Indian Economy III : The Pest Treatment
In independent India, the corruption spread like a infectious disease and touched all walks of life. Promoted by the politician-bureaucrat alliance, added and used by middleman and other beneficiary and accepted by the public as a way of life it remained unchecked. No one was surprised when former prime minister Rajeev Gandhi remarked in 1985 that “Only 15 paisa of every rupee meant for downtrodden reaches them. Rajeev Gandhi’s drive for modernization of Railway reservation, through computerization was the first time, use of technology removed middlemen and reduced corruption. Within a span of few months railway reservations become transparent and corruption through manipulation become almost impossible.
Next important attempt was made by Shri T. N Sheshan who was Chief Election Commissioner from 1990 to 1996. His electoral reforms caught the public imagination. He redefined the status and visibility of the Election Commission of India. He identified more than hundred electoral malpractices and reformed the election process. Some of reforms he implemented include enforcement of election code of conduct, Voters IDs for all eligible voters, limit on election candidates’ expenditure, appointing election officials from states other than the one facing polls. He curbed several malpractices like bribing or intimidating voters, distribution of liquor during elections, use of government funds and machinery for campaigning, appealing to voters’ caste or communal feelings, use of places of worship for campaigns, use of loudspeakers and high volume music without prior written permission. During the 1999 Indian general elections, due to his reforms, 1488 candidates were disqualified for three years for failing to submit their expenditure accounts. It was reported that he reviewed more than 40,000 expenditure accounts and disqualified 14,000 candidates for false information. He is still fondly remembered is testimony enough to the fact that public at large abhors corruption.
Next the trial and sentencing of Lalu Prasad Yadav in Chara Ghotala was a huge leap in removing corruption in high places. The Right to Information Act 2005 was also a step in right direction The basic object of the Act was to empower the citizens, promote transparency and accountability in the working of the Government, contain corruption, and make our democracy work for the people in real sense.
Pokharan Nuclear Test in May 1998 was a turning point in Indian history. It enhanced the pride of the nation in eyes of its own citizen. Like 1971 war it was a watershed moment. Facing sanctions from the major nations the than PM Atal Bihari Bajpai requested the NRI to help India in the time of crises and there was an overwhelming response from the patriots. Prime Minister Gramin Sadak Yozna which was successfully implemented by Atal’s government was also unique in removing corruption in public life. There was an inbuilt clause in the scheme that the contractor has to maintain the road for five years, through this all villages got the connectivity for the first time since independence.
The people’s anguish against corruption reached its peak in 2010–2014. The non-banking finance company took huge deposits offering high rate of interest and did not refund the money. The promoter builders took deposits in the name of projects and did not deliver on their promises. In SAHARA case the courts intervened in these matters. In August 2012,Supreme Court directed Sahara India Real Estate Corporation Ltd. (SIRECL) and the Sahara Housing Investment Corporation Ltd. (SHICL) to refund over Rs. 24,400 crore to its investors. In February 2014 Subrata Roy, the Chairman of SAHARA was arrested by police for his failure to appear before the Supreme Court. His bail was made conditional upon refunding the money of the general public. Some other builders also faced the ire of the SC in simpler cases due to public awakening.
In 2014, Narendra Modi came to power on the back of huge public anguish against corruption. During second term of UPA government there were allegations of several scams. The public assets are alleged to be auctioned without following proper procedures and huge bank loans were given on recommendations of the politicians. Modi government from the word go wanted use technology to bring in transparency and to remove the middlemen. Aadhar system was already in place during UPA. New PM announced the JAN DHAN scheme on 15th August 2014 and implemented it with a religious zeal. JAM (short for Jan Dhan-Aadhaar-Mobile) trinity refers to the government of India initiative to link Jan Dhan accounts, mobile numbers and Aadhaar cards of Indians to plug the leakages of government subsidies. Slowly but steadily the pilferage in welfare schemes was being curtailed. Overnight fictitious gas connections evaporated. The subsidies meant for the poor in case of houses, toilets, scholarship and even the MSP of food grains reached the account of the beneficiary directly. All this was not smooth sailing. The usual culprits the beneficiary of the cut-money culture repeatedly raised objection in Supreme Court in the name of privacy.
On 8 November 2016, came the major strike against corruption, the Government of India announced the demonetization of all Rs. 500 and Rs.1,000 banknotes of the Mahatma Gandhi Series. This scheme is considered by the majority, including people in the ruling establishment as a utter failure due to three reasons. Firstly, the notes worth Rs. 15.31 lac crore have been returned out of Rs. 15.41 lac crore in circulation. Secondly, only a small number of notes were detected as fake. Thirdly only Rs 1.3 lakh crore black money has been recovered through all anti-black money measures. What is not taken into account that fake money was printed not by any patty operator but a sovereign nation Pakistan. The quality of fake notes was as good as original notes. The level of corruption in India at that time was so high that it is not beyond the system to have printed unaccounted notes ?? The demonetization had a huge psychological impact. The black money operations were controlled as is evident from steep fall of real estate prices. The honest, hardworking, poor masses was happy that for the first time in independent India some action was taken against the corrupt. They responded with enthusiasm by giving huge mandate to BJP in UP in 2017 election.
Enforcement Directorate (ED) established 1956 is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA), and certain provisions under the Prevention of Money Laundering Act (PMLA), 2002. Prior to 2014 it has not seized and sold assets created through illegal transactions and crime. In a recent news ED has attached and transferred assets worth 9731 crores to the Bank. Similarly in UP the state government is attaching assets created out of earning from crime.
E-RUPI Launched by the PM on 3rd August 2021 is another step towards corruption free India. Jointly developed by the National Payments Corporation of India (NPCI), Department of Financial Services, Ministry of Health and Family Welfare, and National Health Authority, etc. e-RUPI is an electronic voucher-based digital payment system. Through this a QR code will be send by the government. The amount could be used by the beneficiary for that specific purpose only. It will work as a prepaid gift-voucher. If the subsidy is for fertilizer the QR code will work in fertilizer shop only. QR code under Aushman Bharat in work in hospitals only.
We have a long way to go. In democracy public opinion is a major force. If the public backs government measures for eradication of corruption, everyone politician, bureaucrat, police judiciary all will fall in line.
