1. +
Corruption and Lokpal
Nishant Priyadarshi
Co-Founder & Director
VistaMind

2. +
Corruption
 Misuse of official position for personal gain
 Types of Corruption
 Toll Tax
 Government services and benefits
 Example: Approvals, Pensions, Welfare benefits
 Protection from Law
 Evasion of civil and criminal penalties
 Traffic violations, Tax fraud, Drug trafficking etc
 Undue benefits
 Special licenses, allocation of resources, contracts etc
 Jobs
 Diversion of welfare benefits
 Subsidies and government schemes
 Development and infrastructure work

3. +
Politician Bureaucrat Nexus
 Political parties
 Massive fund requirements
 Cadre, Infrastructure and Events
 Election campaigning expenses
 Donations – Non transparent

4. +
Politician Bureaucrat Nexus
 Bureaucrats
 Have realized the financial impact of their powers
 Active partners in Political corruption
 Thorough knowledge of policies and rules
 Relatively underpaid
 Advance premium – Selections and postings

5. +
Laws and Policies
 Over regulated country
 Too many laws
 Complex and Often ambiguous
 Left open for Bureaucratic interpretation
 Review of Administrative laws
 Recommended repeal of 1382 out of 2500 laws
 Only 33 laws repealed so far
 Old and outdated
 Police Act 1861
 National Police commission model act 1981

6. +
Laws and Policies
 Telecom Industry is governed by
 Indian Telegraph act 1885
 Indian wireless telegraphy act 1938
 Labor Law
 55 Central laws and 100 State labor laws
 Workmen’s Compensation act 1923
 Trade Unions act 1926

7. +
Discretionary Power
 Unduly favor a particular person/Entity
 Vaguely defined – “In public interest”
 No accountability
 No time frame on decision making
 Protection/Immunity from prosecution
 No Compensation to affected parties
 Acts of omission/commission

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Opportunities for Corruption
 Want to set up a Mfg Unit
 Need 48 Licenses/Permits/Clearances
 48 opportunities for corruption
 No specified time frame for these Licenses
 Index of Economic Freedom
 India ranked 119 Between Malawi and Nigeria
 173/185 Ease of starting a business (World Bank)

9. +
No Executive Independence
 Political control of bureaucracy
 Appointments and transfers
 Appraisals & Promotions
 Interference in all aspects of Administration
 Recruitment and postings
 Implementation of laws
 Allocation of contracts etc

10. +
Scale of Corruption
 Transparency International 2012
 72 out of 180 countries
 Perception is bad for Foreign Trade & Investment
 Areas of Max corruption
 Government Procurement – Defense, etc
 Allocation of Natural resources
 Implementation of Welfare Schemes
 Police and Justice system

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Bureaucrat’s Dilemma
 No Reward for honesty and Diligence
 Transfers to insignificant postings
 Denial of promotions to Senior positions
 No punishment for corruption
 Very few have been convicted so far
 Sanction for prosecution shields the corrupt
 Central government sitting on 236 requests
 Over 66% pending for over 3 months
 Appeals and Stay orders add further delay

12. +
Big carrot & Invisible stick
 Central Vigilance Commission
 13061 cases given departmental penalties (94%)
 846 Cases given sanction for prosecution
 4895 cases of Major penalties
 Dismissal, loss of rank, reduction in pension
 Minor punishments for rest of them
 Censure, Transfers etc
 Slow Judiciary
 50% of CBI cases pending for > 5 Years
 23% pending for > 10 Years

13. +
A sense of despair
 Endemic Corruption
 A resigned acceptance
 Belief that corruption cannot be ended
 Highest level to petty corruption
 Middle class distrust of politics
 Apathy on voting day
 Discouraged from entering political fray
 Believes all Parties and all politicians to be corrupt

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What can be done?
 It is fight worth fighting and can be won
 Revamp laws to reduce ambiguity
 Simple laws creating a level playing field
 No Discretionary power
 Simplify complex procedures, scrap inessential
 Create bureaucratic accountability
 Targets, Incentives and punishments
 Clear Time frames for procedures
 Penalties for non performance
 Reduce government interface
 Automate processes, take online

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Administrative Reforms
 Free Executive from Legislature
 Time bound tenure, no arbitrary transfers
 Close down/downgrade punishment posts
 Ministers limited to policy making and review
 Police reforms - Accountability
 Low conviction rates, False cases & Wrongful arrests, neglect of
duty, etc
 To be investigated by a independent special police
 Reporting to judiciary

16. +
Reform Judicial system
 Independence for CBI/CVC and Lokpal
 Set up special anti corruption fast track courts
 Target higher Conviction rates
 Target black money
 Provide whistle blower protection
 Reward people who expose corruption
 Witness protection program

17. +
Lokpal
 Is no magic bullet
 Part of a comprehensive solution
 An Ombudsman for complaints of corruption
 Independence from Politicians/Executive
 Appointment, supervision and removal
 Specific to government corruption
 Should not extend to Pvt sector, NGO’s
 Powers to investigate and prosecute
 Cases tried in special courts

18. +
Lokpal
 Pending since 1968
 Bill Introduced 8 earlier times
 Jan Lokpal
 Inspired by ICAC Hong Kong
 Drafted by IAC through public consultations
 Public agitation led by Anna Hazare
 All powerful body with concentrated powers
 Legislature, Executive and Judiciary under ambit

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Key Differences
 Immunity for PM
 Prosecution after PM demits office
 Exclusion of Judiciary
 To be covered under Judicial Accountability bill
 Exclusion of MPs for acts inside parliament
 To be dealt with by the speaker
 Exclusion of lower bureaucracy
 Only Senior officers included

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Key Differences
 Exclusion of NGO’s
 Included in government bill
 Protection of whistleblowers
 Under separate bill
 Bringing CBI and CVC under Lokpal
 CBI reports to Lokpal on corruption cases
 No independent investigative/prosecutor powers

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Key Differences
 Appointment & Removal of Lokpal
 Government controls 3/5
 PM, Speaker, Presidents Nominee
 Leader of Opposition and CJI or nominee
 Jan Lokpal proposes CVC, CEC, CAG etc
 7 member search committee Govt controlled
 Government can suspend, move Supreme court for removal

22. +
Key Differences
 Dismissal of public servant
 Decision taking by Minister
 Advise of Lokpal not binding
 Lok Ayuktas
 To be set up by the states
 Other Points
 Old cases kept out of Lokpal purview
 Prosecution controlled by Government

23. +
Success of ICAC
(Independent Commission Against Corruption)
 Three pronged strategy
 Deterrence, prevention and education
 Enforcement Led
 Professional Staff
 Effective strategies for deterrence, prevention and education
 Adequate Law
 Review Mechanism

24. +
Success of ICAC…
 Equal emphasis on public and private sector corruption
 Partnership approach
 Top political will, independence and adequate resources

25. +
Thank You !!