Central Vigilance Commission Research Articles

Central Vigilance Committee Propaganda Week: 2022 Overview

There are very few countries which are free from corruption but there is hardly any developing country which is free from corruption. India is also amongst those countries which is a developing country and not fully free from corruption. In order to control the corruption, the government of India took several steps and set up an independent commission named as Central Vigilance Commission. The Commission organised an awareness week in the year 2022 which was held during October 31, 2022 to November 6, 2022. The theme for the week was “Corruption free India for a developed nation”. In the present paper, we have tried to explain certain aspects of Central Vigilance Commission Awareness Week 2022.

Central Vigilance Commission Awareness Week: An Overview of 2022

Central Vigilance Commission Awareness Week: An Overview of 2022

Forensic Accounting - A Game Changing Approach for Holistic Corporate Sector Development in India

Forensic accounting is the prominent instrument in the field of accounting area to tackle the rampant situation of financial fraud. Forensic accounting is a specific branch of accounting. It involves the application of special skills such as accounting, auditing procedures, finance, quantitative methods, research, and investigations in accounting activities. With the rapid growth of technology in India after globalization, the trend of accounting is also changing as per the demand of stakeholders due to facing these complex natures of fraud. Forensic accounting is one of the transcendent examples in the area of accounting. It is capable to find out all kinds of fraud; if we use it attentively. The techniques of forensic accounting are also developing with the need of time. Modern technologies are more powerful in comparison to conventional technologies. In the dynamic cyber world, the complex natures of frauds are creating a need for research in the forensic accounting area. Since independence, the Incremental growth of voluminous financial scams is a black spot in the Indian economy. Moreover, the list of challenges to better practices of forensic accounting in India is too extensive. There are few agencies in India, which are dedicated to the mission of combating fraud for example- SFIO, FEMA, RBI, CBI (Economic Office Wing) deals with big financial scams, Central Vigilance Commission deals with corruption. In view of India, the better practices of forensic accounting should be observed by stakeholders carefully to boost economic growth.
 The present study discusses the conceptual framework of forensic accounting, the implementation & progress of forensic accounting, the authorities involved, and suggestions for better implementation of forensic accounting from the Indian perspective.

Factors impacting banking frauds in India: a conceptual framework

The Indian banking sector has witnessed exponential growth and changes since liberalisation of economy in 1990-1991. Reserve Bank of India is the chief regulator of the banking sector and has done a reasonable work in close supervision. Never ending banking frauds pose a serious challenge to the government, with banking sector also the regulator. Growing challenges also fall in the realm of ethical practices, financial distress and corporate governance. This study looked at the cases of bank frauds listed by Central Vigilance Commission, in order to understand the underlying issues in frauds in various sectors, different banking instruments used to commit frauds and the regulatory lapses in the banking sector. A detailed analysis was done by using secondary data (literature review and case approach) as well as an interview-based approach, spanning across all players involved in reporting, regulating and dealing indirectly or directly in the financial misconduct. The analysis acts as an anchor to study the components of frauds and define the role of regulators in the whole game plan. The study finally proposes some recommendations to reduce future occurrence of frauds in Indian banking sector.

Central Vigilance Commission: A Perspective Based on Historical Indian World View and Statecraft

Central Vigilance Commission is the apex integrity institution of the nation. It was formed by the government on the recommendations of the Santhanam Committee by way of a Resolution on 11 February 1964. Over the period, unparalleled services have been rendered by the Commission to the nation in the field of anti-corruption. However, a far more important role played by the Commission is that it has grown from strength to strength, while many other institutions of national importance kept falling apart during this time. Its functioning has instilled a great degree of trust amongst the common public, and needless to say that this trust is the life blood of a democracy. The Commission is however, faced with an uphill task of fighting corruption raising its head in view of a fast-developing economy in a society which is becoming complex day by day. The Commission is an institution which will be looked up to in the decade to come. Its functioning will be closely scrutinised and criticised. Though much has been written and recorded on the Commission, a perspective about the Commission from the angle of historical Indian world view and statecraft is not available. This is a curious gap in the body of knowledge as the Commission’s formation draws a lot from ancient Indian world view and statecraft. The article attempts to bridge this profound gap in the literature relating to the Central Vigilance Commission.

Public Procurement: A Competition Perspective

Public procurement of goods and services accounts for 25–30 percentage of GDP in developing countries. Since this involves public resources, it is important to optimise efficiency of procurement which in turn is positively correlated with the level of competition in the market. Paradoxically, various factors make public procurement especially vulnerable to a host of anti-competitive practices. The article examines various anti-competitive practices that may potentially affect the efficiency of public procurement as well as ‘red flags’ in various stages of the bidding process that could possibly point to bid rigging. However, by properly designing the procurement process, risks of bid rigging can be significantly reduced. Data from various countries show huge savings to public treasuries resulting from implementation of public procurement reforms. The article also attempts to discuss the evolution of competition law in India over the last seven years of operation of the Competition Act, 2002. Apart from the crucial role of the Competition Authorities, the article underlines the need for procurers to be proactive. Effective public procurement reforms in India would require close cooperation among various stakeholders, such as the Department of Expenditure, Central Vigilance Commission (CVC), Comptroller and Auditor General (CAG), Competition Commission of India (CCI) as well as procurers.

Research paper on Case laws of Fraud, forgery and Corruption in Banks and Financial Institutions in India

Corruption in civilized society is disease like cancer which is not detected in time is sure to spread its malignance among the polity of the country leading to disastrous consequences. Corruption is opposite to democracy and social order and being of only anti-people but also due to fact that it effects the economy of a country and destroy its cultural heritage. It poses threat to the concept of constitutional governance and shakes the very foundation of democracy and rule of law. The purpose of this study is get rid from fraud and corruption committed by the criminals, outsiders customers and employees of the banks and financial institutions and other State, Central and Local bodies, public and private sectors. The detection of fraud and corruption has become a big problem. This phenomenon surprisingly is not limited to a particular area, city, or country. It is throughout the world. The word fraud is defined under Sec. 17 of the Indian Contract Act, 1872 and Forgery is defined under Sec.163 of the Indian Penal Code, 1860. The main objectives of this research paper are as under:  To study the information’s of law relating to fraud and corruption in banks and financial institutions is essential.  To examine the nature of evil of fraud and corruption in the banks and financial institutions which is increasing in spite of implementation of various law?  To study dimensions of fraud and corruption in earlier and modern time.  To identify and examine the role played by the C.B.I., Central Vigilance Commission, Police and other agencies with regard to fraud and corruption in the banks and financial institutions..  To study the law and policies in India for prevention of fraud and corruption in Banks and financial institutions.  To study the need to strengthen and harmonize the law and policies regarding fraud and corruption in banks and financial institutions while ensuring its compliance with international law. The fraud, forgery and corruption is commonly found in exchange of services rely on Information and Technology and the absence of physical bank branches to provide these services to the customers. There is great increase in E-banking and M-banking. The virtual banking becomes very popular amongst the customers due to speed, convenience and round-the-clock access. The Information Technology Act, 2000 has been passed by the parliament which gives recognition to the transitions undertaken through computer system and internet. Frauds and corruption are on increase. Some of the reasons are: speedily expansions of foreign and private banks i.e., increase of number of branches, increase in volume of business, increase inn number of employees, number of customers and spread of operations. These are the contributing factors to the higher incidence of banks frauds and forgeries.

Collateral Damage: An Urgent Need for Legal Apparatus for Protection of the Whistleblowers & RTI Activists

Culture of secrecy resulted in fertile growth of corruption. In face of nonaccountability of the public authorities and lack of openness in the functioning of government, abuse of power and corrupt diversion of the public money was the order of the day. Limitations to the free flow of information led to the germination of feelings such as ‘powerlessness’ and 'alienation' among the citizens. It has been realized by most of the countries that greater access of the citizens to information enhances the responsiveness of government to community needs. In turn, this facility provides a platform of public grievances and thus improves feeling of goodwill towards the government. Under such circumstances, public and various NGOs demanded greater access to the information held by public authorities. The government approved to their demand by enacting RTI Act, 2005. Union Cabinet, on the 9th Aug 2011, cleared the bill for whistleblower protection. This bill will entail protecting the whistleblowers & punishing those who expose the identity of people disclosing information based upon public requests. This will provide Central Vigilance Commission same powers as that of a civil court to hand down severe punishments to people revealing identity of whistleblowers. The CVC will be empowered to take action against those who reveal the identity of whistleblowers or those who threaten the whistleblowers while those who make frivolous complaints will also be liable to punishment. Aim: The main objective of the bill is to safeguard those exposing corruption or malpractice by public servants. The broader goal is to initiate public participation to help keep corruption in check. Why it’s important: The bill, if approved, would serve as the country’s first law to protect whistleblower. In recent years, incidents of harassment, intimidation and violence have been reported by whistleblowers across the country. This has discouraged citizens from speaking out against wrongdoing in the public sector. In 2003, a public servant was shot and killed after denouncing allegedly unlawful dealings in a national highways’ project. This paper indicates there is need to restructure the existing legal acts for protection of RTI activist.

Institutions, Democracy and ‘Corruption’ in India: Examining Potency and Performance

AbstractThe success of India's democracy hinges on the pivotal role played by its auxiliary institutions in negotiating major challenges through slow and persistent transformation. However, an objective audit of the performance of these institutions in the recent past would indicate a decline in operations and an acute crisis of corruption. Key institutions responsible for governance – Parliament, civil services, judiciary, the Election Commission, the Central Bureau of Investigation, the Central Vigilance Commission, and the Comptroller and Auditor General – have been put under the spotlight by an alert and mobilized civil society, urging immediate measures for ensuring their operational efficiency and integrity. This essay undertakes a critical examination of the present performance and efficiency of major democratic institutions in India, in the light of their prescribed roles and the malaise of corruption that plagues them. It argues that in order to articulate a comprehensive institutional response to the problem, relevant measures of political reform and constant vigil by civil society would prove crucial. The article is divided into six sections; first, a brief outline of the structure and changing nature of the institutional political set-up in India is provided; the second section examines the existing literature on ‘corruption’, and the third section highlights the increasing incidence of corruption in India at various politico-administrative tiers. The fourth section delineates the inception and role of anti-corruption institutions in India, signifying the early response to corruption. The fifth section critically reviews the theoretical and statistical evidence of performance-decline in the major institutions at present and gauges the potency of corruption; the sixth section explores the existing and prospective institutional responses for tackling corruption and the final section presents concluding observations.

Regulation and Competition Issues: Case Study of Indian Railways' Procurement

Public procurements, i.e., purchase of goods and services by various public departments, accounts for a significant proportion of both public expenditure and total demand for goods and services in the economy. Various studies, audit findings of the Comptroller and Auditor General of India, and vigilance reports by India's Central Vigilance Commission have invariably highlighted the incidence of anti-competitive practices in Indian public procurements. Public sector procurements are highly regulated, given the transparency concerns and principal–agent problem.These regulations outlining the rules and procedures in public procurement directly or indirectly influence the short- and long-run market dynamics (with respect to entry, market concentration, prices, innovation, etc.). This paper aims to analyse the impact of existing regulation on competition in public procurement in India through a case study of procurements in the Indian Railways. Based on the key anti-competitive concerns identified in Indian Railways’ procurements, the study outlines an important set of recommendations to enhance the degree of competition in public procurement in India.

The Higher Judiciary and the Prime Minister under the Ambit of the Lokpal: A Comparative and Constitutional Perspective

Corruption today is the all pervasive evil that is reflecting upon the social, political and economical aspects and has been eating the vitals of the society. To prevent and eradicate the corruption in the society, the Lokpal Bill was envisaged and introduced in the 4th Lok Sabha for the first time in the year 1969 and it was an abortive attempt. Ever since, many a successive governments have only paid lip service towards eradicating the scourge of corruption and the Lokpal has remained merely as a bill even to this day. The surfacing of scams involving the Central Government, which have caused huge loss to the Governmental exchequer, has come as bolt in the blue to the civilised masses. Perhaps, the recent scams that have surfaced are the biggest ever in the history of corruption, according to the Central Vigilance Commission's estimate. All these seems to have prompted the prominent personalities, such as Anna Hazare, Baba Ram Dev and others, to lead the disillusioned masses in the fight against the corruption and this is how the issue of Lokpal has came to the fore in the recent times. However, the bone of contention between the civil society that is calling for a passing of a strong Lokpal bill and the Government is relating to whether the Prime Minister and the higher judiciary could be brought under the ambit of the proposed Lokpal? This article sheds light on this vital aspect.

Landmark Judgment on Central Vigilance Commission in the Supreme Court of India Writ Petition (C) No. 348 of 2010

Landmark Judgment on Central Vigilance Commission in the Supreme Court of India Writ Petition (C) No. 348 of 2010

Financing of SME firms in India: Interview with Ranjana Kumar, Former CMD, Indian Bank; Vigilance Commissioner, Central Vigilance Commission

Financing of SME firms in India: Interview with Ranjana Kumar, Former CMD, Indian Bank; Vigilance Commissioner, Central Vigilance Commission

Financing of SME firms in India: Interview with Ranjana Kumar, Former CMD, Indian Bank; Vigilance Commissioner, Central Vigilance Commission

A major bottleneck to the growth of the vital Indian small and medium enterprises (SME) sector is its lack of adequate access to finance. This paper examines the major issues in the financing of SMEs in the Indian context, such as the information asymmetry facing banks and the efficacy of measures such as credit scoring for SMEs; whether transaction lending would be adequate to address the information issues or would lending have to be based on a relationship with the SME, using both ‘hard’ and ‘soft’ information; and whether the size and origin of the bank affect the availability of credit to SMEs. Ranjana Kumar, a prominent Indian banker who also served, till recently, as the Vigilance Commissioner in the Central Vigilance Commission, speaks on some aspects that are raised in the paper, such as the importance of the credit appraisal and risk assessment processes in today’s banking landscape and the role that banks can play in developing the SME sector in India.

Instilling Public Confidence in Administration: The Need for an Ombudsman-like Institution in India

The continuing increase in the instances of maladministration undermines the public faith in bureaucracy underscoring the need for an ombudsman like institution in India. The Lokpal/Lokayukta Act has been sought to be promulgated since the 1970's and till today efforts for the same have been all in vain, showing the lack of political will to institutionalize the ombudsman in India. Even though States such as Orissa, Kerala and others have enacted their own State Acts constituting the ombudsman, they haven't achieved much success. An understanding of the importance of an ombudsman-like institution and the promulgation of a Central Act is the required step forward. The functioning of administration has also undergone a paradigm change. Focus has shifted from secrecy to transparency, from working in isolation to working with the people, from arbitrariness to accountability for actions. Clearly the time has come to herald change through institutionalizing the ombudsman. This paper gives a brief overview of the institution of the ombudsman highlighting its merits, illustrates the differences between the institution of ombudsman and Courts and that of the Central Vigilance Commission bringing forth the supplemental role played by the same and suggests measures that need to be taken to supplement the success of ombudsman. Finally, the conclusion is presented.

Central Vigilance Commission: A Profile

Central Vigilance Commission: A Profile

Central Vigilance Commission—Its Role in Administrative Vigilance

Central Vigilance Commission—Its Role in Administrative Vigilance