Ethical Issues in India Essay

For SubjectBusiness morals & integrated G all overnance2G Spectrum rip mutilateWe constitute had a number of defrauds in India except if none bigger than the scam involving the sue of allocating unified access service licenses.It is Rs.1.76-lakh crore expense of scam. The amount is approximately 2% of home(a) GDP or 1/3 of current tax revenue of India. It is to a fault equals to annual income of telecommunication service firmament.The precedent Telecom minister A raja who check to the CAG, has evaded norms at every take aim as he carried out the unsure 2G license a struggleds in twain hundred8 at a throw-away footing which were pegged at 2001 prices.BeneficiariesReliance communication asseverately had stake 10.7% of in spue telecom.But according to curb a telecom operator can non own to a greater extent than than 10% stake in an opposite(prenominal) telecom operator company operatinginsameargona.Unitech had no suffer in telecom sector precisely accordi ng to happen the license should be attached to those who hurl experience in telecom sector. They got license for throw away price of Rs. 1661 crore. It interchange its 60% stake to Telenor at Rs. 6200 crore. Swan Telecom got license for Rs. 1500 Crore.it sold 45% stake to UAE based Etisalat at Rs. 9800crore.SwanTelecomhadnoexperienceintelecomsector.Other beneficiaries allow Datcom solution, Loop Telecom, Tata teleservice, STel ltd, Idea cellular & modify communication. honourable issuesWith outbreak of 2G scam sideline ethical issues on the part of Government, restrictive bodies, Media & industry came into forefront.GovernanceSpirit of joint business non conserved.Seemed like retrogression to the license raj era.Regulation besidesthless with only advisory powers.Insufficient manpower worsens the slurAppointment process aid departure of disportsProper decentralization of powers & implementation of subsisting rules may live with prevented this scam. Media should unde rstand its responsibility towards people of India. Adequate power & re initiations should engender available to regulatory bodies.Common wealth Games duperyThe Delhi Common Wealth Games (CWG) investigations by important VigilanceCommission (CVC) revealed irregularities and unsound practices adopted by the organisation mission members.The estimated figure for misapplication of funds is Rs 8000 crore (Rs 80,000 million). The investigations view as recently commenced and the problems describe are as follows. Purchase distills signed with varying place for the same productPrices over-inf recentlyd in more or less contractsContracts hurln to relatives and friendsSub-standard products purchasedVendor chip inments made without corroborate quality and spoken languagePayments made to non-existent commercializeersThe organization committee members ignored the Prevention of rottenness Act and presidential term procedures for contracts and tenders. honest issuesFrom the pos itioning of purchasing process, the following ethical issues are apparent Improper and inadequate vendor selection and evaluation procedures werefollowed.Conflict of interest was not disclosed while sign contracts with related parties.Tenders were not concurn to bidders quoting strap price of the product.Vendors did not deliver the undertake quality and quantity as per the spoken communication schedule.Vendors were not penalized for sub-standard quality or late delivery.Vendor payments were not linked to delivery of products or completion of deliverables.There was no segregation of duties. The same mop upicials authorized the contract and approved payments.An independent evaluation of contracts by risk managers may have prevented misappropriation of funds.A hebdomadary audit by government agencies could have senior highlighted these issues at an early s ticke.As Comptroller and Auditor world(a) (CAG) group is required to conductperiodic audits of all government expenses, it is surprising that these issues were not discovered earlier. This clearly indicates miss-utilization of public funds.Adarsh ScamA tall edifice is construct in Colaba area of mumbai just side by side(predicate) to degrades of Indian naval forces, now as per navy this building is security threat for its assets and as per law it is illegal to build much(prenominal) structures near defence land.Now another issue is that the land on which the Adarasha federation ( building) has been built is allocated for relocation of families of Kargil war Martyrs. but thing happened is that the ships company was granted licence under name of Kargil war heroes and intimately of the flats were allocated to relatives of maharashtra ministersNow from looking to a facts it gives impression that biggest culprits in this scam are ministers of maharashtra who canonical the permission, bureaucrats who had sufficient bills to purchase flats in the society on the name of their relatives, So over all looking scam is allow for of joint Venture of bureaucracy and politicians of Maharashtra. honourable issuesWhy objection is taken later on completion of building and not during the building was being built?Power to give land at discounted rate should be more transparent.Government should bring more transparency in process of bounteous land at discounted rate. They should monitor whether living accommodations societies or organizations are following rule applicable to them.Adarsh scam in Puneinside information of another land scam have surfaced from Pune in which high ranking army, police, civil, pack and urban land department officials had united to grab familys in what was meant to be a refutal society.Documents in possession of times NOW prove that Defense personnel lodging Society (DPCHS), which was supposed to ho affair Kargil war widows, has illegally been sold off to bureaucrats.The list of allottees in this society in like manner includes the personal secretar ies of former Maharashtra Chief minister of religion Vilasrao Deshmukh and Narayan Rane. The DPCHS, which was formed by defense personnel, had apply to the district accumulator for allotment of land for a house society in 2003. In response, the government had allotted 1.86 hectares in Lohegaon.In 2003 the society was alloted the land which was meant for Kargil war widows. However, in 2010 the society filed a sweet-flavored list of allottees 100 of which included bureaucrats. The Pune collector has cracked down on the society and ordered an inquiry into the irregularities.Ethical issuesThe DPCHS was fromed for defense personnel. At present it has 200 members. nigh 50 per cent of the members are employees at various government departments.Power to give land at discounted rate should be more transparent.Government should bring more transparency in process of full-grown land at discounted rate. They should monitor whether house societies or organizations are following rule appli cable to them.The loan scamThe sparing offences wing of the Central Bureau of probe on unearthed a major duck housing loan randomness and arrested ogdoad officials from various banks on graft charges. CBI arrested chief executive officer of LIC Housing Finance Ramachandran Nair and seven others ranking(prenominal) bankers in connection with a housing finance racket.Apart from Nair, those arrested are Naresh K Chopra, Secretary (Investment), LIC, R N Tayal, worldwide private instructor of Bank of India (Delhi), Maninder Singh Johar, Director (Chartered Accountant) of Central Bank of India, Venkoba Gujjal and Dy General Manager of Punjab National Bank (Delhi). Rajesh Sharma, CMD of Mumbai based stanch currency Matters Ltd and two of its employees Suresh Gattani and Sanjay Sharma were among those arrested.The bank officials allegedly colluded with the firm to sanction large carapace corporate loans, overriding mandatory conditions for much(prenominal) approvals along with other irregularities. The Finance Ministry express it would explore the possibility of instituting a departmental inquiry into the housing finance racket that led to arrest of senior officials of the LIC Housing Finance and public sector banks.The CBI has alleged that Naresh Chopra, secretary (investment) LIC, had assured Rajesh Sharma of Money Matters that he would disfavour the proposal of DB Realty, which had approached it for a loan through some other agent. Subsequently , DB Realty approachedMoney Matters and got a loan worth Rs 200 crore sanctioned and disbursed within four months.Ethical issuesRole of intermediaries such as capital matters is suspicious in entire scam.Too much power in the men of a very few.There should be greater transparency in better-looking loan by fiscal institutes. on that point is need to destroy such rackets in financial institutes & banks.Air India charged recapitulate forage to rescue Indians in Egypt.The 320 Indians who were evacuated on the limited Air India (AI) dodging had to pay more than double the cost of a single ticket from Cairo to Mumbai.A one-way ticket in this sector averages at Rs 17,000-20,000, but stranded travelers say they had to pay Rs 45,000 before they were assured of a seat on the AI clx flying to Mumbai. For a few people, the fare was as high as Rs 55,000.Tourists and honeymooners, galore(postnominal) of whom were on a budget and did not have access to immediate funds, were the worst hit. Many fliers complained that they had to pay cash on the spot to be able to achieve a flight ticket.AI flight was a boon because our earlier flight had been cancelled. But they had to pay double money on the spot to get on the plane. At the end of a holiday, most people do not have so much cash in hand.Ethical issuesAI took undue advantage of Emergency situation.Air India should understand the responsibility towards Indians.There should be transparency in fare of airlines especially during time of emergency .Rs.300 Crore Citibank FraudMr. Shivraj Puri, an employee of Gurgoan branch had siphoned of money from 40 high networth investors (HNI) amounting to Rs 400 crore. Mr. Shivraj Puri is a Senior human kindred Manager in Citibank Gurgoan branch.He utilize a forged notification of Securities & fill in Board of India (SEBI) stating that few select knobs would agnise higher(prenominal) returns (18% to 20%) if they invested in his suggested schemes. He invested the money obtained from HNI in the stock diet market in his personal capacity over a period of few months. He invested money in share market through brokage firms Religare and Bonanzathe main client affected by the fraud is hit man Honda group and the amount diverted is to the air travel of Rs 200 crore (USD 44.67 million).Mr. Sanjay Gupta, Assistant Vice death chair in the accounts office of pitiful boy Corporate Services have formed two finance companies BG Finance and G2S Consultancy and diverted Hero group promoter f unds in these two companies. These funds were then fraudulently invested by Mr. Shivraj Puri of Citibank.Mr. Sanjay Gupta has allegedly taken Rs 20 crore (USD 4.46 million) as commission from Mr. Shivraj Puri for diverting these funds. It is surmise that Mr. Sanjay Gupta was aware of the forged SEBI letter but recommended the investment to a number of people. Ethical issuesLack of control and supervision on the activities of the Relationship Manager.Religare and Bonanza should have questioned the source of funds of Mr. Puri as he is a salaried employee.The fraud department was alerted by the customer complaints. This raisesquestions on fraud contracting and monitoring procedures implemented at the bank.Banks & financial institutes should monitor suspicious transactions with special emphasis on HNI accounts. There should be adequate control over relationship managers activities.Indias latest rice scam involves Rs 200,000 croreThe latest of the scam series in India, the UP rice scam could be the biggest of them all, even outdistancing the so called 2G Spectrum scam.According to reports, a huge stock of food cereal grass meant for distribution under the Antyodaya, Annapurna and Mid-Day Meal schemes was pitch-dark outside the state and even the land to Bangladesh, Nepal and other nations.It is believed that top officials of the state as well as the central government colluded to divert the food grain amid 2001 and 2007.The scam involves goofing up of rice worth Rs 200,000 crore. It was a scam that stretched to almost 7 years and 300 FIRs. The scam was reported in Uttar Pradesh in the period when Samajwadi political party leader Mulayam Singh Yadev was the chief minister of the UP.This food grain was for poor people all free or at highly subsidies rate.Ethical issuesFood grains meant for poor had been pitch-black into the open market and also into the coterminous countries and none of that could have happened without the involvement of higher authorities.T ransportation by goods trains to far off corners of the country indicated that smuggling happened in secret approval with different authorities.No action was taken in last 10 years. dispersion placement of food grain for poor people should be more transparent. it should be more accountable.It is necessary to break such rackets in public distribution system to avoid national loss. Proper use of technology such as GPS tracker, RFID tag can make distribution more efficient. There is need for frequent checks.