{"id":11115,"date":"2011-12-09T20:08:12","date_gmt":"2011-12-09T20:08:12","guid":{"rendered":"http:\/\/www.patheos.com\/blogs\/drishtikone\/2011\/12\/quantum-corruption-money-earned-public-officials\/"},"modified":"2011-12-09T20:08:12","modified_gmt":"2011-12-09T20:08:12","slug":"quantum-corruption-money-earned-public-officials","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/drishtikone\/2011\/12\/quantum-corruption-money-earned-public-officials\/","title":{"rendered":"Quantum of Corruption Money Earned by Public Officials"},"content":{"rendered":"\n<\/head>

In a new book called \u201cCorruption in India: The DNA and RNA\u201d<\/b>, authors Bibek Debroy and Laveesh Bhandari have estimated that India\u2019s public servants loot Rs.92,122 crore ($18.42 billion)<\/b>, or 1.26% of the GDP<\/b> due to corruption. They have used data from Central Statistical Organisation (CSO) to arrive at the figure.<\/p>\n

The three main areas of the bribery loot are: transport industry<\/b>, real estate<\/b> and \u201cother public services\u201d.<\/b> <\/p>\n

They have arrived at a figure of Rs.14,594 crore ($2.92 billion) for the loot in the \u201cother public services\u201d. That may be completely off. For example just for National Rural Employment Guarantee Act (NREGA) programs<\/a>, the money given out is $22 billion a year. And, the effectiveness of these programs in terms of Households receiving employment is roughly 3%.<\/p>\n

Even if we take an effectiveness of 30% (which is WAY too much), we are talking of $15 billion<\/span> just from ONE program<\/b>! There are a number of such programs.<\/p>\n

Lets take a look at the Real Estate area now. The numbers may be as bad. As per some estimates<\/a>, just the various approvals add 20-30% to the builders cost in Mumbai itself.<\/p>\n

Just as an indicator, we know<\/a> that about $16 billion have been invested from 2006 until 2011 \u2013 roughly 5 years. <\/p>\n

According to a report by Jones Lang LaSalle (JLL), about US$ 15.8 billion has been invested from 2006 till date on various types of assets in the real estate sector in the country. Of which, US$ 2.7 billion went to residential projects and US$ 2.4 billion to township projects. A sum of US$ 2.3 billion went to commercial projects, US$ 2.1 billion to mixed use and US$ 961.4 million to special economic zones (SEZs). During the current year, PEs invested US$ 320 million in commercial, US$ 65 million in mixed use, US$ 44 million in residential, US$ 190 million in SEZs and US$ 122 million in township projects.<\/p><\/blockquote>\n

This is the investment that is counted and documented. A lot of work happens undocumented in the black market. In fact, one can see in cities like that Delhi that 70-95% of the properties are sold and bought with black money \u2013 unaccounted for. <\/p>\n

Let us take a conservative estimate that only 50% is unaccounted. Then we are talking of about $32-35 billion in 5 years \u2013 or $6-8 billion a year. We are talking of just the approvals taking 20-30% away in bribes. That may be $1.5 billion a year!<\/span><\/b><\/p>\n

The book puts the entire corruption money around the country to be around $2.5 billion, which seems to be closer to ball-park.<\/p>\n

Real estate and related business services involving registration of property and stamp duties account for Rs.12,534 crore ($2.5 billion) in corruption.<\/p><\/blockquote>\n

The other areas of corrupt money are also pretty large.<\/p>\n

Bribery at multiple checkpoints and by revenue officials, police and customs in the transport sector generate Rs.11,267 crore ($2.25 billion) in corruption, the authors say. The book estimates bribery amount from illegal mining, theft from public mines and licensing at Rs.9,578 crore ($1.91 billion). <\/p>\n

This is followed by corruption in government procurement (Rs.9,144 crore or $1.82 billion). Bribe taking by inspectors, police and local bodies in unregistered manufacturing totals Rs.6,600 crore ($1.32 billion). <\/p><\/blockquote>\n

It is their statement on the state of corruption that is extremely damning.<\/p>\n

Undoubtedly corruption has taken over India. It rules over the country with its stranglehold in every aspect of the state and consequently in all aspects of life of citizens.<\/p><\/blockquote>\n

(Image courtesy: Economist<\/a>)<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

In a new book called “Corruption in India: The DNA and RNA”<\/b>, authors Bibek Debroy and Laveesh Bhandari have estimated that India’s public servants loot Rs.92,122 crore ($18.42 billion)<\/b>, <\/p>\n","protected":false},"author":1517,"featured_media":11608,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[101,33,57],"tags":[2353,2520,2881],"class_list":["post-11115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corruption","category-india","category-politics","tag-mumbai","tag-nrega","tag-real_estate"],"yoast_head":"\nQuantum of Corruption Money Earned by Public Officials<\/title>\n<meta name=\"description\" content=\"In a new book called "Corruption in India: The DNA and RNA", authors Bibek Debroy and Laveesh Bhandari have estimated that India's public servants loot Rs.92,122 crore ($18.42 billion),\" \/>\n<meta name=\"robots\" content=\"index, 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