The irony of India- Spiritual orientation, corrupt disposition

Transparency International has rated India as the 80 least corrupt nations out of 180 countries (also called as Corruption Perception Index) for the year 2019. With a score of 41, India is at the 80th spot. The rank is also shared by China, Benin, Ghana and Morocco. 

Corruption is present in Indian society from time immemorial. Indian history is replete with innumerable instances of people being bribed or influenced to turn into traitors. Several kings were dethroned; kingdoms were ruined and battles were lost due to the lure of money. Indian society has accepted corruption as a way of life and bribery as a shrewd strategy. Corruption in India is systemic and is well anchored.  The corruption monster has engulfed practically every activity and has become almost uncontrollable.

Corruption has taken many forms. For simple understanding it can be classified into three categories- political, corporate and individual.

Political corruption is where those in power swindle millions and billions in shady deals, involving massive kickbacks in public procurements and other deals.

Corporates misappropriate and divert the money raised through public financial institutions for personal gains, thereby bleeding the banking system to death.

Individual corruption is one where the people have to pay for the services to which they are entitled. Individual corruption is widely prevalent in most of the government establishments.  In several government establishments, the corruption extends up to the top and perfectly networked among various departments. This corruption takes several respectable names- speed money, cut money, service charge, incentive etc.

Often there is a link between political and corporate corruption, political corruption leading to corporate corruption.

Let us a take a quick look at the recent sensational political corruptions that shook the country:

1.      Bofors scandal was one of the India’s major political scandals that occurred in 1980’s. It was alleged that Bofors had paid Rs. 640 million in the form of kickbacks to Indian politicians and to some key defence officials;

2.      Common Wealth Games scandal involved a pilferage of about Rs. 70,000 crore;

3.      As per CAG,  in the Coalgate scam, the presumptive loss that occurred due to the irregular allocation of the coal blocks was to the tune of Rs. 1.84 lakh crore;

4.      According to CAG, in the alleged 2-G scam, the difference between the money collected and that mandated to be collected was Rs. 1.76 trillion.

Some of the corporates which were in the news for corporate frauds:

1.      Satyam Computers: In 2009, the Chairman of Satyam Computers, Ramalinga Raju confessed that he falsified and manipulated the company’s accounts to the extent of Rs. 70,0000 crore;

2.      It is alleged that Nirav Modi and his uncle Mehul Choksi, siphoned off over Rs. 13,500 crore with the connivance of Punjab National Bank officials between 2009 to 2017;

3.      Malvinder Singh and Shivinder Singh of Religare Finvest misappropriated to the tune of Rs. 2036crore;

4.      In 2017, liquor baron Vijay Mallya was accused of defrauding a consortium of lenders to the extent of Rs. 9000 crore;

5.      Bhushan Power and Steel, misused Rs. 3330 crore bank loans;

6.      DHFL , as per Enforcement Directorate, diverted Rs. 12,773 crore to 79 companies through I lakh fictitious retail customers;

7.      HDIL promoters are accused of defrauding PMC Bank to the tune of Rs. 6700 crore, in connivance with the bank employees;

8.      Due to the mismanagement under Naresh Goyal, the Chairman of Jet Airways, which was once the second biggest airline after Air India, the accumulated losses of the company reached Rs. 13,000 crore and the company suspended its operations from 17 April, 2019;

9.      The Central Bureau of Investigation, named Chanda Kochar , former Managing Director and CEO of  ICICI Bank and her husband as beneficiaries in the financial fraud involving  Videocon Group; and

10.  Recently, Yes Bank founder Rana Kapoor is accused of receiving Rs. 600 crore as kick-backs from the scam hit Dewan Housing Financial Corporation Limited (DHFL) for loans worth Rs. 4450 crore granted by the bank.

As per RBI Report, Indian banking system detected Rs. 71,500 crore worth of frauds in the financial year 2018-19. Interestingly, over 90% of these loses were due to the government banks.

The above are just a few of the financial frauds committed in India both by the politicians and the corporates in the recent times. The list is endless and the actual figure could be astronomical and unfathomable to an ordinary citizen of this country. If the everyday individual corruption is added to this, it is certain that no other country in the world can match India, as far as corruption is concerned.  

Corruption is like cancer which establishes its strong hold quickly and spreads its tentacles wide and across the establishments, and finally penetrates in to the social fabric. Corruption is the consequence of unethical leadership, poor governance, lack of transparency, compromising and loose regulatory and legal frameworks with multiple loopholes. Corruption diverts money into the personal coffers of the greedy and the anti-national elements. The borrower is encouraged to siphon off the money for his / her, self aggrandizement. This lowers investment, impacts economic growth and increases the cost of social delivery systems. Corruption affects the poor, increases poverty, impacts development and makes the basic social services expensive and unaffordable.

According to 2011 Census of India, 99.76% of the Indians are identified with a religion, indicating that an overwhelming percentage of Indians followed one religion or the other. The irony is that all religions preach honesty, earning money through fair means and abhor any kind of illegal, unethical self gratification. There are many rich temples, mosques, churches and other religious places of worship, where unknown devotees make offerings in crore. Indians have made even the God corrupt and have entered into some sort of MOUs to share their loot with the God Almighty, so that their sins are pardoned and condoned.

Can India become corruption free?

There is no doubt that the rot is deep, wide and has spread everywhere. Still, upright individuals, ethical groups, honest and patriotic political leadership, committed and determined youth can bring in a change through a revolution in the country.

The million-dollar question now is, whether this will happen!!!

Dr. C K Sreedharan

www.sreedharanck.com,        sreedharanck.blogspot.com