How business corruption became a norm in India

This is a story about bureaucratic extortion that was rampant in SME manufacturing sectors almost a decade back. An excise officer got his transfer orders. He decided to make a quick buck before leaving his station. He visited this unit for a cup of tea. Which sane industry owner would say no to it?

Before leaving, the officer asked for Rs. 5000. The owner asked what for. Officer said I am transferred & we won't meet again, so treat it as a goodbye gift. The owner said NO. If there is no work done, why should I pay? (this owner was OK to bribe but only if there was some work to be done. Most industry owners apply this convenient integrity principle because "Kya karein, dhanda karna hain") The officer went back empty-handed. Two days later, the business owner received a demand letter of 5 Lakhs from Excise Dept.

The owner waited until the officer's transfer & then met the new officer. Looks like the new officer was told about the incident during the handover. He too stood up for the honour of the department & dared the businessman to go legal. So he went to tribunal. But the law mandates payment of the demand amount to govt. before filing the case. This person had to deposit 5 lakhs & then proceed with the legal route. The Tribunal favoured the department & this businessman had to take the case to High Court. Finally, after 4 years of struggle, he got a favourable verdict. But then the bureaucracy made it difficult to get the refund. That took another 9 months. Finally, a new upright lady officer got transferred to that office & she promised him the refund in one week. But the office staff there continued his harassment & didn't make the payment. Seeing this businessman in her office even after one month, the lady officer called him & asked why was he there. "No refund yet," this guy said. The lady officer called her staff members & gave them a dress-down. This businessman got the cheque in the next 1-hour.

A refusal to pay Rs. 5000 cost the man hugely. The interest on 5 Lakhs (Govt doesn't pay you interest), the lawyers' fees & his own productive time lost in this battle. This is how corruption became a norm.

We all treated such payments as the small cost of doing business in India.

The question now for all of you is what has changed in one decade and what is still needing change.

Bring it on. more  

View all 31 comments Below 31 comments
Corruption has not diminished in any way during last 10 years, degree may difffer. Individuals and business take this as normal expenditure as they don't want to waste time an energy besides actual cost since legal course takes years. As explained in this topic, Gujarat government allowed tax holiday to industries which put up their manufacturing plant in kutch area affected by devastating earthquake in Jan 2001. Many industries came up but ambiquity in state tax law left many FMCG companies depositing crores of rupess to get exemption. Representation made to the government led by the current PM in 2005/2006. After years of litigation, business got it right but at the cost of time, energy and interest cost. To get the refund, bribes were paid. This is just one of such cases. Black money thrives on in realty sector, currency market, bullion market to name a few. In land dealings, crores of rupees are being exchanged across India, besides cases pending in courts. Nothing is transparent. I know thousands of housing societies in Maharashtra do not have deeds in hand, lands are not conveyed, not endorsed in property cards, Similar in Tamil Nadu approval for land ownership is pending at various levels over a period of decades. To complete the same lacs of rupees are demanded. Hope LC addresses this issues and our PM actions at the earliest. more  
This is the same story with all corrupt government departments. more  
In India no body is scarred of Law and Punishment. It starts from Top i.e. Politicians and Bureaucrats. See the news these days in MAHARASHTRA. Unless these are stopped totally, nothing can be expected to Improve. more  
Political Support to Businessmen is the root Cause. IPC unimplemented. Policing Cornered. more  
A compulsory raid by income or revenue department of all government officers, clerks, all politicians and past and present ministers would, result recovery of the loot, which, may be sufficient for India to be financially rich for next 100 years. This is the kind of corruption in India. more  
Demonetization unearthed 17.23 lakh Fictitious A/cs; 2.43 lakhs CRORES Deposits ; 3.69 Lakhs Briefcase Companies in 2016-17.
THIS SHOWS, Lakhs of Crores Blackmoney is in the Banks, Bank Lockers and Concealed Properties.
This to be used for Education industry and Healthcare BY GOI. more  
The Govt. Officers & IAS Officers has got lot of Protection from Govt./ Dept. They get only transfer action with promotion. It is One of the Safest & Non Responsible Position in employment. If these protection get removed , Only Removal from the job with No compensation, No Interference from any political parties / goons , then only improvement will come. but it need to change present working system. more  
Post a Comment

Related Posts

    • 60 of most polluted cities out of 100 in India

      See attached friends. 60 of the 100 most polluted cities in the world are in India and lets face this, none in southern India so pollution is a north India problem. I saw LC’s envi...

      By Vinita Agrawal
    • Wow Localcircles survey impact

      Friends of LocalCircles, our survey escalation and news papers publishing the same has worked. The aviation minister called meeting of airlines yesterday and asked them to check their loot.

      By Shailesh Deshmukh
    • GST looters compromising peoples data

      So a couple in Noida with their family of CAs conducted a 10000 crore scam in which they used over 600,000 pan cards. Created a ton of shell companies and played the input tax credit game. They bee...

      By Sneha Goyal
    • Special airline fares for emergency and bereavement

      This is just a wonderful wonderful idea to restrict airline loot.

      By Reeta Kumar
    • Inconvenience because some VIP wants to show off

      So japanese ambassador hired an army of security guards and Govt officials to clear the platform in Mumbai and the coach for this stupid photo-op ! What a joke ! Inconveniencing thousands of citize...

      By Shivani Khiste
    • Seperate category for bereavement air fares

      As well as medical emergencies should be the norm in India. Mumbai Times of India is quoting attached LocalCircles survey saying that either fare caps must be reintroduced or a seperate category of...

      By Seema Shah
    • Digital India has issues

      Sony Liv takes 90 days to cancel a subscription. Even monthly subscription. HDFC doesn’t let you cancel auto-pay online seamlessly. So you have to go to the branch and fill a form...

      By Sudesh Rai
    • Gutka Or chewable tobacco ban a must

      We have 4-5 members in the extended family who are addicted to this and 4-5 times a day they must have the Gutka. It is available easily and unless supplies are shut down nothing will happen. All t...

      By Shivani Batra
    • RBI not doing well on 2000 rupee

      If you want to exchange RS2000 at HDFC Bank, people must carry a valid government ID Proof without KYC people can't exchange single 2000 note. RBI must clarify in people interest is KYC mandatory o...

      By Ajay Dutta
    • Ashamed of our cricket and bollywood stars

      Kapil Dev, Gawaskar, Sehwag from cricket and the video teacher below Shahrukh Khan, Ajay Dewgan, Akshay Kumar and even Amitabh Bachchan are all doing pan masala ads teaching the next generation how...

      By Shweta Kotharii
    • Tax BCCI

      Govt will establish fresh regulations and ways to impose additional tax on existing taxpayers but won't amend laws to include BCCI in the tax bracket, one of the World's richest sports body that ge...

      By Shailesh Deshmukh
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)