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WHISTLEBLOWERS: UNVEILING TRUTH, UPHOLDING INTEGRITY BY: SIDDHARTH BHATI
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WHISTLEBLOWERS:
UNVEILING TRUTH, UPHOLDING INTEGRITY
AUTHORED
BY: SIDDHARTH BHATI
(Sidbhati09@gmail.com, 8588940036)
BA LLB(H)
2020-2025
Amity
University Noida, Uttar Pradesh
ABSTRACT
Whistle
blowers are courageous people who come forward with evidence of wrongdoing,
corruption, and misbehavior in various institutions. This study examines the
vital part they play in promoting openness, responsibility, and moral conduct
in society. They observe unethical behavior, ethics violations, and
occasionally even criminal activity in workplaces, government agencies, or
other organizational settings. They choose to speak up despite the significant
personal risks involved because they have a strong moral compass, a passion to
justice, or a determination to protecting the public good. Whistleblowers deal
with a lot of difficulties.
Keywords: whistle
blower, transparency, fraud, ethical, integrity
INTRODUCTION
A crucial tool for exposing
injustice, corruption, and unethical behavior within organizations and
governmental entities is whistleblowing. The concept of whistleblowing has
become more popular in India in recent years as a means of advancing
accountability, transparency, and good governance. Whistleblowers are crucial
in exposing instances of fraud, corruption, environmental violations, threats
to public safety, and other types of malfeasance that can go unreported.
Whistle blowers in India are those
who, at their own risk, reveal information about illegal or immoral acts taking
place at their place of employment or in public organizations. These people are
motivated by a sense of accountability and a dedication to the ideals of
fairness and honesty. Their primary goal is to safeguard the interests of the
general public and society.
The Government of India has
implemented a variety of legislative measures, such as the Whistleblower
Protection Act, 2014[Whistleblower Protection Act, 2014, No. 17, Acts of
Parliament, 2014 (India)], to encourage whistle blowers and give them legal
protection. The Whistleblower Protection Act strives to protect informants from
victimization and reprisal while maintaining the privacy of their identities.
Additionally, it offers procedures for investigating complaints and punishing
those who damage or threaten whistleblowers.
In India, whistleblowers are
important players in the battle against corruption and the promotion of moral
leadership. Their willingness to come forward with proof of wrongdoing supports
the rule of law, the integrity of public and private institutions, and the
foundation of a fair and responsible society.
TYPES OF WHISTLE BLOWER
Internal Whistle Blower
Employees that choose to disclose
misbehavior, fraud, unethical behavior, or any other type of wrongdoing they
see or think is taking place at work are known as internal whistle blowers.
These brave staff members or insiders are essential to upholding the moral
standards of their company and advancing ethical behavior.
Internal whistleblowers frequently
have a strong commitment to the values of openness, responsibility, and moral
behavior. Their motives can range from a sense of obligation to uphold the
reputation of their company to genuine concern for the safety of coworkers,
clients, or the general public. They can make advantage of the internal
reporting options that their company has, like confidential hotlines,
compliance offices, or specific reporting channels.
Internal whistle blowers assist their
organizations in addressing concerns before they develop into more serious
issues, legal liabilities, or reputational damage by coming forward with information
regarding malfeasance. Additionally, they help to foster an environment where
employees are urged to uphold business principles and the law.
External Whistle Blower
External whistle blowers are people
who reveal misbehavior, fraud, or unethical behavior within a company to
outside parties like government agencies, law enforcement, regulatory bodies,
or the media even though they are not directly involved with that institution.
These people frequently play a crucial part in disclosing misconduct that could
otherwise go unnoticed, promoting accountability and openness.
External whistleblowers contribute to
the initiation of investigations, legal lawsuits, or public scrutiny that can
result in corrective measures, sanctions against wrongdoers, and advancements
in organizational procedures by bringing their concerns outside the company.
Alumni Whistle Blower
A former employee who reports
incidents of misbehavior, fraud, or unethical behavior that they have learned
about after leaving the organization is referred to as an alumni whistle
blower. These people use their inside information to expose wrongdoing because
they are committed to honesty and ethical ideals. Alumni whistleblowers may
draw attention to problems at their former employer to encourage
responsibility, openness, and constructive change. Even after they have cut
ties with the organization, their actions continue to support its reform and
the larger objective of assuring ethical behavior.
Open Whistle Blower
A person who publicly and
openly reports wrongdoing, corruption, or unethical behavior without hiding
their name is known as an open whistle blower. When they come forward with
their revelations, they do not do so under cover of anonymity or
confidentiality. Open whistle blowers frequently act out of a strong feeling of
moral obligation and do so without concern for retaliation or negative
consequences. Their readiness to make information about wrongdoing public aids
in generating awareness, launching investigations, and advancing accountability
and transparency. Open whistle blowers attempt to bring to light problems that
demand the public's attention and action, even though they could encounter
potential risks and difficulties.
A person who decides to remain
anonymous when disclosing important information concerning misbehavior, fraud,
or unethical behavior is known as an anonymous whistle blower. Whistleblowers
must remain anonymous for their safety because they frequently fear retaliation
or other negative consequences. This protection enables them to share private
information, promoting accountability, openness, and moral behavior within
businesses and institutions.nonymous Whistle Blower
What makes whistleblowers so crucial
Whistleblowers are crucial for a
number of reasons.
They serve as an early warning system
since they are aware of any unethical, illegal, or fraudulent acts taking place
within the company. Their bravery in coming out and reporting such misconduct
enables companies to identify and solve problems at an early stage, avoiding
problems from worsening. Whistleblowers contribute to the upkeep of the
organization's honor and reputation by serving as a watchdog.
By revealing misconduct,
whistleblowers serve to safeguard the interests of a variety of stakeholders,
including those of employees, clients, shareholders, and the general public. By
speaking up, they protect the company and its stakeholders from being hurt by
unethical behavior, financial fraud, safety violations, or other wrongdoing.
They contribute to the development of
an accountability culture by demonstrating to the entire organization that
moral conduct, openness, and responsibility are fundamental principles.
Supporting individuals who speak up encourages other employees to act honorably
and raise issues without worrying about repercussions. Long-term success
depends on fostering a culture of trust, accountability, and open
communication.
Whistleblowers frequently give
important information about infractions of laws, regulations, or corporate policies,
which helps to boost compliance efforts. Organizations can quickly take
corrective action after learning about areas of non-compliance and other issues
thanks to these disclosures. Establishing a whistleblower program enables firms
to show their dedication to maintaining legal and regulatory requirements as
well as their support for whistleblowers. Whistleblowing done proactively
reduces the organization's reputational, financial, and legal risks.
EFFECTS
Positive Result
Whistleblowing exposes instances of wrongdoing, fraud,
corruption, and unethical behavior that might otherwise go unnoticed. For these
problems to be addressed and fixed, this exposure is crucial.
·
Accountability:
Making a whistleblower holds people and organizations responsible for their
behavior. Criminals are more likely to suffer the repercussions of their
actions through court proceedings, internal inquiries, or public scrutiny.
·
Transparency: Whistleblowing
encourages openness throughout institutions and organizations. It promotes open
discussion on moral principles, compliance, and the significance of abiding by
rules and laws.
·
Prevention
of Harm: Whistleblowing can stop harm from being done to the general public,
customers, workers, or the environment. For instance, it can halt the sale of
dangerous goods, contamination of the environment, or financial fraud before
they seriously harm consumers.
·
Ethical
Culture: Encouraging whistleblowing fosters a culture of ethics and
integrity within organizations. Employees are more likely to act in accordance
with the law and ethical guidelines when they know that wrongdoing will not be
tolerated.
·
Legal
Protections: Whistleblowing laws and protections ensure that individuals
who come forward are shielded from retaliation or harm. These legal safeguards
encourage more people to report misconduct.
·
Improved
Governance: In government and public institutions, whistleblowing can lead
to improved governance, reduced corruption, and enhanced public trust in the
system.
·
Efficiency
and Effectiveness: In private organizations, whistleblowing can lead to
increased operational efficiency and effectiveness. It can help identify
inefficiencies or wasteful practices.
·
Prevent
Future Misconduct: Whistleblowing cases often result in reforms and policy
changes that prevent future instances of misconduct. Lessons learned from
whistleblowing can lead to stronger regulations and compliance mechanisms.
·
Inspiration
for Others: Whistle blowers can inspire others to come forward with their
concerns, creating a snowball effect that encourages more ethical behaviour and
disclosures.
Negative Effects
·
Whistle
blowers frequently experience reprisal from their supervisors, coworkers, or
employers. This may manifest as bullying, relegation, dismissal, or even
blacklisting in their field. The whistleblower may suffer serious personal and
professional repercussions as a result of retaliation.
·
Isolation: Whistle
blowers could encounter social isolation in both their professional and
personal lives. When someone exposes wrongdoing, coworkers may turn away, and
friends and family may be reluctant to be with them..
·
Emotional
Distress:Whistleblowing can result in severe mental stress, such as sadness,
anxiety, and post-traumatic stress disorder. The whistle blower's mental health
may suffer as a result of the process of reporting misconduct and dealing with
the repercussions.
·
Legal
Battles: Whistle blowers may become embroiled in lengthy and costly legal
battles with their employers or the organizations they have reported. This can
drain their financial resources and consume their time and energy.
·
Career
Disruption: Whistleblowing can disrupt a person’s career, particularly if
they are unable to find new employment due to industry blacklisting or the
stigma associated with being a whistle blower.
·
Loss
of Privacy: Whistle blowers may lose their privacy as their personal lives
and actions come under scrutiny during investigations or legal proceedings.
·
Loss
of Trust: Organizations may suffer reputational damage, loss of public
trust, and financial setbacks as a result of whistleblowing revelations.
·
Impact
on Relationships: Whistleblowing can strain relationships with family and
friends who may not fully understand or support the whistle blower’s
actions.
·
Public
Scrutiny: Whistle blowers who go public with their disclosures may face
media attention and public scrutiny, which can further compound the stress and
emotional toll of their actions.
WHISTLE BLOWER PROTECTION IN INDIA
Companies Act, 2013
Section 177(9)[1] of
the Companies Act, 2013 mandates that all publicly listed companies are
required to establish a vigilant mechanism, including a whistle-blower policy,
aimed at facilitating the reporting of concerns by employees and senior
executives. The intent and effectiveness of such a whistle-blower policy depend
on the organization's commitment to its creation and implementation.
Key aspects of the framework for this
policy are as follows:
·
Reporting
Channels: The policy should establish clear channels for reporting violations
at all levels within the organization, with the Chairman of the Board
overseeing these channels.
·
Inclusivity:
All employees, from entry-level staff to directors, should be permitted to
report any violations, which may include discrimination, wilful negligence of
quality, colluded fraud, or misappropriation of budgets.
·
Investigation:
Upon receiving a report, senior management should initiate an investigation,
with false evidence treated as a serious matter.
·
Protection:
The policy must guarantee zero harassment of the whistle blower by the
management and strictly prohibit retaliation in any form.
·
Confidentiality:
Full confidentiality should be maintained at all times to safeguard the whistle
blower.
·
Exceptions:
The policy should specify that whistle blowers will not be protected from
disciplinary action if their allegations are proven to be unfounded and made
with malicious intent.
The Companies Act 2013 encompasses the
entire framework for inquiry, investigation, and inspection under one chapter
(sections 206 to 229). These provisions increase the identification of wrong
practices by external agents, potentially transforming them into external
whistle blowers.
Section 208[2]
empowers an Inspector (other than the registrar) to scrutinize records and
recommend further investigation in cases of doubt, while Section 210 empowers
the Central Government to order an investigation based on recommendations from
the registrar, Inspector, public interest, or a special resolution passed by
the company.
Section 211[3] led to the establishment of the Special Fraud
Investigation Office (SFIO) with the authority to arrest individuals for
specified fraud offenses. Auditors, who were previously not legally empowered
to identify fraud, are now obligated to act as whistle blowers and report such
acts directly to the Central government or relevant authorities.
Securities and Exchange Board of India (SEBI)
The Securities and Exchange Board of
India (SEBI) issued a circular on August 26, 2003, amending the Principles of
Corporate Governance outlined in the standard Listing Agreement. In the
previous version of the Listing Agreement, Clause 49 addressed the
establishment of a Whistle blower Policy for companies. However, it wasn’t
obligatory to implement such a policy, although many companies voluntarily
embraced it due to its positive impact on compliance and governance standards.
Nonetheless, companies were mandated to disclose whether they had adopted such
a policy and provide information about the number of reported events under the
policy, as well as the number of cases resolved or pending.
Whistleblower Protection Act, 2014
The Whistleblower Protection Act of
2014[4]
incorporates a range of provisions designed to protect whistle blowers and
enhance transparency and accountability. The main elements of the Act can be
summarized as follows:
·
Complaint
Receiving Mechanism: The Act establishes a mechanism for receiving complaints
concerning corruption or the misuse of power by public servants.
·
Protection
from Retaliation: Adequate safeguards are provided in the Act to shield whistle
blowers from victimization or reprisals resulting from their disclosures.
·
Competent
Authorities: The Act outlines various competent authorities to whom disclosures
in the public interest can be made. Each authority is assigned specific
responsibilities based on the nature of the complaint. For instance, the Prime
Minister serves as the competent authority for complaints against Union
Ministers.
·
Identity
Disclosure and Timeframe: Complainants are required to disclose their identity,
and anonymous complaints are not permitted. Complaints must be filed within a
maximum timeframe of seven years.
·
Exemptions
and Appeals: Certain personnel, such as those affiliated with the Special
Protection Group, are exempted from the Act’s provisions. Furthermore,
individuals dissatisfied with a Competent Authority’s decision can appeal to
the respective High Court within sixty days.
·
Penalties
for Identity Disclosure: Revealing the identity of a complainant can result in
imprisonment for up to three years and a fine of up to Rs 50,000. Knowingly
providing false or misleading information may lead to imprisonment for up to
two years and a fine of up to Rs 30,000.
·
Annual
Report: The Competent Authority is mandated to compile an annual report
detailing its activities and submit it to the Central or State Government,
which subsequently presents it before the respective Parliament or State
Legislature.
·
Overriding
Effect: The Whistleblower Protection Act takes precedence over the Official
Secrets Act of 1923, allowing for disclosures that do not compromise the
nation’s sovereignty.
EXAMPLES
Example 1
Satyendra Dubey, one of India’s
earliest whistle blowers, served as an Indian Engineering Services (IES)
officer and was appointed as a project director for the National Highway
Authority of India. His responsibilities included overseeing the construction of
a segment of NH 2 (The Grand Trunk Road) within the Aurangabad-Barachatti
section. This highway project was a significant part of former Prime Minister
Atal Bihari Vajpayee’s ambitious infrastructure initiative known as the ‘Golden
Quadrilateral Project’, situated in the Koderma district of Jharkhand. Dubey
exposed financial irregularities within the project’s operations, leading to
the suspension of three engineers employed by the contractor. Unfortunately, on
November 27, 2003, while returning from a wedding in Varanasi, tragedy struck
as Dubey was fatally shot after reaching Gaya. His body was discovered by the
roadside in A.P colony by his driver. In recognition of his courageous actions,
Satyendra Dubey was posthumously honoured with the ‘Whistle blower of the Year’
award by the London-based organization Index on Censorship.
Example 2
Shanmugam Manjunath, a computer
science engineer and a grade ‘A’ government officer at the Indian Oil
Corporation (IOC), exposed corruption at two petrol pumps in Lakhimpur Kheri,
Uttar Pradesh. While in his capacity, he took action by sealing the two petrol
pumps, which were found to be selling adulterated fuel. Furthermore, he
conducted surprise raids when these pumps resumed operations after a month.
Unfortunately, on November 19, 2005, Manjunath met a tragic end when he was
shot six times in the town of Gola Gokarannath in Lakhimpur Kheri. His body was
discovered in the backseat of his own car, which was being driven by two
employees of the petrol pump.
Example 3
Lalit Mehta, an engineer actively
engaged in the ‘The Right to Food’ campaign in Palamu district, Jharkhand,
exposed corruption within the Mahatma Gandhi National Rural Employment
Guarantee scheme. He conducted a social audit of the scheme with the assistance
of economists but was tragically murdered before he could fully uncover the
extent of the scam. On May 15, 2008, Mehta was attacked while riding his bike
in Chhatarpur district, Madhya Pradesh.
CONCLUSION
Every business should provide a way
for problem-reporting whistleblowers to do so anonymously. Employers and other
stakeholders can be encouraged to voice their concerns by using independent
channels like the corporate whistle blower program. Many businesses are
concerned that allowing anonymous complaints would result in an increase in
baseless, harmful, and nefarious allegations that might be difficult to handle.
Companies may create a list of actions that constitute unfair and unethical
practices to address this issue, and the whistleblower mechanism should only be
used to report problems relating to these actions.
The policy should clearly state what
details must be included in a complaint in order to launch an investigation.
The whistle blower policy's emphasis should be on the message itself, not the
identity of whistle blower
REFERENCES
·
Shikha
Patheja, System of Whistleblowing in India, SRCC (July 2015), https://www.srcc.edu/sites/default/files/B.Com(hns)_IIIyrSem6_BCh6.1_A&CG_Week6_Anisha.pdf.
·
Charmaine Lym & Melvyn Zhang, The
Consequences of Whistleblowing: An Integrative Review, RESEARCH GATE (June
2017), https://www.researchgate.net/publication/318152489_The_Consequences_of_Whistle-blowing_An_Integrative_Review.
·
CLEAR
IAS, https://www.clearias.com/whistle-blowing/
(last visited Sept. 1, 2023).
·
LIVE
MINT, https://www.livemint.com/news/india/just-how-safe-are-whistleblowers-under-indian-law-11571763505941.html
(last visited Sept. 1, 2023).
Article Information
WHISTLEBLOWERS: UNVEILING TRUTH, UPHOLDING INTEGRITY BY: SIDDHARTH BHATI
Authors: SIDDHARTH BHATI
- Journal IJLRA
- ISSN 2582-6433
- Published 2023/09/06
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
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