Laws relating to Corruption in India

Laws Relating to Corruption in India

The Prevention of Money Laundering Act, 2002

The Act states that associate offence of Money Laundering has been committed if someone may be a party to any method connected with the yield of crime and comes such yield as untainted property. “Proceeds of crime” means that any property obtained by someone as a result of criminal activity associated with bound offences listed within the schedule to the Act. A person may be charged with the offence of money laundering providing he has been Public servants in India are fined for corruption underneath the Indian Penal code, 1860 and the Prevention for Corruption Act, 1988. The Benami Transactions (Prohibition) Act, 1988 prohibits Benami transactions. The Prevention for Money Laundering Act, 2002 penalizes public servants for the offence of money laundering. India is additionally a signatory (not ratified) to the United Nations Convention against Corruption since 2005. The Convention cored covers a good vary of acts of corruption and additionally proposes bound preventive policies.

The term “corruption” has forever been thought-about beneath voodoos and conspiracies. Corruption in India is a difficult that adversely affects its economy of central, state and government agencies.  Not solely has it control the economy back from reaching new heights; however rampant corruption has stunted the country’s development. India continues to be among the foremost corrupt countries within the world. As Per Corruption Perception Index (CPI) that ranks one hundred eighty countries awards India a score of forty, rendering it the 81st most corrupt country within the world. Developed nations like Morocco have conjointly achieved a similar score.

What are the Causes for Corruption in India?

There are plenteous reasons for the reason behind corruption in India. The primary reason is lack of effective management in organization. Because of direction, there’s week management on varied departments and their operating. This uncontrolled and unattended administration gives away rise in corruption in less scale, which ends up in giant scale corruption. Besides, appointment of inefficient managers, supervisors and executives at varied levels of hierarchy additionally results in direction. Secondly, lack of support permanently leaders. Because of fewer sensible leaders, they notice exhausting to eradicate corruption from the society. However because of lack of support and cooperation from vital sections of the society, sensible leaders are usually defeated and suppressed. Lack of correct vigilance systems within the country. Here, some officers are tempted to urge non legal cash, hereby going corrupt folks with none penalty or penalization. Finally, lack of economic stability that results in state and change in normal living. It develops a sense of security within the minds of, affected folks that are taken advantage by corrupt people.

Key features of the Act associated with corruption

Indian Penal Code, 1860:

  • The IPC defines “public servants” as a government worker, officers within the military, navy or air force, police, judges, officers of Court of Justice and any federal agency established by central or state Act.
  • Section 169 pertains to a employee unlawfully shopping for or bidding for property. The public servant shall be penalized with imprisonment of up-to 2 years or with fine or both. If the property is purchased, it shall be appropriate.
  • Section 409 pertains to criminal breach of trust by a public servant shall be penalized with reimbursement to with imprisonment of up-to 10 years and a fine.

The Prevention of Corruption Act, 1988

  • Additionally to the classes enclosed within the IPC, the definition of “public servant” includes workplace bearers of cooperative societies receiving assist from the government, staff of universities, Public Service Commission and banks.
  • If an employee takes gratification aside from his legal remuneration in respect of associate official act or to influence public servants is at risk of minimum social control of six months and most social control of 5 years and fine. The Act conjointly penalizes a employee for taking gratification to influence the general public by prohibited means that and for workout his personal influence with an employee.
  • If a employee accepts a valuable issue while not paying for it or paying inadequately from someone with whom he’s concerned in an exceedingly business dealing in his official capability he shall be penalized with minimum social control of six months and most punishment of 5 years and fine.
  • It’s necessary to get previous sanction from the central or authorities so as to prosecute an employee.

The Benami Transactions (Prohibition) Act, 1988

  • The Act prohibits any benami dealing (purchase of property in assumed name of another person who doesn’t get hold of the property) except once someone purchases property in his wife’s or widowed daughter’s name.
  • Someone United Nations agency enters into a benami dealing shall be punishable with imprisonment.
  • All properties that are command to be benami may be non-heritable by a prescribed authority and no money shall be purchased such acquisition.
  • charged with committing a regular offence.
  • The penalty for committing the offence of money laundering is rigorous imprisonment for three to seven years and a fine of upto Rs. 5 Lakh. If someone is condemned of associate offence underneath the Narchotics medication and mind-blowing Substances Act, 1985 the term of imprisonment will extend upto 10 years.
  • The Adjudicating Authority, appointed by the Central Government, shall decide whether or not any of the property connected or confiscated is concerned in concealment. Associate appellant Tribunal shall hear appeals against the orders of the Adjudicating Authority and the other authority underneath the Act.
  • Each banking concern, financial organization and mediator shall maintain a record of all transactions of a nominative nature and price, and verify and maintain records of all its customers and furnish such info to the required authority.


The fist and foremost solution is to alter the Government processes. If the Members of the government and procedures are unit clear one will cut back corruption drastically. Besides, provision associated with the electing of the individuals representatives should be demanding that if there’s any case filed against someone then he wouldn’t be eligible for election. In India there’s a provision that nobody as a criminal shall be allowed as a Member of Parliament or Legislative. This could be effectively offered a primary step towards zero corruption.

Secondly, offering direct connectivity between government and public. This may cut back corruption by increasing direct contact between governments and therefore the rules E-governance may facilitate plenty towards these directions.

Thirdly, everybody ought to be performing his/her duties dependably and to the simplest of their skills. Each subject ought to in person attempt laborious to eradicate corruption. Accountable voters ought to report cases of corruption to the vigilance department directly at once. Besides, they ought to follow up the cases of corruption as a more news of the evil observe isn’t adequate for effective wipeout.

Fourthly, government and vigilance agencies should keep a check on their supply of financial gain and back accounts for the leaders and their associates. If any suspicious transactions area unit found they need to be reportable to the judicature. Besides, if any leader isn’t performing his duties properly, then he’she ought to be destroyed from the position. High government posy and positions ought to be supported performance. Government ought to do performance appraisal of leaders often.

Finally, a robust and effective leadership is required. All those that area unit granted powers and authority through election ought to fulfill their guarantees and pledge given to individuals. They ought to attempt laborious to eradicate corruption from government administrations. Remove unwanted hindrances and even laws that facilitate the corrupt to flee social control.

Author: Neha Ghuge,
Government Law College, Mumbai/Second Year

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