 2012|work=BBC News|url=https://www.bbc.co.uk/news/magazine-17210734|url-status=live|archive-url=https://web.archive.org/web/20120705192031/http://www.bbc.co.uk/news/magazine-17210734|archive-date=5 July 2012|df=dmy-all}}

{{Expand section|date=May 2024}}

{{Main|Indian black money}}

Black money refers to money that is not fully or legitimately the property of the 'owner'. A government white paper on black money in India suggests two possible sources of black money in India;{{cite web|title=White Paper on Black Money|publisher=Ministry of Finance, Government of India|year=2012|url=http://finmin.nic.in/reports/WhitePaper_BackMoney2012.pdf|url-status=dead|archive-url=https://web.archive.org/web/20120729033758/http://finmin.nic.in/reports/WhitePaper_BackMoney2012.pdf|archive-date=29 July 2012|df=dmy-all}} the first includes activities not permitted by the law, such as crime, drug trade, terrorism, and corruption, all of which are illegal in India and secondly, wealth that may have been generated through lawful activity but accumulated by failure to declare income and pay taxes. Some of this black money ends up in illicit financial flows across international borders, such as deposits in tax haven countries.

A November 2010 report from the Washington-based Global Financial Integrity estimates that over a 60-year period, India lost US$213 billion in illicit financial flows beginning in 1948; adjusted for inflation, this is estimated to be $462 billion in 2010, or about $8 billion per year ($7 per capita per year). The report also estimated the size of India's underground economy at approximately US$640 billion at the end of 2008 or roughly 50% of the nation's GDP.{{cite book|last=Kar|first=Dev|title=The Drivers and Dynamics of Illicit Financial Flows from India: 1948–2008|year=2010|publisher=Global Financial Integrity|location=Washington, DC|url=http://www.gfintegrity.org/storage/gfip/documents/reports/india/gfi_india.pdf|url-status=live|archive-url=https://web.archive.org/web/20121019025920/http://www.gfintegrity.org/storage/gfip/documents/reports/india/gfi_india.pdf|archive-date=19 October 2012|df=dmy-all}}

India was ranked 38th by money held by its citizens in Swiss banks in 2004 but then improved its ranking by slipping to 61st position in 2015 and further improved its position by slipping to 75th position in 2016.{{cite web |url= http://www.dawn.com/news/1268901/money-in-swiss-banks-india-slips-to-75th-position |title= Money in swiss banks: India slips to 75th position |publisher= The Dawn |date= 4 July 2016 |url-status= live |archive-url= https://web.archive.org/web/20160808120341/http://www.dawn.com/news/1268901/money-in-swiss-banks-india-slips-to-75th-position |archive-date= 8 August 2016 |df= dmy-all }}{{cite news |url= https://economictimes.indiatimes.com/news/politics-and-nation/india-slips-to-75th-place-on-money-in-swiss-banks-uk-on-top/articleshow/53031604.cms |title= India slips to 75th place on money in Swiss banks; UK on top |newspaper= The Economic Times |publisher= The Economic Times (India Times) |date= 3 July 2016 |url-status= live |archive-url= https://web.archive.org/web/20160706181345/http://economictimes.indiatimes.com/news/politics-and-nation/india-slips-to-75th-place-on-money-in-swiss-banks-uk-on-top/articleshow/53031604.cms |archive-date= 6 July 2016 |df= dmy-all }}

According to a 2010 The Hindu article, unofficial estimates indicate that Indians had over US$1,456 billion in black money stored in Swiss banks (approximately US$1.4 trillion).{{cite web |url= http://www.thehindubusinessline.in/2010/08/13/stories/2010081350370900.htm |title= The Hindu Business Line : Black, bold and bountiful |publisher= Thehindubusinessline.in |date= 13 August 2010 |access-date= 6 October 2011 |url-status= dead |archive-url= https://web.archive.org/web/20110918110326/http://www.thehindubusinessline.in/2010/08/13/stories/2010081350370900.htm |archive-date= 18 September 2011 |df= dmy-all }} While some news reports claimed that data provided by the Swiss Banking AssociationThere is no entity named Swiss Banking Association; there is, however, one named Swiss Bankers Association. For verifiability, this wikipedia article uses the misnomer interchangeably, since it was widely mentioned by Indian media. Report (2006) showed India has more black money than the rest of the world combined,{{cite web |url=http://ibnlive.in.com/news/govt-to-reveal-stand-on-black-money-on-jan-25/141423-3.html |title=Govt to reveal stand on black money on 25 Jan – India News – IBNLive |publisher=Ibnlive.in.com |access-date=7 October 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111107183530/http://ibnlive.in.com/news/govt-to-reveal-stand-on-black-money-on-jan-25/141423-3.html |archive-date=7 November 2011 |df=dmy-all }}{{cite web |url=http://www.currentnewsindia.com/nation-news/govt-to-reveal-stand-on-black-money-on-jan-25.html |archive-url=https://web.archive.org/web/20110324220848/http://www.currentnewsindia.com/nation-news/govt-to-reveal-stand-on-black-money-on-jan-25.html |url-status=dead |archive-date=24 March 2011 |title=Govt To Reveal Stand on Black Money on 25 Jan | India news, Latest news India, Breaking news India, Current headlines India, News from India on Business, Sports, Politics, Bollywood and World News online |publisher=Currentnewsindia.com |date=25 January 2011 |access-date=7 October 2011 |df=dmy-all }} a more recent report quoted the SBA's Head of International Communications as saying that no such official Swiss Banking Association statistics exist.{{cite news|title=No 'black money' statistics exist: Swiss banks|url=https://timesofindia.indiatimes.com/india/No-black-money-statistics-exist-Swiss-banks/articleshow/5005874.cms|archive-url=https://web.archive.org/web/20110912101749/http://articles.timesofindia.indiatimes.com/2009-09-13/india/28092452_1_james-nason-swiss-bankers-association-sba-s-head|url-status=live|archive-date=12 September 2011|access-date=13 November 2011|newspaper=The Times of India|date=13 September 2009}}

Another report said that Indian-owned Swiss bank account assets are worth 13 times the country's national debt. These allegations have been denied by Swiss Bankers Association. James Nason of Swiss Bankers Association in an interview about alleged black money from India, holds that "The (black money) figures were rapidly picked up in the Indian media and in Indian opposition circles, and circulated as gospel truth. However, this story was a complete fabrication. The Swiss Bankers Association never published such a report. Anyone claiming to have such figures (for India) should be forced to identify their source and explain the methodology used to produce them."{{cite news|title=Banking secrecy spices up Indian elections|publisher=SWISSINFO – A member of Swiss Broadcasting Corporation|date=14 May 2009|url=http://www.swissinfo.ch/eng/politics/foreign_affairs/Banking_secrecy_spices_up_Indian_elections.html?cid=7396340|url-status=live|archive-url=https://web.archive.org/web/20130926182809/http://www.swissinfo.ch/eng/politics/foreign_affairs/Banking_secrecy_spices_up_Indian_elections.html?cid=7396340|archive-date=26 September 2013|df=dmy-all}}{{cite news|title=No 'black money' statistics exist: Swiss banks|date=13 September 2009|url=https://timesofindia.indiatimes.com/india/No-black-money-statistics-exist-Swiss-banks/articleshow/5005874.cms|archive-url=https://web.archive.org/web/20110912101749/http://articles.timesofindia.indiatimes.com/2009-09-13/india/28092452_1_james-nason-swiss-bankers-association-sba-s-head|url-status=live|work=The Times of India|archive-date=12 September 2011}}

In a separate study, Dev Kar of Global Financial Integrity concludes, "Media reports circulating in India that Indian nationals held around US$1.4 trillion in illicit external assets are widely off the mark compared to the estimates found by his study." Kar claims the amounts are significantly smaller, only about 1.5% of India's GDP on average per annum basis, between 1948 and 2008. This includes corruption, bribery and kickbacks, criminal activities, trade mispricing, and efforts to shelter wealth by Indians from India's tax authorities.

According to a third report, published in May 2012, the Swiss National Bank estimates that the total amount of deposits in all Swiss banks, at the end of 2010, by citizens of India were CHF 1.95 billion ({{INRConvert|92.95|b}}). The Swiss Ministry of External Affairs has confirmed these figures upon request for information by the Indian Ministry of External Affairs. This amount is about 700-fold less than the alleged $1.4 trillion in some media reports. The report also provided a comparison of the deposits held by Indians and by citizens of other nations in Swiss banks. Total deposits held by citizens of India constitute only 0.13 per cent of the total bank deposits of citizens of all countries. Further, the share of Indians in the total bank deposits of citizens of all countries in Swiss banks has reduced from 0.29 per cent in 2006 to 0.13 per cent in 2010.

==Stock market scams==

{{Main|1992 Indian stock market scam|Harshad Mehta|Ketan Parekh|NSE co-location scam}}

The Indian stock exchanges, Bombay Stock Exchange and National Stock Exchange of India, have been rocked by several high-profile corruption scandals.{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | title=How India's trading queen and mystery guru engulfed NSE in scandal | newspaper=The Economic Times }}{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | title=The fall of NSE: Corruption or hubris? | newspaper=The Economic Times | last1=Rangan | first1=MC Govardhana }}{{cite news | url=https://www.reuters.com/article/idINIndia-53153120101125 | title=BSE Sensex drops as corruption scandal weighs | newspaper=Reuters | date=25 November 2010 }}{{cite web | url=https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | title=SEBI penalises BSE, NSE for 'laxity' in Karvy fraud case | date=13 April 2022 }}{{cite news | url=https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | title=Trading 'queen' and mystery guru: Strange tale engulfs NSE in scandal | newspaper=Business Standard India | date=21 March 2022 }}{{cite web | url=https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | title="Who'll Invest in India if Scams Like This Happen?": Judge in NSE Case }}{{cite web | url=https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | title=Chitra Ramkrishna arrested; CBI grills former NSE CEO in co-location scam after SEBI's mysterious yogi report | date=7 March 2022 }}{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | title=How India's trading queen and mystery guru engulfed NSE in scandal | newspaper=The Economic Times | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193659/https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | url-status=live }}{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | title=The fall of NSE: Corruption or hubris? | newspaper=The Economic Times | last1=Rangan | first1=MC Govardhana | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193659/https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | url-status=live }}{{cite news | url=https://www.reuters.com/article/idINIndia-53153120101125 | title=BSE Sensex drops as corruption scandal weighs | newspaper=Reuters | date=25 November 2010 | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193700/https://www.reuters.com/article/idINIndia-53153120101125 | url-status=live }}{{cite web | url=https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | title=SEBI penalises BSE, NSE for 'laxity' in Karvy fraud case | date=13 April 2022 | access-date=11 January 2023 | archive-date=21 September 2022 | archive-url=https://web.archive.org/web/20220921192656/https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | url-status=live }}{{cite news | url=https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | title=Trading 'queen' and mystery guru: Strange tale engulfs NSE in scandal | newspaper=Business Standard India | date=21 March 2022 | access-date=11 January 2023 | archive-date=21 September 2022 | archive-url=https://web.archive.org/web/20220921232719/https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | url-status=live }}{{cite web | url=https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | title="Who'll Invest in India if Scams Like This Happen?": Judge in NSE Case | access-date=11 January 2023 | archive-date=22 September 2022 | archive-url=https://web.archive.org/web/20220922044155/https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | url-status=live }}{{cite web | url=https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | title=Chitra Ramkrishna arrested; CBI grills former NSE CEO in co-location scam after SEBI's mysterious yogi report | date=7 March 2022 | access-date=11 January 2023 | archive-date=22 September 2022 | archive-url=https://web.archive.org/web/20220922022110/https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | url-status=live }}{{Excessive citations inline|date=April 2025}} At times, the Securities and Exchange Board of India (SEBI) has barred various individuals and entities from trading on the exchanges for stock manipulation, especially in illiquid small-cap and penny stocks.{{cite web |last1=Sreedhar |first1=Vidya |title=Rs 144 crore wrongful profit! Sebi finds stock manipulation in 5 smallcaps |url=https://economictimes.indiatimes.com/markets/stocks/news/sebi-bars-135-entities-from-market-on-alleged-share-manipulation-in-5-smallcaps/articleshow/101167757.cms |website=The Economic Times |access-date=24 August 2023 |date=21 June 2023}}{{cite news |title=Sebi ban pinches penny stocks |url=https://www.business-standard.com/article/markets/sebi-ban-pinches-penny-stocks-105102601049_1.html |access-date=24 August 2023 |work=Business Standard}}{{cite news |title=SEBI Cracks Down on Misuse of Penny Stocks |url=https://thewire.in/business/penny-stocks-bogus-claims-sebi |access-date=24 August 2023 |work=The Wire}}{{cite news |title=I-T Department, SEBI begin crackdown on penny stock firms in PMO-led push |url=https://www.moneycontrol.com/news/business/markets/i-t-department-sebi-begin-crackdown-on-penny-stock-firms-in-pmo-led-push-2442315.html |access-date=24 August 2023 |work=Moneycontrol |date=20 November 2017 |language=en}}{{cite news |last1=Rampal |first1=Nikhil |title=Pump & dump: How SEBI caught Arshad Warsi & others 'manipulating' stock prices in 'finfluencer' scheme |url=https://theprint.in/business/pump-dump-how-sebi-caught-arshad-warsi-others-manipulating-stock-prices-in-finfluencer-scheme/1413718/ |access-date=24 August 2023 |work=ThePrint |date=3 March 2023}}{{cite news |title=Sebi bans FIIs, brokers for GDR manipulation |url=https://timesofindia.indiatimes.com/business/india-business/sebi-bans-fiis-brokers-for-gdr-manipulation/articleshow/10072999.cms |access-date=24 August 2023 |work=The Times of India |date=22 September 2011}}{{cite news |title=Fight against black money: Sebi bars 59 entities for evading taxes |url=https://www.hindustantimes.com/business/fight-against-black-money-sebi-bars-59-entities-for-evading-taxes/story-kRhJVKW9JTtpN8frb0fO8I.html |access-date=24 August 2023 |work=Hindustan Times |date=20 August 2015 |language=en}}{{cite news |title=Sebi goes after companies rigging share prices |url=https://www.businesstoday.in/magazine/markets/story/sebi-bans-239-entities-individuals-for-rigging-share-prices-53892-2015-08-12 |access-date=24 August 2023 |work=Business Today |date=12 August 2015 |language=en}}{{Excessive citations inline|date=April 2025}}

According to Transparency International, judicial corruption in India is attributable to factors such as "delays in the disposal of cases, shortage of judges and complex procedures, all of which are exacerbated by a preponderance of new laws".{{cite web|url=http://ipsnews.net/news.asp?idnews=37972|title=INDIA: Legal System in the Dock|author=Praful Bidwai|url-status=dead|archive-url=https://web.archive.org/web/20090307114424/http://ipsnews.net/news.asp?idnews=37972|archive-date=7 March 2009|df=dmy-all}} Over the years there have been numerous allegations against judges, and in 2011 Soumitra Sen, a former judge at the Calcutta High Court became the first judge in India to be impeached by the Rajya Sabha, (Upper House of the Indian Parliament) for misappropriation of funds.{{cite magazine|title=Judiciary stares at morality crisis|magazine=India Today|url=http://indiatoday.intoday.in/story/law-intern-sexual-harrassement-judiciary-stares-at-morality-crisis/1/335731.html|date=12 January 2014|access-date=2014-04-17|url-status=live|archive-url=https://web.archive.org/web/20140418220645/http://indiatoday.intoday.in/story/law-intern-sexual-harrassement-judiciary-stares-at-morality-crisis/1/335731.html|archive-date=18 April 2014|df=dmy-all}}

{{Main|Right to Information Act}}

The 2005 Right to Information Act required government officials to provide information requested by citizens or face punitive action, as well as the computerisation of services and the establishment of vigilance commissions. This has considerably reduced corruption and opened up avenues to redress grievances.

{{Main|Right to Public Services legislation}}

Right to Public Services legislation, which has been enacted in 19 states of India, guarantee time bound delivery of services for various public services rendered by the government to citizen and provides mechanisms for punishing the errant public servant who is deficient in providing the service stipulated under the statute.{{cite news|title=Punjab clears Right to Services Act|url=http://www.hindu.com/2011/06/08/stories/2011060868130500.htm|access-date=4 December 2011|location=Chennai, India|date=8 June 2011|url-status=dead|archive-url=https://web.archive.org/web/20110828064109/http://www.hindu.com/2011/06/08/stories/2011060868130500.htm|archive-date=28 August 2011|work=The Hindu|df=dmy-all}} Right to Service legislation is meant to reduce corruption among the government officials and to increase transparency and public accountability.{{cite news|title=Corruption watchdog hails Bihar, MP govts as best service-providers|url=https://timesofindia.indiatimes.com/india/Corruption-watchdog-hails-Bihar-MP-govts-as-best-service-providers-/articleshow/8042613.cms|archive-url=https://web.archive.org/web/20121107031642/http://articles.timesofindia.indiatimes.com/2011-04-21/india/29458398_1_passport-office-transparency-international-guidelines|url-status=live|archive-date=7 November 2012|access-date=4 December 2011|newspaper=The Times of India|date=21 April 2011}}

Public servants in India can be imprisoned for several years and penalised for corruption under the:

• Indian Penal Code, 1860
• Prosecution section of Income Tax Act, 1961
• The Prevention of Corruption Act, 1988
• The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions.
• Prevention of Money Laundering Act, 2002

Punishment for bribery in India can range from six months to seven years of imprisonment.

India is also a signatory to the United Nations Convention against Corruption since 2005 (ratified 2011). The Convention covers a wide range of acts of corruption and also proposes certain preventive policies.{{cite web|url=http://www.prsindia.org/pages/all-about-the-lok-pal-bill-137/|title=PRS - All about the Lok Pal Bill|url-status=live|archive-url=https://web.archive.org/web/20120212064017/http://www.prsindia.org/pages/all-about-the-lok-pal-bill-137/|archive-date=12 February 2012|df=dmy-all}}

The Lokpal and Lokayuktas Act, 2013 which came into force from 16 January 2014, seeks to provide for the establishment of the institution of Lokpal to inquire into allegations of corruption against certain public functionaries in India.{{cite news | url=http://timesofindia.indiatimes.com/india/Lokpal-Bill-gets-Presidents-nod/articleshow/28243367.cms | work=The Times Of India | title=Lokpal Bill gets President's nod - The Times of India | url-status=live | archive-url=https://web.archive.org/web/20140102002215/http://timesofindia.indiatimes.com/india/Lokpal-Bill-gets-Presidents-nod/articleshow/28243367.cms | archive-date=2 January 2014 | df=dmy-all }}{{cite web|title=Notification|url=http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02ser/407_12_2014-AVD-IV-B-15022014.pdf|publisher=Department of Personnel and Training, Government of India|access-date=7 March 2014|url-status=dead|archive-url=https://web.archive.org/web/20140307130230/http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02ser/407_12_2014-AVD-IV-B-15022014.pdf|archive-date=7 March 2014|df=dmy-all}}

Whistle Blowers Protection Act, 2011, which provides a mechanism to investigate alleged corruption and misuse of power by public servants and also protect anyone who exposes alleged wrongdoing in government bodies, projects and offices, has received the assent of the President of India on 9 May 2014, and (as of 2 August) is pending for notification by the Central Government.{{cite web|title=Indian Parliament passes Whistleblowers Protection Bill 2011|url=http://news.biharprabha.com/2014/02/indian-parliament-passes-whistleblowers-protection-bill-2011/|website=IANS|date=21 February 2014|publisher=news.biharprabha.com|access-date=21 February 2014|url-status=live|archive-url=https://web.archive.org/web/20141029160228/http://news.biharprabha.com/2014/02/indian-parliament-passes-whistleblowers-protection-bill-2011/|archive-date=29 October 2014|df=dmy-all}}{{cite web|title=Whistle Blowers Protection Act, 2011|url=http://egazette.nic.in/WriteReadData/2014/159420.pdf|publisher=Gazette of India|access-date=13 May 2014|url-status=live|archive-url=https://web.archive.org/web/20140514060125/http://egazette.nic.in/WriteReadData/2014/159420.pdf|archive-date=14 May 2014|df=dmy-all}}

At present there are no legal provisions to check graft in the private sector in India. Government has proposed amendments in existing acts and certain new bills for checking corruption in private sector. Big-ticket corruption is mainly witnessed in the operations of large commercial or corporate entities. In order to prevent bribery on supply side, it is proposed that key managerial personnel of companies' and also the company shall be held liable for offering bribes to gain undue benefits.{{citation needed|date=August 2014}}

The Prevention of Money Laundering Act, 2002 provides that the properties of corrupt public servants shall be confiscated. However, the Government is considering incorporating provisions for confiscation or forfeiture of the property of corrupt public servants into the Prevention of Corruption Act, 1988 to make it more self-contained and comprehensive.

A committee headed by the Chairman of Central Board of Direct Taxes (CBDT), has been constituted to examine ways to strengthen laws to curb generation of black money in India, its illegal transfer abroad, and its recovery. "The Committee shall examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including inter-alia the following: 1. Declaring wealth generated illegally as national asset; 2. Enacting/amending laws to confiscate and recover such assets; and 3. Providing for exemplary punishment against its perpetrators." (Source: [http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services/Bribery-and-corruption-ground-reality-in-India 2013 EY report on Bribery & Corruption] {{Webarchive|url=https://web.archive.org/web/20130823035504/http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services/Bribery-and-corruption-ground-reality-in-India |date=23 August 2013 }})

The Companies Act, 2013, contains certain provisions to regulate frauds by corporations including increased penalties for frauds, giving more powers to the Serious Fraud Investigation Office, mandatory responsibility of auditors to reveal frauds, and increased responsibilities of independent directors.{{cite web|title=Companies Act 2013 What will be its impact on fraud in India?|url=http://www.ey.com/Publication/vwLUAssets/EY-Companies-Act-2013-What-will-be-its-impact-on-fraud-in-India/$FILE/EY-Companies-Act-2013.pdf|publisher=EY|access-date=2 August 2014|url-status=live|archive-url=https://web.archive.org/web/20140808051237/http://www.ey.com/Publication/vwLUAssets/EY-Companies-Act-2013-What-will-be-its-impact-on-fraud-in-India/$FILE/EY-Companies-Act-2013.pdf|archive-date=8 August 2014|df=dmy-all}} The Companies Act, 2013 also provides for mandatory vigil mechanisms which allow directors and employees to report concerns and whistleblower protection mechanism for every listed company and any other companies which accepts deposits from public or has taken loans more than 50 crore rupees from banks and financial institutions. This intended to avoid accounting scandals such as the Satyam scandal which have plagued India.{{cite news|title=India Seeks to Overhaul a Corporate World Rife With Fraud|url=https://dealbook.nytimes.com/2013/08/15/india-seeks-to-overhaul-a-corporate-world-rife-with-fraud/|access-date=16 August 2013|newspaper=The New York Times|date=15 August 2013|author=Jen Swanson|format="Dealbook" blog|url-status=live|archive-url=https://web.archive.org/web/20131124034121/http://dealbook.nytimes.com/2013/08/15/india-seeks-to-overhaul-a-corporate-world-rife-with-fraud/|archive-date=24 November 2013|df=dmy-all}} It replaces The Companies Act, 1956 which was proven outmoded in terms of handling 21st century problems.{{cite news|title=Parliament passes Companies Bill 2012(Update)|url=http://in.news.yahoo.com/parliament-passes-companies-bill-2012-155346651.html|access-date=16 August 2013|newspaper=Yahoo! News India|date=8 August 2013|agency=ANI|url-status=live|archive-url=https://web.archive.org/web/20140528032431/https://in.news.yahoo.com/parliament-passes-companies-bill-2012-155346651.html|archive-date=28 May 2014|df=dmy-all}}

In 2015, Parliament passed the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015 to curb and impose penalties on black money hoarded abroad. The Act has received the assent of the President of India on 26 May 2015. It came into effect from 1 July 2015.

The Directorate General of Income Tax Investigation, Central Vigilance Commission and Central Bureau of Investigation all deal with anti-corruption initiatives. Certain states such as Andhra Pradesh (Anti-Corruption Bureau, Andhra Pradesh) Kerala (Vigilance & Anti-corruption Bureau, Kerala) and Karnataka (Lokayukta) also have their own anti-corruption agencies and courts.{{cite web|url=http://www.aponline.gov.in/apportal/departments/departments.asp?dep=13&org=83 |title=A.P. Departments Anti-Corruption Bureau |access-date=25 June 2010 |publisher=A.P. Government |url-status=dead |archive-url=https://web.archive.org/web/20100523173007/http://aponline.gov.in/apportal/departments/departments.asp?dep=13&org=83 |archive-date=23 May 2010 }}{{cite web|url=http://lokayukta.kar.nic.in|title=Karnataka Lokayukta|access-date=24 June 2010|publisher=National Informatics Centre|url-status=live|archive-url=https://web.archive.org/web/20100619035740/http://lokayukta.kar.nic.in/|archive-date=19 June 2010|df=dmy-all}}{{Cite web |title=KERALA LOK AYUKTA – Kerala Lok Ayukta |url=https://www.lokayuktakerala.gov.in/ |access-date=2022-07-08 |language=en-US}}

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Andhra Pradesh's Anti Corruption Bureau (ACB) has launched a large scale investigation in the "cash-for-bail" scam.{{cite web|url=https://timesofindia.indiatimes.com/india/Andhra-cash-for-bail-scam-Suspended-judge-questioned/articleshow/14261658.cms |archive-url=https://web.archive.org/web/20130514145619/http://articles.timesofindia.indiatimes.com/2012-06-19/india/32316870_1_acb-official-favour-anti-corruption-bureau-officials |url-status=live |archive-date=14 May 2013 | title=Andhra cash-for-bail scam: Suspended judge questioned| author=PTI |website=The Times of India | date=19 June 2012}}

CBI court judge Talluri Pattabhirama Rao was arrested on 19 June 2012 for taking a bribe to grant bail to former Karnataka Minister Gali Janardhan Reddy.{{cite web| url=http://www.espncricinfo.com/india/content/story/569049.html?CMP=outlook_news| title=Srinivasan questioned in politician's corruption case| author=Tariq Engineer| publisher=ESPN CricInfo| date=19 June 2012| url-status=live| archive-url=https://web.archive.org/web/20140313235613/http://www.espncricinfo.com/india/content/story/569049.html?CMP=outlook_news| archive-date=13 March 2014| df=dmy-all}}

A case has also been opened against seven other individuals under the Indian Penal Code and the Prevention of Corruption Act.

A variety of organisations have been created in India to actively fight against corrupt government and business practices. Notable organisations include:

• Bharat Swabhiman Trust, established by Ramdev, has campaigned against black money and corruption for a decade.{{when|date=December 2014}}
• 5th Pillar is most known for the creation of the zero-rupee note, a valueless note designed to be given to corrupt officials when they request bribes.{{Cite web|url=https://www.thebetterindia.com/49752/zero-rupee-note-to-fight-corruption/|title = How a Zero Rupee Note Can Help You Fight Corruption and Bribery in India!|date = 22 March 2016}}
• India Against Corruption was a popular movement active during 2011–12 that received much media attention. Among its prominent public faces were Arvind Kejriwal, Kiran Bedi and Anna Hazare. Kejriwal went on to form the Aam Aadmi Party and Hazare established Jan Tantra Morcha.{{cite news|url=http://newindianexpress.com/cities/chennai/article376075.ece|title=Wasn't easy for Anna's 'thambis'|last=G Babu Jayakumar|date=10 April 2011|work=The New Indian Express|location=India|language=en-IN|access-date=12 May 2011|url-status=dead|archive-url=https://web.archive.org/web/20131203084419/http://newindianexpress.com/cities/chennai/article376075.ece|archive-date=3 December 2013|df=dmy-all}}
• Jaago Re! One Billion Votes was an organisation founded by Tata Tea and Janaagraha to increase youth voter registration.{{cite news|title=Tata Tea and NGO launch programme on right to vote for youth|url=http://www.hinduonnet.com/holnus/004200809162080.htm|archive-url=https://web.archive.org/web/20090119112915/http://hinduonnet.com/holnus/004200809162080.htm|url-status=usurped|archive-date=19 January 2009|access-date=30 May 2011|newspaper=The Hindu|date=16 September 2008|df=dmy-all}} They have since expanded their work to include other social issues, including corruption.{{cite web|url=http://www.jaagore.com/articles|title=Articles|publisher=Tata Tea|access-date=30 May 2011|url-status=live|archive-url=https://web.archive.org/web/20110611041334/http://www.jaagore.com/articles|archive-date=11 June 2011|df=dmy-all}}
• The Lok Satta Movement, has transformed itself from a civil organisation to a full-fledged political party, the Lok Satta Party. The party has fielded candidates in Andhra Pradesh, Tamil Nadu, and Bangalore. In 2009, it obtained its first elected post, when Jayaprakash Narayan won the election for the Kukatpally Assembly Constituency in Andhra Pradesh.
• Right to Recall Party founded by Rahul Chimanbhai Mehta is among parties contesting elections on the agenda of decreasing corruption through their right to recall drafts.{{Cite web |title=Fight for recall right |url=https://ahmedabadmirror.com/fight-for-recall-right/37560635.html |access-date=2023-04-05 |website=Ahmedabad Mirror |language=en}}{{Cite web |title=This IIT graduate makes 'right to recall' his poll plank |url=http://archive.indianexpress.com/news/this-iit-graduate-makes--right-to-recall--his-poll-plank/694337/ |access-date=2023-04-05 |website=archive.indianexpress.com}}

{{See also|Electoral reform in India}}

A number of ideas have been in discussion to improve the efficiency and effectiveness of electoral processes in India.

In a 2004 report on Corruption in India,{{cite web|title=Survey on Bribery and Corruption – Impact on Economy and Business Environment|publisher=KPMG|year=2011|url=http://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/KPMG_Bribery_Survey_Report_new.pdf|url-status=live|archive-url=https://web.archive.org/web/20121108141829/http://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/KPMG_Bribery_Survey_Report_new.pdf|archive-date=8 November 2012|df=dmy-all}} one of the world's largest audit and compliance firms KPMG notes several issues that encourage corruption in India. The report suggests high taxes and excessive regulation bureaucracy as a major cause; India has high marginal tax rates and numerous regulatory bodies with the power to stop any citizen or business from going about their daily affairs.{{cite news|title=Corruption in India – A rotten state|newspaper=The Economist|date=10 March 2011|url=http://www.economist.com/node/18332796|url-status=live|archive-url=https://web.archive.org/web/20120818134512/http://www.economist.com/node/18332796|archive-date=18 August 2012|df=dmy-all}}

This power of Indian authorities to search and question individuals creates opportunities for corrupt public officials to extract bribes—each individual or business decides if the effort required for due process and the cost of delay is worth paying the bribe demanded. In cases of high taxes, paying off the corrupt official is cheaper than the tax. This, according to the report, is one major cause of corruption in India and 150 other countries across the world. In the real estate industry, the high capital gains tax in India encourages large-scale corruption. The KPMG report claims that the correlation between high real estate taxes and corruption is high in India, as it is in other countries, including the developed economies; this correlation has been true in modern times as well as throughout centuries of human history in various cultures.

The desire to pay lower taxes than those demanded by the state explains the demand side of corruption. The net result is that the corrupt officials collect bribes, the government fails to collect taxes for its own budget and corruption grows. The report suggests regulatory reforms, process simplification and lower taxes as means to increase tax receipts and reduce causes of corruption.

In addition to tax rates and regulatory burdens, the KPMG report claims corruption results from opaque process and paperwork on the part of the government. Lack of transparency allows room for manoeuvre for both demanders and suppliers of corruption. Whenever objective standards and transparent processes are missing, and subjective opinion driven regulators and opaque/hidden processes are present, conditions are ripe for corruption.{{cite journal|title=Corruption: Causes, Consequences and Cures |author=U Myint |journal=Asia-Pacific Development Journal |volume=7 |number=2 |date=December 2000 |url=http://www.unescap.org/DRPAD/publication/journal_7_2/myint.pdf |url-status=dead |archive-url=https://web.archive.org/web/20111027095628/http://www.unescap.org/drpad/publication/journal_7_2/myint.pdf |archive-date=27 October 2011 }}

Vito Tanzi in an International Monetary Fund study suggests that in India, like other countries in the world, corruption is caused by excessive regulations and authorisation requirements, complicated taxes and licensing systems, mandated spending programmes, lack of competitive free markets, monopolisation of certain goods and service providers by government controlled institutions, bureaucracy, lack of penalties for corrupt public officials and lack of transparent laws and processes.{{cite web|title=Corruption in India|publisher=The World Finance Review|author=Debroy and Bhandari|year=2011|url=http://www.worldfinancialreview.com/?p=1575|url-status=live|archive-url=https://archive.today/20130209132023/http://www.worldfinancialreview.com/?p=1575|archive-date=9 February 2013|df=dmy-all}}{{cite book|title=Corruption Around the World – Causes, Consequences, Scope, and Cures|author=Vito Tanzi|publisher=IMF Staff Papers|volume=45|number=4|date=December 1998}} A Harvard University study finds these to be some of the causes of corruption and underground economy in India.{{cite web|title=The Role of Law and Legal Institutions in Asian Economic Development: The Case of India|author=Anant and Mitra|publisher=Harvard University|date=November 1998|url=http://www.cid.harvard.edu/hiid/662.pdf|url-status=live|archive-url=https://web.archive.org/web/20160429191844/http://www.cid.harvard.edu/hiid/662.pdf|archive-date=29 April 2016|df=dmy-all}}

In a study on bribery and corruption in India conducted in 2013 by global professional services firm Ernst & Young (EY), a majority of the survey respondents from PE firms said that a company operating in a sector which is perceived as highly corrupt may lose ground when it comes to fair valuation of its business, as investors bargain hard and factor in the cost of corruption at the time of transaction.

According to a report by KPMG, "high-level corruption and scams are now threatening to derail the country's credibility and [its] economic boom".{{cite news|last=Colvin|first=Geoff|title=Corruption: The biggest threat to developing economies|url=https://money.cnn.com/2011/04/19/news/international/corruption_developing_economies.fortune/?section=money_latest|publisher=CNNMoney|access-date=23 May 2011|date=20 April 2011|url-status=live|archive-url=https://web.archive.org/web/20110430083130/https://money.cnn.com/2011/04/19/news/international/corruption_developing_economies.fortune/?section=money_latest|archive-date=30 April 2011|df=dmy-all}}

Corruption may lead to further bureaucratic delay and inefficiency if corrupt bureaucrats introduce red tape in order to extort more bribes.{{cite journal |last1=Busch |first1=Joel H. |title=Asian Drama: An Inquiry into the Poverty of Nations |journal=The Australian Quarterly |date=1968 |volume=40 |issue=4 |pages=118–121 |doi=10.2307/20634250 |jstor=20634250 }} Such inadequacies in institutional efficiency could affect growth indirectly by lowering the private marginal product of capital and investment rate.{{cite journal |last1=Mauro |first1=Paolo |title=Corruption and Growth |journal=The Quarterly Journal of Economics |date=1995 |volume=110 |issue=3 |pages=681–712 |doi=10.2307/2946696 |jstor=2946696 }} Levine and Renelt showed that investment rate is a robust determinant of economic growth.{{cite journal |last1=Levine |first1=Ross |last2=Renelt |first2=David |title=A Sensitivity Analysis of Cross-Country Growth Regressions |journal=The American Economic Review |date=1992 |volume=82 |issue=4 |pages=942–963 |jstor=2117352 }}

Bureaucratic inefficiency also affects growth directly through misallocation of investments in the economy.{{cite web |url=http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1993/11/01/000009265_3961005131850/Rendered/PDF/multi0page.pdf |title=How Much do Distortions Affect Growth |publisher=World Bank |url-status=live |archive-url=https://web.archive.org/web/20130605154519/http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1993/11/01/000009265_3961005131850/Rendered/PDF/multi0page.pdf |archive-date=5 June 2013 |df=dmy-all }} Additionally, corruption results in lower economic growth for a given level of income.

{{excerpt|Education in India|Corruption in education}}

{{reflist|group=Note}}

{{Portal|India|Politics}}

• Political funding in India
• Right to information
• Crime in India

{{col div|colwidth=36em}}

• Economic history of India
• List of scandals in India
• Licence Raj
• Mafia Raj
• Uprising 2011, Indians Against Corruption
• Debt bondage in India

Anti-corruption:

• 2012 Indian anti-corruption movement
• 2011 Indian anti-corruption movement
• Jan Lokpal Bill
• Right to Public Services legislation
• Lok Ayukta

General:

• Corruption Perceptions Index
• Rent seeking
• Socio-economic issues in India
• International Anti-Corruption Academy
• Group of States Against Corruption
• International Anti-Corruption Day
• ISO 37001 Anti-bribery management systems
• United Nations Convention against Corruption
• OECD Anti-Bribery Convention
• Transparency International

{{colend}}

{{Reflist}}

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{{refend}}

{{Wikiquote}}

• [http://cic.gov.in/ CIC] – The Central Information Commission is charged with interpreting the Right to Information Act, 2005.
• [http://righttoinformation.gov.in/ DoPT] – The Department of Personnel and Training, Ministry of Personnel, Public Grievances, and Pensions, is charged with being the nodal agency for the Right to Information Act, 2005. It has the powers to make rules regarding appeals, fees, etc.

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