Corruption in Trucking Operations in India

Transparency International India
TI India is a not-for-profit, non-party NGO of voluntary workers formed in 1997 and registered in 1998 under the Registration of Societies Act 1860 at New Delhi. It is accredited to the world body Transparency International, devoted solely to combat corruption both in international business transactions and at national levels and increase government accountability. TI India's prime objective is to promote transparent and ethical governance and to eradicate corruption. Accordingly, TI India has taken an active part in the following matters. Enactment of a legislation for Lok Pal (Parliamentary Ombudsman) Appointment of Lokayuktas in all States (State-level Ombudsman) Annual declaration of assets by Ministers, MPs and MLAs; such declarations should be available to the public, and penalties should be provided for false and/or nondeclaration Compulsory audit of accounts of political parties Electoral reforms to prevent tainted politicians from contesting elections and preventing them from holding the position of power Speedy trial of criminal cases against Ministers, MPs and MLAs Enactment of a legislation for Whistle Blowers' Protection Enactment of foolproof legislation for forfeiture of illegally acquired property by corrupt persons, including Ministers, MPs and MLAs. Code of Conduct for Ministers,MPs and MLAs Ratification of UN Convention Against Corruption Integrity Pact to prevent corruption in public contracting and procurement Organisation of seminars on Improving Governance Journalistic Excellence Award in exposing corruption
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Corruption in Trucking Operations in India

Conducted by
MDRA
People Who Make The Difference
34-B, Community, Centre, Saket, New Delhi-110 017 Phone: 26522244, 26522255; Fax: 011-26968282 Email: mdra@vsnl.com
Sponsored by
Shriram Group, Chennai
Accordingly, in association with like minded NGOs, TI India has been successful in getting it mandatory for all the contestants to Parliament and State Legislatures to declare their educational qualifications, assets & liabilities, criminal records, etc. while filing their nominations
February 2007

Balwantray Mehta Vidya Bhawan-ASMA, Masjid Moth, Greater Kailash Part II, New Delhi-110 048 Ph.: +11 2922 4519 E-mail: tiindia@gmail.com Website www: tiindia.in
FOREWORD
In furtherance of our objectives to combat corruption, TI India had sponsored a Study on Corruption in Trucking Operations. Indias economic progress has been remarkable during the last one decade. Transport plays a very important role because Indias roads carry threefourths of the freight traffic. The share of road transport in GDP is presently 4.66 percent.
This Study has revealed alarming dimensions of corruption being practised throughout the country. About 86% of the trucking operations are undertaken by small entrepreneurs. Corruption hurts these people most. The reasons for exhorting bribes are many. It indicates that truckers are required to pay bribes at every stage of their operations, which starts with getting registration and fitness certificates, and for issuance and renewal of interstate and national permits. A truck operator pays between Rs 211 and Rs 266 per day as bribe at toll plazas, checkpoints, state borders or during en-route stoppages on the pretext of checking documents. Based on this estimate, Rs 79,920 are paid annually by a single truck. The total share of RTO and Police, the two key enforcement agencies, works out to be around 88% of the total bribe involved. This practice is highly institutionalized because the truck drivers get some kind of receipt in the form of stickers, tokens etc. to ensure their hassle free movement. The recommendations of the Study include Single Inspection Squads at inter-state check posts, computerisation of transport offices and inter-linking them across the country, outsourcing of services for registration and fitness certificates, drop boxes for paying taxes, fees, etc., uniformity in rules across the country, improved infrastructure through more expressways and bypasses, etc. These call for serious consideration. This study, conducted by Marketing & Development Research Associates (MDRA) and sponsored by Shriram Group, is based on a field study to assess the extent and nature of corruption in the trucking operations. In all, 1222 truck drivers and operators were interviewed at 12 trucking centers out of 16 major trucking hubs in the country, besides officials, experts, and senior executives of leading truck companies and truck operators association. The Report thus calls for action on the part of all the concerned authorities, including RTO, Police, and all the local bodies. TI India gratefully acknowledges the support extended by Shriram Group, and the Marketing & Development Research Associates (MDRA) for undertaking this Study.
TI India's Studies and Activities

Studies Workshops on Improving Governance
Conference & Workshops on 'Delays & Corruption in

Indian Judicial System Remedial Measures' (December 1999).
Study of 'Citizens' Charters: Awareness,

Implementation and Improvements'
National Workshop in Delhi onAugust 25, 2005 Regional Workshops on Improving Gover- nance in
Patna (Feb. 16), Bhubaneswar (April 30), Bangalore (May 20) and Bhopal (Nov. 8, 2006). Jammu (March 6) andAhemdabad (April 12-13, 2007).
Corruption in India- An Empirical Study (December,

2002) pertaining to ten Deptts.
Propogation of Integrity Pact (IP)
'India Corruption Study 2005' covering 11 public

services in 20 States
Ministry of Defence incorporated the provision in its

Procurement Procedures for 2005 and 2006
Corruption PerceptionAndAnApproach to Combat It. Stamp Duty & Tax Evasion in Property Transactions Corruption in the Trucking Operations in India (2006) Bhrastachar Se Mukabla: Rashtriya Sadachar
Vyavastha Ke Tatav - Hindi Version of TI's Source Book
Signed a MoU onApril 17, 2005 with ONGC. Signed a MoU on March 29, 2007 with the
Vishkhapatnam Steel Plant.
The II Administrative Reforms Commission in its IV

Report on Ethics in Governance has recommended, among others, the adoption of Integrity Pact
Bharat Main BhrastacharAur Us Se Mukabla Children's Film on Corruption Ethics for Children (under preparation) 'Towards Improving Governance' for creating
awareness about various tools of governance and exemplary initiatives (under print) Involved in official advisory councils, forum, etc.
Presentations to MTNL (July 25), CVC (Nov. 24),

Airports Authority of India (Nov 27), PSUs under the Ministry of Steel, etc. in 2006
Collaboration
CVC's Vigilance Advisory Council Admiral R. H.

Tahiliani as Member.
Delhi State Council for Right to Information Shri. S.D.

Sharma as Member.
Lobbing for adoption of Integrity Pact in public

contracting and procurement
New Delhi Municipal Committee's Electricity

Consumer Forum Shri M.L. Kumar as an NGO Representative
Admiral (Retd) R H Tahiliani Chairman, TI India
Public Interest Litigations (PILs) 4 For declarations about criminal record, assets &
liabilities, educational qualifications, etc by all seeking elections.
Development of a Charter Mark Scheme for quality

certification of Citizens' Charters by TCS Bureau of Indian Standards (BIS): Social Respo nsibility Sectional Committee to evolve documents on various important social issues.
Disclaimer While every effort has been made to ensure accuracy in acknowledging the material incorporated, used and quoted in this book, the publisher, printer and/or writer will not be held responsible for any inadvertent error(s). In case of any dispute, all legal matters to be settled under Delhi Jurisdiction only. We have made diligent efforts to give credit to the sources of the material cited in the text. we, however, stand no guarantee regarding any information contained herein.
4 Abolition of MPLAD Scheme 4 Scorpine Submarine Deal for probe by an

independent agency
Report on
Corruption in Trucking Operations in India
Conducted by
34-B, Community, Centre, Saket, New Delhi-110 017 Phone: 26522244, 26522255; Fax: 011-26968282 Email: mdra@vsnl.com
Sponsored by
Shriram Group, Chennai

Balwantray Mehta Vidya Bhawan-ASMA, Masjid Moth, Gr. Kailash Part II, New Delhi-110048
October 2006
CONTENTS
Page No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Executive Summary Introduction The Study Methodology Profile Estimation of Corruption Stages of Bribe Payment Shareholders in Bribe Money Modes of Bribe Payment En-route Stopovers Irritants While Driving Departmental `Cash Drop Box Conclusions and Suggestions Case Studies 1 5 8 9 12 14 17 18 19 21 24 24 27 31
Report on Corruption in Trucking Operations in India-2006
EXECUTIVE SUMMARY
Roads carry seventy percent of freight traffic in India. The road transport share in the GDP is 4.66 per cent. Around one crore people are associated with the trucking operation business in India. As is found from the study, truckers pay bribes at every stage of their operations, which starts with getting registration and fitness certificates, and for issuance and renewal of interstate and national permits. The reason for paying bribe, while on road, include plying overloaded trucks, traffic violations, parking at no-parking places or entering no- entry zone, and in the payment of toll and other taxes like octroi, sales tax etc. Lack of proper documents or alcohol abuse by truck drivers are the other reasons for paying bribe. However, due to largely unorganized nature of the trucking operations (86% consist of small entrepreneurs), assessment of the extent of corruption is a challenging task. A truck plying between states with freight covers on an average around 280-340 km in a day, which is much below the distances covered in developed countries. This means more days on road. This study has brought out around 37 percent of trucks spend between 5 to 8 days per trip while on inter-state service, 26 percent take more than 8 days to return to their originating point. Scope of Research This report by Marketing & Development Research Associates (MDRA) for Transparency International India (TII) and sponsored by Shriram Group is based o n a field study to assess the extent and nature of corruption in the trucking operations. An estimate of the extent of corruption in monetary terms is a highlight of the present report. Both qualitative and quantitative research methods were used to elicit primary data on corruption in trucking operations. In all 1222 truck drivers and operators were interviewed at 12 trucking centers out of 16 major trucking hubs in the country. In-depth interviews were conducted with officials, experts, and senior execu tives of leading truck companies and officebearers of truck operators association. Secondary data from published documents and articles was reviewed for further insights into core issues involved. Major Findings Trucks plying on road pays anywhere between Rs 211 and Rs 266 as bribe money per day depending upon the route. Based on this estimate, Rs 79,920 is paid as bribe by a commercial truck during a year. With around 36 lakh trucks currently operational in the country, the bribe amount floating in the trucking operations has been worked out to be more than Rs 22,200 crore a year after adjusting the trucks age and inter and intra -state operations. Incidentally, the amount involved in paying bribe is almost equal to what is formally paid to truck drive rs as remuneration. The bribe is mostly paid at toll plazas, checkpoints, state borders or during en route stoppages by one or other agencies on pretext of checking documents. The practice of bribe payment is highly institutionalised. The truck drivers even get some kind of a receipt in the form of stickers, tokens etc. to move without hassles from authorities.
Marketing & Development Research Associates
Report on Corruption in Trucking Operations in India-2006 RTO and Police, the two key enforcement agencies, share in bribe money works out to be around 43% and 45% respectively, accounting for almost 90% of the total bribe involved in the trucking operations. The en-route stoppages including those at checkpoints and entry-points take up to 11 hours in a day. About 60% of these (forced) stoppages on road by concerned authorities like RTO, Police, forest, sales and excise, octroi, weighing and measuring department are for extorting money. The loss in productivity due to these stoppages is an important national concern. The number of trips could increase by 40%, if forced delays are avoided. For instance, the travel time for a Delhi-Mumbai trip can be reduced from 5-6 days per trip by nearly 3 days. The present MDRA study has estimated that delays due to forced stoppages by authorities is costing the national economy to the extent of Rs 1130.47 crore per year. Harassment at the hands of police and RTO staff are rated as high irritants by almost threefourth of the truck drivers on the move. This in turn results in rash and negligent driving to make up the time lost due to frequent stoppages. getting their work done. Suggestions As the number of trucks on road is on increase year after year, the unaccounted money has also gone up from few crores to thousand crores. Besides direct loss in revenue to government, productivity and efficiency level has been falling. It is therefore urgent to identify and weed out the root causes of corruption in the trucking operations in India. These should include: Single Inspection Squads at inter-state check posts to give no-objection certificate (NOC) on behalf of all departments namely transport, police, sales tax, octroi, forest and similar other departments will reduce the loss due to frequent stoppages as well as lessens the interaction with officials. E- truck transport- Computerisation of transport offices and inter-linking them across the country will facilitate uniformity and online accessibility of records. Online registration of vehicles and online permit facility should be introduced to de-congest the transport offices and minimises scope for middlemen. Computerised checkpoints are expected to improve the processes of identification of vehicles and estimation of penalties using electronic weighbridges and computers thus minimising the manual discretion of imposing fines. At transport department, indifferent attitude of staff is one of the reasons for truck operators approaching middlemen or touts for
Report on Corruption in Trucking Operations in India-2006 Outsourcing of services for getting registration and fitness certificates from registered dealers and registered private outlets will curb corruption at departmental level to a large extent. Drop boxes for paying road, sales taxes at various points or payment of permit fees through banks and quoting challan numbers while applying for online facilities will also make the process more hassle -free and transpare nt. Independent and decentralised vigilance will keep a check over non-compliance of various rules and regulations such as overloading or operating without proper documents. This will keep a watch over the corrupt officials too. Uniformity in rules across the country- As in case of railways, rules and regulations regarding trucking operations should be uniform across states. With VAT system coming into force, octroi and sales tax barriers are expected to be done away with. Upgraded transportation services- Trucks should be able to operate without en-route inspections as and when, on the basis of a certificate issued at the origin by an authorized agency. Such an agency system should be worked out as it has considerably streamlined freight movement in Europe. Sensitization of stakeholders- Creating awareness and sensitization of department officials against corruption and illegal practices need to be taken vigorously. CII, ASSOCHAM, truck operators associations etc should be involved locally in the process for addressing corporate houses and industry on the issue. Encouraging truck operators and drivers to practice certain precautions, safeguards and selfregulation measures could be another important step in keeping a check over unfair practices. Improved Infrastructure- As a long term measure towards curbing corruption, more and more expressways and bypasses from the outskirts of the city limits will speed up the traffic movement. This will also reduce frequent holding up of vehicles without any authentic reason by corrupt officials. Display of rules and regulations- Truck operators and drivers need to be informed about prevailing rules and regulations by prominently displaying them in various languages at tollplazas, check-posts, fuel stations and at other prominent places en-route. Citizen Charter- The transport department should prominently display Citizen Charters at all its offices, check posts and major truck halting points and should be easily available to the users with contact telephone numbers to complain or seek help. RTI Act should facilitate redressal of truck operators grievances and should work as deterrent against corrupt officials. Truck associations and other concerned should periodically seek information under RTI Act to highlight bottlenecks like delay in issuance of registration certificates, permits and the need for reforms.
2.0
INTRODUCTION
Roads carry seventy percent of freight traffic. The share of road transport in GDP is presently 4.66 percent 1 . It accounts for a major share of all transport modes. Easy availability, individuals need-friendliness and cost savings are some of the factors that favour road transport. The road freight industry stands out unique with majority of the market share held by the unorganized sector comprising of individual or small operators. In Rs. 38,000 crores road freight transportation market 2 , organized sector has only a miniscule 14% share of the total. It runs almost the entire goods-carrier industry. The rapid growth in the number of goods vehicles is indicative of the increased volume of freight handled by road. In spite of reports of railways eating into the share of roadways in the movement of goods freight, roadways has posted an impressive growth of over 48.32 per cent at a much higher base compared to growth of over 35.51 per cent in goods freight in railways. Total freight movement in railways increased from 492.50 million tonnes (mt) in 2001-02 to 667.39 mt in 2005-06, roadways freight went up from 1553.60 mt to 2304.32 mt in the same period.3 Changing economic scenario along with globalization of markets, opening of barriers to business and trade and increased competition have added to the need of transportation. According to a World Bank study, the trucking fleet in the country crisscrosses on an average 60,000-1,00,000 kilometers of roads per truck-year. 4 In India road transportation is preferred for cargo movement, where flexibility of routing assumes importance. It facilitates door-to-door delivery, overcoming unnecessary delays, which normally take place in the other modes of transportation. Around one crore individuals are directly or indirectly employed in the trucking operation business in India. The total number of trucks registered in India is around 44.88 lakhs. According to experts and sources in trucking operation, the trucks plying on roads could be broadly categorized into three categories- trucks with interstate permits, trucks with intra-state permits and trucks plying on rural roads and within city limits.
5
In the last 20 years more than 36 lakh trucks have been
registered in India. It is estimated that currently a little over 22 lakh trucks provide
1
2
Source: National Accounts Statistics 2006, Central Statistical Organization. Source: Study on Trucking Operations in India- Problems and Potential; Asian Institute of Transport
Development, 2000 3 Source: Indian Foundation of Transport Research and Training 4 Source: Road Transport Service Efficiency in India, World Bank, 2005 5 Source: SIAM & Consultants estimate
Marketing & Development Research Associates October 2006
inter state services; remaining ply on intra-state roads or within city limits and rural roads. The truck operation is highly fragmented with only 17 percent of the operators having more than 10 trucks. Also, smaller trucks outnumber the big ones; 48% of all trucks are under 15 MT. With rapid growth in this sector, corruption too has grown at almost equal pace. It is reported that truckers have to pay bribes at every stage of their operations. Due to the largely unorganized nature of the industry (86% consist of unorganized operators), the extent of corruption in this sector cannot be accurately determined. Growing competition in the transport sector has led to overloading by truck operators to bag large contracts. Often, in order to maximize their earnings from each vehicle, truck operators load their trucks beyond the permissible axle load, creating a serious safety hazard and poor road conditions. In one of the measures taken towards curbing corruption, Supreme Court has passed an order trucks. banning It has movement suggested of some overloaded stringent
actions against the defaulters, e.g. trucks have to compulsorily offload excess cargo at the point of detection and even steps like cancellation of state permit and impounding or cancellation of the truck drivers license. With reports of operators going for heavier trucks to carry their consignment, its effect on checking the reduction in corruption like paying of bribes to the authorities, needs to be seen. Overloading being one aspect only, it is no hidden fact that truckers regularly pay bribes at every stage of their operations which include; Getting permits Getting fitness certificates Documentation related Traffic violations Toll payment related (avoidance of toll) Octroi related No entry Alcohol abuse Parking
To fathom corruption entrenched in road freight transportation requires a scrutiny of the extent of money changing hands. Its significance becomes more relevant for its
direct and indirect impact on the countrys economy through loss of revenue, and its cost to the end-users by way of increased cost of the goods.
The Times of India, New Delhi, Friday, August 4,2006
3.0
THE STUDY
This report by MDRA for Transparency India International is based on a study to assess the extent and nature of corruption in the trucking operation. An estimate of the corruption in monetary terms is the highlight of the present report. Based on the findings of the study related to the systemic issues and problems faced by regulatory authorities in this sector, the report has come up with some inputs to reduce corruption in the trucking industry. More specifically the study has looked into the three main aspects: Ascertain the nature and form of corruption prevalent in the trucking business Estimate the monetary value of corruption in the trucking business Understand the systemic issues giving rise to corruption in trucking business operations 3.1 The Spread
The operation is spread widely across the country with top 16 trucking centres contributing about 30 percent of the total truck population in the country. To have the views and perceptions on the magnitude of corruption prevailing in the trucking operation and related aspects, the study team interacted with operators as well as drivers at 12 biggest trucking hubs that account for more than one-fourth of the truck population in the country. The sampling design for the study was representative of the truck population in these centres, as shown in the table below. MAP SHOWING TRUCKING CENTRES COVERED DURING THE STUDY
1. 2. 3. 4. 5. 6. 7. 8. 9.
Ludhiana Delhi Kanpur Jaipur Ahemdabad Indore Kolkata Nagpur Mumbai
10. Vijayawada 11. Bangalore 12. Chennai
SAMPLING DESIGN
Centre Mumbai Delhi Kolkata Ahmedabad Nagpur Indore Vijayawada Bangalore Ludhiana Kanpur Chennai Jaipur Total Total Truck Population 6 75000 70000 31000 25000 25000 24000 19400 18000 18000 18000 15000 15000 387300 Sample size Operators 41 51 20 15 14 15 21 14 21 25 17 14 268 Drivers 144 126 80 60 55 55 86 62 84 81 60 61 954 Total 185 177 100 75 69 70 107 76 105 106 77 75 1222
The
sample
were
further
sub-categorised
into
large,
medium
and
small
operators/owners according to their proportion in the total truck population in the following manner: DISTRIBUTION OF SAMPLE W.R.T. OPERATOR SIZE
Size of the operator Large operator (more than 10 trucks) Medium operator (5-10 trucks) Small operator (1-4 trucks) Total sample (in %) 19 21 60
4.0
METHODOLOGY
Both qualitative and quantitative research m ethods were used to garner information on issues related to corruption in the trucking operation. Besides talking to truck drivers and operators at various centres spread across the country, in-depth interviews were also conducted with experts and office-bearers of truck operators association. In addition to this, published secondary data and articles were reviewed for insight into the core issues. 4.1 Research Approach Desk research: An in depth review of secondary data was undertaken to identify the root of corruption and the modus operandi of authorities who are involved in corruption. Review of articles and other studies published so far was undertaken.
Source: Francis Kanoi Study, 2003-04
In depth interviews: In depth interviews were held with various stakeholders to identify the roots, the process and the mechanism or (failure of mechanism).
Pilot survey: A pilot survey was undertaken to test effectiveness of tools developed for the survey. The pilot survey also helped to fine-tune operational aspects of the survey. The pilot survey was undertaken at major trucking hubs in and near NCR with a sample of 35 truck-drivers and 15 operators.
Fine-tuning tools and design: Based on findings of the pilot survey, research tools were further refined and overall survey design was improved. The questionnaire is given in the annexure.
Translation of questionnaires: The questionnaires were translated into local languages for more efficacies.
Fieldwork:
A nationwide fieldwork was launched after extensive briefing
of field investigators about various aspects of fieldwork. The field survey was conducted from July 16th, 2006 to August 3rd, 2006. o o Detailed Field field guidelines were were briefed in prepared detail explaining about the the study questionnaire and sampling methodology. investigators objectives, questionnaire and sampling techniques. In addition, field investigators were advised on dos and donts of interviewing. o Orientation of the field team also included mock interviews to train them on the questionnaire flow, and how to record standard and non-standard responses, etc. Selection of respondents: The respondents were interviewed on the highways and at major trucking hubs as and when they arrived to build randomisation in the selection process of the respondents. Not more than one truck-driver was interviewed from the same operator. Analysis: Once the fieldwork was completed a detailed analysis was undertaken. Estimation of corruption: Based on primary data, and after factoring
out irrelevant data, an estimation of corruption was arrived at. This was further validated and re-validated after discussion with experts to arrive at a conclusive figure.
4.2
Research Methodology
A combination of Quantitative and Qualitative research methodologies was used for the survey. Normally corruption-estimation surveys are quantitative based surveys. However, since this is for the first time such a survey was being undertaken in the country at the national level, qualitative methodologies were availed to understand various dimensions of stakeholders concerns. In depth interviews were held with various stakeholders like RTO officials, office bearers of truck operators associations. 4.2.1 Quantitative Survey The respondents were broadly divided into two categories a) truck-drivers (who experience corruption on roads) b) truck-operators (who deal mostly with institutionalized corruption or corruption at RTO offices). Questionnaires were developed keeping in mind questions relevant to both categories of respondents. The questionnaires covered various aspects of corruption, overloading, distance travelled by trucks, turn-around time, official expenses per trip, unofficial expenses, etc. It is a known fact that most of Indian truck drivers are not highly educated. Hence to validate their responses, relevant questions were asked at various places. Like the total expenses per trip was validated with information on official and nonofficial expenses separately. The questionnaires were translated into local languages. 4.3 Sampling Design
A unique multi stage sampling methodology was adopted for the survey. This unique design ensured adequate spread of sample and proportionate representation of the operators according to their size i.e. large, medium and small operator. A pictorial diagram of the sampling design is given in the following page.
Level: 0
The trucking population
Level: 1
Major 12 trucking hubs across states & regions
Level: 2
Large operators (19%)
Medium Operators (21%)
Small operators (60%)
Drivers (78%) Level: 3

Operators (22%)
10
All the trucking hubs across the country were identified. Out of them 12 most prominent trucking hubs from across north, west, south, central and east India were selected to cover a broad range of respondents from all major states.
Further, the truckers were segmented into large operators, medium operators and small operators on the basis of number of trucks they (or their owners) own. This was done to eliminate any kind of biased responses arising due to category of operator.
Now, from each category of operators/ drivers (based on size of operation), a fixed quota of drivers and operators were selected to cover issues from various angles.
The sample at each of the trucking hub was in proportion to total inflow/ outflow of trucks everyday from the hub. This was done in order to arrive at a representative sample from each hub.
Points of contact: Respondents were interviewed on roads and at their resting places or at their point of origin and destination.
In all 1,222 respondents were personally interviewed. The sample error at 95% confidence level works out to +/ - 2.8%. The survey covered 954 truck drivers and 268 truck operators. 4.4 Procedure for Estimation of corruption
The preliminary mathematical model for estimating the value of the corruption is given below: C.T.I.= A.D1 +A.D2 +A.D3 +A.Dn C.T.I.= Corruption value in Trucking Operation A.D.=A.A.B.*P.T*P.T.T A.D.=Amount given to different department/authorities A.A.B.=A verage amount of bribe to the Department P.T.= Proportion of trucks paying bribe to a particular department P.T.T.=Proportion of Total Trucks paying bribe in the country. 5.0 PROFILE
In all 1222 truck drivers and operators were interviewed 78% of these were drivers, while the remaining were operators. To arrive at an estimate of bribe payout in the trucking operation, it is important to understand the time and days spent by truck drivers between the point of origin and destination. Whether the nature of goods carried by these trucks is an important factor in amount given as bribe was also
Marketing & Development Research Associates October 2006 11
explored. Another important issue that was explored was the system through which the bribe is given by truck drivers and operators. The profile of the surveyed respondents showed that as high as 95% drivers are hired. Around two-thirds of the trucks interacted with during the survey have single drivers while remaining have more than one driver in their truck. The earlier survey by Asian Institute of Transport Development (AITD) in 1998 too has shown that small operators dominate the trucking operation. 5.1 Time Spent on Road
Time spent on road provides an important parameter to gauge the magnitude of corruption. The survey covered the truck drivers and operators, who travel across the length and breadth of the country. It was reported that on an average a truck covers around 280-340 km in a day. According to the India Infrastructure Report (2001), the average distance travelled by a truck in a day is 280 kilometres. Days on Road: To reach their destination and return to their originating point, the truck drivers may take as long as 30 days. MDRA survey shows that more than onefourth return to their base only after 8 days. A survey conducted in 1998 too showed that more than 21 percent of drivers return to their base only after eight days of duty.7 In the present study, the percentage spending 5-8 days was more than 36%. Only 18 percent return to their originating point after two days. The earlier survey as well as the present survey brought out that less than one-fifth return within 3 -4 days.
Days on Road
36.7
40
26
30 20 10 0 % reporting less than 2 days 3-4 days 5-8 days after 8 days
18
19.3
Barriers to Inter-state Trade and Commerce-The Case of Road Transport-B.Debroy and P.D.Kaushik, RGICS Working Paper Series No.35, 2002
12
Distance travelled: The time spent on road is proportional to the distance travelled by truck drivers. Distance covered by the sample truck drivers reflects on the time taken to complete their trip as well as time spent on various stoppages enroute. In their last trip, more than 39 percent truck drivers had covered between 2000-5000 km while more than 28 percent travelled a distance between 1000- 2000 km. Around 30 percent truck drivers had travelled a distance of 500-1000 km. The average distance travelled by them was over 1900 km in the entire trip. On an average, the truck drivers reported making on an average 4-5 trips in a month. Goods Carried: These trucks transport both perishable and non-perishable goods. The study explored the possibility of rise in bribe amount depending upon the type of goods carried by them. Type of goods carried by these trucks has no bearing on the level of harassment faced by truck drivers. Truckers feel that many a time, the authorities find one or the other excuse to harass them and force them to pay bribe. 6.0 ESTIMATION OF CORRUPTION
For every kilometre covered by the trucking operation, they shell out Re 0.70 per km. as bribe. On a given day, each truck while on road, on an average, ends up paying Rs.235 as bribe money, ranging between Rs 211-266 depending upon the route. Prevalence of corruption in the trucking operation is a foregone conclusion. Whats needed to be figured out is the magnitude of corruption? The present survey by MDRA has led to estimation of monetary value of corruption in Indias trucking operation. Before detailing the same, it is important to gauge the expenses-legal or required and forced or illegal. The later one, in other words estimate the bribe given or money spent by truck drivers and operators for their movement on road. With 95 per cent truck drivers in the survey reported paying bribes, the bribe paid by trucks came to Rs.79920 per year per truck. More than 36 lakh trucks have been registered in India in the last 20 years. However, it is assumed that the trucks that normally operate with national or interstate permits in the country are less than 12 years old, while trucks between 12-15 years old mostly ply on intra-state roads. In India, it has been observed that trucks older than 15 years, too, operate; albeit their movement is generally confined to rural roads or within city limits. The present study primarily focused on the trucks plying with inter-state or national permits. It has been estimated that around 22 lakh trucks currently operate with inter-state or national permits in the country, while rest move on intra-state roads or within the city. According to sources in trucking operations, the proportion of bribe money exchanging hands is more in the first category i.e. those moving with inter-state or national permits, but even trucks plying within states or within districts have to shell out bribe money. With the
assumption that around 36 lakh trucks are currently operational in the country, the bribe amount floating in the trucking operation business has been estimated be as high as Rs 22048.20 crore a year. This comes to Rs 1837.33 crore per month or Rs 61.24 crore in single day. This is in addition to Rs 10.75 per km spent as operating cost by the truckers. Another interesting finding that emerged from the survey is the longer the distance lesser is the bribe amount paid per km. For example, as could be seen from the table below, the truck drivers plying between Delhi-Ludhiana paid Rs 1.50 per km as bribe while those between Kolkata-Mumbai paid Re 0.44 per km. However, in terms of absolute number, the amount paid in an entire trip on Delhi-Kolkata route was three times over the amo unt paid on a to-and-fro travel between Delhi-Kanpur. Average amount paid as BRIBE between different routes
Route Delhi-Kolkata Delhi-Mumbai Delhi-Kanpur Delhi-Ludhiana Chennai-Vijaywada Kolkata-Mumbai Ahmedabad-Mumbai *Source: MapInfo. Distance* (To& Fro) Km 2922 2814 816 610 792 3974 1090 Average amount paid per trip (Rs) 2630 1464 871 915 917 1753 710 Amount paid per km (Rs) 0.90 0.52 1.07 1.50 1.16 0.44 0.65
Interaction with truck drivers and operators revealed that even if trucks are moving over short distances, a minimum amount has to be paid out at checkpoints and stoppages forced en-route by department authorities. In other words, irrespective of the originating and destination point i.e. the distance to be travelled by the truck, the authorities ask for their share. Moreover, trucks plying on longer routes prefer to have monthly passes since they cross through more than 3-4 states. This gives them some discount on 100% down payment compared to those making payments during each trip. RTO and Police are the two key agencies functioning for ensuring the uninterrupted traffic flow. However, surveys have found that they are in fact playing the opposite role. A major portion of the revenues collected by the authorities is unaccounted for. The total amount paid in an entire trip by a truck driver to RTO and police is around Rs 1500. Of this, the present survey revealed, almost 90% goes as bribe money.
14
Flow Chart Showing Stages of Corruption
Purchase of Vehicle
Transport Department
PermitIssuance/Renewal
Registration Certificate
Fitness Certificate
Police/ Traffic Police
RTO
Sales Tax Check posts
On Road
Custom/ Excise Forest Department Octroi Weights and measures department
15
7.0
STAGES OF BRIBE PAYMENT
Corruption in trucking operations could be noticed at every stage. After purchase of a truck, the first interaction with the transport department is for registration of the vehicle. The next step is to go for issuance of permits for national or inter-state movement and its renewal. After 2 years from the date of purchase, the vehicle has to go through a fitness test every year, after which the vehicle is issued a certificate as safe for plying on the road. To get each of these certificates bribe has to be paid, irrespective of the fact that all necessary documents are available and valid or the vehicle has successfully met the parameters laid down by the transport department for plying on the road. Truck owners prefer to go through touts and middlemen for getting these documents. They show their willingness to pay bribe to avoid hassle and delay or repeated visits to department office for getting their work done. Once these formalities are met, the truck owner can dream of hassle-free movement on road. But, once on road they have other expenses. The big cut in this is for RTO and Police followed by staffs at check posts, toll bridges. Officials from sales tax, customs and excise and departments like forest, weights and measures too come into picture at various points to collect their share. Thus, to ply a vehicle on the road, the owner has to incur both legitimate and illegitimate expenses. The legitimate expenses include fuel and related expenses, taxes, permits and other official payments made against the receipt, while bribe money paid is neither warranted nor lawful. Expenditure on fuel has a lions share in the official expenses. It accounts for little less than three-fourth of the total expenses. The distribution of expenses (official and unofficial) excluding fuel, incurred during a trip shows that almost one-fifth of these expenses (19.5%) are for paying bribe. Salaries and payments made to drivers and helpers including wages for loading and unloading and brokers commission (45.4%). Toll fees and inter-state entry fees contribute around 21.6% to the expenses. Official payments made to RTO, police, octroi sales tax and challans/ penalties to other departments make around 4 percent of the en route expenses.
16
On road Expenses in Trucking Industry

Expenses (excluding fuel) Purpose A: Official Payment to drivers/helpers Repair Toll and inter-state entry fee Octroi, sales tax, challan/penalties to other department RTO Police Loading/ Unloading Brokers commission B: Unofficial Bribe 19.5 0.69 1.5 0.6 10.1 1.3 0.05 0.02 0.36 0.05 Share % 34.0 9.7 21.6 1.7 Per truck Per Km Rs. 1.21 0.35 0.77 0.06
8.0
SHAREHOLDERS IN BRIBE MONEY
The illegal expenses or bribe given by trucking industry is mainly to police including traffic police, highway patrolling and flying squads (44.7%). However, RTO authorities do not lag behind, they have 42.8% share in the total bribe given by the truck operators and drivers. Entry permits and check posts too have a sizeable share (6.2%). Others are comparatively small recipients and include custom, excise and sales tax, weighing and measuring department, municipal and mandi check posts, forest department.
Tax/Octroi Others 1% 6% Entry permits 6%
Police 45%
RTO 43%
17
A small percentage of total bribe paid goes to personnel manning check p osts. A study undertaken on the efficiency of check post in different states has revealed that the existence of check posts does not contribute significantly to checking tax evasion. On the contrary, the more the number of check-posts, the higher is the wastage resulting from stoppage of traffic.8 Contrary to its purpose, check-posts act as collection-point for bribe-money. Collection of octroi, which is mostly at the entry point of a local area, is riddled in unpredictability with regard to the assessment of the quantity, weight or value of the goods carried; besides it leads to delay in transportation. To avoid this, pay bribe is what truckers practice. 9.0 MODES OF BRIBE PAYMENT
The payment of bribe is highly institutionalised. In spite of no written rules, the procedure practiced for taking bribe is widely accepted. Once bribe money is given, the trucks move unhindered. As one of the officials informed on the condition of anonymity, Bribe money moves from bottom to top. There is no corruption in the distribution of money. The department offices might not have felt the need to use innovative techniques in their regular official functioning, but they are quite ingenious in bribe collection. Tokens, stickers, playing cards and code words are used to convey about the payment being made. Even stickers with hologram to identify original from fake are in circulation. (SEE BOX)
Barriers to Inter-state Trade and Commerce-The Case of Road Transport-B.Debroy and P.D.Kaushik, RGICS Working Paper Series No.35, 2002
18
Once bribe is paid, the truck drivers boldly inform and show the payment receipt or token/pass to the department officials, if they are stopped. Truck drivers informed that the token issued against the bribe money paid in each state, through which the truck crosses, is valid till the truck crosses the state border and enters another state, where new bribe receipt becomes valid. Truck drivers passing through several state borders are found to possess a bunch of such cards, which they show to the authorities, on being stopped. Not only token or stickers are issued but currency notes and playing cards are also used with initials of the person from the department and numbers denoting the month written on it. The number implies that the bribe token is valid for that month. Interestingly, some code words like April fool or May Day indicate that money has been paid for April or May. Truck drivers also informed that truck operators with large fleet make payments on monthly basis. Some have fixed 20% of their monthly earning as charahawa (bribe money) for the authorities. One of the challan receipts shared by a truck driver was issued to him in Madhya Pradesh, is on a watermark paper with MP governments emblem and the official seal, looks like an original one but the driver of the truck insisted that it is a fake one. Mobile phones are also in use by operators to inform the checking officials about the payment being made and their link in the department.
Technology for bribe The advancement in communication technology has clearly eased the
communication among the employer, driver and authorities. Mobile phones, which are quite frequent in use by truck drivers, come handy in contacting the employer when stopped by authorities, who in turn informs them about their link in the department. In this sense mobile phones have certainly made truckers life somewhat easy.
A leading national daily had pointed out that even on roads of our national capital, drivers make weekly payments to traffic police for bother-free movement.
Shivraj Singh, a truck driver from Madhya Pradesh, confirms that transport authorities pay haftas (bribe) to the RTO authorities all over the country. Displaying a wad of currency notes of Rs2, Rs 5 and Rs 10 denominations, he says, All these notes have codes jotted on them, along with the vehicle number At checkposts, we show these tokens and are allowed to pass through. The payments range from Rs 500 to Rs 1000. (New Bombay Plus, Times of India dated
April 17,2006)
19
10.0
EN-ROUTE STOPOVERS
The harassment does not end just by paying money. The truck drivers have to go through a number of wanted as well as unwanted stopovers during their trip. Keeping in mind the long-haul trips, stopovers are undoubtedly necessary for drivers and crews various needs. But other than this, there are many forced stopovers as well. Around 60% of these forced stoppages, as mentioned by the drivers, are by authorities simply to extort money. Many a time they are compelled to pay up to get their vehicle papers back or to pay challans issued for overloading, despite being within load limit. For a good number of times, authorities do stop for overloading and for reasons like travelling without co-driver, but then are let off, if drivers shell out money, as few drivers complained.
Various Reasons cited by Truckers for Stoppages by Authorities (in%)

7 6.7
11.8
59.7 14.4
No specific reason cited by officials but demand money Inspite ofbeing within load limit, issue challan Co-driver not accompanying
Overloading Forcibly take papers of the vehicle and demand money
20
Besides forced stoppages by the authorities or traffic police, truck drivers also spend a good share of their travelling time at toll plaza and state borders. On an average truck drivers spend half of their time in driving and taking rest. The remaining half, they spend at toll plaza, state borders, and in forced halts by the authorities. Majority of the respondents informed that in an entire trip besides stoppages at toll plaza and state borders, the average number of stoppages by authorities is 4 or more in an entire trip. Hours spend by truck operators for different purposes suggest that decrease in time spend at state borders, toll plaza and due to forced stoppages by authorities could reduce the actual travel time by around 40%. For a Delhi-Mumbai trip, a truck normally takes around 5-6 days. Reduction in delay due to stoppages is expected to decrease the travelling time by around two and half to three days. This on the other hand will not only increase their efficiency but could result in to more business for the trucking industry. In other words, instead of 4 -5 trips a month that each truck presently makes, it can go up to 6-7 trips per month per truck. According to RGICS Working Paper 2002, India incurs a loss of almost 3 days of GDP every week through inadequate transportation.9 A World Bank study in 2005 has estimated that truck delays at checkpoints cost the economy anywhere between Rs.900 crore and Rs.2300 crore a year in lost truck-operating hours 1 0 . The present MDRA study has estimated that due to these forced stoppages by various agencies and leading to delay in the transportation time, the loss to the national economy would be in the range of Rs 1130.47 crore per year.
Average time spend by a Truck driver in a day in hr) (

2 2 9 4 3 4
Driving Rest/Repair Toll Plaza State Borders Stopped on the highway by authorities Stopped while moving inside a city by police or Traffic police
Barriers to Inter-state Trade and Commerce-The Case of Road Transport-B.Debroy and P.D.Kaushik, RGICS Working Paper Series No.35, 2002 10 Source: Road Transport Efficiency Study, World Bank, 2005
21
The unscheduled stopovers for various purposes do delay the time taken for completing their entire trip. Around three-fourths reported document verification as one of the reasons for which their vehicles were stopped. Overloading was another reason cited by around 30% of the truck drivers followed by violation of traffic rules (28.4%). Around one-fifth drivers in the survey were stopped for entering the city limits during no-entry time or in no-entry area.
The Times of India, New Delhi, Friday, August 4,2006
The truckers feel that most of these forced stoppages are to harass them to pay money. However, a truck operator not abiding by the law is also not a hidden fact. Hence the blame game continues. Nevertheless, no one can deny the fact that bribe is taken by the authorities to overlook compliance of rules and regulations. At the same time, frequent and unwanted stoppages do irritate the person on wheel. To understand the psychological aspect of these stopovers on the drivers, the truck drivers were asked to rate various factors which act as irritant while driving.
22
11.0
IRRITANTS WHILE DRIVING
Undoubtedly, peace of mind is important for drivers on road. But their trips are mostly marred by either vehicle jam or authority jam. In the present survey, the truck drivers were asked to rate the identified irritants as low, moderate and high. It could be noticed that authorities jam i.e. harassment by police and RTO authorities score above other irritants like jams or long wait. Around three-fourths felt that major irritants in their trips are harassment by police; RTO authorities too were identified as high irritants for the truck drivers during their trip. speeding, which often result in accidents. It could be observed that to cover up this time loss, the truck drivers go for reckless driving and
Major irritants for Truck drivers (in %)
Harassment by police
77
Harassment by RTO officials
73
Long wait at the inter state check points
58
Long wait outside towns/cities due to no entry
55
12.0
DEPARTMENTAL CASH DROP BOX
The ordeal does not end by paying bribe on-road by truck drivers. Visit to transport department for one reason or the other is unavoidable, and paying bribe to get the work done has almost become a necessity. Truck operators too prefer paying extra money to get their work done with little or no hassle and without much loss of time. In the survey, too, the truck operators, who had to visit the transport department, mentioned about the prevalence of corruption in the department. The purposes of their visits were mainly for registration of new vehicle, getting permit/renewal or fitness certificate. An interesting aspect in the functioning of the system is that the officials do not take any bribe or money directly from the visitors. The role of touts thus comes into picture.
October 2006
A nexus between department staff and agents or touts

23
could be easily seen, as nine out of 10 had to pay bribe either to officials or agents or touts for getting their work done. Department can claim to be not recipient of these money but then successful completion of the task for which the truck operator has visited the department, via touts and agents, clearly indicate coordination between authorities and agents/touts. Depending upon the nature of work, the bribe amount ranged between Rs 50 and Rs 25,000. Going by the survey findings, one could assume that around 40% trucks operator visits the transport department at least once in a year. Visit of these truck operators to the department generates Rs 200.7 crores per year that goes in the private kitty of office-bearers of RTO. Bribe paid at Transport Department office
Purpose Registration of New vehicle Getting new permit /Permit Renewal Fitness certificate Average Amount paid (Rs) 1186 897 544
But, in this entire blame does not rest with RTO. It is observed that even truck operators are willing to approach touts and use their services, instead of going by the official channel. They approach middlemen because they want their work to be done faster. Moreover, truck operators feel that shelling out a few hundred rupees is worth the effort and time saved. Even officials from the department feel that due to resistance from people with vested interests, computerisation of system or outsourcing of services are not encouraged. Delhi is the only city in the country having facility for checking the fitness of a vehicle through a computerised system. But, here too, this facility is in use for only passenger buses and minibuses. Other commercial vehicles are given fitness certificates manually. Corruption Survey by Centre for Media Studies in 2005 had shown that the link between staff and citizens is completely missing as more than one third of the respondents cite non-cooperation of the staff as major hurdle in efficient service delivery and a quarter feel the indifferent staff attitude compels them to use services of agents. Few months back an interesting incident was reported in a newspaper. Following a complaint by truck drivers that they pay bribe at each police station they cross in a district in Karnataka, strict orders were issued by the district police official against the same led to hike in the rate of the bribe money the truck drivers used to pay earlier. This compelled them to come back to the same officer with a request to restore the earlier rate. Incidences like this force the transporters to follow the system and not to comp lain or go against it.
24
In fact, the recipients of the bribe admit off the record that whatever they collect goes up to the top. It shows that the practice has become entrenched in our system with the nexus between corrupt politicians and government offic ials.
25
13.0
CONCLUSIONS AND SUGGESTIONS
Existence of corruption in trucking operation is a well-known fact. But with increase in number of trucks in the country every year, the unaccounted money that does not reach up to the government coffer has also g one up from few crores to thousand crores every year. The loss to the government treasury is gain to corrupt officials of the concerned department. The responsibility to check and if possible, abolish corrupt practices completely lies with the government. At the same time, people and associations engaged in trucking operations too have to take the blame for not only its continuation but also increase in its magnitude every year. Single Inspection Squad- The government should explore the idea of having a single inspection force at inter-state check posts to give no-objection certificate (NOC) on behalf of all departments namely transport, police, sales tax, octroi, forest and similar other departments, who are presently authorized to stop and check any truck. Single-window clearance will not only reduce the loss due to stoppage time, but also reduce physical interaction with different department authorities. authorities more is the possibility of bribe money exchanging hands. Middlemen and agents are not only operational in department offices, but also on roads. Reports have shown that the en-route squads in many cases are not from the department, but are appointed to collect money from truck drivers. This needs to be curbed by minimizing permit centres and checkposts. The inspection force should keep a detailed record of the vehicles stopped and checked. Issuance of receipt against the fine or NOC will help in reducing the frequent stoppages. E- truck transport- Computerisation of transport offices and inter-linking them across the country will facilitate uniformity and accessibility of records. This will also help in reducing the time spent at different points. Starting with the lengthy documentation work like getting permit or its renewal and other related issues involved with the purchase of a new vehicle in the offices of the transport department to moving the vehicle on the road, at each step the owner is forced to shell out money to get his work done. No surprise, if somebody refuses to pay; they are compelled to make repeated visits on one excuse or the other. With accessibility to all documents and previous records of the concerned truck and its operator on computer, minimum documentation should be encouraged at the transport department offices.
It has
been observed that more the interaction between truck drivers and department
On road, the vehicles are stopped and kept stranded for hours for checking the relevant documents. Computerization will help in dealing with the vehicle registration and other services like issuance/renewal of permits, road taxes etc. more efficiently. In states like Andhra Pradesh (e-Seva) and Kerala (FRIENDS) issuance of online permits has been introduced. This is expected to de-crowd the transport offices and lessen peoples interaction as in with officials could or be touts. Computerised across Inter-state country. Checkposts (CICP) Gujarat replicated the
Computerised checkpoints are expected to improve the processes of identification of vehicles and load carried by the trucks. Estimation of penalties using electronic weighbridges and computers minimises the manual discretion of imposing fines and thereby causing inconvenience and harassment to the transporters. Installation of electronic weighing board, which captures the weight and issues a demand note for fine, at all inter-state border check posts will discourage overloading as well as in plugging loss to government revenue. Contrary to the belief that putting up these electronic boards will cost the public exchequer, studies have shown significant increase in the revenue collected, which if implemented across the country will turn into a profitable proposition. Public private partnership could also be explored. (See
CASE STUDY, pg. 31)
Outsourcing of services-As a me asure
to
reduce
physical
interaction
with
department officials, outsourcing of services like driving licences through authorised driving schools or fitness certificate through registered private outlets will curb corruption at departmental level to a large extent. Drop boxes for paying taxes at various points in the city should also be looked into. Payment of fees through banks and through credit cards will make the process more hassle-free and transparent. Independent and decentralised vigilance will keep a check over non-compliance of Acts/Rules such as overloading or operating without proper documents. Prevailing practice is based on the connivance of corrupt authorities in giving token/pass against the bribe money for free movement of trucks in many states. Toll-free telephone numbers for registering complaints will help the vigilance squad in keeping a watch over the corrupt officials. Frequent and surprise checks might help in inculcating the fear-syndrome amongst the bribe takers. Strict Compliance of Supreme Court Order-In spite of the Supreme Court judgment with regard to overloaded vehicles that these should not be allowed to ply without off-loading excess cargo and not by simply paying fine is blatantly overlooked. One could regularly see such overloaded vehicles moving freely on the
roads. Independent and decentralised vigilance will keep a check over noncompliance of Supreme Court order. Uniformity of rules across the country- As in case of railways, rules and regulations regarding trucking operations should be uniform across all states. A major part of corruption takes place at inter-state borders. Since the checkpoints are administered by the States, and involve at least four agencies (sales tax, excise, motor vehicles and forests), changes need to be coordinated across agencies and states nationwide to make it uniform. With VAT system coming into force in the near future, octroi and Sales Tax barriers are expected to be done away with, this would eliminate the need for interstate barriers. The current system of granting licences and permits by State governments and the tax system to which road transport is subjected to, need to be reviewed as these work against the development of an organised trucking operation. Upgraded transportation services- Systems such as the European Transport International Routier (T.I.R.) need to be evaluated for adoption here to reduce delays at interstate checkpoints, particularly for high value or perishable goods. Such a system would permit sealed trucks to operate without en-route inspections on the basis of a certificate issued at the origin by a duly authorized and bonded issuing entity. Improved Infrastructure- As a long time plan, increasing the expressways and introducing bypasses from the outskirts of the city and town limits will not only speed up the traffic movement, but will also help in reducing the frequent holding up of vehicles without any authentic reason by the corrupt officials. This in turn will significantly increase the average distance covered by trucks in a day, much at par with the international standard. Sensitization of stakeholdersCreating awareness and sensitization of
department officials against corruption and illegal practices need to be taken vigorously. CII and ASSOCHAM should also be involved in the process of cleansing of the system by addressing corporate houses and industries to discourage truck operators from practicing unfair means to increase their turnovers.
28
Truck operators associations should intensively sensitize their clients about the truck operating business, big or small, especially consignees compliance of the relevant rules and regulations. Encouraging truck operators and drivers to practice selfregulation measures by adopting legal methods could be another important step towards abolishing corruption from the trucking operation business. Awareness campaigns through audio-visual and other print media and through NGOs should be taken up to educate truck operators and drivers. Associations on their own should conduct surprise checks of trucks plying on road. They should also ensure that the default truck operators do not go unpunished, but pay the penalty against proper receipt. This on one hand will help in keeping a check over unfair practices and on the other hand will increase government revenues, which in turn could be invested for improving the infrastructure for better and smooth transportation. Display of rules and regulations- Above all, truck operators and drivers need to be informed and educated about prevailing rules and regulations. Major rules and regulations should be displayed in various languages near toll-plazas, check-posts, fuel stations and at other places where drivers rest. It has been found that most of the drivers end up paying huge amo unt in bribes just because of their ignorance of the rules. Contact numbers of vigilance officers and higher authorities must be displayed at, say, every 10 kilometers so that truckers can register their complaint against corrupt officials. Citizen CharterThe transport department should prominently display citizen
charters at all of its offices, check posts and major truck halting points. The Charters should have realistic and measurable action standards. The Charter should have penal provisions, if the department fails to deliver services within the time frame promised in the Charters. The charter should display phone numbers of concerned officials available round the clock. The charter should also be easily available to the users. Using the RTI Act to know the status and quick redressal of the grievances by truck operators is another suggestion for curbing corrupt practices in the transport department. The modalities in this regard need to be worked out. Deterrent power of RTI Act is something truck operators should be familiar with.
29
14.0
CASE STUDIES RTOs in ACB Trap The Anti-Corruption Bureau (ACB) has blown the lid off a racket, which caused a loss of Rs 3.84 crore to the State exchequer. Three RTO inspectors and three assistant inspectors in connivance with a dozen private parties passed overloaded trucks, making Rs 48 lakh in bribes. The racket came to light following a probe after an ACB raid at JamnagarKhambhalia byass checkpost in August this year when RTO inspector T V Dantalia was caught accepting a bribe of Rs 4,500. Transport cards and other incriminating documents were also seized during the raid. The cards were suspected to be used for illegally allowing overloaded trucks and the suspicion led to further probe. The bribes of Rs 4 lakh were collected by 8 these six officials during August 2002 to February 2003. The inspectors involved are Dineshrai Thakorlal Mehta, Mansurali Husainbhai Lalani and Taherbhai Vajirbhai Datrolia while assistant inspectors are Ravisinh Vanrajsinh Jhala, Ramabhai Mafatbhai Patel and Bharatbhai Shivabhai Patel. Of them, Mehta is retired while Datrolia, Bharat Patel and Jhala are presently under suspension in previous cases of bribery. They used to take bribes from truck operators for allowing overloaded trucks instead of charging regular taxes and penalty for overloading. It was found that they would charge bribe of anywhere between Rs 300 to 800 per vehicle and allowed nearly 17,000 trucks from August 2002 to February 2003 at their respective checkposts. In-charge deputy director T N Thakor has ordered detailed investigation against these accused under Anti Corruption Act and Indian Penal Code. Checking of these officials residences in Ahmedabad, Nadiad, Jamnagar and Valsad revealed properties diproportionate to known sources of their income. Rs 5 lakh in cash, furniture worth Rs two lakh, Maruti cars, eight bank accounts with large transactions were unearthed from the house of Bharat Patel at Someshwar Park in Ahmedabad. From Datrolias Jafri Tower residence in Paldi, bonds worth Rs 15 lakh were found out while raids on Mehtas posh residence in Nadiad yielded furniture, electronic equipment and gadgets all worth Rs 23 lakh and his bank lockers were found containing jewellery and valuables worth Rs 5.50 lakh, according to ACB joint director Satish Sharma. [The Indian Express, Ahmedabad Edition, 16 December 2004]
30
Gujarat Initiative using IT The state Road Transport Department's "computerised checkpost project" has reduced corruption at the 10 octroi posts on Gujarat's borders to "zero level" and enhanced revenue earnings from Rs 60 crore in 1998-99 to Rs 250 crore this year. Not bad for a scheme that cost Rs 18 crore to implement. The moment a truck enters Gujarat its weight gets recorded on a computer and the vehicle, number plate and all, is video graphed. This audio-visual information is instantly accessible at the central control room in Ahmedabad. No longer is it possible for local officials to cut their own deals and record a lower weight against a bribe. Says state Transport Commissioner P. Paneervel: "The system is foolproof. It leaves absolutely no room for jugglery." While octroi receipts have quadrupled over the past year, the number of trucks entering Gujarat has dropped by 25 per cent. Corrupt truck owners tend to avoid a state where under invoicing is not possible. "Our work speaks for itself," says Bimal Shah, Gujarat's IT minister and a man completely sold on e -governance. (India Today, December 2000)
The Inside Story: Police corruption When the Inside Story team went with hidden cameras, it was found that the policemen were openly accepting bribes from the truck drivers, who were also trying to escape from paying the challan. Our investigation brought these cases to light. To avoid a fine of Rs 5000, the policemen are paid Rs 150 on almost all the highways in India. In Ahmedabad one can get away by bribing the traffic cop with a mere Rs 20 to avoid a challan of Rs 100. (ZEE NEWS, The Inside Story: Police Corruption)
31
Trucker offers bribe to minister Mistaking a Madhya Pradesh minister to be a sales tax check post employee, a trucker offered him a bribe of Rs.10. During a tour of Badwani district of southwest Madhya Pradesh Saturday, Commerce and Industry Minister Kailash C hawla decided to inspect a sales tax border outpost in Gawadi village. The minister was sitting in the sales tax office when the trucker entered. Taking Chawla to be a clerk at the outpost, the trucker handed over the documents of the truck and the goods he was carrying along with a ten-rupee note. The minister was taken aback. On being questioned, the trucker told Chawla that it was normal practice for the truckers to give Rs.10 to the outpost staff while crossing the border from Maharashtra into Madhya Pradesh. Chawla has ordered the officials concerned to conduct an inquiry into the incident and take necessary action. By Indo-Asian News Service
Cop asks disguised minister for bribe, suspended A senior Bihar police official has been suspended after he was caught redhanded demanding a bribe from none other than the state transport minister who disguised himself as a truck driver. Deputy Superintendent of Police (DSP) Sheel Kumar Chandra was allegedly found asking Transport Minister Ajit Kumar for a bribe during a covert operation to bust the police-criminal nexus. Official sources said Chandra had been suspended, declared an absconder and his arrest ordered. Much to the shock of Ajit Kumar who was posing as a truck driver, Chandra stopped his vehicle, seized it in Nawada district and then allegedly demanded Rs.50, 000 in bribe as the price for releasing the truck. When the minister in disguise expressed his inability to pay the desired amount, Chandra quickly 'reduced his price' from Rs.50, 000 to Rs.35, 000. The minister taped the entire conversation and said the sting operation was initiated on the complaint of the real owner of the truck, Anil Kumar of Samastipur, from whom Chandra had allegedly demanded Rs.65, 000. By Indo Asian News Service
32

Corruption in Trucking Operations in India

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Transparency International India