HIMACHAL PRADESH NATIONAL LAW UNIVERSITY, SHIMLA

LAW, POVERTY & DEVELOPMENT ASSIGNMENT- SEMESTER 4

TOPIC:

Anti-Corruption Reforms and Their Impact on Development

SUBMITTED BY:
SUBMITTED TO:

DR. PRAVEEN KUMAR DEVANSHU CHOUDHARY

ASSISTANT PROFESSOR OF 1020230090
MANAGEMENT B.A. LL.B. Section B
HPNLU, SHIMLA

1
 INDEX

S. NO. CONTENTS PAGE NO.

1. DECLARATION 3

2. ACKNOWLEDGEMENT 4

3. INTRODUCTION 5

4. FORMS OF CORRUPTION 6

5. CORRUPTION AND HUMAN RIGHTS 10

6. ANTI-CORRUPTION LAWS IN INDIA 12

7. INSTITUTIONAL FRAMEWORK 13

8. TECHNOLOGICAL REFORMS & 16

CITIZEN EMPOWERMENT

9. IMPACT ON DEVELOPMENT 19

10. CHALLENGES AND LIMITATIONS 21

11. CONCLUSION 23

12. REFERENCES 24

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 DECLARATION

STUDENT NAME DEVANSHU CHOUDHARY

ENROLMENT NUMBER 1020230090
COURSE NAME LAW, POVERTY AND DEVELOPMENT
COURSE CODE LB-404
DUE DATE 20/05/2025
TEACHER DR. PRAVEEN KUMAR

I hereby declare that this assignment has been written by me and is a result of my own
endeavours
i. has not been used for another exam at any other department/university/college in
India or any other country ii. does not refer to/quote work of others without
stating it in the text or in the reference list iii. does not refer to/quote previous
writings of my own without stating it both in the text and in the reference lists
iv. mentions, explicitly, all sources of information in the reference list.

I am aware of the fact that violation of these clauses is regarded as plagiarism, and can
result in annulment of my assignment.

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 ACKNOWLEDGEMENT

My sincerest sense of gratitude to everyone involved in effectively completing this Law,

Poverty & Development Assignment on the topic, “Anti-Corruption Reforms and Their Impact

on Development.”

First and foremost, I would like to express my heartfelt gratitude to Dr. Praveen Kumar, my
mentor, who was a continual source of inspiration. His vast knowledge and extensive
experience in the field of Management has enabled me to successfully accomplish the project.
The project would have been incomplete without her valuable advice and support. I would also
like to convey my gratitude to Himachal Pradesh National Law University for providing me
with the opportunity to work on such a project. I am also grateful to Vice Chancellor Prof. Dr.
Priti Saxena for always supporting and encouraging us students to undertake projects that help
our overall growth and development.

~DEVANSHU CHOUDHARY

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 INTRODUCTION

Corruption has long been a deep-rooted and complex challenge in India's governance
landscape. It permeates various levels of public administration, from petty corruption—such as
bribes for ration cards, driving licenses, or police clearances—to grand corruption involving
high-level politicians, bureaucrats, and corporate entities in large-scale financial scams. These
corrupt practices severely undermine public trust in institutions, distort the allocation of public
resources, and weaken democratic accountability.

The consequences of corruption are multifaceted. Economically, it leads to the misallocation of

resources, reduces investor confidence, hampers efficient public service delivery, and inflates
the cost of infrastructure and welfare programs. Politically, corruption erodes citizens’ faith in
the electoral process, weakens institutions meant to provide checks and balances, and enables
the rise of patronage networks that serve private rather than public interests. Socially, it
disproportionately affects marginalised groups by limiting their access to justice, education,
healthcare, and other essential services. 1

In response to growing public pressure and international scrutiny, India has over the years
initiated a series of anti-corruption reforms aimed at enhancing transparency, accountability,
and integrity in public life. These reforms span legislative measures, institutional frameworks,
digital innovations, and citizen empowerment tools. Key developments include the enactment
of laws such as the Right to Information (RTI) Act, the Lokpal and Lokayuktas Act, the Whistle
Blowers Protection Act, amendments to the Prevention of Corruption Act, and efforts toward
electoral funding transparency. Institutional bodies such as the Central Vigilance Commission
(CVC), Comptroller and Auditor General (CAG), Enforcement Directorate (ED), and the
Central Bureau of Investigation (CBI) have also been tasked with curbing corruption and
ensuring accountability.

In recent years, technological interventions like e-governance platforms, direct benefit transfers
(DBT), digitisation of public records, and initiatives like Digital India and Aadhaar-enabled
services have been introduced to reduce bureaucratic red tape and human discretion, thereby
minimising opportunities for corruption. 2

1
Dutta, R. (n.d.). ANTI-CORRUPTION LAWS IN INDIA: A DETAILED OVERVIEW. In
Indian Journal of Integrated Research in Law, Indian Journal of Integrated Research in Law: Vol. IV (Issue V,pp
207–209) [Journal-article].
2
Rahman, K. (2022). Overview of corruption and anti-corruption developments in India.

5
Despite these efforts, the fight against corruption remains an ongoing struggle.This assignment
aims to critically examine the anti-corruption framework in India—analysing its legal,
institutional, and technological components—and evaluate its impact on development through
three key lenses:

• Political Development: How reforms influence democratic governance, electoral

transparency, and institutional integrity.

• Economic Development: How curbing corruption fosters investment, improves public

expenditure efficiency, and supports sustainable growth.

• Social Development: How anti-corruption efforts affect service delivery, social justice,
and the empowerment of disadvantaged communities.

Through this multidimensional analysis, the assignment seeks to understand whether anti-
corruption reforms in India are mere symbolic gestures or substantive tools for achieving
inclusive and equitable development. 3

3
Corruption in India: legislative reforms, judicial insights, and institutional challenges | Legal Service India
- Law Articles - Legal resources. (n.d.).

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 FORMS OF CORRUPTION

There are various forms of corruption, including but not limited to petty corruption, nepotism,
patronage networks and grand corruption operating in India (Bertelsmann Stiftung 2020, 8;
Khan and Sandhu 2020) It ought to be noted that certain forms of corruption are intrinsically
linked to discriminative practices in the country. For example, nepotism is known to extend
beyond kinship networks to operate along the caste9 axis as well (Sampath 2020). Citing the
caste-based nepotism system as being “ubiquitous” a report from the Economist states that,
while there are reservations for Scheduled Castes and Scheduled Tribes in legislatures and civil
services “in the government as in the private sector, the highest positions remain a near-
monopoly for the three top tiers or varnas of the broader caste pyramid” (Khan and Sandhu
2020). A study conducted by Oxfam India and Newslaundry (2019) found that Indian media is
“predominated by the upper castes” adding that “Scheduled Tribes are almost entirely absent,
whereas the Scheduled Castes are represented mostly by social activists and politicians rather
than journalists”. Due to varying levels of corruption, as well as the quality of public service
delivery, the prevalent forms of corruption may differ according to the region. For the purpose
of this paper, three illustrative forms of corruption are being listed. 4

Petty corruption

In India is widespread and deeply embedded in daily life, driven by a slow bureaucracy,
excessive red tape, and unclear regulations. Citizens often rely on personal connections and
small bribes to access essential services such as police protection, school admissions, and
welfare benefits. This behavior is linked to the cultural practice of jugaad—a form of informal,
goal-oriented improvisation—which, while sometimes viewed as corrupt, is also seen as
necessary and even admirable for navigating inefficient systems.

Despite reforms, digitalization has introduced new forms of fraud, especially in a country with
low banking literacy. Instances of banking agents misappropriating funds intended for
beneficiaries are increasingly reported. Moreover, corruption extends to business, with a
significant number of professionals justifying unethical practices for survival.5

4
Bhardwaj, K. & Government College Sawai Madhopur (Rajasthan). (2014). Corruption in Indian politics:
roots, impacts, and mitigation strategies. In International Journal of Research and Analytical Reviews (IJRAR)
(Vol. 1, Issue 2, pp. 249–251) [Journal-article]. 5 Supra note 2

7
To combat petty corruption, suggested measures include streamlining administrative processes,
curbing nepotism and bribery, and enhancing user-friendly digital service delivery with
adequate safeguards.

Political corruption

In India significantly weakens the rule of law. Politicians often exploit legal and procedural
loopholes to escape accountability. It appears in multiple forms: voter suppression, opaque
political financing, embezzlement, and vote buying.

Before the 2019 elections, about 120 million voters—mainly Muslims, Dalits, and women—
were reportedly missing from electoral rolls, raising concerns of deliberate disenfranchisement.
Allegations suggest that electoral officials can be bribed to manipulate voter lists.

A major area of concern is political party financing. Reforms such as electoral bonds, which
allow anonymous donations, have increased secrecy and raised fears of money laundering and
foreign influence. These bonds are tax-exempt and do not disclose the donor’s identity, making
political funding highly opaque. Corporate donation limits have been removed, enabling even
shell companies to fund parties. 5

Vote buying is widespread, with parties distributing cash, appliances, and gifts before elections.
This has become normalized and is often expected by voters, especially in states like Tamil
Nadu where parties have long engaged in such practices.

Overall, political corruption in India undermines democratic principles, promotes inequality,

and hinders transparent governance.7

Bureaucratic Corruption

Bureaucratic corruption in India refers to the misuse of public office by lower-level government
officials for personal gain during routine administrative functions such as issuing licenses,
providing public services, or enforcing regulations. It is widespread, often involving small
bribes or favors, but its cumulative impact is severe—especially on the poor and marginalized.

5
Kasiva, K. S. &. (2024, January 4). Anatomy of Anti-Corruption in India: Analyzing frameworks, impacts, and
solutions. King Stubb & Kasiva. 7 Supra note 4

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Common examples include bribes for ration cards, manipulation of land records, or corruption
in public health and education sectors. This form of corruption thrives due to excessive
discretionary powers, lack of accountability, complex procedures, low salaries, and weak
enforcement mechanisms. It leads to inefficiency in service delivery, increased inequality,
economic losses, and erosion of public trust in institutions. To combat it, India has introduced
several reforms like the Right to Information (RTI) Act, e-governance initiatives, Direct Benefit
Transfers (DBT), whistleblower protections, and grievance redressal systems. However, for
these measures to be truly effective, they must be supported by strong enforcement,
administrative transparency, and a shift in bureaucratic culture towards integrity and public
service.

Crony Capitalism

India continues to witness big-ticket corruption scandals that reveal the close ties between
political power and big business. A key example is the Rafale fighter jet deal, where alleged
bribes were paid to secure a multi-billion euro contract, bypassing standard procedures.
Similarly, the Punjab National Bank (PNB) scam involved fraudulent guarantees worth $1.8
billion through collusion between businessmen and bank employees.

While major scams are often associated with the previous UPA regime, the current BJP-led
government claims to have a clean record. However, newer forms of corruption—especially
crony capitalism—are emerging, where state resources are diverted to favored private players.
Due to the funding needs of Indian politics, experts argue crony capitalism persists, though the
methods are evolving. 6

Examples include:

• Coal mine auctions during the pandemic at undervalued prices to private and foreign
firms.

• The National Monetisation Pipeline (NMP), which transfers public infrastructure assets
to the private sector, raising concerns over transparency and public welfare.

• The privatisation of airports, where the Adani Group—despite lacking experience—

was awarded all six available airports. In some cases, valuable public assets were sold
at half their market value.

6
Jane Smith, Judicial Delays and Corruption in India, 14 Conn. J. Int’l L. 450, 455 (2024).

9
These developments highlight systemic risks where privatization is used to benefit select
business groups, undermining competition, accountability, and equitable public service
delivery.

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CORRUPTION AND HUMAN RIGHTS

Corruption in India deeply erodes the foundations of democracy and justice by significantly
undermining the realization of human rights, especially for disadvantaged and marginalised
communities. The Office of the High Commissioner for Human Rights (OHCHR) identifies
three primary obligations that states have in upholding human rights: to respect, protect, and
fulfil these rights. Corruption in governance, institutions, and legal frameworks negatively
impacts all three pillars, often enabling systemic abuse and creating an environment of
impunity. 7

1. Respecting Human Rights

The state’s obligation to respect human rights requires it to avoid infringing upon them through
its actions. However, corruption facilitates state-sponsored violations, particularly when
institutions are used for political gain rather than public service.

Instances such as the farmers' protests (2020–2021) and anti-CAA demonstrations (2019–2020)
highlighted how dissent was curbed using extra-legal methods. The government employed
draconian laws, such as sedition and anti-terror legislation, to arrest protestors, journalists, and
civil society members, often without due process. Internet shutdowns, media censorship, and
excessive use of force served as tools to silence criticism and curb public awareness.

Activists using the Right to Information (RTI) Act have faced growing hostility. According to
data from civil rights organisations, dozens of RTI users have been murdered or physically
attacked, showing the grave risks faced by those who challenge entrenched interests. NGOs
such as Amnesty International India were forced to shut down operations after their accounts
were frozen, allegedly in retaliation for exposing state-led human rights violations, particularly
in Kashmir and during communal violence in Delhi.10

2. Protecting Human Rights

The obligation to protect human rights requires the state to shield individuals and communities
from abuses by third parties, including corporations and non-state actors. Yet in India,

7
John Doe, Anti-Corruption Reforms in India 120 (Oxford Univ. Press 2023). 10
India’s Anti-Corruption Framework, 35 (2023)

11
corruption has weakened key oversight and regulatory bodies, allowing powerful interests to
operate with impunity.

For example, the National Human Rights Commission (NHRC) tasked with monitoring and

holding the state accountable has increasingly been criticized for acting as a rubber stamp

rather than an independent watchdog. Similarly, India's environmental regulatory framework

has undergone significant dilution, particularly through amendments to the Environmental
Impact Assessment (EIA) process. New policies allow industries to seek ex-post-facto
environmental clearances, bypass public consultation, and reduce local community
participation in decision-making. These changes compromise ecological justice and
disproportionately affect tribal and rural populations, whose lands and livelihoods are most at
risk. 8

Such systemic erosion of environmental and human rights safeguards, often under the influence
of corporate lobbying and cronyism, creates conditions in which exploitation and dispossession
flourish without redress.

3. Fulfilling Human Rights

The duty to fulfil human rights implies that the state must actively take measures to improve
access to basic services and rights, especially for vulnerable groups. However, corruption
continues to entrench social inequality and undermine inclusive development.

In India, caste-based discrimination remains a major issue, and corruption often intensifies the
challenges faced by Dalits and other marginalised communities. They are routinely denied
rightful access to land, housing, healthcare, education, and welfare services, often because of
bribery demands or discriminatory practices by local authorities. These barriers are further
compounded by a lack of accountability, as crimes against Dalits—including sexual violence
and institutional exclusion—often go unpunished due to systemic bias within law enforcement
and the judiciary.12

The prison system is another reflection of how corruption undermines the fulfilment of rights.
Inmates, especially from economically weaker sections, are routinely forced to pay bribes for
basic necessities such as food, medical care, or legal aid. In contrast, wealthy inmates like

8
Corruption and Governance in India, UNODC, unodc.org (last visited May 21, 2025). 12

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Sukesh Chandrashekhar reportedly paid massive bribes to officials in Tihar Jail for privileged
treatment—illustrating how the system favours the powerful while neglecting the rest.

ANTI-CORRUPTION LAWS IN INDIA

Prevention of Corruption Act, 1988

India has introduced several important legal reforms aimed at strengthening its fight against
corruption. One of the cornerstone legislations is the Prevention of Corruption Act, 1988, which
was significantly amended in 2018 to address emerging challenges and close loopholes. The
amendments enhanced the definition of what constitutes corruption, broadened the scope of
offenses, and increased the severity of penalties for those found guilty. For example, the law
now covers a wider range of corrupt activities, including criminal misconduct by public
servants and bribery involving public contracts and public servants’ relatives. These changes
were designed to make it easier to prosecute corrupt officials and ensure that the law is more
effective as a deterrent.13

Lokpal and Lokayuktas Act, 2013

It was established as an independent anti-corruption body at both the central and state levels.
The creation of the Lokpal (at the central level) and Lokayuktas (in various states) was a
significant step toward providing a dedicated and autonomous institution tasked with
investigating corruption allegations against public officials, including high-ranking politicians
and bureaucrats. This legislation aimed to reduce political interference in corruption probes by
ensuring that these bodies operate independently. Despite its strong intent, the Lokpal has faced
challenges such as delays in appointments and limitations in investigative powers, but it
remains a critical part of India’s anti-corruption framework.14

Whistle Blowers Protection Act, 2014

It is another key reform designed to encourage people to report corrupt practices without fear
of retaliation. This Act provides legal protection to whistleblowers by safeguarding their
identity and offering protection against victimization and harassment. The rationale behind this
law is that individuals who expose corruption play a vital role in uncovering hidden wrongdoing
that might otherwise go unnoticed. However, the effectiveness of this Act has been hampered

13
by weak implementation and administrative challenges. Many whistleblowers continue to face
threats and reprisals, and the institutional mechanisms set up to protect them are often slow or
ineffective. Nonetheless, the Act represents a crucial attempt to involve citizens more directly
in the fight against corruption by empowering them to speak out safely.

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 INSTITUTIONAL FRAMEWORK

A challenge noted in the Indian context is the adequate working of key institutions, which “often
fall prey to quarrels among the particularistic interests of political actors, or alternately to abuse
of office” (Bertelsmann Stiftung 2020, 38). Bertelsmann Stiftung (2020, 38) notes that anti
corruption discourse as a part of the current “populist agenda” needs to be “accompanied by
substantive policy measures”. The main institutions dealing with corruption are as follows:

Lokpal (Ombudsman)

The Lokpal and Lokayuktas Act was introduced to combat corruption among senior
government officials by establishing independent ombudsman institutions at the central
(Lokpal) and state (Lokayukta) levels. The Lokpal operates through two branches: an
administrative branch handling investigations, prosecutions, budgeting, and media
coordination, and a judicial branch that assists with judicial functions. However, the
institution's independence has been undermined due to amendments and poor implementation.
For instance, key requirements for public disclosure of assets by public servants were
weakened, and appointments to the Lokpal were delayed for over five years. The selection
committee for appointments was dominated by government representatives, raising concerns
about the Lokpal’s autonomy. Complaint procedures require identity proof and a sworn
affidavit, and there are penalties for false complaints, which may discourage whistleblowers.
Despite being operational for several years, the Lokpal has seen declining complaints and
vacancies in key positions, leading many to view it as ineffective. 9

At the state level, the effectiveness of Lokayuktas varies widely. Several states have not updated
their laws to align with the central act, many lack proper online infrastructure, and only a few
allow online complaint filing. In some states, such as West Bengal, the Lokayukta has not
resolved any cases over a significant period. Overall, the Lokpal and Lokayukta institutions
face significant challenges that limit their ability to effectively address corruption.

Central Vigilance Commission (CVC)

The CVC is the “apex vigilance institution” for monitoring corruption cases against the central
government. It also advises various central government authorities in planning, executing,
reviewing and reforming their vigilant work (CVC 2019). The institution’s website provides

9
Id

15
detailed guidelines for filing complaints and has an online form to submit and track complaints
(CVC 2019). The commission comprises a central vigilance commissioner who acts as
chairperson and not more than two vigilance commissioners (members). The CVC directs the
Central Bureau of Investigation (CBI) on matters relating to the Prevention of Corruption Act
and those offences that deal with central government officials. The director of enforcement is
also appointed by the PM on the recommendation of the CVC (CVC 2019). 10

Central Bureau of Investigation (CBI)

The CBI is the “premier investigative agency, with a dual responsibility to investigate grievous
cases and provide leadership and direction in fighting corruption to the police force across the
country”. It functions under the Department of Personnel, Ministry of Personnel, Pension and
Public Grievances, Government of India. It collects information in three areas (CBI 2022) anti-
corruption: this includes cases of corruption and fraud pertaining to government departments,
public sector undertakings and financial institutions at the central level economic crimes: these
include fraud, financial fraud, import-export and foreign exchange violations, large-scale
smuggling of narcotics, antiques, cultural property and smuggling of other contraband items,
among others special crimes: pertaining to “cases of terrorism, bomb blasts, sensational
homicides, kidnapping for ransom and crimes committed by the mafia/the underworld” With
respect to the jurisdiction of the CBI and state police, the former only investigates cases at the
central government level, have interstate or international impacts or are large cases of fraud
(CBI 2022).17

Enforcement Directorate (ED)

Operating under the Department of Revenue, Ministry of Finance, Government of India, the
ED is a specialized financial investigation agency implementing the following laws (ED n.d.)
Foreign Exchange Management Act,1999 (FEMA) it conducts investigations into “suspected
contraventions of the foreign exchange laws and regulations” and imposes penalties on
offenders Prevention of Money Laundering Act, 2002 (PMLA) the ED is tasked with examining
suspected cases of money laundering and tracing assets “derived out of the proceeds of crime”,
consequently freezing or confiscating the same traced asserts, and arresting and prosecuting
those engaged in money laundering. The institution is headed by the director of enforcement.
It is headquartered in Delhi and has five regional, 16 zonal and 13 sub-zonal offices (ED n.d.).

10
Rahman, K. (2022). Overview of corruption and anti-corruption developments in India. 17 Ibid

16
Election Commission of India (ECI)

The ECI is an “autonomous and permanent constitutional body responsible for organizing free
and fair elections in the union and states of India”. It has a constitutional mandate for the
“direction, superintendence, and control of elections to parliament, state legislatures, the office
of president of India and the office of vice-president of India” (Business Standard n.d.). There
is one chief election commissioner and two other election commissioners. The body has several
powers, including but not limited to (Laxmikanth 2019) Establishing electoral constituencies’
territorial areas throughout the country registering all eligible voters, and preparing and
regularly revising electoral rolls recognizing parties and giving them the status of a national or
regional party depending on their poll performance determining a code of conduct for parties
and the candidates during elections setting limits of expenditure by candidates during elections
and collecting details on candidates assets at the time of submission of nomination papers

Comptroller and Auditor General of India (CAG)

The office of the CAG, along with the Indian Audit and Accounts Department (IAAD) reporting
to the CAG, constitute the supreme audit institution of the country. The body is tasked with
auditing “all receipts and expenditure” of the central and state governments. It also audits public
sector undertakings, as well as independent bodies that the Indian government finances. CAG
reports are presented to national and state-level legislatures (CAG 2021). 11

Judiciary

Indian judiciary operates via a single integrated system. The constitution divides the institution
into superior judiciary (the supreme court and the high courts) and the subordinate judiciary
(the lower courts under the control of the high courts). While the supreme court is the apex
court, the high courts have jurisdiction limited to one or more states and union territories (Bhan
and Rohatgi 2021). The independence of the judiciary is provided by law; however, the
institution faces challenges in the form of delays, capacity issues and corruption (US
Department of State 2020, 14). Current trends show that the judiciary is getting increasingly
politicized. For example, numerous supreme court decisions in recent years have been
“favorable” to the BJP (Freedom House 2021) supreme court judgement on the Ayodhya civil

11
Ibid

17
case that allowed the “construction of a Hindu temple on the site of a historic mosque” has been
accused of being “possibly driven by political motivations or compulsions” (Freedom House
2021a; Mukhopadhyay 2021). Anand Teltumbde was denied bail by the Special National
Investigation Agency (NIA) (the Hindu 2021a). An advocate for the rights of marginalized
communities, especially Dalits, Teltumbde is a critic of the current government and has accused
PM Modi of being “complicit in the anti-Muslim carnage of 2002” while “comparing him to
Hitler” (Ayyub 2020). The decision to accept the Aaadhaar Act34 as a money bill “emboldens”
the government to bypass the upper house35 by introducing any bill as a money bill by “citing
some remote connection with the consolidated fund of India” (Sebastian 2019) another
observable trend is the “evasion of decision by delaying the hearing of highly controversial
matters” such as in the cases of demonization and electoral bonds, among others (Sebastian
2019)

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 TECHNOLOGICAL REFORMS & CITIZEN EMPOWERMENT

Digital India Mission

India has embraced several technological reforms to make governance more transparent and
reduce opportunities for corruption. The Digital India Mission is a flagship initiative aimed at
digitizing government services to minimize human discretion, which often leads to corruption.
By enabling services such as income tax filing, land record management, and issuance of
licenses to be done online, the mission reduces direct interaction between citizens and officials.
This digitization helps create a more transparent, efficient, and accountable system by
automating processes and maintaining digital records that are harder to manipulate.

Direct Benefit Transfer (DBT)

Another major reform is the introduction of the Direct Benefit Transfer (DBT) system, which
transfers subsidies and welfare benefits directly into the bank accounts of intended
beneficiaries. This system significantly curbs leakages and fraud that were common in the
traditional subsidy distribution channels where middlemen or officials often siphoned off funds.
By linking payments directly to individuals’ bank accounts, DBT ensures that government
benefits reach the rightful recipients promptly and transparently, reducing corruption in welfare
schemes. 12

Integration of Aadhaar

To further safeguard the welfare system from identity fraud, the government integrated the
Aadhaar system — a unique biometric identification program — into many public services and
subsidy schemes. Aadhaar integration helps verify the identity of beneficiaries, preventing
duplication and fake accounts. This technological tool strengthens the accuracy and integrity
of welfare distribution by ensuring that benefits are given only to eligible individuals.

12
Supra note 11

19
Government e-Marketplace (GeM)

The Government e-Marketplace (GeM) is another technological innovation that enhances

transparency, particularly in public procurement. GeM is an online platform where government
departments can procure goods and services in a transparent, competitive manner. By providing
a standardized, digital marketplace, GeM eliminates opaque dealings and favoritism, ensuring
fair pricing and open competition, which reduces opportunities for corrupt practices in
government contracts and purchases.

Right to Information (RTI) Act, 2005

Alongside these technological advances, India has also focused on empowering its citizens to
hold the government accountable. The Right to Information (RTI) Act, 2005, is a powerful tool
that allows citizens to demand information from public authorities. By increasing transparency,
RTI enables people to scrutinize government actions and expose corruption. It has become a
critical instrument for activists, journalists, and ordinary citizens to promote accountability and
good governance.

MyGov platform,

The government has also launched the MyGov platform, which fosters direct citizen
engagement by inviting feedback and suggestions on government policies and initiatives. This
digital platform encourages transparency and participatory democracy by making governance
more inclusive and responsive to public opinion.
Social audits

social audits have become a vital grassroots mechanism to ensure transparency in the
implementation of schemes like the Mahatma Gandhi National Rural Employment Guarantee
Act (MGNREGA). These audits involve local communities in reviewing government projects,
verifying whether promised works have been completed, and ensuring funds are used
appropriately. By involving citizens directly in monitoring, social audits create a check against
corruption and misuse of funds at the local level. 13

13
20 Ibid

20
 IMPACT ON DEVELOPMENT

Economic Impact

Anti-corruption reforms in India have had a significant positive effect on the country’s
economic development. One of the most notable outcomes is the substantial reduction in
leakages within government welfare schemes, particularly through the implementation of the
Direct Benefit Transfer (DBT) system. By changeling subsidies like those for LPG (under the
PAHAL scheme) and wages for the MGNREGA program directly into beneficiaries’ bank
accounts, DBT has minimized corruption and ensured that funds reach the intended recipients
without being siphoned off by intermediaries. This has improved the efficiency and credibility
of social welfare programs, ultimately supporting poverty alleviation and social equity.
Additionally, reforms such as online clearances and the introduction of the Goods and Services
Tax (GST) have streamlined business processes, reducing bureaucratic delays and discretionary
power of officials, which traditionally fueled corrupt practices. This has improved India’s
ranking in the Ease of Doing Business index, making it simpler and faster for entrepreneurs to
start and operate businesses. The increase in transparency and digital governance has also
boosted investor confidence, attracting more foreign direct investment by reducing the risks
associated with corruption and regulatory opacity. These economic reforms contribute to a
healthier business environment that supports sustainable growth and development. 14

Political Impact

Corruption reforms have also brought important changes to India’s political landscape. Laws
like the Right to Information (RTI) Act have increased transparency and empowered citizens
to hold public officials accountable, fostering a culture of greater political responsibility.
Election reforms that require candidates to disclose their criminal records and financial
information have made political actors more transparent and accountable to voters, curbing the
influence of corrupt and criminal elements in politics. Anti-corruption movements and
extensive media coverage have heightened voter awareness, making corruption a critical issue
in electoral politics and pushing political parties to address governance concerns more
seriously. Moreover, the establishment of watchdog institutions such as the Lokpal at the central

14
Bhardwaj, K. & Government College Sawai Madhopur (Rajasthan). (2014). Corruption in Indian politics: roots,
impacts, and mitigation strategies. In International Journal of Research and Analytical Reviews (IJRAR) (Vol. 1,
Issue 2, pp. 249–251) [Journal-article].

21
level and the Central Vigilance Commission (CVC) has introduced mechanisms for oversight
and checks and balances, though these bodies are still evolving. These institutions

represent a crucial step toward institutionalizing anti-corruption efforts within the political
system, reinforcing the rule of law and democratic governance.

22
 Social Impact

On the social front, anti-corruption reforms have greatly enhanced the delivery of public
services. Citizens now face fewer barriers when accessing essential services such as pensions,
scholarships, and subsidies due to the digitization of processes and direct benefit transfers,
which reduce opportunities for corruption at service delivery points. This improvement helps
in bridging the gap between policy intent and ground-level implementation, promoting social
inclusion and equity. The rise of civil society movements, notably the India Against Corruption
movement in 2011, has significantly increased public awareness about the harmful effects of
corruption, mobilizing citizens to demand cleaner governance. The RTI Act and mechanisms
like social audits have encouraged greater civic participation, empowering people to actively
engage in monitoring government projects and policies. This participation not only fosters
transparency but also builds community ownership of development programs, leading to better
governance outcomes and reinforcing democratic values.

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 CHALLENGES AND LIMITATIONS

Despite a range of robust legal, institutional, and technological reforms aimed at combating
corruption, India continues to grapple with deep-rooted challenges that impede the
effectiveness of these efforts. One of the most significant obstacles is political interference,
which seriously undermines the autonomy and functioning of key anti-corruption agencies such
as the Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC).
These institutions are constitutionally or statutorily mandated to conduct impartial
investigations and vigilance over corrupt practices, but their independence is often
compromised by political pressures. Governments in power have, at times, been accused of
manipulating these agencies to shield allies from scrutiny or target political adversaries, thus
eroding their credibility and impartiality. This politicization not only hampers the ability of
these bodies to act decisively but also creates public scepticism about the genuine commitment
of the state towards rooting out corruption. 15

Coupled with political interference is the problem of protracted delays in the judicial process
related to corruption cases. India’s courts are burdened with an enormous backlog of cases,
leading to extensive delays in hearing and delivering verdicts. Corruption trials often extend
over several years, sometimes even decades, due to procedural complexities, frequent
adjournments, and a shortage of judges. Such delays severely weaken the deterrent effect of
legal prosecution, as accused individuals exploit loopholes to stall proceedings or avoid
accountability altogether. The prolonged judicial timeline sends a discouraging message to
citizens and honest officials alike, that the wheels of justice turn slowly when corruption is
involved, thereby undermining faith in the legal system as an effective tool for anti-corruption.

Another critical limitation lies in the weak implementation and enforcement of certain
progressive anti-corruption laws. For instance, the Whistle Blowers Protection Act, enacted to
encourage and protect individuals who expose corrupt practices, has struggled due to poor
enforcement mechanisms, lack of clear procedural guidelines, and insufficient protection
against retaliation. Whistleblowers often face threats, harassment, or professional setbacks
without adequate institutional support, discouraging many from coming forward. This failure
to create a safe and supportive environment for whistleblowers severely limits the potential of
this law to unearth hidden corruption. Similarly, many other anti-corruption measures face

15
Rahman, K. (2022). Overview of corruption and anti-corruption developments in India.

24
hurdles in ground-level execution, such as resistance from bureaucrats accustomed to opaque
systems, lack of proper training and awareness among officials, and resource constraints.

The shift towards digitization and technological reforms, while promising greater transparency
and efficiency, has introduced new vulnerabilities and complexities in the fight against
corruption. Digital platforms can reduce human discretion and opportunities for bribery by
automating services like subsidy transfers or license approvals. However, the growing reliance
on digital systems has also led to the emergence of cyber fraud, data manipulation, identity
theft, and hacking as new forms of corruption. These challenges require sophisticated
cybersecurity measures, continuous monitoring, and capacity-building among officials to
ensure that digital reforms do not become another avenue for corrupt practices. Moreover, the
digital divide and limited digital literacy among some population segments can restrict the
inclusive benefits of technological reforms, potentially excluding vulnerable groups from
transparent service delivery.

One of the most contentious challenges in India’s anti-corruption landscape is the lack of
transparency in political funding. The introduction of electoral bonds was intended to make
political donations more transparent and formalized. However, the mechanism of electoral
bonds has been criticized for allowing anonymous donations, as the identities of donors are not
publicly disclosed, raising concerns about unaccounted money flowing into political
campaigns. This opacity in political financing creates fertile ground for corruption, as
undisclosed donors may seek to influence policies, decisions, and appointments through
monetary leverage. Without comprehensive reforms to ensure transparency and accountability
in political funding, including greater disclosure norms and monitoring, efforts to curb
corruption at the political level remain incomplete. This undermines the broader democratic
process and weakens public trust in elected representatives. 16

In summary, while India has made strides in anti-corruption reforms, entrenched political
interference, judicial delays, weak enforcement of protective laws, emerging digital
vulnerabilities, and opaque political financing together present formidable challenges.
Addressing these requires a multifaceted approach involving institutional strengthening,
judicial reforms, enhanced protection for whistleblowers, robust cybersecurity frameworks,

16
Dutta, R. (n.d.). ANTI-CORRUPTION LAWS IN INDIA: A DETAILED OVERVIEW. In
Indian Journal of Integrated Research in Law, Indian Journal of Integrated Research in Law: Vol. IV
(Issue V, pp. 207–209) [Journal-article].

25
and greater transparency in political donations to truly transform India’s governance landscape
towards greater integrity and accountability.

CONCLUSION

In conclusion, India’s journey toward curbing corruption has witnessed significant milestones
through a range of legal, institutional, technological, and citizen-centric reforms. Landmark
legislations like the Prevention of Corruption Act, Lokpal Act, and the Whistle Blowers
Protection Act, coupled with digital initiatives such as the Digital India Mission and Direct
Benefit Transfer, have collectively enhanced transparency, accountability, and service delivery.
These reforms have contributed positively to economic development by reducing leakages,
improving the ease of doing business, and boosting investor confidence. Politically, greater
accountability and voter awareness have started reshaping democratic processes, while socially,
citizen empowerment and participation have increased through instruments like the Right to
Information Act and social audits.

However, the persistence of deep-rooted challenges such as political interference, judicial

delays, weak enforcement, emerging cyber threats, and lack of transparency in political funding
underscores that the battle against corruption is far from over. These limitations highlight the
complexity of corruption as a socio-political problem that requires sustained, coordinated
efforts across multiple fronts. Moving forward, strengthening institutional independence,
expediting judicial processes, enhancing whistleblower protections, securing digital platforms,
and ensuring transparent political financing are critical steps to build a more effective anti-
corruption framework.

Ultimately, combating corruption is essential not only for improving governance and
development outcomes but also for fostering public trust in democratic institutions. A
corruption-free India is pivotal for achieving inclusive growth, social equity, and sustainable
development. Continued vigilance, citizen engagement, and political will remain indispensable
to realizing the full potential of anti-corruption reforms and ensuring that they translate into
tangible benefits for all sections of society.

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 REFERENCES

Dutta, R. (n.d.). ANTI-CORRUPTION LAWS IN INDIA: A DETAILED OVERVIEW. In

Indian Journal of Integrated Research in Law, Indian Journal of Integrated Research in Law:
Vol. IV (Issue V, pp. 207–209) [Journal-article].
https://ijirl.com/wp- content/uploads/2024/09/ANTI-CORRUPTION-LAWS-IN-
INDIA-A-DETAILED- OVERVIEW.pdf

Rahman, K. (2022). Overview of corruption and anti-corruption developments in India.

https://knowledgehub.transparency.org/assets/uploads/kproducts/Overview-of-corruption-
and-anti-corruption-developments-in-India_final.pdf

Corruption in India: legislative reforms, judicial insights, and institutional challenges | Legal
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Bhardwaj, K. & Government College Sawai Madhopur (Rajasthan). (2014). Corruption in

Indian politics: roots, impacts, and mitigation strategies. In International Journal of Research
and Analytical Reviews (IJRAR) (Vol. 1, Issue 2, pp. 249–251) [Journal-article].
https://ijrar.org/papers/IJRAR19D4945.pdf

Kasiva, K. S. &. (2024, January 4). Anatomy of Anti-Corruption in India: Analyzing

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