Culture of graft

Systemic corruption is endemic and even the tip of the iceberg has not been addressed, laments a former revenue secretary to the government of India

M R Sivaraman Delhi

Corruption is as ancient as history. Even the Arthasastra talks of how to deal with corruption. It is there in every country without exception; only the degree to which it is prevalent may be more or less. Transparency International grades countries year after year. India, with its rich traditional and history, is usually placed at the bottom end.

Its latest rank for India is one amongst the last. It is indeed a shame for a country that boasts of a hoary past and is looking forward to a great future to be dubbed as one of the most corrupt nations of the world. Some economists have already started writing that corruption is an Indian cultural trait. It grips one’s heart to see the pictures of malnourished children of India’s impoverished hinterland, when politician’s progeny use Rs 500 notes to snort narcotics and yet get great publicity as national heroes. No one really questions how they got that kind of money.

In July 1993, Narasimha Rao, the then prime minister (PM) appointed a committee consisting of the revenue secretary, director of Intelligence Bureau (DIB), director Central Bureau of Investigation (CBI) and chaired by the home secretary to take stock of the activities of crime and mafia syndicates that were being protected by government functionaries and politicians. Based on the recommendations of the committee, the government was to set up a special agency to collect information and pursue cases against such syndicates. The report was submitted and the government appointed the same group as a monitoring unit with the cabinet secretary as chairman for sometime. The report did not mince words and categorically said that the nexus needed to be broken. At the same time it also pointed out the judiciary’s failure to punish the guilty. It suggested that the heads of important organisations should be chosen with great care for integrity and given sufficient tenure to do their jobs properly.

The only follow through of the report was tenures for some officers. Even large-scale evasions of taxes that have been detected are not pursued because of the clout of the industries involved and the reach of their liaison officers.

The finance minister deserves credit for publishing details of tax expenditure but would he also publish once a quarter the details of cases of tax evasion detected and the stage at which action was in progress in those cases? Some of these cases are pending for years. Should they not be expedited? There may be hundreds of un-served Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) warrants still pending in the enforcement directorate, direct beneficiaries of which are those who have to look for the accused. It is reported that many warrants are old and the persons who have to serve the warrants make hay. Why should not the government review all these cases, if necessary by a sitting Supreme Court (SC) judge, and withdraw those that have no relevance in the present day circumstances. One source of corruption could be plugged and the present finance minister has the courage to do so but someone should bring this to his notice.