Demonetisation, Corruption and the Aftermath
Major
General Mrinal Suman
Black money has been an integral part of the Indian narrative. Pervading
environment of corruption is invariably faulted for all the ills afflicting
India. Surprise demonetisation of high value currency notes has been hailed as
a radical step against black money and corruption in India. Will demonetisation
succeed in curbing corruption? Optimists are confident while the doomsayers are
sceptical.
In the simplest terms, corruption is unethical conduct by a
person in authority. Anyone who misuses the authority entrusted to him for
personal gains is guilty of resorting to corrupt practices.
Authority vested in a person may be governmental or non-governmental.
Undoubtedly, governmental corruption has much wider and graver implications;
both in range and quantum – from an office peon expecting tip for moving a file
to the top official demanding percentage cut for dispensing favours. Bribes are
passed on in a number of clever ways. For example, it is a common sight to see
bribe givers intentionally losing huge sums to the bribe takers in pre-Diwali
flash sessions.
Personal gains are not limited to financial exchanges. They
could be in terms of getting expensive gifts at children’s weddings, a flat
from a builder at subsidised prices, fully paid overseas jaunts, foreign
scholarship for the progeny and even donations to the family-run trusts. While
dealing with foreign nations, green cards for the offspring are an irresistible
attraction.
Corruption can take many other forms as well. Many consider Dr
Manmohan Singh to be the most corrupt Prime Minister of India. Coalition
parties realised his unabashed lust for power. They bribed him with the prime
ministerial chair; in return, they got a licence to loot the nation. Civil
aviation, food, coal, communications and other ministries were subjected to
open plunder. It was a pure quid pro quo arrangement – corruption at its worst.
Likely Impact of Demonetisation
Corruption is of two types – collusive and coercive. Collusive
corruption is generally not talked about much as both parties are comfortable
with it. Paying a small amount to a conductor for a berth in a train suits everyone.
A contractor does not mind paying a mutually agreed sum to officials for
getting unauthorised deviations. A judge may agree to acquit an accused for a
fee. A tax evader may willingly give a few lakhs to the appellate tax authority
rather than pay huge amounts of penalties to the exchequer.
Ingeniously, collusive corruption is referred to as speed money,
convenience fee, facilitation expenses or departmental overheads. The bribe
giver willingly offers gratuity to the official for out-of-turn favour. Many businesses
thrive on such dealings. No one complains.
Demonetisation may not be able to rule out collusive corruption as
it is a win-win situation for both the bribe giver and the bribe taker.
It is the
coercive corruption that is resented by all. Herein the bribe giver feels
coerced to offer bribe to get his entitled
dues. And, he begrudges it. When a builder is forced to shell out money
under the table to the authorities for getting his fully-compliant building
plans passed, he feels wronged. When the provident fund officials demand cut to
release an employee’s hard earned savings, he curses the system. Therefore,
coercive corruption has become the real fall guy in India.
In some cases, collusive corruption acquires coercive overtones
subsequently, resulting in open spats. For example, all bidders for major
contracts are told the percentage they should factor in for the department’s
cut. Bidders comply willingly. The problem starts when they are asked to pay
more than what had been catered for. Excess demand could either be due to the
arrival of new officials or a change in the ruling party. Contractors cannot
oblige. Consequently, either they abandon the contract midway or compromise on
quality. That is why we see stalled projects and collapsed bridges.
Demonetisation is likely to curb coercive corruption
considerably. Lack of hoarded currency will act as a great impediment.
The Political Corruption
Political corruption is India’s bane. It is collusive in nature.
All political parties resort to bribing voters through different means. Government
coffers are emptied out to distribute freebies (cycles, laptops, sarees and so
on). Loans are waived. Farmers are given free electricity. Unauthorised
colonies are regularised. Agricultural income, even of rich landlords, is kept
tax-free. Liquor is distributed openly. Currency notes are delivered to the
voters through innovative way.
Sadly, most voters fall for such free goodies and tall promises.
Kejriwal promised everything free to the Delhi voters and they voted for him.
An incident that this writer witnessed in 1999 is symptomatic of
the extent to which political corruption has afflicted India. A local MLA of an
eastern state was being pestered by a noisy crowd for not constructing the
promised road to their village. “We gave you votes. Fulfil your promise”, they chanted.
When his pleas failed to mollify the crowd, the MLA lost patience and shouted
back, “You did no favour. I gave every voter a bottle of hooch, one thousand
rupees and a blanket. I owe you nothing. Get Lost.” Knowing the statement to be
true, the crowd started dispersing, albeit grumblingly.
Most interestingly, even after the above episode, the said MLA has
been getting re-elected from the same constituency on the same set of promises.
Undoubtedly, the value of free goodies would have gone up with every election. The
much promised road is nowhere in sight. This is the normal narrative of
political corruption in India.
Will demonetisation help curb corruption? If the violent
reaction of the opposition parties is any indication, it will certainly help. Parties
have amassed thousands of crores in cash to buy votes. They are feeling aggrieved as their treasures have become worthless. Will
politicians find another way of buying votes? With their proverbial penchant
for resorting to corrupt activities, no
one can be sure.
When Heavens are Roped-in
Human ingenuity has no limits – even heavens are not spared.
Attempts are made to corrupt gods as well. By sharing a part of
the corrupt
earnings with gods, divine shield is sought against the heaven’s wraths and the long arm of the
law. Duly placated gods are expected to protect corrupt devotees.
Significantly, propitiatory corruption is purgatorial in nature and
not penitential. There is no remorse. Such
an offering becomes a conscience cleansing act and flushes out all feelings of
guilt. All places of worship flourish on tainted money. Propitiatory donations
include expensive diamonds, precious stones, gold, silver and wads of currency
notes.
As offerings of honest devotees can barely meet their routine
maintenance expenses, demonetisation will certainly deprive the religious
places of large donations by the corrupt.
In a lighter vein, perhaps the most interesting and common form
of collusive corruption relates to Mannat
(vow to a deity). Deity’s intervention is sought for favourable outcome of
an important issue. In return, the deity is promised a visit (pilgrimage),
donation, consecration or any other votive. It is made very clear to the deity
that the offer is purely on ‘no success:
no votive’ basis, thereby hoping that the deity would be forced to intercede
to retain credibility.
Needless to say, demonetisation will have little impact on Mannats as the government has no role to
play in a matter that concerns humans and their gods.
Finally
In a survey carried out by a leading newspaper, 81 percent
respondents termed demonetisation to be a ‘good idea well executed’; 15 percent
called it a ‘good idea badly executed’; and only 4 percent opposed the step.
Two posts on WhatsApp put the entire issue in an honest and objective
perspective. When queried, a veteran in
a queue at a bank said – “If I can stand for hours at Balaji for
one minute darshan without any assurance of divine support, I can surely stand
here knowing well that demonetisation will help my country”.
Similarly, a young man at an ATM declared – “I spend hours outside the booking window to get tickets for the
first show of popular movies. Wait of a few hours here to curb black money is
no big issue”.
If Kejriwal, Mamta, Yechuri, Mayawati and leaders of the ilk oppose
any change, the change must be considered good for the nation. This litmus test
applies to demonetisation as well. All opposition leaders are crying wolf and
shedding crocodile tears – faulting the government on the grounds of
inconvenience to the public and the trade. That is all hogwash. It is the loss
of hoarded cash chests that is hurting them immensely and they are writhing in electoral
dilemma – how to bribe voters to win elections.*****