CORRUPTION

“Corruption is the misuse of entrusted power for private

gain”

– Transparency International

Effects of Corruption

• Obstructs democracy

• Inhibits development

• Leads to apathy and distrust

• Degrades the environment

Corruption in INDIA

Corruption in Politics

• Criminalization of Indian politics is a main problem.

• In July 2008 Washington Times reported that nearly a fourth

of the 540 Indian Parliament members faced criminal

charges, "including kidnaps, rape and even murder".

• At state level, things are often worse.

Corruption Perception IndexYEAR RANK RATING

2005 71 2.7 OUT OF 91 COUNTRIES

2006 71 2.7 OUT OF 102 COUNTRIES

2007 83 2.8 OUT OF 133 COUNTRIES

2008 90 2.8 OUT OF 145 COUNTRIES

2009 88 2.9 OUT OF 158 COUNTRIES

2010 70 3.3 OUT OF 163 COUNTRIES

2011 72 3.5 OUT OF 179 COUNTRIES

• As with many developing nations, corruption is widespread in India.

• India is ranked 72 out of a 179 countries in Transparency International's

Corruption Perceptions Index, although its score has improved consistently from

2.7 in 2010 to 3.5 in 2011.

• In 2012 India has ranked 94th out of 176 countries in Transparency

International's Corruption Perceptions Index, tied with Benin, Colombia,

Djibouti,Greece, Moldova, Mongolia, and Senegal.

Index of Corruption by Indian states

Top Corruptions in INDIA

• 2G Scam

• Common Wealth Games Scam

• Coal Mining Scam

• Adarsh Housing Society

2G SCAM

• Involved politicians and government officials in india illegally underchanging mobile telephony companies for frequency allocation liscences, which they would then use to create 2G subscriptions for cell phones.

• The shortfall between the money collected and the money that the law mandated to be collected is estimated to be 176,645 crores.

• The issuing of the 2G licenses occurred in 2008, but the scam came to public notice when the Indian Income Tax Department investigated political lobbyist Niira Radia and the Supreme Court of India took Subramaniam Swamy's complaints on record.

CHARGES ON FORMER TELECOM MINISTER A.RAJA

• CHEAP TELECOM LICENSES • Entry fee for spectrum licenses in 2008 pegged at 2001 prices • Mobile subscriber base had shot up to 350 million in 2008 from 4million in

2001.

• NO PROCEDURES FOLLOWED

• Rules changed after the game had begun.• Cut-off date for applications advanced by a week.• Licenses issued on a first-come-first-served basis. • No proper auction process followed, no bids invited. • Raja ignored advice of TRAI, Law Ministry, Finance Ministry. • TRAI had recommended auctioning of spectrum at market rates.

• Unitech, Swan Telecom got licenses without any prior telecom experience .

• Swan Telecom given license even though it did not meet eligibility criteria.

• Swan got license for Rs.1537 crore, sold 45% stake to Etisalat for Rs.4200 crore.

• Unitech Wireless got license for Rs. 1661 crore, sold 60% stake for Rs. 6200 crore.

• All nine companies paid DOT only Rs.10,772 crore for 2G licences.