Whistle-Blower and Whistle-blowing law in India explained

(This post elucidates the meaning of Whistle-Blower and Whistleblowing Laws in India)

The whistle-blower is a complainant who wishes to complain or disclose on any allegation of corruption or of miss-use of office by any employee of the Central Government or of any corporation established under any Central Act, government companies, societies or local authorities owned or controlled by the Central Government. The complainant should send his/her complaint in writing to ‘The Central Vigilance Commission (CVC)’ ‘who is the Designated Agency, to receive such complaints. The designated agency on receipt of the complaint would ascertain the identity of the complainant; if the complainant is anonymous, it will not take any action in the matter. However, the identity of the complainant will not be revealed unless the complainant himself has made either the details of the complaint public or disclosed his identity to any other office or authority. During the course of the investigation, the Commission should not disclose the identity of the informant and also shall request the concerned head of the organisation to keep the identity of the informant a secret, if for any reason the head comes to know the identity. The CVC can take the help of CBI or Police department, if it considers necessary, to complete the investigation.

In the event that any person is aggrieved by any action against him, he may file an application before the Commission seeking redress in the matter as he is being victimised, on account of that he had filed a complaint or disclosure. The Commission may give suitable directions to the concerned person or the authority. Further, the commission may issue appropriate directions to the concerned government authorities if it is of the opinion that either the complainant or the witnesses need protection. If contrary to CVC’s direction, the identity of the informant is being disclosed, CVC could initiate appropriate action against the person or agency making such disclosure. If the Commission finds that the complaint is motivated or vexatious, it shall be at liberty to take appropriate steps in the matter.

The Commission shall not entertain or inquire into any disclosure in respect of which a formal and public inquiry has been ordered under the Public Servants Inquiries Act, 1850, or a matter that has been referred for inquiry under the Commissions of Inquiry Act, 1952.

The whistleblower protection act bill 2011 became an act on President of India’s assent on 9 May 2014. The act provides a mechanism to investigate alleged corruption and misuse of power by public servants and also protect anyone who exposes alleged wrongdoing in government bodies, projects, and offices. It is not mandatory for companies to have whistleblowing policies, but it is mandatory for them to disclose all in their reports on corporate governance to the extent of the nonmandatory practices.
The drawback of whistleblowers Protection Act, 2011 it has no provision to encourage whistleblowing (financial incentives). It does not include the definition of victimisation. Further, competent authorities under the Act are very limited and right of appeal is not provided to the complainant in case he/she is not satisfied by any order of the competent authority. Appeal provisions have been provided only relating to imposition of penalty.The Act does not specify a procedure for inquiring into complaints of about acts of corruption, willful abuse of power or willful misuse of discretion or offenses committed by members of the lower judiciary. Though the Act makes a provision for Anonymous Disclosures, the Act does not speak about complete anonymous disclosures. The Competent Authority formed under the Act does not talk about complete anonymous disclosure. The Act makes provision for revealing the identity of the Whistleblower. If this is done there are chances of the whistleblower being victimized.
The whistle blowers protection bill 2015
The amended bill prohibits the reporting of a corruption-related disclosure if it falls under any 10 categories of information like (i) economic, scientific interests and the security of India; (ii) Cabinet proceedings, (iii) intellectual property; (iv) that received in a fiduciary capacity,(v) that received from foreign government (vi) that which would impede an investigation, (vii)personal matters or invasion of privacy,(viii) That which could endanger a person’s safety, (ix) A breach of privilege of legislatures,(x) That which is forbidden to be published by a court or if it may result in contempt of court etc. However, any public interest disclosure received by a Competent Authority will be referred to a government authorised authority if it falls under any of the above 10 prohibited categories. This authority will take a decision on the matter, which will be binding. The Act permits disclosures that are prohibited under the Official Secrets Act (OSA), 1923. The Bill reverses this to disallow disclosures that are covered by the OSA.

1.What are Cyber Threats of different types?

2.Ethics in banks and financial institutions

3.What are Intellectual Property Rights?

4. What are Data Security and Privacy?

5. Whistle-blowing in Banks explained

6.Whistle-Blower and Whistle-blowing law in India explained

7.Unethical Behavior: Causes and Remedies

8.Manager as an ethical leader

9. Employees as ethics ambassadors

10.Meaning of Work Ethics and Workplace Ethics

11.How Conflict of interest arises?

12. What is Fair Value Accounting Practice?