The recent claims against the CEO and other high-level officials of Infosys have refocused attention on the safety of whistleblowers in India. In recent years, there has been an increase in whistleblowing complaints in the corporate sector, with Wipro and the State Bank of India (SBI) receiving the highest number of them in 2018.
Understanding Whistleblowing
Whistleblowing is defined as the act of revealing, by an employee or a concerned stakeholder, information about illegal or unethical behaviour within an organisation. The term ‘whistleblower’ refers to the individual who discloses these illicit activities.
The Law Commission of India recognised in 2001 the need for a law to protect whistleblowers in order to fight corruption. A bill was even drafted to address this concern.
In 2004, the Supreme Court of India asked the central government to create administrative machinery for handling whistleblower complaints until a law could be established. In response, the government announced the ‘Public Interest Disclosure and Protection of Informers Resolution’ (PIDPIR) in 2004. This resolution allowed the Central Vigilance Commission (CVC) to act on whistleblower complaints.
Further backing for a specific law to protect whistleblowers came from the Second Administrative Reforms Commission’s report in 2007. The UN Convention against Corruption, signed by India (but not ratified) in 2005, also encourages countries to facilitate corruption reporting by public officials and offer protection against reprisals.
To comply with these requirements, the Whistleblowers Protection Bill was proposed in 2011 and became law in 2014.
Legal Safeguards for Whistleblowers
The Companies Act of 2013 and regulations of the Securities and Exchange Board of India made it compulsory for companies to be aware of and respond to all such complaints. The Whistleblowers Protection Act of 2014 established a mechanism to receive and investigate complaints related to allegations of corruption or wilful misuse of power against any public servant.
| Year | Company | No. of Whistleblowing Complaints |
|---|---|---|
| 2018 | Infosys | — |
| 2018 | Wipro | High |
| 2018 | State Bank of India (SBI) | High |
Key Features of the Whistleblower Protection Act, 2014
The law provides comprehensive safeguards against victimisation of those making these complaints. Any person, including a public servant, can make a public interest disclosure to a Competent Authority. It also defines various competent authorities – for instance, any complaint against a union minister is directed to the Prime Minister.
The legislation specifically states that anonymous complaints will not be entertained and no action will be taken unless the complainant establishes their identity. A complaint must be made within seven years.
Certain exemptions exist: the act does not apply to personnel and officers of the Special Protection Group. Anyone unhappy with an order from the Competent Authority may appeal to the relevant High Court within 60 days of the order date.
Penalties are in place for anyone who negligently or maliciously reveals a complainant’s identity, ranging from imprisonment (up to three years) to fines (up to INR 50,000).
Every year, the Competent Authority prepares a performance report of its activities which is submitted to the Central or State Government.
The Whistleblowers Act overrides the Official Secrets Act, 1923, allowing making public interest disclosure to competent authority even if it violates the latter act, provided it does not harm the sovereignty of the nation.
In 2015, an amendment bill proposed that whistleblowers should not be permitted to reveal any documents classified under the Official Secrets Act of 1923, even if for disclosing acts of corruption, misuse of power or criminal activities. This proposal seemingly weakens the original 2014 Act.
Looking Ahead
It is essential that we have suitable legislation to protect innocent whistleblowers in place and that the weakening of the act proposed by the 2015 Amendment Bill is abandoned. Strengthening the whistleblower protection mechanism will help ensure the integrity of democracy is protected, cherished and upheld.