Corruption is the greatest stumbling block to infrastructure development in India
India has not improved it’s image where corruption is concerned, not if one goes by the recent survey by Transparency International. The TI corruption index is calculated by taking into account people’s perceptions. This year India fared worse than last year, having scored 3.4 as against 3.5 in 2007 (marks are out of 10, with 10 being the highest score meaning the least corrupt). The scores for all countries for 2008 are given here. There is no major difference in the scores of various countries from the previous year, which you can read about here, and not surprisingly the poor countries tend to be the most corrupt.
There is also a state-wise survey for India, again based on perceptions. Indian states have been ranked on a scale of Alarmingly Corrupt, Very Highly Corrupt, Highly Corrupt to Moderately Corrupt. The poorer states fare badly and nor surprisingly, Bihar is perceived to suffer from the most corruption followed by J&K.
However no state in India is free from corruption and here’s a small list of projects all over the country which are riddled with corruption. The list covers some of the recent charge-sheets or recent revelations and not all states/projects are listed. In this sense the list is not comprehensive. Also, older cases are not listed. The corrupt deals listed here in any case are just the tip of the iceberg as no government-run project anywhere in India is squeaky clean, whether it’s infrastructure building, dispersal of aid or giving permissions for any works. And as the nexus between the politicians, the criminals and the police tends to cover up a lot of scams, the public will never really what is the real extent of the rot. This list just gives an idea of some of the corrupt projects in the country and reminds us why the infrastructure/health in our country is not up to the mark, despite money being earmarked for it.
So here is the list, with the states being listed alphabetically:
Andhra Pradesh
There is corruption here in all government departments. The state government’s Anti-Corruption Bureau (ACB) has said that only 10 per cent of the 14-lakh state government employees are scrupulously honest. Others range between the totally corrupt to the fence sitters.
Assam
There are anomalies in the public distribution system (PDS) in Assam and this involves hundreds of crores of rupees.
Bihar
Janata Dal (U) MLA Neeraj Kumar Singh, alias Babloo, was accused by an official of the construction company, Gammon India (working on the East -West Corridor road project) for trying to extort money from him. The East-West Corridor road project seeks to
connect Silchar in the east to Porbandar in the west of the country through an expressway. Elected representatives of the state demanding money from companies engaged in developmental projects in Bihar is not something new and happens on a regular basis.
Delhi
The Delhi police faces the maximum number of bribery cases from amongst all the state departments (of Delhi).
Gujarat
Stalin K uncovered how relief money meant to aid victims of the Gujarat earthquake was misused (a few years ago).
Haryana
The CBI has finally charge-sheeted 62 people, including Chautala (ex-CM) as well as his son in the now infamous JBT scam dating back to 1999. Lakhs of rupees were paid as bribes for selection of teachers by the Education department.
Jammu & Kashmir
Bribery charges have tainted a Jammu and Kashmir Education Minister and PCC chief Peerzada Mohammad Sayeed. An Independent MLA Shohaib Lone (whose father and PDP minister Ghulam Nabi Lone was assassinated two years ago) has accused the minister of taking a bribe of Rs 40,000 to sanction a school.
Jharkhand
Investigations have brought to light some irregularities in purchase of equipment by the Jharkhand government. When the state government wanted to buy portable solar powered vaccine carriers, deep freezers, caps, ties, they purchased all these items from one place….one flat in Vasant Kunj in Delhi!
Karnataka
A recent survey has shown that more than 50 per cent of the poor find the Land Records and Registration service in Karnataka the most corrupt department in the state.
Kerala
Communication Minister A Raja has been accused of some irregularities on the issuance of new telecom licenses at throw away prices that allegedly cost the exchequer a whopping Rs 1,00,000 crores. Investigations are still on. Then there is another controversy about the sale of 70 acres of land by public sector undertaking Hindustan Machine Tools (HMT) to Mumbai-based Housing Development and Infrastructure Ltd (HDIL) to build Rs.40 billion ($1 billion) Cyber City in Kochi.
Madhya Pradesh
Madhya Pradesh lawmaker and member of a state tiger conservation body Darbu Singh Uike has alleged that officials have siphoned off millions of rupees meant for the conservation of tigers in the state’s Kanha National Park.
Another scam: The Economic Offences Wing (EOW) EOW is conducting an inquiry into a land scam where the Bhopal Nawab and his family members have been accused of unauthorised occupation of land worth hundreds of crores.
Maharashtra
In Maharashtra the corruption is far more than is being perceived. The fact that corruption deals are being covered up means that the rot has sunk in very deep indeed. For example a lottery scam was reported (a nexus between Finance Department officials and lottery operators) but no one has been indicted so far. It had been discovered that the list of winners was predetermined.
Other scams: The Maharashtra government however has not been able to escape the censure of the World Bank. The bank has found out that funds given for aid have been misappropriated, either for poor quality material or for bribes. This involves a National Aids Control Project and Maharashtra has been seen to been the worst state when it came to irregularities in this project which ran from 1999 to March 2006.
There are various land scams involving forest land in Mumbai and Pune which haven’t yet been exposed but cases have been filed.
Meghalaya
The CBI is probing allegations against several top officials of the North Eastern Electric Power Corporation (NEEPCO), including its former chairman and managing director SC Sharma and executive director PK Deka for their involvement in a Rs 35 million insurance scam. An insurance deal with the Bajaj Allianz for a gas-based power plant at Dibrugarh in upper Assam is under the scanner.
Orissa
A probe into a World Bank funded health project has been ordered, including the one in Orissa. In the Orissa Health System Development Project (OHSDP), the state government has been accused of procuring of substandard and outdated medical equipment, being responsible for poor construction works, excess payment of professional fees and other irregularities.
Punjab
A survey conducted by the Institute for Development and Communication (IDC) for the Department of Planning, Punjab Government by it has found out that 76.5 per cent of people pay bribes to officials in the various municipal bodies of the state to get their work done.
Tamil Nadu
In Tamil Nadu and Puducherry, around 59 per cent of the BPL (Below Poverty Line) households, which had interacted with 11 basic government services, reported that they had paid bribe during the past one year (2007). On an average, about Rs.477 as bribes were paid by the poor during this one year. Other states in India were also indicted by this study.
There is a also reportedly a land scam allegedly involving former Tamil Nadu minister N.K.K.P. Raja which has come to light recently. Investigations are on.
Uttar Pradesh
Recently the CBI caught some Noida land scam suspects in Lucknow, Noida, Meerut and Ghaziabad for their involvment in a scam that took place in 2004-2005. What had happened was that officials of Noida, UPDESCO and the State Government (allegedly) allotted residential plots by falsifying electronic records.
Another scam: A CBI inquiry into a police recruitment scam that took place in the Mulayam Singh regime in the state is being pushed through by Mayawati. She has found large-scale irregularities in the recruitment process.
Rajasthan
A social audit of the National Rural Employment Guarantee Scheme (NREGS) has revealed large-scale fraud in material supplies, extortion of money for job cards, dead people registered on muster rolls, and a lack of transparency in the execution of the project. In fact the implementation of the NREG has been plagued with allegation of corruption in other states as well, with nearly 10 lakh poor households having been forced to pay bribes to get benefits under the “flagship” scheme.
Uttarkhand
The state government requested a CBI probe alleged irregularities in a planned hydroelectric project but the centre has not been forthcoming. The state now is conducting investigations on its own into this. This project has been delayed for over two decades now and costs are climbing. Initially the cost was estimated to be Rs 300 crore, but already Rs 2000 crore has been spent on it. Sadly, while all this wheeling dealing is on the state is facing an acute shortage of power.
West Bengal
A “cartel” at the government-run Indian Museum in Kolkata, one of the biggest and best museums in the country, has been involved misappropriation of funds running into crores. This has been happening since 2004 and the money was siphoned off under the pretext of preserving priceless artifacts. A central government team, which has unearthed the scam has said that the alloted funds were meant not just for Indian Museum, National Library, Rabindra Bharati University Library and Guru Saday Museum in West Bengal, but also for the improvement of the state museums of Nagaland, Manipur, Mizoram and Assam.
(Photo copywrited to me and the map is from the Economist)
Note: Many of the words used to list the corruption in various projects/departments are not mine but taken from news reports.
Related Reading: India’s Infrastructure Plans and what has been achieved so far
Politicians least trusted the world over
Rich countries are the least corrupt
Indians believe their judiciary to be tainted
Corrupt officials siphon away relief funds
Corruption in slum rehabilitation project
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A wide angle view of India 
Great compilation, but like you said this is just the tip of the iceberg.
Probably what we need is a list of projects that are NOT riddled with corruption!
AD, I wonder if there are any such projects!! 🙂 – Nita.
Yeah, corruption is rampant in very aspect, every field of our society .. Not only politicians but almost all of the professions are being ruined by this lethal virus ..
“I dont take bribe and I wont allow others to take bribe” – this was the slogan of Narendra Modi during last year’s election and people trusted him , believed in him and gave him the landslide victory .. And today we can proudly say that he has remained firm on his statements !!
You might enjoy reading this post of mine:
http://sohamwhispers.blogspot.com/2008/12/ever-since-mumbai-terror-has-taken.html
It is true what you say, Modi has attacked corruption hammer and tongs and it has reduced corruption drastically in Gujarat. However I did find some misappropriation of relief money which happened a few years ago and have now added it to the main post. But yes hats off to Modi for his successes. – Nita.
Corruption afflicts every activity in India. It is taken as a cost of doing business. Every project has a certain percentage provided for the panchayat, block – taluka level officials upwards right upto the State level politicians and officials.
From getting a police verification done for a passport to a ration card for the Bangladeshi migrant, a driving licence all have a price.
Extend this to semi-urban and rural places and corruption extends to other areas too.
It is therefore no wonder that infrastructure development is stalled in many areas because of local hoodlums wanting to make a quick buck. The State and Central Governement can tackle these project delayers quickly and effectively but the will to do so is lacking. After all we believe in consensus given the coalition type politics in our country.
It’s sickening isn’t it! Well, one hopes that with the latest Pay Commission Report which has hiked salaries of government employees things improve. As the lawmakers are themselves involved it seems difficult to see things improving in the near future. – Nita.
Nita, I disagree. I find corruption to be a huge red herring when it comes to politics in South Asia.
I am not saying that India is not a highly corrupt country, it is, in every sense, but so is almost every developing country.
In fact, in the transparency index you mentioned, Russia is given a score of 2.4, but it certainly does not fit the description of ‘lacking in development’. Similarly countries like Malaysia and Thailand have huge corruption problems but are not lacking in development.
In the coming years, we could build a world class infrastructure in our cities and the corruption in the country wont change one bit.
India is not developed because Indians dont demand development forcefully. This has changed in the last few years in the urban areas, and the government appears to be doing visibly more for development in cities, but I dont think that is the result of a decline in corruption.
Vikram, as you said, we disagree! 🙂 Ofcourse I am not saying that our citizens are not apathetic, sure they are, but the fact is that the projects that are on are not being completed or are being completed with a lot of useful money being eaten up, so this to me is the greatest hurdle on the ground. However I have certainly not said that corruption is the main cause of lack of development in Russia, I am talking of India. I do not know much about Russia and how things happened out there. – Nita.
Arey aapne gujarat ke baare mein nahi likha??? I am sure yahaan bhi scenario jyaada alag nahi hoga… thoda sa kum, but will still be there!!
Sakhi, I have added something on Gujarat, after I received Soham’s comment! – Nita.
Nita:
Many infrastructure projects in India have foreign investors. Most developed countries allow companies to be tried in their home countries for illegal things done abroad. So if a UK investor bribes in India, the company can be sued in the UK.
Now if _that_ is not an invitation to invest in India, I don’t know what is (sarcasm intended)!
Sorry, Nita, I know, on nearly all these posts, I bring up an investment angle. But that is what I do, day in and day out and you will be amazed by how few questions raised are _not_ about corruption in India. It is shameful and having to hear of it day after day is quite embarrassing. Of course, one could argue I can do something else for a living but if my clients are keen on India, my shying away is hardly going to solve this problem.
Shefaly, shameful it is and in fact even while writing this post I winced several times. The misappropriation of funds meant for museums seemed to affect me the most for some strange reason! I guess like Vikram said, we citizens are apathetic and I certainly am to some extent because I expect so little and am grateful for the little infrastructure that we have! But infrastructure can be built, but priceless artefacts can be lost forever. 😦 Anyway, where your clients are concerned, I am quite sure that none of them are going to be caught, leave alone be tried on British soil. Ofcourse at times this has raised a stink, but if the connections are high enough then even these allegations cannot be proved, like it happened in the Bofors case. So the investors from the UK or any other country need not fear bribing or going to jail in any country! You can guarantee that! Me too being sarcastic!
Nita:
These are not politicians but private firms and individuals. You will be surprised at how many companies do get sued, tried and fined. They do not fear jail in the investee countries but in their own, with the incipient loss of face and reputation for them and their families. (Not being sarcastic).
BTW arms, sugar, aircraft are some of the sectors where deals are corrupt worldwide. My investors deal in none of these 🙂
We don’t get much news here about investors abroad who get fined or jailed for their bribing activities in India. Perhaps that is why I think it’s rare. – Nita.
oh we are good at this at least 🙂
Not good enough because we are not number one in the corruption index! 🙂 – Nita.
Nita, obviously a well written piece.
Penalty in India of wrong doing is so small that people are not scared. And these are only applied to a common man, greater people than us bribed and created a world largest business empire (Reliance).
As you said penalties are small and as the police can let people go if they bribe, there is no fear at all. Some policeman or the other will accept a bribe. And if not a policeman, then some politician above him. – Nita.
I think we should first pay the govt employees some decent salary. I dont think most of them are paid that well.
It could help some people who are basically honest, but not all. – NIta.
As usual, I will cite a joke. An Indian politician goes to US and the politician invites him to his palatial residence. After some drinks, he whispers how could he build this palatial house. The politician takes him to the terrace and points out to a petrochemical complex near the horizon… and says 5%. After a decade this American politician is invited by the Indian politician. A bigger palace built on acres of land that is now his estate baffles him. After some drink, it is now his turn to ask how? The politician takes him to the terrace and asks “Can you see that hydroelectric power plant there?”. “No, where is it?” “Hundred Percent!”, he explains!
Your jokes are great! I loved this one! 🙂 – Nita.
Since we are corrupt, the country is corrupt too.
Well, that is a loaded statement! 🙂 But at times some honest people can make a difference. – Nita.
Great.. So detail..
Thanks. – Nita.
I guess its not possible to write about all 28 states. You have missed Chattisgarh too.
Corruption in e-Tendering was recently exposed by a news paper in Chhattisgarh. The service provider and government officials together changed the bid data.before the recent elections, Congress published a chargesheet accusing BJP govt of CG of being involved in 30 scams!!
” The scams highlighted by the Congress included the Public Distribution System scam, mixing pebbles in rice, bitumen scam, memoranda of understanding scam, power purchase scam, Sarvasiksha scam, farmers’ fake bank loan
scam, seed and fertiliser purchase scam, teachers’ appointment scam, land scam, medicine purchase scam, illegal logging in forests scam, uniforms scam, National Rural Employment Guarantee Scheme scam and illegal mining scam. The chargesheet said that Chhattisgarh lagged behind on the development front and failed in achieving the spending target under the National Agricultural Development Scheme.”
P.S. I recognize the pic as of a road under construction near Kothrud in Pune, right?
Thanks for that info on CG Reema! And yeah, you are bang on about the pic, it’s taken in Pune, but it’s the Pune Satara road – Nita.
Hi Reema, I just came across your comment here while trying to find info on “mixing pebbles in rice” :). I’m American and was visiting Kolkata recently to find rocks in my rice! I felt it such a strong enough experience that I just wrote all about it, including what I think should be done about it as well as a little research on the subject. I even quoted you on my blog. There is really not much info on this topic out there, believe it or not. I am shocked to hear that the Indian government may have a hand in this! Thanks for posting. Regards, Matt
Great Post Nita, It is so sad to see corruption is there at almost every activity which involves the govt. More and more, I have come to the conclusion that Indis definitely has more than enough funds to really change itself – its just that so much of these funds go into people’s pockets, that any kind of development takes ages.
Thanks Smitha. I too believe that we have enough money to develop. But too much money is being used to fulfill the personal greed of people. You need one bad guy and 10 indifferent ones, that’s all. – Nita.
Nita, my intention in giving the Russia example was to show that there can be little causal link between development and perceived corruption.
If all Indians suddenly become honest, no doubt the speed of some projects will increase like you pointed out. But you will not notice a great deal of development. Because the development will only come one when Indians prioritize and demand it.
Actually, in many ways the rapid pace of development in New Delhi (roads, stadiums etc.) for the Commonwealth Games is itself corrupt. Squatters are being forcefully evicted and left without a home, schools and water. Thus ‘development’ has increased corruption as far as they are concerned.
Well, as I mentioned earlier, I tend to disagree with what you said about the link between corruption and development, where India is concerned. I think the prioritizaton has already been done at the government level and one of the evidences about this is the recent budget. And also the new projects that are planned and in the pipeline. And it is the thriving industry in India which is pressurizing the government. They have told them that no growth can be expected without infrastructure. – Nita.
the biggest example of enforced corruption in recent times is the 60,000 crore write-off of farmer loans.
If this money reached the right people it wouldn’t be so bad. But it won’t. The earlier farmer packages never reached the intended. – Nita.
govt without corruption……..its just like fish without water …. what say?…….but i just wish this fish learns to live without water…will be good for everybody.
i was not able to read the entire post…but got your point .
in between (belated ) happy new year Nita ! 😛
Happy New Year to you too! – Nita.
Nita
I am not sure if the 6th Pay Commission is going to reduce corruption.
It has become second nature.
When R R Patil had to quit a month back – it was said to his credit that he had stopped the sale of top Police posts in Maharashtra and appointed men of integrity and merit.
This means that till then these posts were sold to the highest bidder. The incumbent would then recover this amount from selling the top lucrative police stations and so on. Like the constable says …..this has to go all the way up…
This is completely unlinked to what salary you draw. I fear to even think what would be the state if Army posts / promotions were sold……
This points to a certain degree of moral degradation that is a part of our lives and as Odzer rightly says …….”we are corrupt….”
The odds against the whistle blowers are very high. Remember Satyendra Dubey (an IIT engineer) who blew the whistle on corruption in NHAI and was murdered because his letter was leaked from the Prime Minister’s Office. The next whistle blower who met the same fate was Manjunath – Indian Oil.
The perils are many and the sacrifice not worth it…..
I guess you are right Mavin. The increase in pay will not stop all the corrupt, but it might stop say about 10% of them. As long as corrupt people are lauded and respected by society, corruption will not cease. – Nita.
What does some one do with 100,000 Crores?
Destination Infinity
Use it to bribe? 🙂 – Nita.
well, to be honest, though these surveys may be just perception based, there is are lotsa of facts in it! In AP ya, corruption in every department! If you dont bribe them [even for small things] things dont happen on ur first visit…..they take 3 or 4 rounds around the department to be completed…..and so people also go for wrong ways……its a equal share of both sides! And we forget that all who take bribe are also citizens and common men!
my personal feeling [ no solid proofs for these conclusions] is its all due to politics !!! many people involved and many hierarchies! 😦
It’s become a way of life, no one questions it anymore! Paying a bribe has become like paying a commission. – Nita.
One of your best compilations Nita. I detest the fact that police stations are the last place one should visit in India. One might just end up in bigger mess! Shamelessly corrupted, it’s a mess every where around the world.
Thanks Kiran. As you said, a mess as of now, but at the same time some states are improving. One needs a will from the top. – Nita.
@Nita
hats off to Modi?? I thot u r a sensible person, but it doesnt seem like.
Look, No personal comments are allowed here. If you don’t think I am sensible, don’t read this blog. Thanks. – Nita.
Hello Nita,
The figures are horrible. There is no meaning in increasing public expenditure if this is way they are being wasted.Better to find an alternative to public spending.
Well, we have to hope that at least 70% goes where it should! That is who we are surviving! – Nita.
What then is the answer to the corruption? How, feasibly, can it begin to be dissolved? As I ask these questions the answer seems to stare me in the face…public officials must themselves change in order to have a society free from corruption (or at least less corrupted). Great post, Nita.
Thanks Molly. As to the answer to corruption, I think there will always be people who will steal, just like people who spit and litter. We need to reject them in our social lives, but more than anything else, the state has to put them behind bars. Just like they make examples of murderers by giving them life sentences. – Nita.
Yes, I agree, corruption is the biggest problem we face today. Population is the second.
It is not about the money (available to people, salary) or the excess (1 crore has been allotted to this project, let me take 1 lakh) or the lack of it (I am poor, if I don’t take bribes, my family will starve), it is a state or disposition of mind. Not a single mind or individual, but a trend of the ethical fabric of the society or of the collective mind that permits and even lauds corrupt people.
How can we even begin to destroy the root of corruption when people fear the lawkeepers, lawmakers and the whole lot including the education system is also corrupt?
Nomad, as you said, most people who are corrupt don’t do it to stave off starvation, they do it so they can go on world tours and educate their kids! Today a seat in a medical colleges can cost upwards of 25 lakhs, at times going up to 50 lakhs! Apartments costs crores in big cities! And the more black money there is in the system, the more the prices of these things go up! – Nita.
Corruption is all in our minds. 😉
If this money reached the right people it wouldn’t be so bad. But it won’t. The earlier farmer packages never reached the intended. – Nita. ..
and that’s why it is enfoced corruption ’cause the real farmer is still in deep debts to the money lender while it is a fact that bank loan write-offs are being misused in the name of purchasing farming equipments.
There should be zero tolerance for corruption. Unfortunately, it is easy to talk, but hard to act because it’s usually the ‘powerful’ people who are corrupt.
Nita:
The article just edges ahead of “satyam”. I wonder if in spite of this people in all walks would pause, come together and unite their purpose against corruption. What could be a more glaring example of the effects than the 53000 innocent hard working employees and their families that will be affected by the deeds of one greedy ego maniacal family.
Corruption , ah , unfortunately so common word in our country ..
well written post
What difference does it make? As if the cops care about the law. They’ll just throw you in jail and then sab dekha jayega
I don’t know if its just the government officials who indulge in corruption. Isn’t what happened in Satyam also a form of it? And now we have the DDA scam too!
Amit, sure there can be corrupt people everywhere! – Nita.
Singapore is within the top 5 at 9.2
I’m going to miss Singapore for this.
It is not surprising to see India’s rank in corruption index. Whenever I visit India, things looks sickening — yet the politicians and press claim India is achieving superpower status. What superpower if it cannot provide sanitation for its folks on the street? People defecating on drains and urinating on walls seem to be too common. Taking a train also bit strange – all the poops falling on the tracks. One needs to do a study of the impact of the fecal matter on rail tracks on the environment.
Incidentally, China now requires reporting of income and wealth for government staff/officers. It is a mandatory task for all.
Bribing is the only way to get those fatty lazy babus of any government department (including POLICE) to get on some work.
if you wanna get passport/visa, bribe!
if you wanna get a railway ticket, or a seat in AC while you got in the train “without ticket” bribe!
If you wanna get your plan for your dreamhouse passed from municipality babu and useless engineer/architect, Bribe!
if you wanna start some small scale industry or employment base in your small town tehsil or village, Bribe the collectorate and tehsildar!
What if all Indians decided NOT to bribe?
India will stop. Bribing is good. it provides efficiency.
other way to get rid of bribing is free market.
Anyways, until that do not happen, you have only one option to make government offices efficient, Bribe them!
reporting of income and wealth of the ‘working class’ has been in vogue since long in india. it is an annual event. tax is also deducted at source. those who go unnoticed are politicians, doctors, lawyers, business men, agriculturists…
walked all the way today from borivilli to sidhi vinayak temple via sv road. real back breaking. along the route there were many stalls manned by ordinary citizens distributing drinking water, milk, tea, bananas, food to the pilgrims. including muslims distributing water and parsees distributing chocolates (everything for free and given to you with a namaste and a thank you!).
but…never saw even one public urinal on the way! talk about govt apathy or govt corruption? then why is mumbai dirty? now they want to fine you 200 bucks for littering! talk about making use of denial to charge the citizen fine money! just like those traffic goondas who stand hidden (instead of guiding you) just to fine you so that the party funds can grow even bigger!
I wonder why it always that AP, TN and karnataka have crime rate, corruption and development documented with references..lol
What you have said is so true that it’s difficult to believe how we can be so complascent so as not even to recognise the need for changes…