The Indian Renewable Energy Development Agency (IREDA) has recently launched an initiative to combat corruption within their ranks. As part of this effort, IREDA has created a ‘whistle-blower Portal’, providing a platform for employees to raise concerns related to fraudulent activities, corruption, and abuses of power.
Whistle-blowing and the IREDA Initiative
According to the Companies Act 2013, whistle-blowing refers to actions aimed at alerting stakeholders to unethical practices within an organization. This pertains to any person who uncovers wrongdoing and has evidence to support the allegations. Whistle-blowers can be individuals from within or outside the organization such as current and former employees, shareholders, external auditors, and lawyers. In India, the Whistleblowers Protection Act of 2014 provides protection to whistleblowers. In line with this, IREDA’s whistle-blower portal is a platform where potential whistle-blowers can safely raise and report concerns to combat corruption.
The Crux of Insider Trading
Insider trading is an illicit activity in the stock market whereby vital non-public information about a company is utilized to gain an unfair advantage over other investors. In January 2020, the Securities and Exchange Board of India (SEBI) implemented a new mechanism to reward whistle-blowers and informants for sharing information related to insider trading cases.
Vigilance Awareness Week
Vigilance Awareness Week is celebrated annually on the birthday week of Sardar Vallabhbhai Patel, popularly known as the ‘Bismark of India’. The Central Vigilance Commission observes it, and National Unity Day coincides with it on 31st October. The theme for the 2021 vigilance week is ‘Independent India @ 75: Self Reliance and Integrity’. Various activities are planned throughout the week to acknowledge the vices of corruption and promote ways to fight it both at an individual and systemic level.
Corruption in India: Prevalence, Causes and Impact
According to the Global Corruption Barometer (GCB) – Asia 2020, nearly half of those who paid bribes were asked to. Furthermore, 32% of those who used personal connections admitted that they wouldn’t have received the service without them. As of 2020, India ranks 86th on the corruption perception index out of 180 countries. Major causes of corruption in India include a poor regulatory framework, exclusivist process of decision-making, and absence of effective internal control mechanisms. The impact of corruption is far-reaching as it fosters inefficiencies, distorts markets, compromises quality, and poses a serious threat to national security.
Steps Taken to Counter Corruption
Several initiatives have been undertaken to counter corruption, including the Prevention of Corruption Act (1988), the Prevention of Money Laundering Act (2002), the Companies Act (2013), the Foreign Contribution (Regulation) Act (2010), and the Lokpal and Lokayuktas Act (2013). The Central Vigilance Commission is also actively involved in promoting transparency and accountability.
