Search the Internet          Tips  Sites: Finance, Investment

India is a corrupt nation, says Vittal

"Democracy in India is run by corruption and the corrupt people were taking shelter under interpretations of law and constitution," Central Vigilance Commissioner N Vittal bemoaned.

"Corruption has taken the politics, bureaucracy and business of the country into its grasp. It is a vicious cycle where everybody seems to conform to the prevalent 'norms'," Vittal said at a seminar organised by Rotary Club of Delhi South-West.

"The democracy in India is run by corruption and the corrupt people were taking shelter under the interpretations of law and constitution," he stated.

"Political parties need funds, which come from cash donations. There is no accountability for these funds. It provides an opportunity for conversion of black money into white," he said.

"When I was telecom chairman in 1993 I was told that if anyone collects Rs 1 million for the party, he has to give 600,000 to the party and he can keep the rest. How will a politician be honest under these circumstances?" Vittal asked.

Referring to the JMM bribery case, he regretted that those MPs who accepted bribe to act along a particular line were protected by parliamentary immunity.

Vittal said that corruption in the country had taken the shape of a nicely balanced demand-supply chain.

"Politicians and bureaucrats were on the demand side of the chain and businessmen on the supply side," he said.

Vittal said that banking system of the country was also protecting corrupt people.

"I had given a report to Reserve Bank of India Governor Bimal Jalan, recommending action against certain senior bureaucrats and publishing of their names, who were willful defaulters," he said.

"But I received a reply saying that said names of these officers cannot be published as Article 4 (Section 3) does not allow it," he added.

"These are the reasons that we have Rs 580 billion of non-performing assets," Vittal remarked.

Vittal questioned efficacy of various schemes initiated by government from time to time like Voluntary Disclosure of Income Scheme in curbing black money.

"How can a person be honest if he has to pay only a 30 per cent income tax under the VDIS instead of 40 per cent according to the normal procedure?" he asked.

This has led to criminalisation of politics, Vittal added. "Criminals see a bright chance of turning their black money white by any of the methods I mentioned earlier. They are now even coming into the politics as they, probably, feel that there is no difference between them and the politicians," he said.

Corruption in the country cannot be eradicated without curbing the political corruption, Vittal said, adding that "corruption starts from top and trickles down."

Vittal said that he has compiled a citizen's guidebook on how to prevent corruption, which will be launched first on the CVC Web site on the Independence Day.

YOU MAY ALSO WANT TO READ:
UTI's problems are due to lack of corporate governance: Vittal

Tell us what you think of this report