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CHAPTER 1 - INTRODUCTION
Ethics refers to a collection of principles established
by society to guide behavior, decisions, and actions.
• Corruption is a significant indication of ethical failure. The term "corrupt" originates from the Latin word corruptus, which means "to break" or "to destroy."
• There are two opposing perspectives on addressing corruption and misuse of power.
• First Approach - Emphasizes character and values. Nothing much can be done to improve the probity in society unless the values are restored.
• Second Approach - A small portion of people in society tend to pursue personal gain at the cost of public good. If good behaviour is rewarded and deviant behaviour is punished, then ethics gets automatically restored.
• Values serve as guiding principles, much like stars, and for them to remain effective, they must be upheld by strong institutions. Holding public office and managing public funds create significant temptations for personal enrichment at the expense of the public. Thus, establishing institutions is crucial for ensuring ethical behavior among public officials.
• Corruption and misuse of authority are exacerbated by three key factors:
• The colonial legacy of unquestioned power,
leading to arbitrary decision-making.
• A significant imbalance of power in society, which weakens social pressure to adhere to ethical standards.
• Government policies emphasizing excessive state control, leaving citizens dependent on the state and fostering an environment conducive to widespread corruption.
• Corruption tends to rise in monopolistic and discretionary systems, whereas competition and transparency help in curbing it.
•
Excessive centralization further contributes to corruption. When power is distanced from the people, the gap between authority and accountability widens. A complex bureaucratic structure with multiple layers between the government and citizens weakens accountability.
Instruments of Accountability that Curb Corruption:
• Right to Information (RTI).
• Implementation of effective Citizens' Charters.
• Creating opportunities and incentives to encourage a proactive approach towards citizens.
• Active participation of stakeholders in public service delivery.
• Publicconsultation in thedecision-making process.
• Conducting social audits.
• Upholding the Rule of Law and imposing strict penalties for corruption are essential for fostering an ethically responsible society.
There are Two Types of Corruption:
• Compelled Corruption : In this form, individuals are forced to pay bribes to access services they are legally entitled to. Resisting such corruption may lead to delays, harassment, missed opportunities, wasted time and wages, and overall uncertainty.
• Collusive Corruption : This occurs when both the bribe giver and the corrupt official collaborate for mutual benefit, causing severe harm to society. Common instances of collusive corruption include:
• Granting contracts for public infrastructure projects.
• Procurement of goods and services.
• Recruitment of personnel.
• Tax evasion
• Substandard projects
• Adulteration of food and drugs
• Collusive violation of regulation
• Doctoring evidence in investigation
• As state controls mitigate, compelled corruption gives way to collusive corruption.
• Mandatory declaration of assets and educational qualifications by candidates when filing election nominations.
• Implementation of e-governance initiatives.
• Automation of administrative processes
susceptible to corruption.
• Enactment and enforcement of the Right to Information (RTI) Act.
• Establishment of Lokpal and Lokayuktas to investigate corruption cases.
Necessary Actions:
• Confiscation of benami properties and illegally acquired assets of corrupt public officials.
• Introduction of robust whistle-blower protection
laws.
• Strengthening institutional mechanisms for investigating corruption-related offenses.
• Imposing strict and exemplary punishments on those involved in corrupt activities.
• Encouragingethical businesspractices and
corporate integrity.
CHAPTER 2 - ETHICAL FRAMEWORK
• This chapter/Unit is divided into following topics: -
• Ethics and Politics
• Ethics in Public Life
• Ethical Framework for Ministers
• Ethical Framework for Legislators
• Ethical Framework for Judiciary
• Code of Ethics for Civil Servants
Ethics and Politics
• While high ethical standards were a key part of the freedom movement, several malpractices began affecting the country's political processes after power was transferred, including:
• Electoral malpractices and excessive manipulation in elections.
• Unregulated campaign financing.
• Use of illicit money in political activities.
• Escalating election expenditures.
• Flaws in electoral rolls.
• Voter impersonation.
•
Booth capturing.
• Electoral violence.
• Use of bribery and coercion to influence voters.
• Politicians switching parties after elections to gain power.
• Misuse of public office for personal or political gain.
• Criminalization of Politics
• The involvement of criminals in the electoral system has become a serious concern.
• Reasons Criminals Enter Politics:
• To influence criminal investigations in their favor.
• Toconvert law enfo rcemento fficersf rom opponents to allies.
• Why Political Parties Admit Criminals:
• Criminals possess financial resources and muscle power that help secure votes for political parties.
Recent Reforms in the Electoral System
• Enhancements in Electoral Roll Accuracy:
• Digitalization of electoral rolls.
• Simplified voter registration process.
• Introduction of photo-identity cards for all voters.
• Mandatory Disclosure of Candidate Background:
• Declaration of criminal convictions or pending cases.
• Disclosure of assets and liabilities of candidates and their family members.
• Steps to Ensure Fair Elections:
• Disqualificationof individuals convicted of criminal o ffenses.
• Strict enforcement of the Election Code of Conduct.
• Measures to ensure free and fair voting, such as:
• Strengthened law enforcement during elections.
• Nationwide use of Electronic Voting Machines
(EVMs).
• Preventing election cancellations due to the death of an independent candidate.
• Restriction on Government Size:
• Limiting the size of the Council of Ministers to 15% of the total strength of the Lower House.
Issues in Political Reforms
• Reforming Political Funding
• Recommendation: A system of partial state funding should be implemented to minimize the reliance on illegitimate and excessive financial contributions in election campaigns.
• Strengthening the Anti-Defection Law
• Recommendation: The authority to decide on the disqualification of legislators due to defection should rest with the President or Governor, based on the recommendation of the Election Commission.
• Disqualification
• Recommendation: - Disqualify all persons facing grave and heinous crime charges from representing the people in legislature.
• All False Declarations made before the Returning
Officer should be made an electoral offence.
• Coalition Ethics
• Recommendation: - If one or more parties in a coalition with a common programme, re-align midstream with one or more parties outside the coalition, then the members of that party shall have to seek afresh mandate from the electorate.
• Expediting Disposal of Election Petitions
• Recommendation: - Special Election Tribunals with a mandate to dispose of Election Petitions within a period of six months should be set up.
Ethics in Public Life
• All public functionaries are trustees of the people.
• The role of ethics in public life has many dimensions. At one end is the expression of high moral values and at the other, the specifics of action for which a public functionary can be held legally accountable.
• Any framework of ethical behaviour must include the following elements:
• Codifying ethical norms and practices.
• Disclosing personal interest to avoid conflict between public interest and personal gain.
• Creating a mechanism for enforcing the relevant codes.
• Providing norms for qualifying and disqualifying a public functionary from office.
• Seven Principles of Public Life laid down by Nolan Committee: -
• Selflessness - Holders of public office should take decisions solely in public interest.
• Integrity - Holders of public office should not place themselves under obligation to outsiders that could influence them in their duties.
• Objectivity - Choices be made on merit.
• Accountability - Be accountable to one’s decisions and actions.
• Openness - Be as open as possible in all decisions and actions.
•
Honesty - Take steps to resolve conflicts such that public interest is promoted.
• Leadership-Promote the above principles by example.
Ethical Framework for Ministers
• Code of Conduct prescribed by Government of India. A minister shall: -
• Disclose assets, liabilities and business interests of self and family members before taking oath and then annually. Sever connections with businesses in which s/ he had interest before taking oath of office.
• Refrain from buying from or selling to Government any immovable property.
• Report whenever any family member sets up business.
• Not accept contribution for any purpose, political, charitable or otherwise.
• Not raise funds except for the benefit of a registered society.
• Not accept valuable gifts except from close relatives.
• Accept award only from organisations whose credentials are unimpeachable and the cash part shall not be accepted. Even the awards for the work before assuming office can be accepted only with the specific approval of PM/ CM.
• Stay only in government accommodation during
official tour.
• Avoid attending lavish parties given in his/ her honour.
• Code of Conduct is more in the nature of prohibitions. There must be a Code of Ethics to provide guidance on how Ministers should uphold highest stands of constitutional and ethical conduct in the discharge of duties. Code of Ethics includes that a minister must: -
• Uphold the Principle of Collective Responsibility.
• Be accountable to parliament for his/ her actions and decisions.
• Ensure that there is no Conflict of Interest between private and public interest.
• Keep the roles of Minister and Public Representative separate.
• Notuse government resourcesfor private purposes.
• Uphold political impartiality of the civil servants.
• Ensure that public money is used with utmost economy and care.
• Recommendations:
• There should be a Code of Conduct in addition to code of ethics.
• Dedicated units to be set up at PMO/CMO to monitor the observance of code of conduct and code of ethics.
• PM/CM should be duty bound to ensure the observance of these codes by other ministers.
• An annual report about the observance of these codes by ministers needs to be submitted to appropriate legislature.
• Code of Ethics, Code of Conduct and the Annual Report should be in public domain.
Ethical Framework for Legislators
• Existing Code of Conduct for Members of Rajya Sabha. A Minister must
• Not do anything that brings disrepute to the
Parliament and affects their credibility.
• Place private interest subordinated to public interest
• Never expect or accept any remuneration for giving or not giving vote or introducing a bill in the Legislature.
• Not accept gifts which may interfere with honest and impartial discharge of official duties
• Not disclose confidential information that is acquired by him/her by virtue of being member of Parliament
• Not certify the credentials of any individual or institution of which they have no Personal knowledge.
• Respect all religions
• Not misuse official amenities.
• Register of Interests
• Legislators are required to periodically disclose all their financial and personal interests.
• Asset and Liability Declaration
• As per Section 75A of the Representation of People Act, 1951, every elected representative to Parliament or a State Legislature must submit a declaration of their assets and liabilities within 90 days of taking the oath. This information must be filed with the Chairman of the Council of States or Legislative Council, or the Speaker of the Lok Sabha or State Legislative Assembly, as applicable.
• Recommendations for Strengthening Ethical Oversight
• Each House of Parliament should establish an Office
of the Ethics Commissioner** to support the Ethics Committee in carrying out its responsibilities.
• Ethical Committees should be formed in every legislature.
• A Register of Interests should be maintained, requiring members of State Legislatures to declare their interests transparently.
Ethical Framework for the Judiciary
• Supreme Court has adopted a charter called the ‘Restatement of Values of Judicial Life’. It may be summarized as below:
• Do not contest the election to any office of a club,
society.
• Do not maintain association with any member of the Bar.
• Do not permit any family member to practice before him/her.
• Do not hear or decide any case in which a member of his family is concerned.
• Do not give interviews to media.
• Do not accept gifts except from family members, close relatives and friends.
• Do not speculate in shares
• Do not raise funds for any association
• Recommendations
• A National Judicial Council (NJC) should be established with the authority to formulate a code of conduct for judges, including those in the subordinate judiciary.
• The NJC should have the power to investigate allegations of judicial misconduct and impose minor penalties where necessary.
• A Supreme Court judge should be appointed as the Judicial Values Commissioner, responsible for ensuring adherence to the judicial code of conduct.
Seven Social Sins quoted by Mahatma Gandhi
• Politics without Principles
• Wealth without Work
• Leisure without Conscience
• Knowledge without Character
• Commerce without Morality
• Science without Humanity
• Worship without Sacrifice
CHAPTER 3 - LEGAL FRAMEWORK FOR FIGHTING CORRUPTION
• Recommendations for the Prevention of Corruption Act (PCA)
• The following acts should be recognized as offenses under the PCA:
• Deliberate subversion of the Constitution and democratic institutions, constituting a willful violation of the oath of office.
• Misuse of authority to unjustly benefit or harm an individual.
• Interference with the judicial process to obstruct justice.
• Mismanagement and wasteful expenditure of public funds.
• Collusive Bribery: Recommendations
• Collusive Bribery should be included as a separate offence under Prevention of Corruption Act. Collusive bribery means both bribe-giver and bribe-taker collude to cause extraordinary loss to public exchequer.
• The punishments be doubled for all such cases of
collusive bribery.
• Sanction for Prosecution: Recommendations
• Prior sanction should not be necessary for prosecuting a public servant who has been trapped red-handed or disproportionate assets to the known sources of income.
• PCA should be amended to ensure that sanctioning authority is not summoned and instead the documents can be obtained and produced before the courts by the appropriate authority.
• Presiding Officer of a House of Legislature should be designated as the sanctioning authority for MLAs and MPs respectively.
• The requirement of prior sanction for prosecution now applicable to serving public servants should also apply to retired public servants for acts performed while in service.
• Liability of Corrupt Public Servants to Pay Damages: Recommendation
• Public servants who cause loss to state or citizens by their acts should be made liable to make good the loss caused and in addition, be made liable for damages.
• Speeding Up Trials under PCA
• Causes for delay in the trial of cases under PCA
• Tendency of the accused to seek adjournments
on one plea or the other.
• Tendency of the accused to challenge every order of the trial court in high court and then in supreme court and seek stay on further proceedings.
•
In order to ensure the speedy trial of corruption cases, PCA has made the following provisions:
• All cases to be tried only by a Special Judge.
• The proceedings of the court should be held on
day-to-day basis.
• No court shall stay the proceedings under the Act on the grounds of any error or irregularity in the sanction granted, unless in the opinion of the court it has led to failure of justice.
• Recommendation:
• Time limits for various stages of trial for corruption related offences be laid down.
• Special Judge should be allowed to hear other cases only if there are no cases under PCA pending before him/her.
• Proceedings to be conducted on day-to-day basis.
• SC and HC may direct for precluding unwarranted adjournments for offences under PCA.
• Corruption in Private Sector – Recommendation
• Private sector providers of public utility services and NGOs receiving substantial public funding should be brought under the purview of PCA.
• Protection to Whistle-blowers - Recommendations
• Whistle-blower Protection Bill: Key Provisions
• Guarantee confidentiality and anonymity for whistle-blowers.
• Protect whistle-blowers from any form of
career retaliation or victimization.
• Harassment, victimization, or retaliation against a whistle-blower should be treated as a criminal offense, carrying significant penalties and legal consequences.
• Serious Economic Offenses: Proposed Measures
• A new law should be enacted specifically to address serious economic crimes.
• Establish a Serious Frauds Office (SFO) under the Cabinet Secretariat to investigate and prosecute such cases.
• Form a Serious Frauds Monitoring Committee to oversee the investigation and legal proceedings related to financial frauds.
• In cases involving serious financial fraud, courts should presume the presence of criminal intent (mens rea), with the accused bearing the burden of proving its absence.
• Legislators' Immunity: Recommendation
• Members of Parliament (MPs) should not be immune from prosecution for corrupt practices committed in connection with their parliamentary duties or otherwise.
CHAPTER 4 -INSTITUTIONAL FRAMEWORK
• Recommendations
• Rashtriya Lokayukta should be set up. It should have jurisdiction over all Union Ministers (except PM), state Chief Ministers, all persons holding public office equivalent in rank to a Union
Minister and MPs.
• Lokayukta should be set up in every jurisdiction over cases of corruption against Ministers and MLAs.
• A Local Bodies Ombudsman should be established for a group of districts to investigate complaints against officials of local governing bodies.
• The State Vigilance Commission should be given the authority to oversee the prosecution of corruption-related cases.
• Investigative agencies should develop multidisciplinary expertise to enhance their effectiveness.
• Modern investigative techniques should be adopted, including electronic surveillance, video and audio recording of surprise inspections,
traps, searches, and seizures.
• A reasonable time frame should be set for the completion of investigations based on the nature of each case.
CHAPTER 5 - SOCIAL INFRASTRUCTURE
Citizens’ Initiatives
• Active involvement of civil society and the media empowers citizens by providing them with a platform to voice their concerns.
• Successful Civil Society Initiatives
• Public Affairs Centre, Bangalore – Conducted a Report Card Survey to assess public service delivery.
• Mazdoor Kisan Shakti Sangathan (MKSS) – Organized Jan Sunwai (public hearings) to expose corruption.
• Lok Satta, Hyderabad – Led the Rajasthan Campaign for Electoral Reforms and Citizens' Charters.
• CIVIC, Bangalore – Advocated for Effective
Municipal Decentralization.
• Public Discussions:
•
Analysis of municipal and state budgets by
Disha and PROOF, Bangalore.
• Participatory municipalbudgeting by
Janagraha, Bangalore.
• Catalyst Trust, Chennai–Launched Voter Awareness Campaigns.
Jan Sunwai (Public Hearing) by MKSS
• MKSS gained access to employment records, beneficiary lists, and government certificates and scrutinized them through public hearings.
• This revealed widespread corruption, including fake muster rolls, fraudulent bills, and false completion certificates.
• As a result, the Government of Rajasthan institutionalized the Ward Sabha with the following powers:
• Conducting social audits of government programs.
• Approving public works proposals.
• Certifying the proper execution of projects.
• StrengtheningCivil Society Engagement in Governance
• Involving civil society organizations in overseeing government programs.
• Definingand publicizing service delivery standards.
• Establishing credible complaint mechanisms.
• Enforcing access to information laws.
• Conducting public hearings to audit government activities.
• Organizing integrity workshops and public discussions at the grassroots level.
• Introducing anti-corruption education in school curricula.
• Creating online platforms for reporting corruption, facilitating dialogue, and collecting citizen feedback.
• The government should introduce rewards and incentives for disclosing information related to corruption.
• Recommendations for Service Improvement and Awareness
• Citizens' Charters should specify remedies for substandard services.
• Reward schemes should be introduced to
encourage citizen participation in governance.
• School awareness programs should be implemented to educate students on ethics and anti-corruption measures.
False Claims Act: A Model for Anti-Corruption Laws**
• Key Features of the U.S. False Claims Act
• Any individual aware of fraud against the government can file a lawsuit on behalf of the federal government.
• If the fraud is proven in court, the guilty party is penalized, and the whistle-blower receives a percentage of the recovered amount.
• Public procurement contracts must ensure the best price is offered to the government. If a more favorable price is given to any other customer, the contractor must compensate for the price difference.
• Proposed Legislation Based on the U.S. False Claims Act
• A law should be enacted allowing any person or entity to file a case against any individual or organization for making false claims against the government.
• If the false claim is established in the court, then the agency responsible shall be liable for penalty equal to 5 times the loss sustained by the exchequer.
• The person who bought the suit shall be suitably compensated out of the damages recovered.
• Role of Media: Recommendations
• Evolve norms requiring proper screening of all allegations and complaints by media.
• Government agencies should share details of all corruption cases regularly to media.
CHAPTER 6 - SYSTEMIC REFORMS
• Monopoly + Discretion – Accountability= Corruption
• Systemic Reforms imply developing processes such that there is minimal scope for corruption
• Examples of Systemic Reforms include:
• Computerisation of Railway Passenger Bookings.
• Merit-based selection to professional colleges in Karnataka through Common Entrance Test.
• Teachers Appointment Scheme of Karnataka.
• Unit Area Scheme of Delhi that provided for normative basis for calculation of property tax.
• E-cops of Punjab that provides for online registration of complaints and their systematic follow-up.
• Promoting Competition
• Examples for competition curbing corruption
• Gradual de-monopolisation of telecom sector.
•
Private players providing direct marketing services to farmers outside the government- controlled mandis in Madhya Pradesh.
• Recommendations:
• Enhancing Competition and Reducing Monopolies
• An assessment should be conducted to identify monopolistic areas within each government department and introduce elements of competition where necessary.
• Centrally sponsored schemes should be restructured to reward states that promote competition and efficiency.
• Streamlining Transactions: Recommendations
• Single Window System for approvals and clearances.
• Reduction of hierarchical layers in administrative processes.
• Defined time limits for processing and decision- making.
• Incentive-based approach to encourage departments to simplify procedures.
• Positive Silence Principle – If a decision is not communicated within the stipulated time, approval should be considered granted.
• Leveraging Information Technology for Governance
• Gyandoot (Madhya Pradesh) – An e-governance initiative providing farmers with real-time agricultural price information at auction centers and simplifying access to land records.
• Bhoomi (Karnataka) – Adigital land records project allowing farmers to obtain Record of Rights, Tenancy, and Crops (RTC) documents from kiosks, eliminating the need for intermediaries and reducing corruption.
• Challenges of IT in Governance – Technology alone cannot eliminate corruption. For instance, the Computer-Aided Administration of Registration Department (CARD) in Andhra Pradesh failed to curb corruption in rural Sub-Registrar Offices.
• Prior to implementing IT solutions, existing procedures must be re-engineered to ensure compatibility with digital systems.
• Integrity Pacts in Public Procurement
• Integrity Pacts are formal agreements between government agencies and bidders in public procurement to ensure no illegal payments or bribes are made to secure contracts.
• These pacts include oversight and monitoring by independent external observers to ensure transparency and fairness.
• Reducing Discretion
• ‘Discretion breeds corruption.’
• The best example for elimination of discretion leading to reduction in corruption is the computerized, transparent system for effecting teacher transfers in Karnataka.
• Recommendations
• In every department, processes should be redesigned such that discretion is eliminated.
• Decision-making on important matters should be assigned to a committee rather than individuals.
• Supervision
• Supervision in the form of random inspections, surprise visits, confidential feedback from citizens/clients, putting procedures in place which make it difficult to seek bribe, use of decoy
clients etc.
• Recommendations:
• The supervisory responsibilities of officers must be reinforced to ensure better governance and accountability.
• The Annual Performance Report of each officer should include a specific section where they document the anti-corruption measures they have implemented in their office and among their subordinates.
• Supervisors who issue a clean record to subordinates later found guilty under the Prevention of Corruption Act (PCA) should be required to justify their assessment and explain their stance.
• Enhancing Complaint Monitoring Mechanisms
• Online Complaint Tracking Systems should be implemented across all offices to improve
transparency and accountability. If feasible, the task of tracking complaints can be outsourced to independent entities.
• Public offices should conduct regular audits of complaints to identify patterns of misconduct.
• Each complaint should be analyzed for systemic deficiencies, and corrective actions should be undertaken to address and prevent recurrence.
• Audit: – Recommendations
• Any major irregularity unearthed by audit team should immediately be taken note of by the Government.
• Audit teams must be trained in forensic audit.
• Pending audit queries at every office should be put in public domain.
• Vigilance Network: - Recommendations
• A National Database containing the details of all corruption cases at all levels should be created.
CHAPTER 7 - PROTECTING THE HONEST CIVIL SERVANT
• Recommendations
• Thorough preliminary examination of corruption allegations against public servants should be conducted before initiating any formal inquiry.
• Open inquiries should not be launched immediately based on complaints; instead, confidential investigations should be authorized, ensuring strict secrecy in the verification process.
• The outcomes of such verification must be
assessed impartially by competent authorities.
• Supervisory officers in investigative agencies must ensure that only cases with strong and credible evidence proceed to prosecution.