State contracts (government services such as civil supplies to government auctions such as mining or 2G that were noted for scams in the recent past): This is one of the largest forms of corruption in any state. Of course, the Mauryan state is not an exception to this. Kautilya has a number of ideas on how to curb this type of corruption at the highest to lowest levels. Book II.Section 65-67 of Arthasastra deals with embezzlement of money that is due to the state and how the responsible persons should be punished. Kautilya indicates that in such cases all the persons indicted, such as the treasurer, the prescribed, the receiver, the payer, the person who caused the payment shall each be separately examined (Artha.II.67). A proclamation shall be issued, "whoever has suffered at the hand of this offender may make their grievances known to the king". Those who respond to the call shall receive such compensation as is equal to the loss they have sustained. This is the main aspect missing from the legal system designed to stop corruption in modern day India. Those that are affected by it may complain, but they won't get a remedy for their trouble. Including this in the law will bring forward common public to complain and are now part of the process to stop corruption.
Corruption is rampant at the local and regional level where enforcing bodies are often controlled or connected to local goons or factions. Local contractors and officers form a nexus of corruption which is impenetrable and untraceable for prosecuting purposes. Since the state pays for a number of contracts either to build, maintain or expand existing infrastructure (roads, electricity, sewage and water supply), health care, and educational facilities. Chapter 9, Section 68-70 of Book II of Arthasastra deals with the conduct of government servants, daily checks, punishments and remedies. Kautilya is not shy of using spies in internal management, and suggests that those who attend upon military officers and are noted for their honesty and good conduct shall be spies to watch the conduct of accountants and clerks.
Loopholes in financing of political parties, and also lack of transparency in election spending by major political parties. Although this aspect seems as though it is unrelated to administrative or state corruption. This is the biggest behind the scenes back bone of corruption that supports and spreads corruptions to all sections of society. Undeclared funds (black money) spent during elections cause a double loss to the Treasury and the payments given out to local public and others to garner support will spread the corruption widely.
Existing rules are inadequate or not implemented due to political pressures noted owing to the nexus between election funding and business, and other interested groups. This is often the most significant cause of corruption. Lack of will on the part of political parties and elected leaders contributes to lethargy on the part of the administration and common public. The public may suffer silently and may not come forward to complain but get used to paying bribes to get services. Which results in a breaking down of the economic system and gradually results in an economic backlash where inflation may become rampant.
Therefore finding clean politicians, and establishing transparency in funding and election spending of political parties is the first phase to fighting corruption in India. The second phase is that the elected leaders be strong willed to implement the laws and also remedy the affected public.
