Académique Documents
Professionnel Documents
Culture Documents
prone ones in order to gather intelligence and to observe officers at the higher level:"?n
1 With
questronab e reputatrons.
114
VAJlRAM & RAVI ______ _
CHAPTER-
7
MENACE OF CORRUPTION
The major sub-heads covered d
un er the topic 'M
1. Menace 01 c . enace of Corruption' are outlined below-
orruptlon In Public Life
2. India As A 'Soft Society'
3. Directives Of Supreme Court
4. Administrative Reform C . .
s ommiSSion On Corruption In India
A brief description of the above has b
1
een aid '" the forthcoming paragraphs.
MENACE OF CORRUPTION IN PUBLIC LIFE
Corruption is an abuse of public r . . . .
scope for corruption increa or poSition In pubhc for private gam. The
the division of power be::s w en. on public administrators is fragile and
. . . . . een pohllcal, executive and bureaucracy is ambiguous.
Poht1cal corruption wh1ch IS sometimes inseparable ' b
. . . . .rom ureaucrallc corruption tends to
be more Widespread m authontanan regimes where the public opinion and the Press are
to denounce The paradox of India, however, is that in spite of a
press and pubhc op1mon, the level of corruption is exceptionally high. This may
be to the utter insensitivity, lack of shame and the absence of any sense of
pubhc morality among the bribe-takers. Indeed, they wear their badge of corruption and
shamelessness with equal elan and brazenness.
The increase of opportunities in State intervention in economic and social lite has vastly
increased the opportunity for political and bureaucratic corruption, more particularly since
politics has also become professionalized. We have professional politictans wno are
politicians on a full time basis, even when out of office. Corruption today poses a danger
not only to the quality of governance but is threatening the very foundations of our
society and the State. Corruption in defence purchases, in other purchases and
contracts tend to undermine the very security of the State. Some of the power contracts
are casting such financial burden upon some of the States that the very financial viab1l1ty
of those States has fallen into doubt. There seems to be a nexus between terrorism,
drugs, smuggling, and politictans, a fact which was emphas1zed in the Vohra Comm1ttee
Report.
Corruption has flourished because one does not see adequately successful examples of
effectively prosecuted cases of corruption. Cases, poorly founded upon. haH-hearted nd
incomplete investigation, followed by a tardy and delayed tnal confluence a morally 11-
deserved but a legally inevitable acquittal. The acceptance of corrupt on u an
inexorable reality has led to silent reconciliatiOn and res1gnation to such wrongs
115
------- VAJJRAI\1 & RAVJ ______ ...._
th social consciousness of our citizens - that
There needs to be a vital stimulatiOn m
8
al sphere 11 Is true that the present proce
5
1
t
neither has a place in the personal nor sot Cis In which it should have never entered or .
5
f rhd ng the State from vanous sec or 1n
o f rl ng efficiently may reduce the chances of corruption to
whiCh 11 IS nor capable o pe orml th has to be
some extent bur even 1f we migrate to a tree market .. ere . regulation
f d' !'net from restrictions upon the industnal activity. The reqUirements Ol
o economy as IS I h ses and so on
governance would yet call for entering into contracts, pure a
INDIA AS A 'SOFT SOCIETY'
The Scandinavian economist-sociologist, Gunnar Myrdal, had described the Indian
society as a 'soft society'. He also clarified what the expression 'soft society' means.
According to him, a soft society is:
(a) one which does not have the political will to enact the laws necessary for its
progress and development and/or does not possess the political will to
implement the laws, even when made, and
(b) where there is no discipline. In tact, he has stressed the second aspect
more than the first.
According to him, it there is no discipline in the society, no real or meaningful
development or progress is possible. It is the lack of discipline in the society - which
expression includes the administration and structures of governance at all levels - that is
to corruption. Corrupt1on and indiscipline feed upon each other. One way of
mshllmg the d1sc1pline among the society may be to reduce the chances of corruption
and to deal with it sternly and mercilessly wherever it is found. For this purpose, the
rnadequacies in the criminal judicial
system have to be redressed.
Corruption is also anti-poor. Take,
tor example, the Public Distribution
System (PDS) and the welfare
schemes for the poor including
Scheduled Castes (SCs) and
Scheduled Tribes (STs). It is well-
known that a substantial portion of
grain. sugar and kerosene oil meant
for PDS goes 1nto black-market and
that hardly 16% of the funds meant
for STs and SCs reach them - all
the rest is m1sappropriated by some
of the members of the political and
\
Oaylo-day\
T ronsactional.
PnonUsabOnal
__....._ ./....# Politicians, senior.
.,.. "-._./ !b""-. bul'llauerats dipping
/ into public funds.
National security risks
from corrupt security
forc&s.
Polocy neglect by and
burtaucl'1ts itS a mull of focus on
money'.
OffiCial class and uns.crupulous dealers and businessmen. The famous economist Late
As
Mehbub-U/-Haq succinctly and poignantly set out the ill-effects of corruption in a South
1an country l1ke ours.
116
VAJlRAM & RAVl ______ _
He said: "Corruption happens
campaigns m Italy and the It has been at the centre oi elee\ton
Indonesia, and resulted in legis\ r tngdom, to the iall oi governments m Japan and
corruption exists in nch, actiOn tn Russia and the United States. But, ii
worried about it? The answe Y successiul countries, why should South Asta be
characteristics that make it iar IS South Asian corruption has lour key
world. ore damagmg than corruption in any other parts oi the
First, corruption in South Asia occurs
d
istorts fundamental decs up-stream, not down-stream. Corruption at the top
1
IOns about developm t .. 1 d I
dust rial countries thes . . en pnonttes, po tctes, an pro1ects. n
1
n n merit even core dec.tstons are taken through transparent competition and
o P Y corruption may occur down-stream.
second, corruption money in So th A
. . . u sta has wtngs, not wheels. Most oi the corrupt
gains made 1n the reg1on are immed t 1
. . . 1a e Y smuggled out to safe havens abroad. Whereas
there IS some capttal fhght in other countries as well, a greater proportion goes into
investme.n\. In words, it is more likely that corruption money in the North Asia ts
used to fmance bustness than to fill foreign accounts.
Third, corruption in South Asia often leads to promotion, not prison. The b1g fish- unless
they belong to the opposition- rarely fry. In contrast, industrialised countries often have
a process of accountability where even top leaders are investigated and prosecuted. For
instance, former Italian Prime Minister Bettino Craxi was forced to live m exile in Tunisia
to escape extradition on corruption charges in Rome. The most lrustrating aspect ol
corruption in South Asia is that the corrupt are often too powertul to go through such an
honest process of accountability.
Fourth, corruption in South Asia occurs with 515 million people in poverty not with per
capita incomes above twenty thousand dollars. While corrupt1on in rich rapidly growmg
countries may be tolerable, though reprehensible, in poverty stricken South Asia it is
political dynamite when the majority of the population cannot, but to massive human
deprivation and even more extreme income meet their basic needs wt'11le a lew make
fortunes through corruption. Thus corruption in South Asia does not lead to s1mply
Cabinet portfolio shifts or newspaper headlines inequalities. Combating corruption in :he
region is not just about punishing corrupt politicians and bureaucrats but .about savmg
human lives. There are two dimensions of corruption. One is the expl01tat1ve corruptiOn
where the public servant exploits the helpless poor Citizen. The other ts collustve
corruption where the citizen corrupts the public servant by a bnbe b:cause he gets
financially better benefits. Collusive corruption depends on black money
DIRECTIVES OF SUPREME COURT
It rna be recalled that the Supreme Court had given certain duecttons m \1 e c
. Y U f lnd'ta (AIR
19
98 sc 889) for conlernng statuto!) \
Vmeet Nara1n vs. mon o 1 1
the Central Vigilance Commtsslon and to insulate the Central Burcnu o v
117
YAJI AA.M & R;\Yl -._
111 1
control and pressures. In the
te from po
1
ca d f L
and the Enforcement Olrectora h pprovalthe recommen attons o ord Nor
decision, the &Jpreme court United Kingdom. The following
Committee on Standards In Public mended by the court:
I application were com
public lifo of genera Th eneral principles of conduct which underp
Principles of public life. e this The seven principles of selflessnes
10
public lifo need to be restated .. "!e and readership are set out. s,
Integrity, objectivity, accountabtltty, op
d t
. All public bodies should draw up codes of COnduct
Codes of con uc
Incorporating these principles.
l ndepondent scrutiny: Internal systems for maintaining standards should be
supported by Independent scrutiny.
. M eds to be done to promote and reinforce standards
01
Education. ore ne d . . . I d' .
conduct in public bodies, in particular through guidance an tratntng, tnc u mg tnduction
tramlng:
The Seven Prlnctples of Public Life are stated in the Report by Lord Nolan, thus -
(i) Selflessness: Holders of public office should take decisions solely in terms
of the public Interest. They should not do so in order to gain financial or other
material benefits for themselves, their family, or their friends.
(il) l ntegrl!y Holders of public office should not place themselves under any
financtal or other obligation to outside individuals or organizations that might
mfluence them in the performance of their official duties.
(Ill) ObJectivity: In carrying out public business, including making public
appomtments, awarding contracts, or recommending individuals for rewards
and benefi ts, holders of public office should make choices on meri t.
(rv) Accountability: Holders of public office are accountable for their decisions
and actions to the public and must submit themselves to whatever scrutiny is
appropriate to their office.
(v) Openness: Holders of public office should be as open as possible about all
the decisions and actions that they take. They should give reasons for their
decisions and restrict Information only when the wider public interest clearly
demands.
(vi) Honesty: Holders of public office have a duty to declare any private interests
relatmg to thetr public duties and to take steps to resolve any conflicts arising
m a way that protects the public interest.
(vi:) leadership: Holders of public office should promote and support these
princ,ples by leadershrp and example ...
118
VAJIRAM & RAYl -------
These prinCiples of pubhc life are
01
. . .
expected to bear them in mind While application 10 every democracy and one is
office. II ts tnte that the holders of the conduct of every holder of a public
exercised 1n pubhc interest alone IC offices are entrusted with certain powers to be
people. Any deviation from the p ' therefore, the office is held by them In trust lor the
trust and must be severely dealt .rectitude by any of them amounts to a breach ot
conduct amounts to an often WI tnstead of being pushed under the carpet. It the
against whom a prima facie
1
t must be promptly investigated and the offender
the majesty of law Is upheld
Foreign Exchange Management Act, the Prevention of Food AdulteratiOn Act, t e n tan
Patents Act etc.
. t ations are carried out by the police. Some states
In a large of these Wings to guide such lnvestigat1ons. In r spect
have also established re taken up by designated agent es und \ e
of some Central Laws, a
1
takes up cases by way of relerral by oth
law. The Central Bureau of Investigation
-------VAJJRAM & RAVI
authorities or on directions by
the government or the courts. It
is generally felt that the
punishment provided under the
existing laws is not enough of a
doterrent; as a resuft these
offences have become a high
gam low risk activity.
SUGGESTED STEPS WHICH MUST BETAKEN
a. A new law on 'Serious Economic Offences should be
enacted.
b. A serious Economic Offence may be defined as :
i. One which lnvolvos a sum exceeding Rs. 1 0 crores; or
li. Is likely to give rise to widespread public concern; or
111. Its Investigation and prosecution .are li.kely to require
highly specialized knowledGe of the frnancral market or
01
the behaviour of banks or other financial institutions; or
iv. involves significant international dimensions; or
v. in the Investigation of which there is requirement
01
legal, financial, investment and investigative skills to be
brought together; or
vi. which appear to be complex to the Union
Government, regulators, banks, or any financial
institution.
Of late, economic offences
have been drawing more
attention because these are
being used to fund criminal and
even terrorist activities. In
1993, the N.N. Vohra
Committee had revealed the
powerful nexus between those
who violated the economic
laws, politicians and
government functionaries,
which resulted in protection of
large-scale economic crimes.
c. A Serious Frauds Office (SFO) should be set up
(under the new law), to investigate and prosecute such
offences. It should be attached to the Cabinet
Secretariat. This office shall have to investigate
and prosecute all such casef n Special Courts
constituted for this purpose. The SFO should be staffed
by experts from diverse disciplines such as the financial
sector, capital and futures market, commodity markets,
accountancy, direct and indirect taxation, forensic audit,
investigation, criminal and company law and information
technology. The SFO should have all powers of
investigation as stated in the recommendation of the
Mitra Committee. The existing SFIO should be
subsumed in this.
A Serious Frauds Investigation
Office (SF/0) was set up in
2003 as a specialised multi-
disciplinary organisation to deal
with cases of serious corporate
frauds. It has experts from the
financial sector, capital market,
banks, accountancy, forensic
audit, taxation, law, information
technology, company law,
customs and investigation.
SFIO Charter includes
forwarding of its investigation
reports on violations of the
provisions of other Acts to the
concerned agencies tor
PI'08eaJtionl appropriat e action.
d. A Serious Frauds Monitoring Committee should be
constituted to oversee the investigation and prosecution
of such offences. This Committee, to be headed by the
Cabinet Secretary, should have the Chief Vigilance
Commissioner, Home Secretary, Finance Secretary,
Secretary Banking/ Financial Sector, a Deputy Governor
RBI, Secretary, Department of Company Affairs, Law
Secretary, Chairman SEBI etc as members.
e. In case of involvement of any public functionary in a
serious fraud, the SFO shall send a report to the
Rashtriya Lokayukta and shall follow the directions given
by the Rashtriya Lokayukta.
However, the current provisions
In the Banking Regulation Act,
1948; SEBI Act, 1992 and the
f. In all cases of serious frauds the Court shall presume
the existence of mens rea of the accused, and the
burden of proof regarding its non-existence, shall lie on
the accused.
Act, 1956 are not
128
VAJIRAM & RAVI------
strong enough to prevent large scale f
The present regulatory bodies like Practices nor are they deterrent enough.
not adequately empowered to address' . .
1
and Department of Company Alfairs are
There is, therefore, need for a separat involved in such scams and lrauds
serious financial fraud cases and reco e Institution for investigation and prosecution oi
. . very of assets involved therein
fhere rs need to defrne 'Serious E .
deterrent punishment for it The ex ctonomrc Offence' under a statute and prescribe
I d . rs rng SFIO tho h ..
offences on Y un. er the Companies Act Th ug a pos1trve step, can investigate
serious Economrc Offences' would . e complex and multi-disciplinary nature ot
d
requrre the constit r
investigate an prosecute the cases u d u ron of an empowered body to
. n er all such offences.
ThiS would requrre the establishment
1
Frauds Office (SFO) which would ne
0
a. new and adequately empowered Serious
Frauds Office thus constituted subsume the existing SFIO. The Serious
Frauds Monitoring Committee cha deb under the and supervision ot a Serious
from the financial sector capital Y the Cabrnet Secretary with representatives
d
rect and indirect toe commodity markets, accountancy,
r r nsrc aud1t cnmmal and com 1 d
information technology. The SFO h ' pany aw, mvest1gat1on an
. s ould be empowered to take up cases suo motu or
upon reference by the Unron or the State Governments.
10. Immunity enjoyed by legislators
The National Commission to Review the Working of the Constitution recommended that
1 05(2) may amended to clariiy that the immunity enjoyed by Members oi
privileges should not cover corrupt acts committed by
them tn connection wtth thetr duties in the House or otherwise. Such a recommendation
was made because corrupt acts include accepting money or other valuable
considerations to speak and/or vote in a particular manner and, for such acts. they
should be liable for action under the ordinary law of the land.
Right to equality and equal protection of
law is a fundamental right and the
Constitution enshrines this principle of
equality. The Ruling creates an
anomalous situation wherein the
Members of Parliament are immune from
prosecution for their corrupt acts if they
are related to voting or speaking in the
Parliament. This runs contrary to norms
SUGGESTED STEPS WHICH MUST
TAKEN
a. While endorsing the suggestion ol the
National Commission to Rev1ew the Woril.ing
of the Constitution, recommends that SUitable
amendments be effected to Article 1 05(2) ol
the Constitution to provide that the immun1ty
enjoyed by Members of Parliament does not
cover corrupt acts committed by them 10
connectton with therr dut1es in the House or
otherwise.
1
b. Similar amendments may bo mad
Article 194(2) of the Const1tutron In r
members of the state legtslaturcs
of justice and fair-play. Members of
Parliament, being the lawmakers have to
maintain the highest standards of
integrity and probity. It is, therefore,
necessary to amend the Constitution to l
remove this anomaly.
129
.. --------- VAJIRAM & RAVI-----... ......_
1
to civil servants
11. Constitutional protect on . . . . .
. . taction in terms of specrfrc provrsrons rn Part
Civil servants in India .enJOY umque of their conditions of service. Xlv
of the Constitution, whrch authorize
1
. .
. t to the provisions of the Constrtutron, acts
Article 309 st!pulates that the recruitment and conditions of service of Pers Of
appropriate legrslature n:'ay a
9
ts In connection with the affairs of the Union or
0
"
8
appointed to public servrces an pos Of a
State. f' d
. g the Union or a State hold of rce urrng the pleas
Under Article 310 - persons servrn llre
of the President or the Governor of the State as the case may be.
. f th's pleasure is however circumscribed by the provisions of Article
311
The exercrse o r ' k .
. d follows "Dismissal removal or reductron rn ran of person
The Artrcle rea s as . s
employed in civil capacities under the Unron or a State-
(a) No person who is a member of a civil the Union or an
rvice or a civil service of a State or holds a crvrl post under the Unron or a
se b d' t
State shall be dismissed or removed by an authonty su or rna e to that by
which he was appointed.
(b) No such person as aforesaid shall be dismissed or removed or reduced in
rank except after an inquiry in which he has been informed of the charges
against him and given a reasonable opportunity of being heard in respect of
those charges: Provided that where, it is proposed after such inquiry, to
impose upon him any such penalty, such penalty may be imposed on the
basis of the evidence adduced during such inquiry and it shall not be
necessary to give such person any opportunity of making representation on
the penalty proposed:
Provided further that this clause shall not apply -
(i) where a person is dismissed or removed or reduced in rank on the
ground of conduct which has led to his conviction on a criminal charge;
or
(ii) where the authority empowered to dismiss or remove a person or to
reduce him in rank is satisfied that for some reason, to be recorded by
that authority in writing, it is not reasonably practicable to hold such
inquiry; or
{iii) where the President or the Governor, as the case may be, is satisfied
that in the interest of the security of the State it is not expedient to hold
such inquiry.
(c) It, in respect of any such person as aforesaid, a question arises whether it is
practicable to hold such inquiry as is referred to in clause (2), the
130
VAJIRAM
decision thereon of th & RAVI
person or to red . e authority em . .
uce h1m in rank sh
11
po:-vered to d1sm1ss or remove such
The procedure laid down in A
1
a be
intended to, first, assure rt cle
3
11, subject to th .
are covered by the Arr a, measure of security of te provisos, or exceptions, therein, is
. ICe and, se . enure to government servants, who
dism.ls.sal or removal of a provtde certain safeguards against arbitrary
provrstons are enforceable in a nt servant or reduction to a lower rank Th
d court of law d . ese
311 or ers passed by the discipr an where there is an infringement of Article
Articles 310 and 311, apply to all
9
rnary authority are ab-initio void. The provisions of
. overnment servants.
Removmg Article
311
summing up, it could be said that
guarantees that this Article does Constitution appears to contain the kind of
enactment to apply the 'doctrine lee of India Act-1919 was the first
application was "subject to rules" thasure tn Section 96B thereof. Its
under that Act applied the exta t
1
e courts exammmg challenges to penalties
n ru es to determme whethe th h
In other words when this d t . . r ese were ng tly 1mposed.
provide against oc nne ftrst in India, it was deemed sufficient to
d' .
1
any unjust exercrse of 'pleasure'. With the provisions of
Ju rcra now in our Constitution, the protection available to Government
employees IS even outside Article 311. This is borne out by the tact
that ample rehef ts avatlable to employees invoking judicial intervention in cases
involving compulsory retirements even though Article 311 does not extend to such
cases.
It is believed that the rights of a civil servant under
the Constitution should be subordinate to the
overall requirement of public interest and the
contractual right of the State. It cannot be an
argument that a corrupt civil servant's rights are
more important than the need to ensure an honest,
efficient and corruption-free administration.
Ultimately, the public servant, an agent of the
State, cannot be superior to the State and it is his
fundamental duty to serve the State with integrity,
devotion, honesty, impartiality, objectivity.
transparency and accountability.
SUGGESTED STEPS WHICH \
MUST BETAKEN
I
a. Article 311 of the Constitution \
should be repealed.
b. Simultaneously, Article 310 of \
the Constitution should also be
repealed.
c. Suitable legislation to provide for
all necessary terms and conditions
of services should be provided
under Article 309. to protect the
bona fide actions of public
servants taken in pubhc interest;
this should be made applicable to
the States.
It is true that the government as an employer is
expected to act in a fair manner and it has to be a d. Necessary. prstotec
8
!
00
traryto public
. h It servants agam lUI action
model worthy of emulatton by ot \ should be provided. through such
has also to be ensured that honest and \ legislation under Art1de 309
public servants are not subjected to the whtms and ted t dspense with the serv\
fancies of their superiors. No government can be expec 'tho t 'a proper enqulry
of a government servant in an arbitrary manner or WI ou
131
VAJIRAM & RAVI
- . te sector. Strlclly, there should be
I s not possible even In thtJ pn.tdas may be provided through leglslatno
arbitrary ramova ' . d legal safeguar IOn
need for retaining Article 310, an
under Article 309. . If the whole gamut of "conditions or servic
conrmuum. h' n n 1 d e
Articles 309 310 and 311 form a tl e part of Article 309, t IS ca I c u e matters
IS codified required by substa.n vosition of penalties. Moreover, as noted above
such as disciplinary proceedmgs
1
mp rt of the basic structure or the constitutio '
d an Integral pa b ., bl n,
with rule of taw accepte as . Article
311
will continue to e ava1 a e to satisry
reasonable protection now artrr.buted to
the requirements of 'rule of law
. d a fairly common percept1on that explict
th considerations an . . . 1
Taking into account ese .
1 1
. n itself gives an 1mpress1on of Inordinate
.. t' n" in the Consll u 10
articulation of protoc to .
1 311
need not continue to be a part of the
'protection', thus, on Artie e rehensive legislation under Article 309 could
Constitution. Instead appropnate and t and service even with regard to dismissal
f d all aspects of recrwtmen ' . . ,
be rame to . t legislation by the respecttve legislatures may
removal or reductton In rank. Appropna 9 . .
also be ensured through a revised Constitutional proviSIOn.
12. Institutional framework to tight corruption
The Administrative Vigilance Division of the .of Personnel is the
nodal agency for dealing with Vigilance and Ant1corrupt1on. Its mter-a!Ja, are to
oversee and provide necessary directions to the Governments . of
maintenance of discipline and eradication of corruption from. the public The
other institutions and agencies at the Union level are - (1) The Central V1g1lance
Commission (CVC): (ii) Vigilance units in the Ministries/ Departments of Government of
India, Central public enterprises and other autonomous organisations; and (iii) the
Central Bureau of Investigation (CBI).
Central Vigilance Commission
In pursuance of the recommendations made by the Committee on Prevention of
Corruption, popularly known as the Santhanam Committee, the Central Vigilance
Commission was set up by the Government of India by a Resolution dated 11 .2.1964. It
was accorded statutory status, consequent upon the judgement of the Hon'ble Supreme
Court in Vmeet Narain v. Union of India, through the Central Vigilance Commission Act,
2003. The CVC advises the Union Government on all matters pertaining to the
maintenance of integrity in administration. It exercises superintendence over the working
of the Central Bureau of Investigation, and also over the vigilance administration of
various Mintstnes and other organizations of the Union Government.
Vigilance Units In The Government Of India
All MinisrriestOepartments in the Union Government have a Chief Vigilance Officer
who heads the V1gilance Division of the organization concerned, assisting and
adv1smg Secretary or Head of Office in all matters pertaining to vigilance. He also
tOVIdes a Jmk between his organisation and the Central Vigilance Commission on the
132
VAJIRAM & RAVI ------- one hand and his organisation and th
Vigilance functions performed b e Central Bureau of Investigation on the other.
ractices of the employees r cvo collecting intelligence about corrupt
to him; processin in his . investigating verifiable allegations
d' ciplinary authority co g reports for further consideration of the
CIS mmission for advice whncemed, and referring matters to the Central Vigilance
o erever necessary.
The Central Bureau Of Investigation
Central of (CBI) is the principal investigative agency of the
Un1on In anti-corruption matters. It derives its powers from the Delhi Special
Police Establishment Act, 1946 (DSPE Act) to investigate certain specified offences or
classes of offences pertaining to corruption and other kinds of malpractices involving
public servants. The Special Police Establishment, which forms a division of the Central
Bureau of Investigation, has three units, viz.
(i) Anti-corruption Division,
(ii) Economic Offences Wing, and
(iii) Special Crimes Division.
The Anti-corruption Division investigates all cases registered under the Prevention at
Corruption Act, 1988 as also cases of offences under any other sections of .the \PC. or
other law if committed along with offences of bribery and corruption. The Ant1-corrupt1on
Division investigates cases pertaining to serious irregularities allegedly committed by
public servants. It also investigates cases against ot Governments,
if the case is entrusted to the CBI. The Special Cnmes D1V1s1on all ol
economic offences and conventional crimes; such as offences relatmg to
security, espionage, sabotage, narcotics and psychotropic
murders dacoities/robberies cheating, criminal breach of trust, torgenes, dowry de.
3
tT ed nder Section suspicious deaths and other offences under IPC and other laws no 1 I u
of the DSPE Act.
Vigilance systems in state governments .
. ., . ilance and anti-corruption orgamsatlons
At the level of state governments, Simi ar Vlg ansations vary between and across
exist, although the nature and staffing of Commissions and anti-corruption
state governments. While some states havep lgdl a h has an Anti CorruptiOn Bureau. a
L k yuktas Andhra ra es S
bureaus, others have o a . 'I N du and West Bengal have tate
. . nd a Lokayukta Taml a . .
Vigilance CommiSSIOn a . .. , f nctions The Vigilance CommiSSioner
Vigilance Commissions to oversee the Vlgl ance and as a Secretary though
in Tamil Nadu is a serving Secretary to Vigilance CommiSSioner. Maharashtra
1 R port in his capacl Y a " moor
he brings out an Annua e d a Vigilance Commissioner. a mu I m
has a combination of an of the htghcr ludiciary as the Ch um
body called the Lokayukta With. a . man Some States have adopted th p \ n t
and a retired civil servant as VIce. t air I orgamzations with du l re pon
the Union Government and set up In erna 133
VAJIRAM & RAVJ -------..
IIIli d h departmental head with subordinate
. C missioner an t e . th .
of reporting to the VIgilance om d the districts reporting to e higher
units in offrces of Heads of an
formations and the Vigilance CommiSSioner.
t reduce corruption
Improving Institutional arrangements o
.
1
eak political wltl, inadequate laws and
Accordmg to Transparency , t w qual emphasis on prevention measures
excessive reliance on enforcement ":'
1
ou e 'es Having regard to the importance of
contribute to the failure United Nations Convention against
the preventive role of anti State party shall ensure the existence
Corruption mandates'". prevent corruption. Each State party shall grant
of a body or bod1es as appropna. e . accordance with the fundamental
th b d'es the necessary mdependence, 1n
0 1
.
1 1 1
to enable the body or bodies to carry out its or their
prmc1ples of 1ts ega sys em, ater'al e
functions effectively and free from any undue influence. The m 1 . r
d I
. ed staff as well as the training that such staff may to carry out the"
an spec1a 1z t f d 1
h ld b ded " In so tar as the convention has come 1n o orce an ndra
funct1ons, s ou e prov1 . . . . . .
is a signatory to it, it becomes incumbent on the country to implement th1s decrsron 1n rts
true spirit.
Unfortunately, anti-corruption agencies, both of the Uni.on and
are hobbled by weak investigative powers and overlappmg A .mult1phc1ty of
anti-corruption institutions with overlapping functions has undermmed the1r coherence.
The CVC, departmental vigilance units and CBI at the /eve/ of the Union Government,
and a combination of Lokayuktas, State Vigilance Commissions and Anti-Corruption
Bureaus with widely varying functions, have not succeeded in providing unified focus to
the task of Implementation of multi-pronged strategic initiatives to prevent, monitor and
punish corruption, establish the necessary deterrence and cleanse the systems. A fresh
look at the institutions for this purpose is necessary.
The Lok Pal
The first Administrative Reforms Commission had recommended the establishment of
the institution of Lok Pal. The Lok Pal Bill has been introduced several times but due to
various reasons it has not been enacted into law. The Lok Pal is supposed to be a
watchdog over the integrity of Ministers and the Members of Parli ament. The Indian Lok
Pal was intended to be similar to the institution of Ombudsman existing in the
Scandmavan countries. The institution of Ombudsman has emerged 'as a bulwark of
democrat1c government against the tyranny of officialdom'. The Lok Pal Bill provides for
constitutiOn of the Lok Pal as an independent body to enquire into cases of corruption
agamst public functionaries, with a mechanism for filing complaints and conducting
inquiries etc.
The Loka yukta
In the wake of the recommendations of the first Administrative Reforms Commission,
many State Governments enacted legislation to constitute tho Lokayukta to investigate
134
-------VAJlRAM & RAVI -------
uegations or grievances arising out of th
8
.)(ecutives, legislators, Officers of the St e COnduct of public servants Including political
end other instrumentalities of Go ate Gover:nment, local bodies, public enterprises
8
iversities. By virtue of such mcluding cooperative societies and
with the Lokayukta IOn, a n:ember ot the tile specific
8
Lokayukta to initiate suo-motu. . any pubhc servant tor enqUiry. It 1s also open to
the
1
nqu
1
ry into the conduct of public servants.
The Lokayukta is generally a retired J d
11 a ointed for a five- u ge of the High Court or the Supreme Court and
Chief Justice on the basis of a joint decision involving the Chief
Mrnrs . e peaker of the House and leader ot the Opposition.
However, In. states the Lokayukta does not have an independent investigating
authority. at. Its and is therefore dependent on Government agencies to carry
forward ItS mves.trgatlons. The Maharashtra and Orissa Lokayuktas assume more the
character of a gnevance redressal organization rather than an Ombudsman lor cases ot
corruption.
various states
presently have
Lokayuktas but there
is no uniformity in the
provisions of the
enactments, with
fundamental
differences regarding
their functions. While
in all states the
Lokayuktas deal with
issues of corruption, in
some, they also deal
with other grievances.
In a few states, a wide
range of functionaries
including Chief
Ministers, Vice
Chancellors and office
bearers of
cooperatives have
been brought within
the Lokayukta's
purview; in others, the
coverage is quite
SUGGESTED STEPS WHICH MUST BETAKEN
a. The State Vigilance Commissions/Lokayul<.tas may be
empowered to supervise the prosecution ot corruption related
cases.
b. The investigative agencies should acquire multi-disciplinary
skills and should be thoroughly conversant with the wooong of
various offices/ departments. They should draw othcials from
different wings of government.
c. Modern techniques ot investigation should also be deployed
like electronic surveilance, video and audio recording of surpose
inspections, traps, searches and seizures.
d. A reasonable time limit for investigation of dit1erent types of
cases should be fixed lor the investigative agencies.
e. There should be sustained step-up m the number cases
1
detected and investigated. The priorities need to be reonented b'i
focussing on 'big' cases of corruption.
t The prosecution of corruption cases should be conducted by a
panel of lawyers prepared by the Attorney . General or the
Advocate General in consultation with Rashtnya Lokayul\ta or
Lokayukta as the case may be.
g The anti-corruption agencies should conduct
s of de artments with particular reference to 1\1 Y
ones order to gather intelligenco and to target
officers of questionable mtegnty.
h. The economic offences unit of states need to ::0
to effectively investtgate cases and there s ou
coordination amongst existing agenctes.
L
restrictive. In some ed . them with an in\'estigat1on
States, investigative powers are vest
1
n search and seizure n th
attached. Some also provide for powers of
135
-------- VA.JJRAM & RAVI
n the Lokayukta Is, in some States, charged on lh
Investigation. The expenditure o rovidlng requisite financial Independence for the
consolidated fund of the State p wars to punish for contempt. e
institution. Some Lokayuktas have po
The Noed Of The Hour
. n machinery in the States needs reconsideratio
The entire structure of the antl-corrupllo ld require that this problem be dealt wl'l
An all-out effort to combat corruption curbing corruption at the cutting edge
appropriately at all levels. On han 'h hich could Investigate a large nurnbe el
would require a machinery havmg wrde reac w r 01
cases of corruption effectively.
On the other curbing corruption at the highest level would require a with
adequate expertise and status which could investigate cases agarnst hrgh PUblic
functionaries like Ministers.
If the Lokayukta is to be effective, it would neither be nor. feasi.ble to make
this institution investigate petty cases against junior as rts effort.
Therefore It is necessary to have the equivalent of the Centra/ Vrgrlance Commrssion at
the state ievel to deal with cases of corruption among public seNants. The Lokayukta
could then deal with corruption at the highest level covering senior-most PUblic
functionaries. However, often the thread of corruption runs through several levels,
rndrcating connivance of Ministers and public officials.
It rs therefore necessary to have a link between the lokayukta and the State Vigilance
Commissioner. It has been recommended that the Central Vigilance Commissioner be
made a Member of the lok Pal. Further a multi-member lok Pal should also be created,
so that rt 1s better insulated against outside influence and also because a decision of a
multi-member Commission would be more objective as it would have inputs from the
different members. A similar approach at the state level would be appropriate. The mum.
member Lokayukta should have a retired Supreme Court Judge or a retired Chief Justice
of the Hrgh Court in the Chair, the State Vigilance Commissioner as a member and an
eminent JUrist or an eminent administrator of impeccable credentials as a member. A
collegium comprising the Chief Minister, the Leader of the Opposition and the Chief
Justice of the High Court should appoint the Chairman and Members of the Lokayukta.
The State Vigilance Commissions should exercise superintendence over the functioning
of the Anti-Corruption Bureaus. It should tender independent and impartial advice to the
disciplinary and other authorities in disciplinary cases, involving the vigilance angle at
different stages i.e. investigation, inquiry, appeal, review etc; and exercise a general
check and supervision over vigilance and anti-corruption work in Departments of the
State Government and other organizations within the control of the State Government.
To msutate the institution of Lokayukta from the vagaries of political expediency, of the
'kmd witnessed in the past, it would be necessary to give the Lokayukta, as in the case of
the Pat, a Constitutional status. It would be necessary to amend the Constitution to
proVJde for the mstitution of Lokayukta in all states. This would also provide the
136
VAJlR.AM & RJ\VI ------- opportunity to vest this authority With .
nctlons across all states. To this elf .c?rtam. uni1orm powers, responsibilities and
fu 1 equivalent of the Rashtriy L k ect It IS believed that the lokayukta can be a state
I eve a
0
ayukta W1th a similar constitution.
1 3. Strengthening Investigation and .
P osecution is often a weak link in th ch .
prosecution
r h e am of anti-corruption law enforcement and there
are instances w prosecutors have facilitated the discharge of a delinquent officer. It
is, therefore, crucial .that cases of corruption are handled by efficient prosecutors whose
integrity and professional competence is above board.
The Supreme Court did mandate a key safeguard in corruption cases, by decreeing that
a panel of lawyers, answerable to a body similar to that of the Director of Prosecutions in
the United Kingdom should be created to review the prosecution of corruption cases. As
the Supreme observed, this panel of "competent lawyers of experience and
impeccable reputatron shall be prepared on the advice of the Attorney General."
According to the Supreme Court, each case of prosecution by the CBI will have to be
reviewed by a lawyer from the panel, and responsibility tor unsuccessful prosecution
should be fixed. It would be desirable that the Lokayul<tas/State Vigilance Commissions
are empowered to supervise the prosecution of corruption related cases. This would
provide the much needed oversight of the prosecutors on the one hand, and guidance to
the prosecutors on the other.
The Need of the Hour
corruption prevention and enforcement in an increasingly electronic environment both in
government institutions and outside, requires specific measures to equ1p the
investigating agencies with electronic investigating tools and to undertake such
investigation. Systematic training of officers in this area more part1cular\y at the state
level is essential.
In view of the complexities involved in
investigating agencies should be equipped with and au 1\.
technical, and scientific knowledge, skills tools of
they require specialised knowledge of forensic accountmg, au d' .'n ble to have oftlclals
engineering depending on the nature of the case. would be a VISa
in the investigative agencies drawn from different wmgs of government.
. . d utual assistance among various enforcement
Inter-agency tnformatlon exchange an m o torate of Enforcement Econom c
. . es such as the 1rec \h
and investigative . . relatin to direct and mdirec\ taxes as we\\ as e
Intelligence Agencies lncludmg those g I . nearthing serious cases at 1rnuds
. ces can play a key roe m u
State investigating agen
1
1
th's fact Ministry of Finance h, s set up n
and economic offences. In recogmtlon o I
elaborate nodal agency for this purpose.
. an Economic Intelligence Council cha r
Under the present there IS t r s from key MIJllS\nes ond In\' \
Union Finance Minister with represen a IVa
137
VAJIRAM & RAVI
1 1
Eighteen Regional Economic lntelllgenc
I
t the national ave . . 2003 . e
intelligenco agenc es a
1 1996
and reactivated 1n to, Inter alia
Committoos (REICs) set ;:n enforcement and economic
ensure operational coordmatton betw
1
Ies Tho AEICs are required to meet on
agenc1es as well as Staten::: of Finance to the work
monthly basis. There IS perhaps ff r
0
nodal agencies tor check1ng fraud and
the REICs so thai they become more e ec IV
corruption arising from economic and related offences.
It has been also noticed that the cases filed relate mostly to ba.sed on co.mplaints
or press reports, being reactive action on the part of the Few
I t f the departme
nt's own efforts Streamlined vert1cal corruption runs
cases amana e ou o .
through sovoral/ovols of the official hierarchy in corruptiOn prone departments, and does
not receive tho attention it deserves.
This calls for strengthening sources of information to specifically ta:get officers involved
in the chain of hierarchical corruption. Anti-corruption agenc1es should conduct
systematic surveys of departments with particular reference to highly corruption prone
ones in order to gather intelligence and to observe officers at the higher levels with
questionable reputations.
SYSTEMIC REFORMS
"A fallacy promoted by some in the field of anti-corruption and at times also by the
intemat1onal commumty is that one "fights corruption by fighting corruption" through yet
another anti-corruption campaign, the creation of more "commissions" and ethics
agenc1es, and the incessant drafting of new laws, decrees, and codes of conduct.
Overall, such initiatives appear to have little impact, and are often politically expedient
ways of reactmg to pressures to do something about corruption, substituting for the need
for fundamental and systemic governance reforms".
IMPORTANCE OF SYSTEMIC REFORMS
A holistic approach for combating corruption would require an optimum mix of punitive
and preventive measures. Punitive measures act as a deterrent whereas preventi ve
measures reduce opportunities for corruption by making systems transparent, increasing
accountability, reducing discretion, rationalising procedures etc. Better preventive
measures act as 'Systemic Reforms' as they seek to improve systems and processes.
Some of the initiatives taken in recent years in this direction are listed below:
Railway Passenger Bookings (Indian Railways): The computerization of rail way
bookings, including 'on-line' booking and e-ticketing has eliminated the
decongested booking offices and brought considerable transparency to the
Ra1tway reservations process.
Common Entrance Test (Karnataka): This seeks to ensure merit-based selection to
professtonal colleges m a timely and transparent manner.
138
VAJlRAM & RAVI ____ ... __
Teachers
Scheme SUGGESTED STEPS WHICH MUST BETAKEN
t(arnataka): This a. The Constit .
( nique effort provided Pfovlsion maki utlton be amended to incorporate a
u to establi t Obligatory on the part of State Governments
tor a fool-proof principle of LoKayuk\a and stipulate the general
objective and a s uttts structure, power and functions.
transparent system for lol<ayukta be a multi-member body consisting of a
app
ointing teachers. JUd
1
al Member tn the Chair, an eminent iurlst or eminent
a mtnlstralor with Impeccable credentials as Member and the
Registration & head of lhe State Commission as ex-olliclo Member.
The Chairperson of the Lokayukta should be selected from a
Stamps of retired Supreme Court Judges or retired Chief Justices
(Maharashtra): of Court, by a Committee consisting of the Chief Minister,
,ntention was devJstng Justice of the High Court and the Leader of the Opposition
tn the Legislative Assembly. The same Committee should select
more transparent the second Member from among eminent iurists/administrators.
property There is no need to have an Up-Lokayukta.
tables, computenzatton c. The jurisdiction ol the Lokayukta would extend to only case.s
of records, setting time involving corruption. They should not look into general public
limits for returning a grievances.
registered document, d. The Lokayukta should deal with cases ol corruption agamst
use of digital cameras Ministers and MLAs.
tor photos and finger- e. Each.State should constitute a State V1gilance Commission to
Th look into cases of corruption against State Government oHicia\s.
printing, etc. e The Commission should have three Members and have
expedient of 'valuation functions similar to that ot the Central Vigilance CommisSion. \
tables' has virtually f. The Anti Corruption Bureaus should be brought under the
done away with control of the State Vigilance Commission.
arbitrary assessment of g The Chairperson and Members of the Lokayukta should be
stamp duty C\nd appointed strictly tor one term only and they should not hold any
achieved the multiple public office under government thereafter.
objectives of minimizing h The Lokayul<ta should have its own 1or
corruption, ruling out Initially, it may take ?flicers. on
t State Government, but over a penod.of hve years,'
harassment o steps to recruit its own cadre, and tram them properly.
purchasers of . h ld be referred to Rashtriya
immoveable property should not be referred to any
and augmenting tax Commission of lnqutry.
collection.
0
. . . ed a s stem for the payment ot property tax an
Unit Area Scheme (Delhi): ThiS provld Y t d normative basiS ot calculation.
registration of property involving self assessmen an . . I Ia nts and th u
. sure on-line registration o comp
e-Cops (Punjab): ThiS seeks to en. t scertain the outcome and the htghel
systematic follow-up enabling complatnanths o a the manner the cutting edge' l ve\
eal time' watc over
police echelons to keep r
functionaries act on complaints. \ 'FR\ENOS stand\og tor
d sh (E- Seva). and Kera a ' . l"'
e-Governance in Andhra Pra e k tor Distribution ot Serv\ces) "
t
Effective Networ
Fast, Reliable, lnstan ' 139
-------VA.JIRAM & RAVI
. . b simptrfylng transactions
proVIde Improved serVIce deliVery/ y t chnology for payment of utility bills or se
. . of informaton e d f h .
atizens mvolv1ng use
1
tf Mention may also be ma e o t e rnifiativ 4
different servtces on a smgle fp a of farmers selling their produce. e l
Choupals' m Madhya Pradesh or t e
SDP (Rural service Delivery Points) In Andhra Prade
Rural Kiosks, known as A E S through Internet to facilitate payment of
This ensures the off f :Vaetc reducing public inconvenience and re1e,.ft111
mformation, downloadmg o orm . . -111g
employees to more 'substantiVe' publiC dulles.
Such 'best practices' drive home the point that given a pragmatic approach to Probteltl
I leadersh,p and planmng impressive results can be achieved .
so vmg, proper ' . kl h 111
enhancmg the quality of services and reducing corruption. But 100 ng at t e magnitude
of existing corruption such initiatives are tar too few. The of that
generally shrouds government operation and programmes IS .a fertJie ground for
corruptiOn. The weakness of accountability mechanisms opportunities for
corruption. Bureaucratic complexity and procedures make 11 dlffJcu/1 for the ordinary
at,zen to naVIgate the system. What is required is large scale reform of both SYstems
and procedures.
The range of activities undertaken by government is so vast that any meaningful
system1c reform would require an in-depth study of each of these functions. However
cer.an ge,..r:raJ pnrcip!es would apply to all functions of government at all levels, vlhieh
are dea ' forward
14. Promoting competition
'AoSi PLb IC services n India are provided by government in a monopolistic setting. Such
a s .. ua'IOfl by ts very nature
s conduo ve :o arbitrarness,
ard comp,acef'Ce tlith a high
proDab "Y o* a section of
f .. f1C''Onar es taking
acuantage of the
regemony' for
corruptfof'!. lntroouction of an
e emer of competition ir the
pc,.-vis O" of Pub. c services is
l.'i(JS a very USeful tool
Wrb C0'1Llption. T 110
.51-Jc.cessft. rratf.tes ca, be
SUGGESTED STEPS WHICH MUST BETAKEN
a Each Ministry/Department may undertake an immediate
exercise to identify areas where the existing 'monopol y ot
functions can be tempered with competition. A similar
e,(ercise ma; be done at the level of State Governments and
local bodies. This exercise may be carried out in a time
bound manner, sa; in one ;ear, and a road map laid down
to 'monopoly' of functions. The approach should be
to mtroduce competition along with a mechanism tor
regJiatiofl to ensure performance as per prescribed
standards so that public interest is not compromised.
cr._e;j m tr s 0,... first
e grad "a: de-
ml')r. ':lfXJ sa ;or. vf tr,e
b. Son'le CemraJ 1 Sponsored schemes could be
restrudured so as to provde incentives to states that taY.e
steps to promote competihon in 5rvice delivery.
c. J. new ra1,ona1 pol:oez on subjects ha 11ng large publ1c
"'_e.rlace land amendments to e1istrng policies on such
shou d rrtar ab.; addre$S the issue of engendermg
competrto'1.
te -O'Jrr. .ser..tQr; ';f:t;fjr.d, tne
UNfn[} rr e ct Pflvate players r direct marketing services to farmers outside
140
..... ------ VA.JI IV\\1 & RAVI -------
vernmcnt controlled mar>Or-. in Mdh
ttle go 1 1n a large ot , er / "" 1a PrMer.h. Ctt.-altJ q, ,,,rr O".IJ(\'
0
opo Y ''="' and Ja
rno . role 1n rcduc1ng corruptic.n To ' i:S t> '111\'1 to r.ar: r. I
a maJor d c.ng compethon qo ; a larg<:: ettr.:rl \tlt;ret,_.rt;, ''a O"'.i...
and lotro u rruption olsr.whern ThC>g<;tl" er. Ho l<::r der<.lgulan""J w Of e area rr -:s I
,crease co lh en , e c.ar iiA:II \)( :..Ub-lf\Oo/.S
I (ivate agencieS, v I rcplac.u tho (J<>verr.mefl1 If\ tcr I crk1t.S fA
P re corrupt. It IS therefor"'
ven mo . . ' "' nr;cc;:_:;ar 1 that dem<.(l(ipo ar .d
IS accompanied b/ a regulatiOn to enwre p<".;r
cribed standards so that public intere-.t
15
protected
pres
15
. Simplifying transactions
ih8 causal relaliOnship between incidence af\d ot corruption and tM o:.rrp e1
nature of work methods needs no elaboration. An ordinar1 citizen uno ha-; to fYiJ 1 a
.11
10 ttte government could be condemned to maving multiple Ji';.t<;, to
es. There is high probabihty of such a citizen up grea-:. nq tte pa "':.. Gt
to avoid harassment. Similar\/, hierarchie-;. no on 'I comp'.t!1
0 1
: methods but also cause diffusion ot f . ".k
. . . f ... I . ard
dJstnbutJon o 1101r aso, for tnzta!lce, to cauze Olercrou-:1"g
ter . t' t ,. . ... a"'"
sequent mo\Jva 10n o JUmp queues vf pa:f!f9 zpeoo rooreJ or e'l'p G.f r-,, ...
The practice of laymg donn methodolo9'=s throviJh mar ...a\s ras ta o/' "
se Properly deployed, and regular\:J upgrruled, can M a g'eat
of demystifying admintstrati"'e procedures and prorno'1!'9 accou!vao I ,. e
sou of Information Technolog; and Pigr
1
to llltormaon such doCL.ments can 00 a
source for 'stmplifying transactiors' inasmucn as attord a o1
clarity to the literate service user.
1 the maladies of admif'::ra,'()n tn lrda s tne
c' every
one 0 . ...... .. to corr lnene :et
on making process. Apart from dela)'S, '.l'IS con r ...,...
dec1st
1
d . , , s aMeo r. the ope a
b se of authority is noticed, another layer o a mtnts ra ' r ados o
a .u would act as a cheer. More often than I'O', eacl' add u \.e et IS tS o
and corruption without solvll"g 'he orig:Oal pc-oblem. A c.ass c exarnp es\a\e
. h h sence of largP-scale btac)( money
when confronted Wit t e pre ed t"'e ll"come to
a 'Competent Authonty' nas. corsltttut eomP'!tent A.u had
I t
actions abo 1e a certa1f' va ue. rues
clear all sa e rans . . found to be urderva'ued. Very lew Pfope
power to acquire properties. which were counterpcoducti'le as ccea!.CC a
were acquired but the arrangement ot geumg a clearance 1rom e
further incentive lor undervaluation to avo t ol etper\mentaoon e PfOV\SiOn
'Competent Authonty . After more than two de
been deleted from the e oen: e
I II reqUifements or one-stop &eMC
A single Window clearance o a as st simp hes procedures and reduce
which can cut down on corruption MCe centres lS Andhra Prad
the most successful eJ(amples of one-stop se13 state and loCal govern
h
of some
model. E-Seva offers t e
5
nd mne pnvate sector oc
three central government orgamsatons a 141
VAJIRAM & RAVI ----............
-------that E--Seva ! SUGGESTED STEPS WHICH
roof. Tho sondces ont of nood to bring slmpi.Ucatlon ot
offers lnc/udo lhO paym. of a Iss/ago of admlnlslratlvo rclonns. Le""
bile SO<Vicc bills, provt_s!on tho soctoral roqulromonts, lho ,!""o
pu d dca/h cerltftcales, ' s I such rofotms must be, adopt; o,.;
btrlfl an tax tram and fNtnctp/es o w approach, minimizing hiera.''".
paymont of propany . ;e mobile "Stnglo , ..
ltmo //mils for disposal etc. "'"' bus reservations. pnva . tiers, st pu
hono bill payments, recetpl of I b Tho oxtSIIng OopanmentBI Manu?'' "?d c..,.
p rt nnJicallons and also, hould be thoroughly reviewed and Simplified With !
passpo a"" s . . on the Head of the Depan.,e
tronsler of shares. A user such documents and
conductod by tho Admlmstratwe on-line and hard
Stall College a/India Indicates that av,"' manuals must be In vety
h
C
lod benefits are being sa e. and phrases /Ike "/ell to the dtscretion ol" .,
I o oxpe tenns, ., bt decision may be lak ' '
realized by E-Sava and should be
corruption has been reduce :ul: and regulations governing Issue
01
substantially. permissions, licenses etc.
Mos/ of the procedures dealing A system of rewards and Incentives lo,
with permissions, licenses and ;;;,.plincation and streamlining of may be
l
' ntroduced in each government organiZation.
registration were laid down years
ago. These procedures are quite d The principle of 'positive silence' should generally
complex and require .;. used though this principle cannot be used in all
cases. Wherever permissions!/' .mses etc are to be
documentation, which a common issued, there should be a time limit processing ot
citizen finds difficult to complete. It the same alter which penn1sston, tl not already
is, therefore, necessary to have a given, should be deemed to have been granteo.
review of all such procedures so However, the rules should provide that lor eacn
such case the official responsible for the delay must
that unnecessary procedural
be proceeded against.
requirements are eliminated.
The relationship of the government with its constituents, citizens and businesses, and
also between its own organs can be transformed through the use of the tools of modern
technology such as Information and Communication Technology (ICT). The digital
revolution has the potential to transform and redefine processes and systems of
governance. The most visible impact has been in access to information and data, in
building management information systems and in the field of electronic service delivery.
E-Govemance is the logical next step in the use of ICT in systems of governance in
order to ensure wider participation and deeper involvement of citizens, institutions, civil
society groups and the private sector in the decision making process of governance. It is
proposed to examine this promising area of reforms in a subsequent Report and will,
therefore, confine itself only to some broad aspects here in the context of reducing
corruption.
16. Using information technology
So"'e of the recent inftiatives clearly demonstrate what such applications may achieve.
The Gyandoot project in Madhya Pradesh is one such example. It seeks to provide
mtormalion about prevailing agricultural produce prices at auction centres and easier
142
-------.. & 'RAVI _ _ ____ _
sses tor obta1ning cop1es of Ia d .
proce on ol e-govomance B n <ec<>tds. "ll>ete have been seveta\ successes'"
There ate vety 1;,_, Ul\he g,.aleS\ challenge has been then tepllcab\lrty
up-sca/1 g . xamp\es ol egovetnance e.amp\es Wi\h a nattonwode
Impact (tho rat/way '
080
"'
0110
n
9
YS\em is one Ollhem). The laCk ot good inh.,tructu<e
and tho tnadcquete capabthty ol the Petsonnel have ptoveo lobe malo< bottlenecl<s in
the spread
01
e-g?vernance. Much Qteate, attention needs to be paid to lamiliatize
Qepat1menlal OlltCtals W."h lhe televanl Ptecesses Ond lhek capablt.,es. Apart hom
mpaning on-lhe-tob hatntng, Depanmenlal ollicials involved wilh planning and lamentations ot sucn - 1
may be sent lo SUGGESTED STEPS WHICH MUST BETAKEN
str ' I dl I
ganizations, mc u ng some a. Each Ministry/Department/Organisation o
the private seclor, where Qovemment sho,ld dtaw "P a lot ""' ot IT to
improve gove.rnance. In any government process, use ol
these are already lntormanon TeChnology should bo made only altet the
malnstreamed. The NalionaJ existing procedutes have been thoro,gh\y te-
l formatics Centre (NIC) has engineered.
a useful role in b. The Mln\stty otlnletmatlon and Technology n .. ds to fac
ilitating e-Governance. NIC identity certain governmental processes and take
ay take concrete steps to scale.
up a project of their computerization on a nat1onwlde
b
m .
11
d up skills and domain let
u .
1
c. Fot compuJerizaJion lo be successtu\, compu \
expertise among Its knowledge of departmental olficers needs .to
so that specific orgamzattona upgtaded. Similarty, the NIC needs 1o be !tamed
needs are more fully departmenl -''" activities, so that they \
derstoo
d by technology appreciate each other's view pomt and also each
un M . t f technology providers understand the anatomy
0
providers. The In IS 'Y.
0
-------------- formation Technology 1tself
assess new areas for computerization across the country.
17. Integrity pacts
One mechanism that can help in SUGGESTED STEP WHICH MUST BET liKEN .
t
. g transparency and h mechanism ol 'integnty
1
promo 1n . . a. Encou.agemenl ot 1 . . st ot Ftnance
creating confidence n . pubhc pacts' should be done. e 'iesentatives from
contracting is the use of mtegnty conslilule a Task Fotce w.l ;opidenlify lhe ot '
Pa
cts'. The term refers to an Minislties of Law and to provide fo1 a
h ublic transactions such pac act ihe Task Force
agreement between t e p . protocol for enlenng tnlo such a P d. whelhet any
agency involved in procunng in particular,. like !he
s and -services and the amendment in the Prevenlion of Corruption
tor a public contract to the Indian agteements en<orceatle.
I . d have not Act IS reqUir - .
effect that the bid ers . llln lot
paid and shall not pay in question. For its part, the
gratification to secure the a level playing field and lair play tn and scru\Jny by
bids commitS to pacts is that they often to mprove(t
An important feature o S ch pacts have contnbu
independent, outside observers. u
143
VAJlRAlYf & RAVI" _______ __
. er in which major deals in Government
. f'dence m the mann I t
transparency and publrc con I I ded Many national lega sys ems now give
. rons are cone u
and public sector orgamza I .
id rable weightage to such pacts. .
cons e M U with Transparency InternatiOnal India and
ONGC is the first PSU to have signed ; has been made in the revised Defence
the eve on April 17,
2
0
6
A adoption of an "Integrity Pact" in all defence
Procurement Procedure Manual, 2 th Rs 300 crores. Government organizations in
d
ements of more an . .
contracts an procur wn much interest in adopting this healthy pract1ce. The
t,e country have so tar not sho t of uncertainty about the place of such pacts in
. a 'd to be also on accoun .
reluctance IS s ' . h . must be encouraged and rntegrated into
our legal framework. This mec amsm 'ble
government transactions in as many sectors as possr .
18
. Reducing discretion
. .
1
- re greater in a system with excessive discretion in the
Opportumtles tor corrup 10n a h t T
h d t the official machinery particularly at lower levels. Sue o_ppor unr res can be
by reducing discretion and maximizing transparency r_n the s_ystem and
. d strict accountability tor actions. The most successful antr-corruptron reforms
mtro .... ucrngthat seek to reduce discretionary benefits, which are controlled by public
are u,ose _ ------,
of'icials. , SUGGESTED STEPS WHICH MUST BE TAKEN
Tf!ere are a large number of
governmental activities where
a scre:10r can be totally eliminated.
AJ suer ac::vities could be
au:omaed and supported by IT.
of a:rJ1s and Deaths'
anc recn. .. of teacrers based
O'i mafo.s secured in qualifying
exams are examples of this. Where
rr s r.ot poss ble to e!rm:nate
o sere on, hen tfle exercrse of
(XYIIfYS should be bound by well-
det ... ec gwde nes to mimmize
d:sr.,(efiOO. checks and
srtOuld be built over
exf:fase of d scre!of1.
J 9. Supervision
a. All government offices having rnterfa?e
should undertake a review of thelf actrvrlles and hst
out those which rnvolve use of discretion. In all such
activities, attempt should be made to el minate
discretion. Where it is not possible to do so. well-
defined regulat1ons should attempt to 'bound' the
discretion. Mmistries and Departments should be
asked to coordinate thrs task rn thetr
organizations/offices and complete rt within one
year.
b. Decision-making on rmportant matters should be
asSigned to a committee rather than indivrduals.
Care has to be exercised, however, that thrs pract1ce
is not resorted to when prompt decisions are
required.
c. Stale Governments should tako steps on srmilar
lrnes. especially rn local bodies and authontros,
'Nhich have maximum publrc contact
IN'IVO.l '"ments and 'heir agerc1es a hierarchical structure. In such a structure,
rtant tasfi..s of each funct,onary ls to supervrse the work of tha off1cial
ext repcrtrng to hun/her As mentioned m earlier paras, there have to be
and balances aga1r.s: !he discretiOn vested in publrc funcllonanes.
U'.rt.JCs one en mect1am,m. Tt1e very fact ttlat no many casoa aro
144
. YAJlRAM & RAVl
nitlated agamst corrupt Officials b IIIII
1
ision function 1s n t k- Y the depart
superv
0
v.::mg given th . ment 1tseH ts an indcator that th
e attentton it d
C
ontrolling corruption in an office e;oerves
d I h or an organ .
of the hea o t e Office. Moreov tz.atton should pnmanly be the responsibl W
hierarchrcal structure, each level sho:id : government othces agenctes have a
minimize the scope of corruption lor th esponsble tor tak.ng preventive steps to
that with the constitution of indepe de levels it. It has generally been observed
officers feel that it is not their responns_be'nl_t agenCies to combat corrupt.on. departmanta.\
N
I . ' 11\y to CUrb cor .
or turn a e son s eye to the problem
1
ruptton m thetr othcesJsubord nates
corruption machinery with thr:: to be emphasized that \he external ami-
substitute for anti-corruption measures tak sources _and reach can. m no way, be 11
e
asures could be random ins t en by m leadersh1p posttions. These
m pee rons surpnse t
1
d
1
...1. t
' t'zens/ clients, putting procedur . . VISt s, con 1 entta leedba.,;r. rom
cr ' y clients etc es m place whrch make it drtlicult \o seek t>r be, usc o
deCO
It is, suggested that reporting otlicers while evaluat1ng the pertormar.oo \l'le r
subordrnates should - - ---- ----
clearly comment on \ SUGGESTED STEPS WHICH MUST BET
the efforts made by Th .
a. e role of otftcers needs to be re-emph ssed t
the latter to check bears re1tera\ion that supervisory oltcers are pr mar y rcsponSt
corruption. There lor curbing corruption among their suboratnates, ano ay 00\0
should be a column in take all preven\Jve measures lor this purpose.
the self-assessment b: Each superv!S()(Y officer should ca!elully ana,y:c \he att:. cs
P
ortion of the Annual hrs her orgamz.atiol1iof11ce, tdent.ty the aciVI cs w
vulnerable to corruption ano lhen bu \d uo S\ll\a.ble
Performance Report vlg1lance measures. All m<llcr mstances ot \oss caused \
wheretn each goverrvnent or to the publtc, 'r:Jy oftlCla\s by \helr acts o1 om
supervrsory officer commtsslon should be enquued nto and responsz x
crnng ollicer W1th1n a tome-frame.
should mdrcate the
measures
he/she c. In the Annual Penoonance Report o1 Q en cHltef
took to
be a column where the olltcCf should nd.'eat c
check took to control com:pt1cn In hts o1t oe nd
corruption in h1s1her Tho reporting ot11cer snoulo then 9 ve .. '
0
u1cc and amongst thrs.
hts: her subordinates.
and what were the
outcomes ol such
measures. 1he
Reporttng othcor
should lhcn grvo
hisJhcr comments on
thts solfcvoluat on It
has ba ,n ob f\1 d
that confld n\1 I
report at ott c1 I r no\
\4
VAJIRAM & RAVI
01
commenting objectively on the
d t play sate' by n om t h'
officers. Reporting officers ten o ertain unethical practices have e o IS/her
integrity of a public servant even accountability of Olllcors about the
nottce. This IS mainly because olourless entries such as nothrng adverso has
wny they evaluate tho" subordrnates. C . however need to make superVISIOn more
co'me to notice' are quite common There IS, sure reporting officers evaluate and
proactive rn roofing out corruption. In to It should be mandated that in
record accurately about the integrity of h's of any officer and such
. h . en a 'clean c It In I A
case a reporting officer as glv the Prevention of Corruptron ct and the
an Officer Is charged with any offence under the year under report, then the reporting
corrupt act took placo wholly or durr.ng n the 'integrity certificate'.
officer should explain why that officer was give
et another useful tool to detect wrong
Surprrse mspection.s by superv!sory a::urd be more rigorous in offices having
domg in public Such collection points, parking lots, pollution
dealings w1th the publiC, check posts,
0
d t checking centres quarries, mines
' h b'l e'ghts and measures an me er ,
c eck mo 1 e vans. w
1
. r f d'
1
'bution centres during calamities
works in progress pay and accounts off1ces, re re rs n . . . . ,
' k ted and verification of genurneness of benefrc1anes
etc. On-site mspectron of wor s execu .
is another variant of such surprise inspection. Surpnse checks. could extend to
establishment sections and cash branches more particularly of taxation departments
venfy prompt accounting of cash received, depositing cheques and d.rafts 1n
government account, accuracy of preparation of pay bills, of recovenes from
salaries of government employees in government account, etc 1n to
mtsappropnation of funds. Surprise verification of cash in possess1on of offr?ers
havrng public dealings has had a salutary effect in discouragrng acceptance of
while in the office. This is a measure, which should be extended through all offrces,
making tt mandatory for senior officers to periodically undertake this function.
Reviews/checks could be conducted internally for information relating to price paid for a
wide range of purchases made by different field local bodies and
parastatals tor stationery, computer accessories and office equipment, consumables and
department specific purchases like lighting and sanitation requirements, drugs and
pharmaceuttcals, hospital requirements; clothing requirements of hospitals, uniformed
servtces, education institutions and hostels; books and other educational accessories
and construction materials. These checks should not be limited to comparison of price of
art1cles purchased in one office at a single point of time with market prices, but should
extend to a period of say one or two years with the market price prevailing. Such
comparison should extend to the price paid by different offices of the same department
durmg the same penod and also the prices paid by different departments for the same
product Similar comparative analysis could also be useful in departments which obtain
periOdical returns from citizens, such as various tax departments.
146
YAJ IRAM&RA_yl
ruption can take place when a b.
cor r en Pa pu he servant d
benefit the c IZ . . an illegal assessmen oes something illega\ in order to
mple. Corruption, as tn the case of. t order to favour a tax assessee is an
eJ(a h C . speed mone
right I 1ng orrupt1on may ----Y:......:....' even while dotng
place through deliberate SUGGESTED STEPS WH - -
ta . nee on the part of th . ICH MUST BETAKEN. . \
11eghge e a. pr d
brc servant. Allowing an illegal so that an se ers should converge their actvtes
pu
1
s h rvces are dehvered at a common po.nt
Onsignment through a checkpost \ uc common service points could also be
c I I th' Th . outsourced I .
san examp eo tS. e creatton the task of
0
may then be given
an institutionalized system to agencies. pursumg ctltzens requests With concerned
event corruption, alter a careful b T .
pr . of instanc . Whtch are prone to corruption, should be
analysts . es of spht. up mto dfferent activities that can be entrusted
rruption, IS an essential first to dtfferent persons.
co If t' I I
steP to e ec IVe Y tackle c. Public interactiOn should be limited to designate<\
orruption. This should be the ?lhcers .. A 'single Window front office' lor proviSIOn ot 1
c . ary responsibility of all and services to the citizens with a lile \
pnm . trackmg system should be set up in all government
supervisory offtcers. departments.
20. Ensuring accessibility and responsiveness
Departments of government have to be accessible to members ot the public and
responsive to their needs and aspirations and also responsible tor prompt redressal ot
their grievances. To ensure this, it is necessary that the tacililtes, concessions and rights
which are available to them in each department should be made public and the detatls
about authorities who are competent to grant them together with the procedure tor
securing the same and getting their grievances redressed should be put 1n the public
domain. There is need to define service standards. Every department should be required
to take steps to understand the problems ot its customers, define the standards wh1ch
the department would maintain in the provision of its services and spec1ty the
which customers should fulfil to qualify for the same. Appeal procedures ava1\able m
case the customers want further redressal should also be It is essential to
ensure timely disposal of applications. In order to do th1s, time hmtts need to be
prescribed for disposal of different categories of applications.
various small measures, too numerous to detail here, possible to improve\
t rans arency in government offices. Help desks at the cuttmg edge level, promtnens
of names of officials, automatic call and simplifiedt' compt
th ght direct1on Concentra ton o "
of service delivery are steps m e n 'd d These tasks should be as tm ns
corruption prone in a a:: by dillerent people. Pub\.c
possible, broken up . acttvttles f office and some designated olllccrs Thts c"
interaction should tdo for providing inform::\tion.
be supported by a srnglc wtn ow
ts to the ublic should be so destgncd as to nsur
Accessibility of government servan . t p ction between the cttt!ens nnd ot
regular, time bound and courteous tn eran government departments Shou\d b T
functionaries. To this end, business
VAJIRAM & RAVI
IIi egregated and take place In a time bo
ff' e functions are s f lJnu
angrneored so that o. IC 'first in first out', with tho sc.ope or
manner based on the prmcrple of "sin le window for provisron of sorvrces to Clti:zens /'
while tho front office should be a g I)
full publiC view. . SUGGESTED STEPS WHICH MUST
21. Monitoring complamts TAKEN I
to complaints is an important tool a. All offices having large public intenaee
Recourse f tizen to get his/her should have an complaint
m the hands o a Cl ften these system. If possible, thrs task or complaint
grievance redressed. Very .
0
tracking should be outsourced.
I . not handled w1th due care.
comp arnts are . . . v a b There should be an external, periodic
Most public off1ces rn lndta ha e of 'audit' of complaints in offices
complaint monitoring system, but more having large public interlace.
often than not, the system not c Apart from enquiring into each complaint
as the complaint ends wtth the offtcral fixing responsibility for the lapses, if
against whom the charges are alleged. It any, the complaint .be used to
usually takes several months for a analyse the system1c defrcrencres so that
complainant to get a response from the remedial measures are taken.
government (if at all there is a response).
22. Reforming the civil services
The admmtstrative system should be transformed so that at every level of the civil
serv1ce, there is a clear assignment of duties and responsibilities with structured anct
interlocking accountability in which the government servant can be held accountable for
the manner in whrch he/ she performs his/her duty. Such assignment should be specitrc
and categorical and include in concrete terms the supervisory and oversight
responsibilities of the controlling officers. This should go all the way up the line so that
the mterlockrng accountability forces every level of government servants to function
efficiently.
There also has to be an in-built system of rewards and punishments, with criteria being
laid down which can eliminate arbitrariness and subjectivity in granting rewards or
awarding punishments. At present, there is no incentive to work diligently and efficiently
and no adverse consequences of shirking work, indulging in corruption or failing to
achieve an acceptable level of efficiency. At present, not only is there no performance
audit but even the old system of awareness of an officer's strengths, weaknesses and
reputat1on seems to have become a thing of the past. It is high time that a robust system
of performance audit to periodically monitor and objectively evaluate the performance of
otf;cers ts mtroduced for every level of the civil service.
Risk Management For Preventive Vigilance
The fiSk of corruption m government depends on the nature of the office and its activity
and the character of the person holdmg that office. An office having more discretion and
more publ c tnlerace ts more vulnerable to corruption than an office in which there are
no discretonary powers. This 1mpties that it may be possible to classify various positions
148
U & RAVI
ernment as 'high risk of eori\Jpr , .
ill To illustrate, the Post of a medium risk of cori\Jption' and 'low risk of
corrukPost could be classified as a 011icer or an inspector at a border
llec . t . 'I . nsk POSttio , h
c enqutry coun er IS a ow nsk POsitio . n w ereas the position of an olticia\ atan n.
I
rly indtvtdual g. overnmen\ serva t
rnr a ' . . n s vary i th .
St who tndulge 1n outnght extortion t n etr level of mtegrity ranging from
tllose o those Who ' . .
gement system to prevent corruption h are absolutely upnght. A rtsk
personnel' should hold 'high risk
I people and
f the C
ommon man and have 1nvo\ved a grea
needs o
mobilizing them. the criticality ol educating
f
.
1
oc ety groups underscore e
The successful initiatives o CIVI s . I . . \ion \hough such im\latives. .
le and raising their awareness In hghtmg corrup .. onment whereby the Cltlz.ens
peop nt can create an enw res to
from the society' the . 't !torts to root out corruption. Some measu
groups can effectively partiCipate m I s e
facilitate this could be: ment programmes:
to oversee govern
(i) inviting civil societieS .
. . t'ng service standards,
(ii) establishing and dlssemma I . .
. laints mechamsms,
(iii) establishing credible comp . t. on institutions. judiciary nd \aw
. in antlcorrup I I \s,
ng public confidence s to improve trust eve
(iv) assossl d . designing programme
onforcemont an In
. ss to information;
(
v) enforcmg acce
155
VAJIRAM & RAVl
of corruption and to Instil moral commitment
(vi) educating society on the events
to integrity: . d.
. nment activitieS where au 1ences gather
(vii) using public hearings audit and residents provide their own
to hear details of public work sc
perception; . .
. t ector sponsored public educat1on and
(viii)imtlating government or pnvha ed.s newspapers and the television;
awareness campaigns throug ra IO,
nd ublic hearings at the national and local
(ix) holding integrity. problems and suggest changes involving
levels at regular mterva s
all participants;
(x) surveying and assessing public service delivery periodically;
(xi) surveying corruption perceptions in general or specific sectors of government
functioning;
(xii) incorporating corruption as a subject in the education curriculum; and
(xiii)selting up websites on corruption - containing facilitating
dialogue and feedback from citizens, associating former public servants in
lobbying against corruption.
Citizens' Charters make a'dministration both
accountable and citrzen-friend/y. A few years
back, almost every government department and
orgamsatton launched its Citizens' Charter. The
Charter is an undertaking a public service
orgamzat1on gives to the citizens, to provide a
hrgh level of servrce while meeting the standards
contained in the declaration.
Over time m a large number of offices Citizens'
Charters have fallen into disuse. The promises
made in the charters have become pious
declarations with no mechanism to enforce them.
The Citizens' Charter should contain specific
Action Needed
a. Citizens' Charters should be
made effective by stipulating the
service levels and also the remedy
if these service levels are not met.
b. Citizens may be involved in the
assessment and maintenance of
ethics in important government
institutions and offices:
c. Reward schemes should be
introduced to lncentivise citizens'
initiatives.
d. School awareness programmes
should be introduced, highlighting
the importance of ethics and how
corruption can be combated.
prov1srons and set out specific obligations for the
pabl:c serv1ces, the time within which the
department would be obliged to provide a
or to respond to a query or complaint. In order to
make tnese charters effective tools for holding public servants accountable, the charters
should dearly spell out the remedy/penalty/compensation in case there is a default in
the standards spelt out in the charter. It would be better to have a few promises
which can be kept rather than a long list of lofty declarations which are impractical.
156
..... --- ---VAJl RAM & RAVI
ctizens may be involved in the asse llilliilliiiifl
offices and institutions with
Withouttn&J
lntervontion of superiors. Civil servants are responsible for their action.'" the vertical
horizontal dlroctions. They are obliged to inform others about tasks and their
actions.
Relatively closed civil service careers
In Finland, It is very rare for someone from outside the administration to be appointed
the higher posts within it, even though there is not a closed career system. Finland d to
not have any elite educational establishment for the production of future high
civil servants along the lines of France's Ecole Nationale d' Administration, the ENA
does Finland have very hierarchical administrative structures as in some southe or
European countries. rn
166
........ ----- & RAVI ______ _
CHAPTER-s
MODEL CODE OF ETH
\CS AND \NTEGR\TY
1h
e major sub-heads covered under lh .
I . e topic 'Mod 1 C .
outlined be ow e ode ot Eth1cs and Integrity' are
1. Introduction
2. Principles And Values Gave .
rmng The Public Service
3. Rights And Responsibilities
4. Conclusion
A brief description of the above has been laid th .
In e forthcommg paragraphs.
INTRODUCTION
The Government of India regard ethics and moral principles as essential foundations of
good and the public service is an integral arm of government. Th1s Code of
Ethics is to all workers who serve the public. Public servants
make up a major part of the lndtan workforce and they must be relied on to ensure that
government operates in an efficient and effective manner lor the benefit of the country.
The Code is intended to provide a framework lor their behaviour. Conscientious public
servants already adhere to many of these guidelines so what the Code does is to
formalise and articulate the expectations of the people and the purpose of the service.
The Code of Ethics establishes a set of principles and values which will enable public
serYants to deliver excellent service with the highest standard of courte5y, honesty,
integrity, objectivity and impartiality and with due regard to the best value for money. The
Code applies to all categories of public servants; it complements and is complemented
by existing rules and regulations. including General Orders, which establish standards ol
conduct in the public service.
A strength of the Code lies in the fact that it resulted from a consultative and
incorporates the views and recommendations of public servants of all grades
representatives of their Association. Additionally. the process elicited ideas ot
of all sides, opinion leaders and the citizenry in general. The Code can nghtl-y be satd \o
enjoy national endorsement.
. th Code but they are concerned that the r
Public servants are prepared to subscnbe to e .
. . . . t that are conduciVe to exce\lent serv
employers provide the facthttes and envtronmen
1
albeit of
8
spec1a\ k nd
T . . f ent as public servants a so,
hey regard M1ntsters o governm . d ct and integnty in thetr Th y e
and expect them to be exemplars of be respected and prot t d A
also concerned that their own rights as tndtvtdua ""
167
------- VAJIRAM & HAYI --------
. fleets these Issues. What Is really envisioned Is a culture .of PUblic
sectton of the coc:o re h hghest ethical principles, integrity and professtonalisrn
service charactortsod e;pect loaders with or without a
their office with acceptable standards of fairness, honesty
and rospoct for mdivtdual autonomy.
Tho Umtod Kingdom Committee on Standards in Public. Life has enunciated
Prmctplos of Public Sorvtce which expectations ?.f the conduct of sen1or
public sorvanls _ so/f/essness, integnty, obJeCtiVIty, accountability, openness,
d leadership. These enjoy near universal acceptance and form a fundamental eth1ca1
tor both appointed and elected officials. This Code of Ethics which is
published to underpin the conduct of Montserrat's public reflec.ts these bedrock
prmclples and 1s a guide to professional, humane and democratiC behav1our.
PRINCIPLES AND VALUES GOVERNING THE PUBLIC SERVICE
1. Honesty and Integrity
Public servants must.
(a) Conduct the business of Government honestly and responsibly.
(b) Attend work on time when scheduled, seekmg leave only when necessary
and rn accordance with General Orders.
(c) Use resources including time and internet facilities only for the authorised
public purposes for which they are provided.
(d) Be courteous and respectful while serving the public
(e) Administer public money judiciously and efficiently with a view to obtaining
best value for money and in accordance with Financial Orders.
(f) Resolve any conflict that arises between private interests and official duties
in favour of the public interest.
(g) Not receive presents from any person In the form of money, entertainment or
any service that may be regarded as geared to compromising their integrity.
(G1fts that are of minimal value, infrequent and within the normal custom of
courtesy and appreciation are permissible; and where there is doubt gifts
may be rece1ved and a record kept within the department).
(h) Not solicit or accept bribes from a person whom they are serving or intend to
serve.
(i) Present the facts and relevant issues truthfully when discussing or reporting
on a matter and not seek to mislead Ministers, other members of the
Legtslatwe Council. colleagues and the public in general.
168
# & VAJIRA.M. & RAVl
0) Abide by laws, regulations
their duties. and established proced .
ures when discharging
Accountability and Trans
z. Parency
. servants must:
publiC
(a) Exercise prudence m the use of .
PUblic funds resource d .1. .
)
Not engage in unowc
1
. . . ' san u\1 1t1es.
(b . . . . I Ia actiVIties or pro . . .
such act1V1t1es Within olfice premise dunng ot11ctal hours, or conduct
s or usmg public property.
(c) Be open and transparent when se .
rvmg the public.
(d) Use established criteria in ap oin .
ensure that they do not grant P
1
promotions and dismissals and
friends. pre erentla\ treatment or assiS\ance to family or
3
. Impartiality and Obiectivity
public servants must:
(a) Give courteous and efficient service to all members ol the public regardless
of colour, creed, gender, age, race or status.
(b) Not discriminate against customers including public ofticers in the execution
of their duties.
(c) Give honest, timely and impartial advice to Ministers ol Government and
other members of the Legislative Council.
(d) Be loyal to the government of the day and be politically neutral in their day-
to-day functions.
(e) Comply with the guidelines which have been laid down on political activities
in General Orders or any other official document.
(f) Not use their influence to further personal and other ends which are not part
of government policy, in the course of their duty.
4. Professionalism
Public servants must:
k
.ll d competences necessary tor the
(a) Seek to acquire the knowledge, s I s an
efficient discharge of their duties.
. . I Codes ot Conduct, it \hey aro
(b) Adhere to their respective s doctors lawyers, phann c.s\s
members of professional bodieS sue a ,
airport-workers, media workers.
. de and monitor their per1ormance.
(c) Set targets by wh1ch to gUI
169
VAJJRAM & RAVI
. machinery of government and the Wa .
. . themselves With the Y tt (d) Fam/11anse
functions. rt'cal affiliations in the
(e) Not be influence Y d b soc1al and po
1 1
""' 01
thoir dut1os. . b th h
d dignrty and o serve err ng ts und (f) Troat all customers with respect an er
the constilution.
able directions from persons of legitirnat
{g) Comply with lawful reason that brings credit to their position
authority and behave rn a way .
1 enhances the reputation of the publiC serv ce.
(h) Ensure that what they wrrte an . d say is positive, truthful and constructive in
content and tone.
5. Pursuit of Excellence
Public servants must:
(a) Strive to achieve the highest standard of performance.
(b) Use their time, skills and expertise to attain the approved goals of the
department.
(c) Strive to acquire new knowledge and skills continuously and use thern
effectively.
(d) Recogmse the need for training and seek to obtain it.
(e) Be models and exemplars of the principles and values embodied in the
Code. at the management level.
(f) Encourage and recognise creativity and initiative among subordinates in the
performance of their duties.
6. Confidentiality
Public servants must:
(a) Not disclose, in any form, official information or documents acquired in the
execution of their duties unless under proper authority or required by law to
do so.
{b) Be conftdential in all matters relating to secret and classified information
during and after their term of office in the public service.
(c) Not seek to influence or frustrate the policies, decisions or actions of
government by the unauthorised, improper or premature disclosure of any
information to which they have had access as public officers.
(d) Be 111Jsted to respect the legitimate confidences ot Ministers and colleagues.
170
.......... ----- VAJlRAM & RAVI ------
Deportment and Behaviour
. servants must:
publiC
(a} Maintain good personal hygie
accordance with acceptabl ne and dress 10 respectable attire in
Establishment C1rculars. e norms
01
the public service as stipulated in
(b) Not embarrass colleagues or m be
and behavrour. em rs ol the public by their dress, speech
(c) Not smoke where it is likely to inconvenience others and at any rate not in
the workplace.
(d) Not in activities such as gambling, drinking alcohol and substance
abuse rn such a way as to make them liable to judicial action, affect their
performance on the job, or cause a hazard to themselves or to others, and
certainly not in the workplace.
(e) Not commit rape, sexual battery and molestation or any sexual assault.
(f) Avoid contact which may be regarded as sexual harassment including:
(i) pressure for sexual activity or sexual favour with a fellow employee;
(ii) intentional physical contact which is sexual in nature such as unwelcome
touching, pinching, patting and grabbing;
(iii) sexually suggestive speech and sending e-mails with sexual tone and
content.
RIGHTS AND RESPONSIBILITIES
(a) Management must:
. h th ecessary resources and (
i) endeavour to provide public servants wtt e n . . the public
rt rm at their maxtmum m facilities to enable them .to pe o
service.
a sate working environment as far as (ii) provide public servants with
(iii)
(iv)
possible. ub\lc servants.
give honest and timely feedback on the pertorman::f ppublc seNant"s
. I system which mcludes
effect . his/her performance.
participatiOn In assessmg . . . mmodate the phys caUy
. te access and tacthttes to acco
(v) provide appropna .
challenged at public off,ces.
171
-------- VAJ I RAM ,fit .....
lst ubltc servants with their preparation
1
(b) Management should ass . P and training as necessary. or
rotiremont with appropnato onon
f Admimsrrallon in collaboration with Department Head
(c) Tho Departmtohnatt oall public servants rocoivo a copy of the Code and sign :
must onsuro ..
reco1pt.
Public servants have the right to. (d)
(I) association whether by representat1on of Unions or Staff Associations.
(il) tho expectation of a government which integrity and ensures
that they are treated justly and accorded pnvlleges commensurate Wit!]
their position.
(Iii) seek legal counsel if they fee/they have been unjustly treated.
(iv) seek opportunities tor personal and professional development.
(e) Public se:vants have the fundamental right to . with any
religious, civil or political group, but should not engage m polttrcal advocacy
m public offices.
(f) Public servants who become aware of actions by their colleagues Which
they believe conflict with the Code should counsel them in an effort to
secure conformity, failing which they should refer the matter to their line
manager and thereafter seek advice if necessary from Permanent
Secretary, Human Resource Management.
(g) If the matter (a to f) is not perceived to be adequately and expeditiously
dealt with, it should be reported to the Chief Establishment Officer using the
correct channels.
CONCLUSION
basic aim of the Code of Ethics is to facilitate efficient, effective and courteous
deltvery of services to the public. All public servants are therefore expected to observe it
as part of their contractual relationship with the Government of India. The consultative
out of which the Code emanated should help to ensure wide-spread
commttment to the standards of behaviour and values on which it is based. Failure to
comply can be a ground for discipline in accordance with procedures laid down in
General Orders Public Service Regulations.
172
# z & RAVt -------
CHAPTER -9
ACCOUNTABlllTy ANO
ETHtCAL GOVERNANCE
m
a
1
0 r sub-heads covered Under t" .
rne I "e top,c . Ace ..
utlined be ow- ountab,hty and Ethical Governance
8re o
1 Accountability Of Public Serv
ants
2. Fitness Bar
3. Ways To Promote Accountability To ct
11zens
4. Major Recommendations
A
brief description ot the above has been laid in th
1
... .
e ort"commg paragraphs.
ACCOUNT ABILITY OF PUBLIC SERVAMTS
In most countries, public otficials exercise varying degrees ot po d' h th
. . . . wer 1n 1sc argmg e1r
functions and responsibilities based on the authority vested in them To ensure that there
is proper and responsible use of this power and authority, all countries have
developed and procedures of checks and balances. They have also put in place
incentive mechamsms to reward good performance. These systems and procedures can
broadly be termed as mechanisms that promote accountability.
In all democratic countries, civil servants are accountable both to the political executive
and to citizens for ensuring responsive, transparent and honest policy implementation
and service delivery. But ensuring accountability ior pertormance is not a simple tasl<. m
government service; there are immense complexities involved in mal<.ing public
answerable for outputs and outcomes. Setting pertormance targets ana \he1r
measurement is easier in respect of service delivery agencies particularly when
service provided is tangible and thus an easily measured unit but tor many public
organizations where the output is policy related and therefore, not very. concrete,
assessment of performance becomes much more complicated. \he d1tiUS10n ot
responsibility and authority across different levels in Government and the lack of
between authority and accountability also lead to a system where plausible
non-performance abound, particularly for activities that cut across departmental diVIding
lines or across different functional divisions within departments.
. b adly categonzed as those \hal aro
The accountability mechanisms 10 any country are ro ot
. d Accountability ot the executNO arm
located within the State and those e. unt IS
01
course the tundamen\a\
government to Parliament and to the of the in a democmcy lS through
feature of a democracy. The llnal oi ace nt tor pumshtng and rew rd ng \
the medium of periodic elections whtch ts an tnstrume
173
-------VA.JJRAM & nAVI ------... --
Govommont of mo day. and thOretoro, serves as an ultrmato instrument Of
ilCCOUiltOblhty
An mdopondont Juc1/CillrY omb0c1ros the conslltUtlonal doctrine of soparat1on of P<>w
and 1S nnothor ,mportnnt clement m the system of checks and balances that ox1sts '" or,
domocru11c country In lndm, conshtutional and sl<l tutory bodios such as the office
01
Comptroller & Auc1tor Conoral, tho Electon Commtssion, and the Central Vtgtlan e
Commtss1on (CVC) arc ox:Jmplos of other ovorsiqht mochantsms that aro autonom eo
bur llo wilhin lho flnmowork of rho State. Analysts havo categorized those
mc>chanlsms Into ''horizontal'' accountabtlily mochantsms whtch refer to those loc :tty
within th('t Slato 11S ngoinsr vortte<ll' accountability mechanisms wh1ch are those outaed
tho SUl lO flt1d lncludO t/10 rtlOdiO, CIVIl SOCIOIY and CIIIZOnS. Side
Tho fo/lowmq shows tho carogorllation of such accountability mechanisms in India.
J f1l-!h elL. II\ C'IH: '
1)\\ to
\\ ithin \ t.lh.' (l f111 iwnt.lO
fl.u li.amcm
J uJ h.IU\'
I nk \uLu
( \l,
(\'(
I. lpuni hmcnts
, procedure\
'. ... \ l:nwcmcnl S
r \)rem
1"'1 1'-..: l ,
lmcrn.tl . \ uJ1;
.111\.C R . lr r \ 1 L
The Sixth Central Pa C . . .. u '
. Y ommJssron observed as folio .
The mstitutional structures of to d ws.
have proved inadequate for isolated managerial efforts
174 ance I.e. delivery of results and outcomes.
.....,....,. ... ----VAJlRAM &
Jill"""" RAVI
5
0
ver-rehance on 'command' Iiiii
1 lllOdels
ns and service users are stakeh o, adrninist r
Cil zc ecc.IS to bC 'nshtuhonahzed . elders and part,cra we eltort lor service delivery "
1e n 10 the d 1pants n t .
ro heir
1
nst1tutional 1ntograllon
1010
th a llllnistrative stru t
0
IUS\ customers'. l'his
1Jf1d; cooperative model' ol deCISIOn and hnKed to the specitic
on ,,ccs become habitS and routmes lon and can be based
pta' subsututcd With alternate tns\ltutoaM have to be norms and
and rt. nt also for determtn
1
ng th nahzed pract1ces ih Y analyzed, contronted
developed and adopted.
01
Pertorm.;.,. ol puq>Ose ls
{ t k h ld rnportance ol ncentwe Scheme
monitonnQ to sa e o er-clbzen partictpa\lon a a systems shill trom top down
checkS tS cnttcal for better public servtce dehve;d coproduc\lon with transparency and
Fli NESS BAR
ihe public perception today is that governm t
,nd concerns of citizens and the system den servants are unresponsive to the needs
.... oes not address tn
mechanisms to ensure accountability, integrit and . IS because the
appear to be adequate. The common
years, should be discontinued. A provision regarding this should be made in the
roposed Civil Services Law. Besides, for new appointments it should be.
p ided that the period of employment shall be tor 20 years. Further contmuance m
service would depend upon the outcome of the intensive pertormance
reviews.
177
-------VAJJRAM & RAVI
CHAPTER - 10
ETHICS IN INTERNATIONAL RELATIONS AND FUNDING
. 'Accountability and Ethical Governance
The maJOr sub-hoads covered under the toprc
are outlined below-
1. Introduction
2. Ethical Problems
3. Applied Moral Standards
4. Morality In World Politics
5. Conclusiof)
A brief description of the above has been laid in the forthcoming paragraphs.
INTRODUCTION
In mternational relations nation-states often have to decide on foreign aid or, in times of
a crisis, try to justify strikes that could harm innocent people. The of this .essay
is to discuss these two issues and to state the present opinion on morality and fa1rness
in world politics.
ETHICAL PROBLEMS
Morality and Foreign Aid
Despite the agreement that there is a gap between the standards of living in developed
and Third World countries, it depends on the particular method of interpretation whether
this gap is increasing or decreasing. By just looking at mostly monetary and economic
criteria, it seems like the poor countries are falling farther behind the developed ones;
the present document, however, shares the views of Rosenberg, Birdzell, and officials of
the United Nations Development Programme that this is a one-sided and thus somewhat
deceptive argument. The Human Development Index takes into account other variables
like life expectancy and education and seems to be more credible. This index indeed
shows a closing of the gap. The efforts most governments of developed countries make
therefore seem to be effective if not even sufficient.
Without doubt, there is a limited obligation of rich states to help poor countries. It should
be made certam, though, that the help is aimed at turning the receiving state into a
stable democracy having an improving economy. Short-term foreign aid like food might
be necessary m certam crises; in the long run, though, it may often even be harmful and
drtve the state further 1nto dependence.
178
............. - .. --- VAJlRAM & "RAV
.. \ ................ ...
l
eved that the main reason
1
. be I d or sucn a b .
It IS ent ol the eveloped COuntry n o ligation though should be the
rnitrfl d S govemme t t . , ,
corn y in a well-run emocracy usually e n its own subiects. A !lowering
(IOrfl I h . r presents a goOd .
rnlng out o t e semi-dependence man . partner, especially it
It 1S co ent to improve the standard ot livi Yt countnes lace. It is the duty ot a
economic interdependence, and peopl.e; increasing trade
tostenn.9 goal. e Y lmprovmg 1ts own economy ought to
be a pnmary
ollary, it becomes apparent that .
p..s a le for matters inside its own b a government is principally
lations it should n \ h orders; m the mostly anarchic system ot
r'lternatlonal re d t' fo . .d
0
ave any further obligations. It is the present view, 1
ough. that mo. era e a
1
on the order ol what is done today, tor the reasons
th d above, Will always tmprove the donor country's situation as well
state
Ethics of High Casualties
very similar way the same approach yields an answer to the question whether the
In ar ation of a force that could result in a large number ol innocent victims can be
d Since it is a government's obligation to protect
usute . .
bjects and improve the1r standard of living, it has As a result, one comes to the
ttS suk actions that minimize negative ettects on its conclusion that the u.se ot a
to ta e rmes of a crisis like war it may be Ioree that would kll large
itizens. In
1
. ' . '. . numbers ot people
ible to avo1d that such act10ns tnfhct heavy can only be justihed by a
tmposs s on another nation-state, including killing nation-state 11 1t 1s to
damage h h its own people I rom suttenng a
humans in the other nation t at may not ave . .
1
tt _._ 'The threat has
manY . r Simi ar a a""'
n directly involved tn the conf tct. to be imminent and
bee . overwhelming. Both an action
. htfully elected democratiC government that too weak or too strong would
A ng 'ts people has to carefully weigh the lead to a sub-optimal outcome
represents f' d against such measures, taking into tor the nation-state. 'The moral
guments or an ustilication ot such a measure
ar t both the short-term and the long-term efiects, lean then be derived !rom its
he may be very different from each other:. An protective nature .
Since t y 'I drastic strike, tor example, might
unnecessan Y 'k t al resources
P
romise immediate advantages h e na . the long run however. it may result In
b
lt 'thin the aggressor, m ' t es
or political sta I I y WI . ., that by tar outweigh the advan ag .
sanctions by the international commum Y
MORAL
STANDARDS 1 tol\ow \he
APPLIED . d'scussed above strong Y
lied to the Issues I .
The moral standards app t t deontological theones.
. . m in contras
0
. dent\y ot ns
philosophy of utthtanants , be assessed tndepen
. t the morality of an act can d Utilitananism, on the o\h r
Deontologists behave tha 'ther inherently good or ba . n thetr rcsu\ts nd th l
consequences, i.e. they a.re el are to be judged dependtng o
hand states that the actions
1
as such have no moral va ue. 179
YAJ JRAM & RAVI
. . 'sm in stating that neither foreign aid nor
se of utrlitarram . . lis
The present opinion makes u bad In Itself. In the case, WISely organ e
of a force of mass destruction Is good or mies of both countries, while ill
. ove the econo d o
fore
1
gn atd may help 1mpr ntry or even both. In the secon case, a rnas . r
. h m the needy cou 'ff . Sve
excessive a1d may ar . , own citizens while sacn c.ng another's, th
attack a :trike, on the other hand, internatio Us,
making 11 JUstifiable, a not JUStrfl . net impairment of its own Situation.
sanctions upon the aggressor, causmg a . . ..
. f the people that is of moral S1Qn1f1cance. In lh
In the end, it is only wellb,.emgl
0
relations, it Is a nation state's government th e
anarchic system of 1nterna lona t' at
. fter its interesis; therefore, the governmen s pnmary cancer
own people. In a conflict, this gives the government the
I th ell being of its own subjects over that of others and take th and duty to va ue e w - .
11
d h e
necessary actions, knowing that the opposing government WJ o t e same for its
people.
MORALITY IN WORLD POLITICS
Morality and fairness should certainly play a role in world politics. In t.he situation,
I all humans should be treated equally, i.e. they should have the same nghts of life, liberty,
/ and the pursuit of happiness. As far as this is possible, this should be using
international law; however, due to the d1vers1ty of human cultures and ways of life, those
laws ohen have to be limited to a basic set of rules that is shared by all societies. In
addition to this lack of uniformity, the international system is anarchic, and there is no
government that could rightly make, apply, and enforce international law. As a
consequence, international law can only be made if nation-states volunteer to abide by it.
Natton-states agree to do so only if it is in their own interests, and as long as they are
1
constdered sovereign, this will not change. National sovereignty, although it might
prevent the application of international law, is not a bad concept, though: Due to the
inhomogeneous nature of human cultures, a local government is more apt to understand
the customs and values of i ts people, resulting in differing but more suitable laws. A
world government that replaces sovereign states and that is able to implement
international law might be forced to make invalid generalizations.
CONCLUSION
certam/y should be morality and fairness in international politics. It is the general
that th:s fa1rness actually exists to a certain degree; it is, however, a result of
ndiYidua/ natJOn-states in an anarchic system, each caring for its own people.
180
# VAJittAl\1 & RAVI ------
CHAPTER _
11
CORPORATE. GOVERNANCE.
aj'or sub-heads covered under the t .
"'he 1'11 P
1
C Accountab'l'
' tlined below- 1 1lY and Ethical Governance' are ou
1
. Introduction
2
. Evolution Of Corporate Governance Ret
Perspective orms In India: A Chronological
3. Codifying Good Governance Norms
4. Various Rote In Reform Process
5. Literature Review
6. Corporate Governance In India- From Policies To Reality
7. Regulatory Framework For Corporate Governance In India And Challenges
In Enforcement
a. Enforcement Of Corporate Governance Norms
9. Key Issues In Corporate Governance In India
1 o. Companies Bill, 201 1 And Its Impact On Corporate Governance In India
11. Need For Robust Research To Guide Future Policy Initiatives
A brief description of the above has been laid in the forthcoming paragraphs.
INTRODUCTION
Corporate governance refers to the set of systems, principles and processes by which b a
company is governed. They provide the guidelines as :o :he
directed or cont rolled such that it fulfilbits