Today, a simple visit to a government office for services such as Aadhaar verification or applying for a passport, PAN card, or driving license often raises an uncomfortable question: why does a legal and rightful process sometimes seem incomplete without paying extra money? Although procedures are clearly defined, many citizens still feel pressured to offer bribes to get their work done smoothly. Over time, this unofficial “give and take” has quietly become part of everyday administration and Politics.

Corruption in India is not a sudden or isolated problem. It is a deeply entrenched and complex phenomenon shaped by rigid regulations, excessive bureaucratic control, and the wide discretionary powers enjoyed by public officials, which together create opportunities for misuse and bribery. This reality naturally leads to a deeper question that demands attention: where did this culture of corruption begin? Did it emerge only after India gained independence in 1947, or do its roots stretch back even further into history?

Background and History

Corruption in India has its roots in the British Raj (1858–1947), when the colonial administration introduced systems of patronage and favouritism that laid the groundwork for corrupt practices. Indians were largely excluded from political participation, while the country was divided into districts governed by commissioners, creating centralised control and limited accountability.

After independence (1947–present), India experienced rapid economic growth and political change, but pervasive regulation and licensing created opportunities for corruption. These restrictions stifled market competition and fostered bribery. The era before 1991, often referred to as the “License Raj,” was marked by strict government control over the economy. Licensing revenues were frequently diverted from essential public programs to benefit elites, contributing to the accumulation of black money abroad, including in Swiss banks and international real estate.

The surge in economic growth further fostered a culture of impunity, where bureaucrats and political figures engaged in corrupt practices without fear of accountability. In addition, the lack of transparency in government operations has made it challenging to tackle corruption effectively.

Reasons Behind Corruption in India

Corruption in India is fueled by a combination of systemic, economic, political, and social factors. Some of the key causes include:

1. Lack of Transparency
   When government procedures, decisions, and administrative actions are opaque, officials operate with limited public scrutiny. This lack of transparency creates opportunities for corrupt practices, as individuals feel less fear of being exposed.
2. Weak Institutions and Ineffective Legal Frameworks
   Many of the institutions meant to enforce laws—such as law enforcement agencies, oversight bodies, and even the judiciary—are either under-resourced or compromised. This institutional weakness allows corrupt officials to act with impunity and sometimes even facilitates corruption.
3. Perceived Impunity
   Inadequate enforcement and light punishments for corrupt activities create a perception that wrongdoing goes unpunished. When individuals believe they can escape consequences, they are more likely to engage in corrupt practices.
4. Low Salaries and Insufficient Incentives
   Many public servants, particularly in lower-level positions, receive modest compensation. This financial strain can make bribery and other forms of corruption appear as an attractive way to supplement income.
5. Bureaucratic Red Tape
   Lengthy, complex, and cumbersome administrative procedures often push individuals and businesses toward corruption as a means to expedite approvals or bypass procedural hurdles.
6. Complex Regulatory Environment
   India’s intricate system of licenses, permits, and approvals creates multiple points of interaction between citizens and officials, which increases opportunities for bribery and favors.
7. Political Interference
   The autonomy of government institutions is often compromised by political influence. Officials may face pressure from political leaders to engage in corrupt practices for personal or party advantage.
8. Cultural Factors
   In some contexts, corruption is socially normalised. The widespread belief that “everyone does it” can lead individuals to participate in corrupt acts without feeling morally accountable.
9. Lack of Whistleblower Protection
   Weak legal protection for whistleblowers discourages reporting of corruption. Fear of retaliation silences potential informants, allowing corrupt practices to persist unchecked.
10. Social Inequality
    Economic and social disparities create power imbalances, enabling wealthy or influential individuals to exploit their positions for preferential treatment. This entrenches corruption and makes accountability difficult.

Types of Corruption

Corruption in India manifests in multiple forms, each affecting society and governance in distinct ways. One of the most common is bribery, where money or other benefits are offered or accepted in exchange for favours. Examples include paying police officers to avoid fines or providing government officials with bribes to secure permits and licenses. Another form is embezzlement, which involves the misappropriation of funds or resources by those entrusted with them. A notable instance is the 2G spectrum license scandal, where licenses were allegedly allocated at below-market prices, causing huge losses to the government.

Extortion is also widespread, involving threats or force to obtain money or advantages. This often occurs in cases of land acquisition, where owners are coerced into selling property below its value, or local businesses are compelled to pay protection money to gangs or influential figures. Cronyism and nepotism are closely related, with cronyism referring to favouritism toward friends or associates regardless of merit, and nepotism involving the preferential treatment of relatives in appointments, promotions, or government contracts. These practices often lead to unqualified individuals holding positions of power.

Corruption also extends to public procurement, where the bidding process is manipulated for personal gain through practices such as bid-rigging or kickbacks paid to officials. Additionally, money laundering is a significant concern, with illegally obtained funds being concealed and invested through systems like hawala, often finding their way into real estate or offshore accounts.

Overall, corruption in India is a deep-rooted and pervasive problem, impacting sectors ranging from healthcare, education, and sports to non-profit organisations, and continues to undermine transparency, fairness, and public trust.

Notable Corruption Cases/Scandals

Since gaining independence in 1947, India has witnessed numerous corruption scandals, resulting in losses of crores of rupees to both the central and state governments. Below is a look at some of the most notorious cases of corruption in the country.

1. Chopper Gate Scam
   The AgustaWestland VVIP helicopter deal, commonly referred to as the Augusta Westland bribery scandal, involved alleged kickbacks paid to middlemen and Indian officials in 2006–2007 to secure the purchase of helicopters for senior politicians. According to the CBI, approximately Rs 2.5 billion was routed through bank accounts in the UK and UAE. Several Congress politicians and military officials were accused of accepting bribes from AgustaWestland to secure the Rs 3,600 crore contract for 12 AW101 helicopters. These helicopters were intended to serve VVIP duties for the President of India and other high-ranking state officials.
2. Coalgate Scam
   The Coalgate scandal was a major political controversy in India that highlighted alleged corruption in the allocation of coal blocks during the United Progressive Alliance (UPA) government.
   In 2012, the Comptroller and Auditor General of India (CAG) released a report accusing the government of allocating coal blocks inefficiently, bypassing proper procedures and competitive bidding. This mismanagement reportedly caused a loss of over ₹1.76 trillion (around $27 billion at the time) to the exchequer.
   The scandal implicated several politicians and business leaders, with allegations of bribes and favours in exchange for coal block allocations. High-profile figures named included Naveen Jindal, Kumar Mangalam Birla, and certain Congress party leaders.
   The fallout from the scandal had significant political consequences, contributing to the decline of the UPA government and the Congress party’s defeat in the 2014 general elections. Although the case has been widely investigated and debated, the full scale of the corruption and the legal outcomes for those involved remain under discussion.
3. Bofors Scandal
   The Bofors scandal was one of India’s most notorious weapons-contract controversies, unfolding during the 1980s and 1990s. It involved allegations that then Prime Minister Rajiv Gandhi and several Indian and Swedish officials had received large kickbacks from Bofors AB, a Swedish arms manufacturer.
   According to reports, Bofors paid around Rs. 640 million in bribes to Indian politicians and key defence officials to secure the contract for supplying India’s 155 mm field howitzer, a short artillery gun designed for firing shells at high trajectories with low velocities.
   The scandal had a massive political impact, contributing to the defeat of the Congress party in the 1989 general elections. However, in 2004, the Delhi High Court cleared former PM Rajiv Gandhi and others of all charges related to the alleged payoffs.
4. Telgi Stamp paper scam
   This scam is named after Abdul Karim Telgi, the mastermind behind a massive counterfeit stamp paper fraud that came to light in 2002. Telgi reportedly employed around 350 fake agents to sell fraudulent stamp papers to banks, insurance companies, and stock brokerage firms.
   The scam spanned 12 states and involved an estimated Rs 20,000 crore (₹200 billion). Several police officers were implicated, as Telgi allegedly bribed officials to avoid investigation.
   Investigations revealed that Telgi also received tacit support from certain government departments involved in the production and sale of high-security stamp papers. In January 2006, Telgi and several associates were sentenced to 30 years of rigorous imprisonment. He later died of multiple organ failure in Bengaluru on October 23, 2017.
5. 2g Spectrum case
   The 2G spectrum scam implicated several politicians and officials from the United Progressive Alliance (Congress-led) government. The scandal emerged in 2008 when the Comptroller and Auditor General of India (CAG) reported that mobile companies had been undercharged for frequency allocation licences, which were used to provide 2G spectrum subscriptions for cell phones. According to the CAG, the difference between the actual revenue and the amount that should have been collected was estimated at Rs 1.76 trillion.
   In February 2012, the Supreme Court of India ruled that the spectrum allocation was “unconstitutional and arbitrary” and cancelled the 122 licences issued in 2008 under A. Raja, who was then the Minister of Communications and IT.
   On 21 December 2017, a special court in New Delhi acquitted all the accused, including the prime accused A. Raja and M. Kanimozhi, daughter of DMK chief M. Karunanidhi. The verdict was primarily based on the fact that the CBI could not produce sufficient evidence against the accused even after seven years of investigation.
   However, on 19–20 March 2018, the Enforcement Directorate and CBI filed appeals against the acquittal in the Delhi High Court, keeping the legal proceedings ongoing.
6. Commonwealth Games Scandal
   In 2010, New Delhi hosted the Commonwealth Games (CWG), which later became the center of a major corruption scandal involving misappropriation of around Rs 70,000 crore. It was reported that only half of the total expenditure was actually spent on Indian athletes, raising serious questions about the allocation of funds.
   The Central Vigilance Commission (CVC), which investigated corruption in various CWG-related projects, uncovered multiple irregularities in tender processes. These included payments to non-existent parties, deliberate delays in contract execution, inflated costs, and mismanagement in equipment procurement.
   One major finding involved Suresh Kalmadi, the Chairman of the Games’ Organising Committee, who awarded a Rs 141 crore contract to Swiss Timings for timing equipment — reportedly Rs 95 crore more than the actual cost. Following these revelations, the CVC recommended a detailed investigation by the CBI.
   On 25 April 2011, the CBI arrested Kalmadi. The investigation also named two companies and eight other individuals, including former Secretary General Lalit Bhanot and former Director General V.K. Verma, as accused. The following day, 26 April 2011, Kalmadi was removed from his position as President of the Indian Olympic Association.
7. Hawala Scam
   The Jain Diaries case, also known as the Hawala scandal, was a major political and financial controversy in India involving alleged illegal payments (black money) routed through four hawala brokers, the Jain brothers.
   The scandal came to light in 1991 when an arrest connected to militants in Kashmir prompted a raid on the hawala operators, uncovering evidence of large-scale payments to national politicians. Prominent figures named in the case included L.K. Advani, V.C. Shukla, P. Shiv Shankar, Sharad Yadav, Balram Jakhar, and Madan Lal Khurana.
   The list of accused spanned politicians from the BJP, Congress, and several independent MPs and MLAs, with amounts reportedly ranging from Rs 50,000 to Rs 7.5 crore. Many of the accused were acquitted in 1997 and 1998, as the hawala records, including the Jain diaries, were deemed insufficient as primary evidence in court.
8. Fodder Scam
   Fodder Scam of 1996 was a major corruption scandal in Bihar, involving the alleged embezzlement of approximately Rs 950 crore from the state treasury. Although the scam came to public attention in 1996, it had been ongoing for over two decades, gradually increasing in scale.
   The scandal gained widespread attention not only because of the massive financial losses but also due to the involvement of the then Chief Minister of Bihar, whose party was a major ally of the Central Government. The New York Times reported on 2 July 1997 that the Fodder Scam had the potential to destabilise the Government of India, noting that Prime Minister I.K. Gujral was struggling to maintain his coalition amid the crisis.
   The scam began on a small scale in the state animal husbandry department, where officials withdrew funds from the treasury using fictitious bills for livestock, fodder, medicines, and equipment. Over time, it expanded into a large-scale nexus between politicians and bureaucrats, remaining largely unnoticed until 1990, when Vigilance Police Inspector Bidhu Bhushan first reported involvement at the Chief Ministerial level.
   The scandal became a major political issue in the 1990s, with Chief Minister Lalu Prasad Yadav and other leaders at the centre of the controversy. It came to symbolise deep-rooted corruption and the criminalisation of politics, often cited in Parliament as evidence of the influence of mafia raj in India’s political and economic systems.
   Following a Public Interest Litigation (PIL), the Supreme Court of India directed the CBI to investigate the irregularities. The inquiry eventually led to the conviction of Lalu Prasad Yadav, Jagannath Mishra, and nearly 500 others, exposing the extensive network of corruption in Bihar’s administration.
9. securities scam
   Harshad Mehta, famously known as the “Big Bull of the trading floor”, was an Indian stockbroker who allegedly orchestrated a dramatic surge in the BSE stock exchange in 1992. He manipulated the banking system to siphon off funds, which he then invested heavily in the stock market, ultimately triggering a major market crash. Mehta and his associates diverted money from inter-bank transactions to buy shares at a premium across multiple sectors, artificially inflating the Sensex. When the scheme was exposed, banks demanded repayment, causing the market to collapse. The total amount involved in this scam was estimated at around Rs 5,000 crore.
   Mehta exploited the mechanism of Ready Forward Deals (RFDs), which are secured short-term loans (typically 15 days) between banks, with government securities as collateral. In these deals, the selling bank transferred securities to the buying bank through brokers, who also handled the payment. This arrangement allowed the two banks to remain disconnected, a feature Mehta exploited to engineer his scam.
   To execute his scheme, Mehta used Bank Receipts (BRs), which are receipts issued by a bank confirming that securities have been sold and held in trust. Normally, BRs represent genuine government securities. However, Mehta colluded with two small banks—the Bank of Karad (BOK) and the Metropolitan Co-operative Bank (MCB)—to issue fake BRs not backed by any securities. These BRs were then circulated to other banks, which lent money to Mehta under the assumption that it was secured against government securities.
   The funds obtained were used to inflate stock prices, and when shares were sold at a profit, the fake BRs were “retired” and the banks were repaid. This cycle continued as long as stock prices kept rising, keeping Mehta’s methods hidden. Once the scam was uncovered, banks were left holding worthless BRs, resulting in a loss of approximately Rs 4,000 crore to the banking system.
10. Vijay Mallya Scam
    In 2016, Vijay Mallya fled India and took refuge in the United Kingdom after being accused of fraud and money laundering. He is alleged to owe Indian banks over Rs 9,000 crore, which he had borrowed to prevent his now-defunct Kingfisher Airlines from collapsing. Recently, he was designated a fugitive economic offender under the Fugitive Economic Offenders Act.
11. Punjab National Bank Fraud
    The Punjab National Bank (PNB) fraud case involves a massive scam worth Rs 14,356.84 crore (US$ 2.1 billion), arising from fraudulent letters of undertaking issued at the bank’s Brady House branch in Fort, Mumbai, which made the bank liable for the sum. The scam was orchestrated by jeweler and designer Nirav Modi in collusion with two PNB officials.
    After uncovering the fraud, PNB filed a complaint with the CBI, alleging that Nirav Modi, Ami Modi, Nishal Modi, and Mehul Choksi were involved in cheating the bank and causing substantial financial losses.
    The Enforcement Directorate (ED) has initiated the process of attaching the accused’s assets and is pursuing their confiscation under the Fugitive Economic Offenders Ordinance. Subsequently, the CBI included key bank officials—Usha Anantha Subramanian (former PNB CEO) and executive directors K.V. Brahmaji Rao and Sanjiv Sharan—in a charge sheet, holding them responsible for failing to implement multiple RBI circulars and caution notices related to the reconciliation of SWIFT messages and core banking systems.
12. Rafael Scam
    The Rafale deal was a political controversy concerning the purchase of 36 multirole fighter aircraft by India’s Defence Ministry from France’s Dassault Aviation for an estimated Rs 58,000 crore (7.8 billion euros). The deal originated from the Indian MMRCA competition, a multi-billion-dollar program to procure 126 multi-role combat aircraft for the Indian Air Force (IAF).
    After extensive investigations, the Supreme Court of India upheld the Rafale deal on 14 December 2018, stating that no evidence of irregularities or corruption had been found. Later, on 14 November 2019, the Court dismissed all petitions seeking a review of its earlier judgment.

The Impact of Corruption in India

Corruption has long been a major challenge in India, affecting its economic performance, social fabric, and political system. Its consequences are widespread and multifaceted.

Hindered Economic Growth: Corruption discourages both domestic and foreign investment, reduces productivity, and distorts the functioning of markets, thereby slowing economic development.

Misallocation of Resources: Bribery and favouritism often result in resources being diverted toward certain individuals or groups, preventing their optimal use for the broader public benefit.

Rising Costs: Businesses and consumers frequently bear the burden of corruption, as bribes, kickbacks, and inflated contract costs push up prices.

Lower Tax Revenues: Corruption encourages tax evasion and avoidance, reducing government income and limiting funds available for essential public services and infrastructure.

• Social Consequences

Growing Inequality: Corruption tends to favour the rich and powerful, deepening social and economic disparities and marginalising vulnerable populations.

Erosion of Trust: Public confidence in government institutions weakens, leading to dissatisfaction, civic disengagement, and social unrest.

Restricted Access to Services: Corruption hampers equitable access to healthcare, education, and infrastructure, particularly affecting rural populations and disadvantaged groups.

• Political Consequences

Weakening of Democracy: By undermining the rule of law and privileging special interests over the common good, corruption erodes democratic values and accountability.

Political Instability: Persistent corruption fosters disillusionment among citizens, which can trigger unrest, protests, and political turmoil.

Perpetuation of Corruption: Corrupt practices tend to reinforce themselves, creating cycles that make systemic reform difficult to achieve.

Anti-Corruption Efforts in India

The Indian government has made several attempts at the federal level to combat corruption, but many of these measures have remained largely ineffective due to systemic challenges. Some of the key initiatives include:

Whistleblower Protection Act, 2014

The Whistleblower Protection Act (2014) was designed to safeguard individuals who expose corruption, but it has been criticised for its flawed framework and limited protections. A major issue is its reliance on “Competent Authorities”, often high-ranking officials from the Prime Minister’s Office to State Vigilance Commissions, who are overburdened and ill-equipped to handle sensitive complaints. This arrangement can actually expose whistleblowers to retaliation, while the Act provides no clear procedural standards for investigations, leaving room for bias.

Additional limitations include:

• Limited protection: The Act does not guarantee anonymity, enforceability, or judicial review.
• Narrow scope: Key groups such as the Armed Forces, top officials, and private entities are excluded.
• Inadequate definitions: Terms like victimisation and protection measures are unclear.
• Restricted applicability: Only reports made to Competent Authorities are protected, excluding whistleblowers like RTI users or social audit participants.
• Overall, the Act fails to provide meaningful safeguards and requires significant revisions to empower whistleblowers to report wrongdoing without fear.

Right to Information Act (RTI), 2005

The RTI Act ensures that citizens can demand timely responses from government bodies, with standard replies required within 30 days (or 48 hours for urgent matters). Since its implementation, RTI has become a powerful tool for exposing corruption, with millions of requests filed annually. Civil society groups have used RTI effectively to promote accountability.

However, the public nature of RTI requests exposes users to harassment and attacks. Organisations like the Mazdoor Kisan Shakti Sangathan (MKSS) have highlighted these threats and advocated for stronger protections for RTI activists.

Social Auditing

Social auditing is a citizen-led mechanism to ensure transparency and accountability in public programs. These public meetings allow citizens to verify official records against on-ground realities, documenting discrepancies through oral testimonies and records.

Originating in Rajasthan in the 1990s, social auditing gained prominence during the RTI movement and was formally recognised in 2005 under the National Rural Employment Guarantee Act (NREGA).

Other legislative measures, such as the Prevention of Money Laundering Act (2002) and the Lokpal and Lokayuktas Act (2013), have also been introduced. However, like the Whistleblower Protection Act, they face criticism for inadequate resources and weak enforcement, limiting their effectiveness in combating corruption.

Conclusion

In conclusion, corruption in India remains widespread and deeply entrenched, while the country’s anti-corruption measures have been piecemeal and slow to take effect. Many of the institutions created to combat graft lack true autonomy and purpose, and even relatively independent bodies like the CVC and Lokpal have struggled to demonstrate genuine independence.

Fighting corruption cannot be left solely to these elite, top-level institutions, as the majority of corrupt practices occur at the retail level, directly affecting ordinary citizens. Although the CVC handles complaints involving lower-level officials, it is widely regarded as ineffectual. One of the few tangible improvements has been the digitisation of government services, which has reduced opportunities for petty corruption, but technology alone cannot eradicate a problem as complex and multifaceted as corruption.

Effectively tackling corruption requires bold structural reforms and a thorough overhaul of existing laws. India’s criminal justice system, which is notoriously slow, often allows high-profile and everyday cases to drag on for years or even decades, encouraging impunity and reinforcing corrupt practices. Moreover, a large portion of corruption is linked to opaque political financing, such as the current use of electoral bonds, highlighting the urgent need for transparency, accountability, and disclosure reforms in campaign finance.

To address corruption at its roots, India’s political leadership must implement comprehensive political reforms. These should include transparent political funding, a reformed and efficient justice delivery system, and a commitment to protecting the integrity of mechanisms like the RTI, thereby ensuring that both high-level and grassroots corruption are effectively curbed. Only then can India aspire to emerge as a responsible global actor with governance that is transparent, accountable, and just.

References

• https://www.orfonline.org
• https://kkc.com
• https://blog.ipleaders.in
• https://www.drishtiias.com
• https://thewire.in
• https://blog.camonk.com
• https://www.business-standard.com
• https://www.business-standard.com
• https://corruption-tracker.org
• https://www.hindustantimes.com
• https://www.ramanmedianetwork.com

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