By Khushi Agarwal
According to Corruption Perceptions Index of 2020 released by Transparency International, India ranked 86 among 180 countries scoring 40 in the level of corruption prevelant in the country[1].
Global Corruption Barometer shows that India has the highest bribery rate of 39% all over Asia and has the highest rate of citizens using their personal links for availing public facilities like education and healthcare.
The above-mentioned reports also showed that around 50% of people who have given bribe were actually asked to do so and many people reported that if they had not used the method of Bribery, they would not have been able to avail the services[2].
Thus, this article goes back reminiscing the biggest cases of Bribery in India.
What is Bribery?
Black Law’s Dictionary defined Bribery as “the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty”.
The word ‘bribe’ has been defined by Merriam Webster’s Dictionary as “money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust”.
Therefore, when any public officer accepts any item such as money, gift, property or any other thing from a citizen in order to either perform his duty or not to perform his duty, he is giving rise to an activity known as bribery.
Bribery is constituted on the principle of ‘quid pro quo’ which means something for something. It is giving something in order receive something in return.
For example, if two people were caught for drunken driving, then they may offer public officer some amount of money in order to prevent themselves from going to jail.
Here, in the above example, those two people in order to save themselves from prison offered money to the public officer and therefore, offered something in order to receive something. This is the concept of Bribery.
What can be understood by Bribery in India?
India is well known for the practice of Bribery. Many citizens of the country are not scared of the traffic police officers standing. They openly break the laws because they know that the officers will leave them and will not charge them with anything just by offering small bribe to these officers.
This is the condition of Bribery in India, in spite of the fact that the practice of Bribery is illegal in India and there are laws against it which can be used to punish the people using this practice.
Almost each and everyday cases of people giving bribe to government officials are being heard, especially people driving rashly, breaking traffic rules such as not wearing helmet, seat belts, etc. are seen offering bribes to traffic police officers.
What are the Laws against Bribery in India?
There are several laws against the practice of Bribery in India. Indian Penal Code, 1860 provides for the punishment for the offenders who practices this illegal activity.
Section 171B of the Act states,
“(1) Whoever –
(i) gives a gratification to any person with the object of inducing him or any other person to exercise any electoral right or of rewarding any person for having exercised any such right; or
(ii) accepts either for himself or for any other person any gratification as a reward for exercising any such right or for inducing or attempting to induce any other person to exercise any such right; commits the offence of bribery: Provided that a declaration of public policy or a promise of public action shall not be an offence under this section.
(2) A person who offers, or agrees to give, or offers or attempts to procure, a gratification shall be deemed to give a gratification.
(3) A person who obtains or agrees to accept or attempts to obtain a gratification shall be deemed to accept a gratification, and a person who accepts a gratification as a motive for doing what he does not intend to do, or as a reward for doing what he has not done, shall be deemed to have accepted the gratification as a reward”.
This Section defines the offence of Bribery and also the persons who receives and offers Bribery.
Under Section 169 of Indian Penal Code, 1860, if a public servant unlawfully bids for any property he shall be punished with imprisonment up to 2 years or fine or both.
Under Section 409 of the Indian Penal Code, 1860, if a public servant is entrusted with any property or dominion over the property and he converts such property for his use, he is guilty of criminal breach of trust. The punishment for an offense under Section 409 is life imprisonment or imprisonment up to 10 years.
Under all these Sections of the Indian Penal Code, 1860, a person can be held liable for Bribery. Other than these, a person can also be punished for Bribery in India under following laws:
- Prosecution section of Income Tax Act, 1961
- The Prevention of Corruption Act, 1988
- Prevention of Money Laundering Act, 2002
India is additionally a signatory to the United Nations Convention against Corruption since 2005 (endorsed 2011). The Convention covers a wide scope of demonstrations of corruption and furthermore proposes certain preventive strategies.
Which are some famous cases of Bribery in India?
- Abhishek Verma arms deals scandal
He became the youngest billionaire at the age of 28 in 1997. He had multiple business association including BSNL, FMCG brands, etc.
In 2006, he was accused of receiving $200 Million bribes through a military deal which involved purchase of six Scorpene class submarines. He was arrested in 2012 for after CBI raided his residence and registered cases of money laundering and corruption against him.
In 2013, he was also alleged to be involved in the practice of Bribery exceeding E50 Million in AgustaWestland VVIP helicopters bribery scandal.
- Sachin Vaze and Param Bir Singh – Vazegate Scandal
In March 2021, following the Mukesh Ambani bomb alarm case the NIA subsequent to assuming control over the Mumbai Police examination, noticed that a cop, Sachin Vaze and Mumbai Police Commissioner Param Bir Singh had assumed a part in the entire instance of preparation the bombs.
Param Bir Singh who was subsequently transferred composed a letter to the Maharashtra Chief Minister Uddhav Thackeray that the home minister of state Anil Deshmukh had requested that he gather Rs 100 crore consistently.
- Harshad Mehta – Securities Scam
This is the case of 1992. Harshad Mehta, an Indian stockbroker, controlled stocks by illicitly getting cash from a few banks utilizing counterfeit bank receipts.
He made a pattern of misrepresentation including enormous banks like the State Bank of India (SBI) and the National Housing Bank (NHB).
Mehta supposedly was occupied with a huge stock control plot financed by useless bank receipts, which his firm expedited for “prepared forward” exchanges between banks.
He was sentenced by the Bombay High Court and the Supreme Court as far as it matters for him in a monetary outrage esteemed at Rs 10,000 crore which occurred on the Bombay Stock Exchange (BSE).
The outrage uncovered the provisos in the Indian financial framework and the BSE’s exchange framework.
- Congress Legislators – Bofors Scandal
Bofors embarrassment was one of India’s significant weapons-contract political outrage that happened in the 1980’s and 1990’s.
This outrage was started by the Congress party legislators blaming the then Indian executive, Rajiv Gandhi, and a few other Indian and Swedish government authorities of getting significant payoffs from a Swedish arms producer, Bofors AB.
It was alleged that the Indian Government received around $640 Million from Bofors and defense officials was to win a bid to supply India’s 155 mm field howitzer, a short gun for firing shells on high trajectories at low velocities.
Which are some famous cases of Bribery outside India?
- Daimler case
Daimler was charged for violating U.S. Bribery laws. It was alleged that it showed millions of dollars and many gifts to foreign officials for making their business deals done.
Between 1998 and 2008, the company was engaged in the practice of Bribery in around 22 countries such as Russia, Nigeria, Iraq, etc.
After getting caught, the company was held accountable to pay around $185 Million to settle the charges by the U.S. Justice Department and Securities and Exchange Commission.
- Titan case
Titan, the US military communications company was held liable for violating the Bribery laws of the country and was made to pay $28.5 Million for settling the charges.
The company between 1999 and 2001 gave $3.5 Million to the business advisor of the President of Benin. It gave $2 Million to Mr. Kerekou’s re-election campaign. It also in 1999 gave Mr. Kerekou’s wife earnings worth $1850.
- Kellogg Brown and Root case
The engineering company was held liable to pay $402 Million in fines and the former CEO was charged with 30 months of prison.
The company paid $180 Million to Nigerian officials as bribe in order to secure a contract worth $6 Billion. The company admitted that it engaged in the practice of Bribery between 1994 and 2004 for securing four contracts.
- BAE system case
The biggest defense company was held liable for engaging in the practice of Bribery and selling arms in various countries like China, Qatar, South Africa, etc. using corruption. It was held accountable to pay $450 Million as fines.
- Alcatel Lucent SA case
The organization paid off unfamiliar authorities to win business in Costa Rica, Honduras, Malaysia, and Taiwan. The organization additionally employed specialists without appropriate controls in Kenya, Nigeria, Bangladesh, Ecuador, Nicaragua, Angola, Ivory Coast, Uganda, and Mali. Generally speaking, Alcatel-Lucent conceded making $48.1 million in benefits because of its pay off.
It was charged with $137 Million as fines for Bribing officials in 2010.
- Novartis case
The company provided bribes to the doctors with the goal of encouraging doctors to prescribe its drugs, including Lotrel, Valturna, Starlix, Tekturna, Tekamlo, Diovan and Exforge, etc. It was charged with $1.3 Billion for settling the bribery and price-fixing undertaken by it.
- Alexion Pharmaceuticals
In Turkey and Russia, Alexion paid government authorities and specialists at state-associated emergency clinics to advance utilization of its blood-infection drug, Soliris. Alexion held a specialist in Turkey from 2010 to 2015 with binds to wellbeing authorities.
Alexion paid the advisor more than $1.3 million for ‘counseling charges and cost repayments. In Russia, Alexion paid specialists at government medical clinics more than $1 million from 2011 to 2015 to expand Soliris solutions.
The pay off brought about Alexion being ‘shamefully advanced’ by about $6.6 million in Turkey and $7.5 million in Russia.
The company was therefore charged $21.4 Million for settling all the fines.
Conclusion
According to International Monetary Fund (IMF), the world wastes up to $2 trillion in corruption which amounts to two percent of the world’s GDP. Ending the practice of Bribery has become the need of the hour.
Almost each and every country is facing it and is making laws to end the same. It has become the part of civilization and with so many levels of government and people especially in countries like India, this practice has become a big issue which is almost becoming impossible to identify and control.
In order to stop this practice, the United Nations Sustainable Development Goal 16 has a target to substantially reduce corruption and bribery of all forms as part of international effort aimed at ensuring peace, justice and strong institutions.
Therefore, every country should also make strict laws to reduce and eventually stop the practice of Bribery. Every citizen of the country should also pay attention to this practice and should refrain from using it as a means of availing public facilities.
References
- thehindu.com
- blog.ipleaders.in
- wikipedia.org
- finance.yahoo.com
- yourstory.com
- reuters.com
- ft.com
- .independent.co.uk
- fcpablog.com
- Corruption Perception Index available at: transparency.org (last visited on 12 July 2021) ↑
- India has highest bribery rate in Asia: business-standard.com(last visited on 12 July 2021)↑
