Introduction
Corruption within government is a challenge that has persisted across centuries. From ancient civilizations to modern democracies, the misuse of power by public officials has consistently undermined the stability and prosperity of societies. Kautilya provides invaluable guidance on addressing this issue. His insights highlight the importance of vigilance, accountability, and ethical governance—principles that are just as relevant today as they were over two millennia ago.
Understanding Corruption through Kautilya’s Lens
In Chapter 2.8 of the Arthashastra, Kautilya delves deep into the various forms of corruption that can plague a state. He emphasizes the difficulty of detecting such malpractices, likening corrupt officials to fish swimming in water—just as it is nearly impossible to discern the movement of fish in a body of water, so too is it challenging to identify the corrupt activities of officials.
“यथाऽपि च जलान्याभुक्तानि रसेन दूष्यन्ते तत्र न शक्यं वक्तुम् ।”
Yathā’pi ca jalānyābhuktāni rasena dūṣyante tatra na śakyaṃ vaktum । (2.8.21)
“As it is impossible to detect the movement of fish in water, so it is difficult to identify the corruption by state officials.”
This analogy underscores the subtle and often hidden nature of corruption, making it a formidable challenge for rulers and administrators alike. Corruption is not always a blatant crime; it can be insidious, woven into the fabric of daily operations, and difficult to root out without rigorous oversight.
Types of Corruption Identified by Kautilya
Kautilya categorizes different types of corruption in governance, offering a framework that remains strikingly relevant today. Each form of corruption is meticulously detailed, showcasing Kautilya’s comprehensive understanding of the issue.
1. Obstruction (प्रतिबन्धः)
“प्रतिबन्धः प्रवृत्तानामप्रवृत्तिरवास्तवः॥”
Pratibandhaḥ pravṛttānām apravṛttir avāstavaḥ॥ (2.8.20)
This type of corruption involves the deliberate delay or failure to initiate an undertaking, resulting in the loss of potential benefits to the state.
In many government projects, delays are often caused by bureaucratic red tape or intentional stalling by officials expecting bribes. For instance, infrastructure projects in several countries, including road construction or public housing developments, often get delayed due to such obstructions, leading to increased costs and public inconvenience.
2. Fabrication of Accounts (अवस्तारः)
“अवस्तारो व्रजान्वा रूपवृत्तयश्चायुष्टयः॥”
Avastāro vrajān vā rūpavṛttayaś cāyuṣṭayaḥ॥ (2.8.25)
This involves falsifying financial records to conceal embezzlement or misappropriation, a common practice even in today’s financial frauds.
A well-known case is the Satyam scandal in India, where the company’s chairman inflated the financial records of the company, hiding the actual financial health of the organization. This type of corruption not only led to the loss of investor trust but also damaged the overall reputation of the corporate sector in India.
3. Causing Loss of Revenue (परिहापणम्)
“परिहापणं च युक्तमवस्तारात्प्रवृत्तिनश्च॥”
Parihāpaṇaṃ ca yuktam avastārāt pravṛttinaś ca॥ (2.8.26)
Officials may intentionally reduce income or increase unauthorized expenditures, leading to significant losses for the state.
Tax evasion is a prevalent issue globally, where officials may collude with businesses to reduce the tax liabilities in exchange for kickbacks. This loss of revenue has a direct impact on the government’s ability to fund essential public services like healthcare and education.
4. Self-Enjoyment (उपभोगः)
“उपभोगो हि तस्योपायैः स्वस्वामिनः॥”
Upabhogo hi tasyopāyaiḥ svasvāminaḥ॥ (2.8.27)
This form of corruption involves the unauthorized use of state resources for personal gain, a malpractice that continues to undermine public trust in governance.
Instances where government vehicles, funds, or properties are used for personal functions by officials are common. This misuse of resources not only violates public trust but also leads to inefficiencies within the administration.
Detailed Methods of Corruption
Kautilya also describes specific methods of corruption, showcasing the various tactics that corrupt officials might employ to manipulate the system:
1. Misrepresentation in Delivery
“पूर्वं सिद्धं पश्चाद् अवतारितम्, पश्चात् सिद्धं पूर्वम् अवतारितम्, साध्यं न सिद्धम्, असाध्यं सिद्धम्, सिद्धम् असिद्धं कृतम्, असिद्धं सिद्धं कृतम्, अल्प.सिद्धं बहु कृतम्, बहु.सिद्धम् अल्पं कृतम्, अन्यत् सिद्धम् अन्यत् कृतम्, अन्यतः सिद्धम् अन्यतः कृतम्”
Pūrvaṃ siddhaṃ paścād avataritam, paścāt siddhaṃ pūrvam avataritam, sādhyaṃ na siddham, asādhyaṃ siddham, siddham asiddhaṃ kṛtam, asiddhaṃ siddhaṃ kṛtam, alpa-siddhaṃ bahu kṛtam, bahu-siddham alpaṃ kṛtam, anyat siddham anyat kṛtam, anyataḥ siddham anyataḥ kṛtam (2.8.21a)
This involves delivering something different from what was promised or delivered previously, thereby deceiving the state or the public.
In the education sector, this can be seen in cases where funds allocated for institute infrastructure are diverted, and substandard materials are used instead of those specified, compromising the safety and quality of education.
2. Improper Payments
“देयं न दत्तम्, अदेयं दत्तम्, काले न दत्तम्, अकाले दत्तम्, अल्पं दत्तं बहु कृतम्, बहु दत्तम् अल्पं कृतम्, अन्यद् दत्तम् अन्यत् कृतम्, अन्यतो दत्तम् अन्यतः कृतम्”
Deyaṃ na dattam, adeyaṃ dattam, kāle na dattam, akāle dattam, alpaṃ dattaṃ bahu kṛtam, bahu dattam alpaṃ kṛtam, anyad dattam anyat kṛtam, anyato dattam anyataḥ kṛtam (2.8.21b)
This corruption involves the failure to deliver what was due, giving what was not due, or making payments at inappropriate times.
Instances of improper payments are common in public procurement processes, where vendors might receive payments for services not rendered or for inflated contracts, leading to significant financial losses for the state.
3. False Entries
“प्रविष्टम् अप्रविष्टं कृतम्, अप्रविष्टं प्रविष्टं कृतम्, कुप्यम् अदत्त.मूल्यं प्रविष्टम्, दत्त.मूल्यं न प्रविष्टं “
Praviṣṭam apraviṣṭaṃ kṛtam, apraviṣṭaṃ praviṣṭaṃ kṛtam, kupyam adattamūlyaṃ praviṣṭam, datta-mūlyaṃ na praviṣṭam (2.8.21c)
Corrupt officials might record false entries or omit real transactions, leading to a significant distortion of the financial records.
In government audits, it’s not uncommon to discover instances where expenditures have been falsely recorded to cover up embezzlement or misallocation of funds, leading to financial discrepancies and loss of public trust.
4. Manipulation in Valuation
“संक्षेपो विक्षेपः कृतः, विक्षेपः संक्षेपो वा, महा.अर्घम् अल्प.अर्घेण परिवर्तितम्, अल्प.अर्घं महा.अर्घेण वा ” (2.8.21d)
Saṃkṣepo vikṣepaḥ kṛtaḥ, vikṣepaḥ saṃkṣepo vā, mahā-argham alpa-arghena parivartitam, alpa-arghaṃ mahā-arghena vā
This involves manipulating weights, measures, and valuations to benefit the corrupt official or to defraud the state.
In real estate transactions, government officials might manipulate property valuations to benefit certain parties, leading to significant financial gains for the corrupt and losses for the state or other stakeholders.
5. Irregularities in Measurement and Accounting
“समारोपितो_अर्घः, प्रत्यवरोपितो वा, संवत्सरो मास.विषमः कृतः, मासो दिवस.विषमो वा, समागम.विषमः, मुख.विषमः, कार्मिक.विषमः”
Samāropito arghaḥ, pratyavaropitaḥ vā, saṃvatsaro māsa-viṣamaḥ kṛtaḥ, māso divasa-viṣamaḥ vā, samāgama-viṣamaḥ, mukha-viṣamaḥ, kārmika-viṣamaḥ (2.8.21e)
Various inconsistencies in measurements, values, and accounting are exploited by corrupt officials to their advantage.
In construction projects, discrepancies in material measurements or accounting can lead to the overbilling of costs or the use of subpar materials, which compromises the integrity of the project and results in financial losses.
6. General Discrepancies
“निर्वर्तन.विषमः, पिण्ड.विषमः, वर्ण.विषमः, अर्घ.विषमः, मान.विषमः, मापन.विषमः, भाजन.विषमः – इति हरण.उपायाः ॥”
Nirvartana-viṣamaḥ, piṇḍa-viṣamaḥ, varṇa-viṣamaḥ, argha-viṣamaḥ, māna-viṣamaḥ, māpana-viṣamaḥ, bhājana-viṣamaḥ – iti haraṇa-upāyāḥ ॥ (2.8.21f)
This refers to a wide range of other irregularities in governance and administration that contribute to corruption.
General discrepancies can include a wide range of practices, such as favoritism in the allocation of government contracts, misrepresentation of project statuses, and the manipulation of official records to suit personal or political interests.
The Broader Implications of Kautilya’s Teachings
These sutras emphasize the complexity and pervasive nature of corruption. Kautilya’s approach to governance was thorough, recommending continuous oversight, surprise inspections, and severe penalties for those who engage in corrupt practices. His teachings remind us that ethical governance is not just desirable but essential for a stable and prosperous society.
“तेषां कार्याकारिणां वशं न प्रयुञ्जीत । न हि सर्वे कार्यकारिणः सर्वे वान्यायतः ॥”
Teṣāṃ kāryākāriṇāṃ vaśaṃ na prayuñjīta। Na hi sarve kāryakāriṇaḥ sarve vānyāyataḥ॥ (2.8.10)
“One should not place blind trust in officials who execute work, for not all who undertake work are honest, nor do all act according to justice.”
This sutra serves as a powerful reminder that leaders must maintain vigilance and skepticism, ensuring that those entrusted with responsibilities are continuously monitored and held accountable.
Present-Day Relevance and Examples
In today’s world, corruption continues to be a significant issue across various sectors:
Government:
Corruption in the Indian government is a significant barrier to progress. High-profile scandals like the 2G spectrum scam and the Commonwealth Games (CWG) scam have revealed how deep-rooted corruption can divert vast public resources away from development. These incidents, involving the underpricing of telecom licenses and the misappropriation of funds meant for sports infrastructure, resulted in massive financial losses and damaged India’s global reputation.
At a systemic level, bribery and nepotism are pervasive in everyday government functions, such as land registration and issuing permits. The Aadhaar registration process, for instance, has seen cases where officials demand bribes to expedite services, undermining the equality that the system seeks to provide.
Administration:
In administrative functions, corruption is equally damaging. The Public Distribution System (PDS) and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), both vital social welfare programs, are frequently plagued by issues like fake job cards, ration cards for non-existent beneficiaries, and diversion of goods meant for the poor. These practices deprive millions of their rightful benefits and perpetuate poverty.
The real estate sector also suffers from corruption, where bribes are paid to bypass regulations, leading to unauthorized constructions and unsafe buildings. This not only endangers lives but also undermines urban planning.
Law enforcement agencies are not immune either. Corruption within the police force, such as accepting bribes to overlook crimes or fabricating charges, erodes public trust and weakens the rule of law, making citizens feel insecure in our own country.
Banking and Finance:
Corruption in the banking and finance sector is particularly alarming as it directly impacts the economic stability of the country. The most infamous example is the Punjab National Bank (PNB) scam, where fraudulent letters of undertaking were issued, leading to a loss of over ₹14,000 crores. This scandal exposed severe weaknesses in the internal controls of Indian banks and highlighted how collusion between bank officials and fraudulent entities can result in significant financial damage.
Additionally, the Non-Performing Assets (NPA) crisis in India, where large corporations default on loans, often due to corrupt practices like favoritism in loan approvals, has strained the banking system. The repercussions include reduced lending capacity of banks and a slowdown in economic growth.
Money laundering is another significant issue, with corrupt officials often facilitating the movement of illicit funds through the banking system. This not only hampers law enforcement efforts but also affects the integrity of financial institutions, eroding public confidence in the financial system.
Education:
Corruption in India’s education sector often involves the misuse of funds and unethical practices that compromise the integrity of academic processes. For instance, funds received as grants meant for resources such as laptops, are sometimes diverted to purchase personal gadgets like mobile phones by generating false or overvalued invoices. Similarly, inflated contracts for development of classroom facilities and white goods like computers, research equipment, projectors, screens, etc., in institutes often result in substandard or undelivered goods, wasting public resources and diminishing the quality of education.
One of the most concerning issues in the education sector is the manipulation of entrance exams, such as the NEET (National Eligibility cum Entrance Test) and the UPSC (Union Public Service Commission) exams. The NEET exam, which determines entry into medical colleges, has been marred by incidents of paper leaks, impersonation, and bribery. For instance, in recent years, there have been cases where students were provided with answers in advance, or impostors were hired to take the exam on behalf of others, severely compromising the merit-based admission process.
Similarly, the UPSC exam, which is a gateway to the Indian civil services, has seen instances of corruption, such as the 2019 paper leak scandal. In this case, question papers were leaked before the exam, giving certain candidates an unfair advantage and casting a shadow over the integrity of one of India’s most prestigious examinations.
These corrupt practices in the education sector undermine the credibility of the academic system, deprive deserving candidates of opportunities, and erode public trust in the fairness of the educational process.
Conclusion
Corruption remains one of the most significant challenges facing India today, permeating various sectors, including government, administration, education, and finance. Whether it’s the misallocation of funds, manipulation of academic outcomes, embezzlement of resources meant for public welfare, or fraudulent activities in the banking sector, the effects of corruption are far-reaching and detrimental to the country’s development.
In the government and administrative sectors, corruption not only diverts critical resources from public services but also erodes public trust, undermines the rule of law, and exacerbates inequality. Scandals such as the 2G spectrum scam, the Commonwealth Games scam, and everyday bribery and nepotism illustrate how deeply rooted these issues are, impacting everything from infrastructure development to the delivery of basic services.
In the education sector, corruption further perpetuates inequality and hampers academic progress. The misuse of funds, paper leaks, and the manipulation of academic results, as seen in the NEET and UPSC exam scandals, not only compromise the integrity of the education system but also deprive students of fair opportunities to succeed. These practices undermine the very foundation of education, which is supposed to be a cornerstone of social and economic mobility.
In the banking and finance sector, corruption poses a direct threat to economic stability. Scandals like the PNB scam and the NPA crisis underscore the need for stronger regulatory frameworks and more stringent oversight. Addressing corruption in this sector is crucial to maintaining public trust and ensuring the smooth functioning of the economy.
To combat these pervasive issues, India needs a multi-faceted approach that includes stricter oversight, transparency in all transactions, and a cultural shift towards valuing integrity and accountability. Only by addressing corruption at all levels can India ensure that its resources are used effectively for the benefit of all citizens, thereby fostering a more just, equitable, and prosperous society.
