NEW DELHI: A recent LocalCircles report has underscored the persistent issue of corruption within India’s business environment. Nearly 66 per cent of companies admit to engaging in bribery in the past year to expedite processes and achieve favourable results.
The findings reveal that 54 percent of participants felt compelled to pay bribes, while 46 per cent chose to do so voluntarily for quicker outcomes. “As many businesses reportedly affirm in confidence, bribery is often viewed as a necessary part of interacting with government agencies, whether it’s for expediting permits, obtaining duplicate licenses, or addressing property-related affairs,” the report indicated.
A mere 16 percent of businesses asserted that they could complete their work without bribery, while 19 percent claimed they had not encountered situations where bribery was necessary.
“This kind of bribery resembles extortion, effectively stalling permits, supplier approvals, files, orders, and payments in dealings with government bodies,” the report elaborated. The prevalence of bribery persists in various sectors despite advances in digitization, frequently occurring away from the gaze of surveillance.
Businesses confessed to paying bribes last year to qualify as suppliers, secure orders, and facilitate payments.
“While initiatives like the Government eProcurement Marketplace represent progress toward curbing corruption, there still exist vulnerabilities in areas like supplier vetting, bid manipulation, certification processes, and financial transactions,” the report noted.
Survey participants indicated that 75 percent of bribes were funnelled to officials in legal, metrology, food, drugs, health, etc. Additionally, many acknowledged paying bribes to GST officials, pollution control departments, municipal corporations, and power departments.
Interestingly, respondents reported a decrease in the frequency of bribery transactions and the total value of bribes paid over the past year.
Aakash Sharma, a partner at Deloitte India, pointed out that many organizations mistakenly believe that merely adhering to minimum policy requirements will shield them from regulatory scrutiny and potential penalties.
“While this approach may have sufficed in the past, the recent upswing in corruption cases, coupled with an evolving regulatory framework, necessitates organizations to reassess their compliance strategies and implement comprehensive anti-corruption measures,” Sharma emphasized.
The survey encompassed firms from 159 districts, gathering 18,000 responses between May 22 and November 30, 2024.
