Is privatization a solution to the problem of corruption in India?

Corruption can be considered synonym to government offices. But private sector is no longer free from this plague in India. Some believe that privatization can reduce corruption to a great extent. I think that corruption is not related to government or private sector but it is the mindset of people taking bribe and involved in corruption. Either government or private, both the offices are run by the people, so it is the people who are corrupt not a sector. One should be answerable to his work and position. Many scams and scandals are part of private sector or public sector or both. In the biggest scams’ of India both private as well as public sectors are involved. According to one of the survey by the consulting firm KPMG, it has been found out that private companies pay bribe to public sector for business in India. Corruption cases in private sector Private sector when gets collaborated with public sector and bureaucrats shows cases of corruption, though grass root level corruption is missing in this sector. According to the reports by Transparency International India (TII), power, oil sectors and mining are the most prominent of all private sectors that have the cases of corruption. Bribe is paid by the corporate sector officials for the work to be done. Satyam scam – It was one of the most surprising scandals in the corporate world. The Satyam Computer Services Scandal of 2009 in which accounts of the company were made inaccurate by none other than the Chairman of the company. Ramalinga Raju, the then Chariman of Satyam resigned on 7^th January 2009 and admitted that he had manipulated the company’s account. Supreme Court on 4^th November 2011 granted bail to him and 2 other accused as no evidence against them was found. 2G scam – The telecom scam in which Rs 1.76 lakh crore was fiddled. In the CAG report it was stated that the former Telecom minister, A Raja dodged the norms while distributing the doubtful 2G license. Mobile telecommunication companies were undercharged by the government and politicians. From political to corporate many big names were included in this scam like M. K. Kanimozhi, Pramod Mahajan, Siddharth Behura, RK Chandolia, Sanjay Chandra, Gautam Doshi, Hair Nair, Surendra Pipara etc Commonwealth Games Case (CWG) – India hosted Commonwealth Games in 2010. Even before the start, allegations of corruption were put on CWG. Rs 7000 crore was expected to be spent on the games but just half the amount was used up on the Indian players. Suresh Kalmadi former Chairman of the Commonwealth Games Organising Committee was also charged for misusing his position and causing the loss of more than Rs 90 crore. Telgi scam – It is the scam of duplicate stamp papers planned by Abdul Karim Telgi. In this scam fake duplicate stamp papers were printed which were then sent to the banks and other institutions. These fake papers crossed 12 states and estimated cost of the scam was Rs 20,000 crore. The Bofors scam – This is one of the biggest scandals in the Indian history and a major setback to the Indian National Congress party as the then PM Rajiv Gandhi was one of the accused. Along with him many more big names were also accused such as the Hindujas. Vishwanath Pratap Singh was the defense minister at the time of the disclosure of the scandal. It was speculated that Italian businessman Ottavio Quattrocchi was part of the scam who was also very close to the family of Prime Minister Rajiv Gandhi. IPL scam – India started 20-20 IPL cricket game but couldn’t help to keep it free from corruption. It involved betting and money laundering. IPL commissioner Lalit Modi was also suspended because of his involvement in the scam. Prominent personalities like Sharad Pawar’s family, Shashi Tharoor and Prafull Patel were also named in the IPL scam. From the entertainment industry Raj Kundra, Shahrukh Khan and Preity Zinta and in corporate sector Multi Screen Media or Sony Entertainment Television, World Sports Group and International Management Group were expected to be involved. IPL scam was all about broadcast deal, match fixing and money laundering. Harshad Mehta & Ketan Parekh Stock Market Scam – The capital market scam involving investors. The scandal involved Rs 4000 crore Harshad Mehta scam and over Rs 1000 crore Ketan Parekh scam. The Hawala scandal – Topmost politicians of India were involved in Hawala scandal. They received payments through hawala brokers. So there is no guarantee that privatization and the private sectors are free from corruption and make India corruption free. But to end corruption -

Politicians, bureaucrats and corporate must accept that money is not everything. Funds released must be used for the purpose for which these are allocated rather than making bank balance.
No short cut should be sought to complete the project.
This must be understood that corruption leads to inefficiency because work is done without efforts and just on the basis of money.
It adds to the total cost of the project.
Foreign companies are reluctant to invest in India because of corruption in every sector and every step.
Laws should be more stringent and there should be zero tolerance for corrupt people.
Accountability on the part of employee should increase in both private and public sector.

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Is privatization a solution to the problem of corruption in India?

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