Batch 2020 -2025

Annexure II

TITLE FOR DISSERTATION

Leveraging the position of Whistleblowers in

India, Legal Safeguards and Strategies to
Combat Fraud

A DISSERTATION SUBMITTED TO GURU GOBIND SINGH

INDRAPRASTHA UNIVERTY,
DELHI IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
DEGREE
OF BACHELOR OF LAWS

By
TANISHKA SAXENA
ENROLLMENT NO.09351103520
UNDER THE SUPERVISION OF

Asst. Prof. SRISHTI BALAM

SCHOOL OF LAW
DELHI METROPOLITAN EDUCATION

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 Batch 2020 -2025

Annexure III

TITLE FOR DISSERTATION

Leveraging the position of Whistleblowers in

India, Legal Safeguards and Strategies to
Combat Fraud

A DISSERTATION SUBMITTED TO GURU GOBIND SINGH

INDRAPRASTHA UNIVERTY,
DELHI IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
DEGREE
OF BACHELOR OF LAWS

By
TANISHKA SAXENA
ENROLLMENT NO.09351103520
UNDER THE SUPERVISION OF

Asst. Prof. SRISHTI BALAM

SCHOOL OF LAW
DELHI METROPOLITAN EDUCATION

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 BATCH 2020-2025

Annexure IV

DECLARATION

I, Tanishka Saxena, Student of BBA LLB, hereby declare that the dissertation titled
“LEVERAGING THE POSITION OF WHISTLEBLOWERS IN INDIA, LEGAL
SAFEGUARDS AND STRATEGIES TO COMBAT FRAUD” which is submitted by
me to DME Law School, in partial fulfilment of the requirement for the award of
degree of B.A.LL.B / B.B.A.LL.B by the Guru Gobind Singh Indraprastha University,
Delhi is my original work. It is further declared that all the sources of information
used in the dissertation have been duly acknowledged. I understand that the
dissertation may be electronically checked for plagiarism by the use of plagiarism
detection software to assess the originality of the submitted work.

Place:…………

Date:………….

…………………………

(Signature of the Student)

(NAME OF THE STUDENT)

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 Annexure V

CERTIFICATE

On the basis of declaration submitted by Tanishka Saxena, student of BBALLB, I

hereby certify that the dissertation titled, “LEVERAGING THE POSITION OF
WHISTLEBLOWERS IN INDIA, LEGAL SAFEGUARDS AND STRATEGIES TO
COMBAT FRAUD” submitted to the DME Law School, in partial fulfilment of the
requirement for the award of the degree of B.B.A.LL.B. By the Guru Gobind Singh
Indraprastha University, Delhi has been carried out by him/her under my guidance and
supervision.

………..………(Signature)

Prof./Dr./Mr./Ms……………..

(Designation)

(Supervisor)

Place:…………….

Date:……………..

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 ACKNOWLEDGEMENT

I thank Almighty for His countless blessings. This dissertation is the result of the
pertinent efforts and contributions of many a people around me. I have taken sincere
efforts to complete the dissertation, enjoying most of the research works, finding
clueless amidst and finally relieved, proud and content to complete it. First, I would
like to thank, Prof. Srishti Balam, for her guidance and support. I have been going
through a hard phase, if it was not for her kindness, patience and encouragement, the
dissertation would have remained incomplete. I am deeply indebted for the consistent
effort’s mam has taken for widening my perception and improving my work. I express
my sincere thanks to the Head of Law Department Prof (Dr.) Dr. Rajinder Kaur
Randhawa for her constant support. I would further extend my deep-felt gratitude to
all the Professors, DME LAW SCHOOL for their guidance and support. I would also
like to convey my thanks to all the Library Staff and the Technical Staff for their
timely assistance to carry out the work. Words fall short to express my love and
gratitude to my parents, friends and family members for sticking through my side all
the way. I feel blessed to have this circle of well- wishers who have always known
ways to keep my spirits high.

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 TABLE OF CONTENTS

Chapter I – Introduction to Whistleblowing

 Introduction
 India Paving the Way Towards Whistleblower Protection
 Literature Review
 Statement of Problem
 Research Objective
 Research Question
 Hypothesis
 Research Methodology
 Chapterization

Chapter II – Legal Frameworks and Safeguards for Whistleblowers

 Analysis of Existing Whistleblower Protection Laws
 Identifying Gaps and Limitations in Current Legal Safeguards
 Discussing the Fair Balance between Transparency and Right to Information
 Effects of No Proper Legal Framework
 Comparison of International and National Regulations

Chapter III – Challenges Faced by Whistleblowers in India

 Retaliation, Professional Risks, and Psychological Impacts
 Lack of Incentives and Issues with Confidentiality
 Lack of Security and Death Threats
 Organizational and Cultural Barriers to Whistleblowing

Chapter IV – Role of Whistleblowers in Combating Fraud

 Uncovering Corruption in Public Schemes
 Contributions of Whistleblowers in Fraud Detection and Deterrence
 Ethical Considerations and Public Perception of Whistleblowers
 Case Studies of High-profile Whistleblower Investigations
 Case Study: OpenAI Whistleblower Suchir Balaji

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Chapter V – Strategies to Enhance Whistleblower Engagement
 Policy Recommendations for Strengthening Legal Protections
 Organizational Measures to Foster a Whistleblower-Friendly Culture
 Incentive Structures and Support Mechanisms
 Role of Technology and AI in Smooth Running of the Process
 International Policies and Lessons for India

Chapter VI – Conclusions and Future Directions

 Summary of Key Findings
 Proposed Framework for Leveraging Whistleblowers
 Suggestions for Future Research and Policy Development

Bibliography

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 Table of Cases with page no.

1. Chanda Kochhar vs. ICICI Bank (2018)

2. Nirav Modi and Punjab National Bank Fraud Case (2018)
3. Satyendra Dubey Whistleblower Case (2003)
4. Lalit Mehta Whistleblower Case (2008)
5. Amit Jethwa Whistleblower Case (2010)
6. Infosys Whistleblower Incident (2019)
7. Bradley Birkenfeld vs. UBS Case (USA - International Case)
8. Suchir Balaji vs. OpenAI (Ongoing International Case)
9. Satyam Scandal (2009) - India Corporate Fraud Case
10. Enron Scandal (2001) - US Corporate Fraud Case (mentioned in references)
11. Arthur Andersen LLP Case (linked to Enron, US case)
12. Chief Vigilance Officer vs. SEBI (regarding 30,000 whistleblower
complaints) (regulatory observation, not exactly a case, but cited)
13. Public Interest Disclosure and Protection of Informers Case (linked to
Supreme Court direction after Satyendra Dubey's death)
14. Rajinder Kaur Randhawa vs. University (as cited in internal context - very
minor, might be skipped unless needed)
15.

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 LIST OF ABBREVIATIONS

AIR All India Report

Art. Article
Sec. Section
CVC Central Vigilance Commission
FATF Financial Action Task Force
IRDAI Insurance Regulatory and Development
Authority of India
LOU Letter of Undertaking
NHAI National Highway Authorities of India
OSA Official Secrets Act
PIPI Public Interest Disclosure and
Protection of Informers
PIDA Public Interest Disclosure Act (UK)
PDPPMD Public interest disclosure and protection
to person making the Disclosures
PSDPA Public Servants Disclosure Protection
Act (Canada)
RTI Right to Information
SEBI Securities and Exchange Board of India
SFIO Serious Fraud Investigation Office
UBS Union Bank of Switzerland (appeared in
reference to a whistleblower case)
WPA Whistleblower Protection Act

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 CHAPTER I – INTRODUCTION TO WHISTLEBLOWING

1. INTRODUCTION

“The victim who is able to articulate the situation of the victim has ceased to be a
victim; he or she has become a threat.”, a famous quote by an African-American
writer and the civil rights activist, James Arthur Baldwin. If simply expressed the one
who becomes more verbal about the abuse, is the one who becomes the target for
threats. One of the harsh and known reality of the world since the beginning. Either be
a part of the problem or become the martyr in solving the problem, there is nothing in
between.

The English language provides us with the good term that is “tattletale”, that would
simply mean that there appears to have people who will call us out for doing
something ‘tattling’.

1
Whistleblowing on behalf of the government is a concept that emerged in England in
the 7th century. ‘Qui tam pro domino rege quampro se ipsoin hac part sequitur’,
which means "he who prosecutes for himself as well as for the King," is the Latin
phrase from which the term qui tam, which is more commonly used today to refer to
False Claims Act prosecutions, is condensed. The present-day lawmakers use the term
to describe people who reveal company misconduct and file lawsuits against them on
behalf of their government.

For those 2 Vocal Volunteers, the term "WHISTLEBLOWER" is also used. To

put it simply, a whistleblower is "someone who discloses something secret or
who provides information against another." Since the 19th century, the term

1
https://www.whistleblowers.org/whistleblower-laws-around-the-world/

2
https://ajmjournal.com/HTMLPaper.aspx?Journal=Asian%20Journal%20of
%20Management;PID=2017-8-3-43

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"whistleblower" has not been precisely defined; it was a self-explanatory
compound. To put it another way, a whistleblower (previously hyphenated as
whistle-blower) was simply "one who blows a whistle," and as such, it didn't
require any other definition than, say, "home breaker," which simply means
"one who breaks homes." The phrase "blow the whistle," which we describe
as "to call public or official attention to something (such as a wrongdoing)
kept secret," is a more metaphorical use of the term whistle than the term
"whistleblower," which was first used to refer to the referee in athletic games.

Fraud is a five-letter term that has the power to rock the country. The
deliberate misleading of an individual or organisation for monetary or
personal benefit is known as fraud. Usually, it entails deceiving someone in
order to dishonestly get funds, property, or services. The combination of the
words corporate and fraud simply implies deliberate dishonesty in the
business sector for unlawful financial gain or worth. We are familiar with a
number of common phrases related to corporate fraud, such as insider trading,
tax fraud, bribery, and financial deception.

3
Corporate fraud has negative effects on the economy, shareholder wealth,
and public trust. As insiders with access to critical information,
whistleblowers have been successful in exposing such misconduct. However,
a lack of adequate legal protections and the risk of retaliation deter many
victims from coming forward. The purpose of this study is to examine the
function of whistleblowers in corporate law enforcement, as well as to
analyse current legal frameworks and offer recommendations for how to
strengthen their resilience against corporate fraud.

Currently the Open AI Whistleblower Suchir Balaji case an Indian-American has led
the nations to shock. America being one of the strongest countries with the strongest

3
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whistleblower protection laws, still faced this issue of not being able to protect the
innocent. And not just this case but there are many other cases that has led to rise in
the corporate fraud. Recently, Chief Vigilance officer has reported that SEBI has
received over 30,000 whistleblower complaints.

In India, many frauds cases came up to bring the issue of the protection of these
whistleblowers on the table but still we lack of a proper regiment. In 2018, the well-
known case of Chanda Kocchar Vs. ICICI Bank surged up with the allegations of the
irregularities in the loan services, involving the conflicts of interest of the CEO.
Thorough investigations were conducted even by both regulatory and enforcement
agencies, along with the board of the bank leading to the resignation of the CEO.

Again, the major case of fraud that led the nation to shock was the case of Nirav Modi
and Punjab National Bank, where the whistleblower disclosed the major fraud
regarding to the illegal LOU’s that were passed on by the employees of the bank. Let
us go through the History of India, how the country paved the path towards the term
whistleblower and their protection regarding the same.

2. INDIA PAVING THE WAY TOWARDS WHISTLEBLOWER

PROTECTION

As quoted by Sir, Albert Einstein, “The World will not be destroyed by those who do
evil, but by those who watch them without doing anything”. This quote, often
attributed to Albert Einstein, highlights the dangerous role of passivity in the face of
wrongdoing. It applies directly to the concept of whistleblowing, which is about
individuals speaking up when they witness fraud, corruption, or other unethical
practices within organizations.

4
According to the Commission, the United States, Australia, and the United
Kingdom have all passed whistleblower laws in an effort to combat

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accountability

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corruption, which has spread throughout the world. A country's development
is impacted by corrupt activities that violate fundamental freedoms and
human rights. Therefore, protecting informers was essential to eradicating
corruption.

While considering such a report, the Commission made an in-depth study and
kept in view the needs and circumstances of our country. In this connection,
the Commission also referred to its 161st report on Central Vigilance
Commission and Allied Bodies in 1998 and 166th report on the Corrupt
Public Servants (Forfeiture of Property) Bill in 1999 to tackle this problem.

The Bill is intended to encourage disclosure of information relating to the

conduct of any public servant involving the commission of an offence under
Prevention of Corruption Act, 1988 or any other law for the time being in
force. It is also designed to check abuse of official position or mal-
administration and protect the person making such disclosure.

The recommendations follow a request from the Central Vigilance

Commission with reference to a speech of the Prime Minister Shri Atal
Behari Vajpayee condemning rampant corruption and highlighting the
principle of "zero tolerance".

In India after the enactment of the CVC Act, 2003, Commission became a
multi-member body consisting of a Central Vigilance Commissioner
(Chairperson) and not more than two Vigilance Commissioners (Members), to
be appointed by the president.

The Law Commission of India, in its 179th report on the Public Interest
Disclosure and Protection of Informers, has recommended some measures to

check the evil of corruption in the Government through enactment of a law

titled "The Public Interest Disclosure (Protection of Informers) Bill".

In a writ case following the 2003 murder of whistleblower Shri Satyendra Dubey, the
Supreme Court ordered those procedures be established for handling whistleblower

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allegations until legislation is passed. The Public Interest Disclosure and Protection of
Informers Resolution (PIDPI), 2004 was notified by the Indian government in
compliance with the directive. This resolution, which is commonly referred to as the
whistleblower resolution, assigned the CVC the responsibility of receiving and
responding to complaints and disclosures from whistleblowers regarding any claims of
corruption or abuse of authority.

5
The Commission has been entrusted with the responsibility of keeping the identity of
the complainant secret while lodging a complainant under PIDIPI resolution, in order
to provide protection to the Whistleblowers. The public interest disclosure and
protection to person making the Disclosures [PDPPMD], renamed as the
Whistleblower Protection Bill ,2011 was enacted by the central government in the
parliament which came up with the “The Whistleblower Protection Act, 2014”.

The Act hasn't gone into effect yet, though, because changes to the protections against
certain disclosures that are important to national security could not be included
because the law was approved on the final day of the 15th Lok Sabha. The
government introduced the Whistle Blowers Protection (Amendment) Bill, 2015 with
these changes, and on May 13, 2015, the Lok Sabha approved it. However, when the
16th Lok Sabha was dissolved in May 2019, the bill expired after failing in the Rajya
Sabha. The government then asserted that, even without the revisions, the Act was
sufficient. An M.P. personally introduced a second amendment bill on March 10,
2017, but it was ultimately unsuccessful and lapsed.

The bill received a lot of criticism because it only covers people who have worked for
or were employed by the government. It doesn't even address state personnel who
leave the public sector without any limitations or rules. The measure was merely
regarded as “a paper tiger”.

The principle of protecting whistleblowers was also introduced in the measure, but
there was no legislation for those who would make false or misleading accusations.
Although the bill still has a long way to go, without any recognition, it will only
remain a literary myth that never happened.

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 3. LITERATURE REVIEW

In India, corporate fraud is still a major problem that negatively affects corporate
governance, investor trust, and the economy. The effectiveness of whistleblowers in
exposing fraudulent activity is largely dependent on the laws and procedures that are
in place. This study examines the current legal framework, obstacles encountered, and
tactics to improve the efficacy of whistleblowers in corporate law enforcement in
India.

Individuals have many reasons for wanting to expose wrongdoing. Moral and ethical
responsibility motivates some whistleblowers, who feel that exposing misconduct is
essential to maintaining justice (Dozier & Miceli, 1985). In corporate fraud instances,
for example, where employees are compelled to disclose financial malfeasance, others
take action because they have legal obligations (Vandekerckhove, 2006). Financial
incentives are a key component of several jurisdictions' efforts to incentivise
whistleblowers, especially in the case of the US's Dodd-Frank Act, which provides
financial benefits for disclosing fraud (Call et al., 2017). However, despite these
incentives, many workers choose not to come out because they fear reprisal, which
could include termination, a demotion, harassment at work, or even legal
repercussions (Rehg et al., 2008). Employees who lack faith in regulatory agencies are
additionally discouraged because they worry that their disclosures will be disregarded
or handled improperly (Kenny et al., 2020). Whistleblowing behaviour is influenced
by cultural variables in some societies, where it is seen as a betrayal rather than an
obligation to maintain business integrity (Tavakoli et al., 2003).

In this area, numerous academics and economists have carried out a variety of studies.
However, the most crucial matter would be the Indian legal system; the 2011
whistleblowers' protection bill was only approved by the Lok Sabha and subsequently
the Rajya Sabha, and the Whistleblower Protection Act of 2014 followed. However,
the government's 2015 proposal to alter the Act to exclude disclosures pertaining to
national security, sovereignty, and other sensitive topics has caused it to stagnate and

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never be adopted. These changes diluted the effectiveness of the Act and faced
criticism from activists and legal experts. The proposed amendments have not been
fully resolved, creating uncertainty about the Act's scope and strength, lack of political
will, cultural and social factor.

Whistleblowing and Corporate Fraud, Insider knowledge is frequently essential to

identifying unethical practices, and whistleblowers play a crucial role in exposing
corporate fraud. Research by Bowen et al. (2010) and Miceli et al. (2008) emphasises
the influence of whistleblowing on organisational ethics and its function in promoting
accountability. Banisar (2006) offers insights from international frameworks that show
superior results, but Sharma (2018) criticises the Whistle Blowers Protection Act,
2014's limited success in India.

Challenges and Cultural Context, Cultural barriers, such as fear of retaliation and
societal mistrust of legal systems, impede effective whistleblowing in India. Jain and
Gupta (2020) emphasize the need for societal and organizational shifts to create a
supportive environment for whistleblowers.

6
Laws that are relevant to private employers, there are no laws in India that
particularly address private employers as whistleblowers. A whistleblower policy has
been put in place by some progressive businesses, particularly multinational
conglomerates, who are expanding their global policies to cover individual employees
or groups of employees as well as third parties in certain circumstances. The primary
objective of any whistleblower policy is to enable employees to disclose problems
without fear of reprisals or victimisation. There are whistleblower hotlines in India for
accounting firms such as Deloitte and speciality firms like Navex Global and Integrity
Matters. All ultimate decisions are still made by the company; these groups are only
channels of communication.

6
Bowen, R. M., Call, A. C., & Rajgopal, S. (2010). “Whistle-blowing: Target Firm Characteristics and

Economic Consequences.” The Accounting Review.

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The question of whether or not whistleblowers should be compensated financially is
another controversial one that extends beyond their protection. South Korea and the
United States both use financial incentives, although many European countries do not.
One such instance is Bradley Birkenfeld, who was the first international banker to
reveal illegal offshore accounts held in Switzerland by US citizens. UBS earned over
$5 billion from US taxpayers and paid $780 million in civil fines and penalties after
his disclosures. According to the National Whistleblower Centre (n.y.), the Swiss
government was also "compelled to modify its tax agreement with the United States to
surrender the names of over 4,900 American taxpayers who maintained illicit offshore
accounts." A prize of $104 million was given to Mr. Birkenfeld. Although there is a
chance that this financial incentive contributed to the discovery of extensive illegal
activity, the rush of reports raised concerns about the appropriateness of purchasing
intelligence. The benefits and drawbacks of financial incentives must to be assessed
according to each jurisdiction's unique situation.

The Law Commission of India, in its 179th report on the Public Interest
Disclosure and Protection of Informers, has recommended some measures to
check the evil of corruption in the Government through enactment of a law
titled "The Public Interest Disclosure (Protection of Informers) Bill".

According to the Commission, the United States, Australia, and the United
Kingdom have all passed whistleblower laws in an effort to combat
corruption, which has spread throughout the world. A country's development
is impacted by corrupt activities that violate fundamental freedoms and
human rights. Therefore, protecting informers was essential to eradicating
corruption.

While considering such a report, the Commission made an in-depth study and
kept in view the needs and circumstances of our country. In this connection,
the Commission also referred to its 161st report on Central Vigilance
Commission and Allied Bodies in 1998 and 166th report on the Corrupt
Public Servants (Forfeiture of Property) Bill in 1999 to tackle this problem.

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In a recent development, the Law Commission of India has recommended in its 289th
Report dated March 5, 2024 that there should be a special legislation for protection of
Trade Secrets, with exceptions pertaining to whistleblower protection, compulsory
licensing and government use, and public interest.

Top7 whistleblowing concerns include lack of trust in problem solving (52%), loyalty
to the organisation (50%), pressure from management to remain silent (38%), loyalty
to coworkers (33%), and a lack of accountability to resolve issues (29%), according to
recent data from the 2024 Global Integrity Report (India edition). Media reports on
whistleblowing failures exacerbate fear. Regretfully, 51% of respondents said they
have either witnessed or experienced retaliation against whistleblowers in their
workplaces. Similarly, only 35% of whistleblowers said they were sufficiently
protected by current laws and procedures, per Transparency International research
from 2023.

4. Whistleblower law regulations in other Countries

Whistleblower protection laws vary widely across countries, with some providing
strong legal safeguards while others leave whistleblowers vulnerable. Here are a few
key examples from different parts of the world:

1. United States

The Dodd-Frank Act (2010) provides financial rewards and anti-retaliation protections
for whistleblowers who expose corporate fraud.

The Sarbanes-Oxley Act (2002) protects employees of publicly traded companies

from retaliation when reporting financial misconduct.

The False Claims Act allows whistleblowers to file lawsuits on behalf of the
government and receive a portion of recovered funds.

2. United Kingdom

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The Public Interest Disclosure Act (PIDA) 1998 protects employees who report
wrongdoing in good faith. The law applies to both private and public sector employees
but does not cover all types of workers (e.g., intelligence services).

3. European Union

8
The EU Whistleblower Protection Directive (2019) sets minimum standards for all
member states, requiring safe reporting channels and protections against retaliation.

Some countries, like France (Sapin II Law) and Germany, have expanded on this
directive with additional legal frameworks.

4. Australia

The Corporations Act 2001 and Public Interest Disclosure Act 2013 protect
whistleblowers from legal and workplace retaliation.

The laws were strengthened in 2019 to provide anonymous reporting and stronger
protections for corporate whistleblowers.

5. Canada

The Public Servants Disclosure Protection Act (PSDPA) protects government

whistleblowers but has been criticized for weak enforcement.

Corporate whistleblower protections are less comprehensive, relying more on

securities regulators and common law.

6. South Africa

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organisation/

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The Protected Disclosures Act (2000) safeguards whistleblowers in both public and
private sectors. Despite legal protections, whistleblowers often face severe retaliation,
including legal threats and job loss.

5. STATEMENT OF PROBLEM

even after the 2015 amendment and even after the Whistleblowers Act of 2014 was
introduced. The basis for the law has not been enacted. The retaliation that
whistleblowers frequently experience discourages potential informants and
jeopardises corporate law enforcement. There is no precise legislation or framework
that would regulate the nation, however there are commissions, boards, and acts that
handle matters involving fraud and whistleblowers. While countries such as the
United Kingdom, the United States, the European Union, and many others have a
well-functioning regulatory framework, India lacks even a law governing the
government sector, leaving the private corporate sector unregulated. The absence of a
strong framework for protecting whistleblowers in India erodes corporate law
enforcement and permits fraud to continue undetected. India's regulatory framework is
weak compared to many other countries, which exposes whistleblowers to harsh
reprisals and even bodily injury. A thorough legal framework is necessary to provide
accountability, openness, and economic integrity in addition to safeguarding
whistleblowers.

6. RESEARCH OBJECTIVE

1. To analyse the role of whistleblowers in identifying and combating fraud in

India and to evaluate the effectiveness of existing legal safeguards under the
Whistle Blowers Protection Act, 2014 if it gets enacted.
2. To identify gaps in the legal framework and enforcement mechanisms.
3. To propose strategies for enhancing whistleblower protection and encouraging
reporting of fraud.

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4. To assess the impact of cultural and societal factors on whistleblowing in
India.
5. To explore the role of technology in ensuring secure and anonymous reporting
mechanisms for whistleblowers.
6. To compare whistleblower protection laws in India with international best
practices and identify adaptable solutions.

7. RESEARCH QUESTION

1. What role do whistleblowers play in law enforcement in India?

2. How effective is the Whistle Blowers Protection Act, 2014, in safeguarding
whistleblowers? Also, how transparency and the right to information could
work together?
3. What are the key challenges faced by whistleblowers in India? What strategies
can be adopted to improve whistleblower protection and incentivize reporting?
4. How do cultural and societal factors influence the decision to blow the whistle
in India?
5. What technological tools can be implemented to facilitate secure and
anonymous whistleblowing?
6. How do India’s whistleblower protection laws compare with global standards,
and what lessons can be learned?

8. HYPOTHESIS

Being prepared to ask someone to be a martyr is comparable to encouraging them

to come forward. Despite the existence of a legal framework protecting
whistleblowers, the act is not being followed. One may argue that more robust
legal protections and enforcement systems will greatly strengthen the role of
whistleblowers in India's fight against corporate fraud. Whistleblowing
effectiveness in India is adversely affected by systemic and cultural impediments.

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 Adopting technology-driven reporting systems will increase whistleblowers'
engagement and safety. Better corporate governance and fraud prevention will
arise from bringing Indian whistleblower legislation into line with global best
practices.

9. RESEARCH METHODOLOGY

This study adopts a qualitative research design, incorporating doctrinal and empirical
methods. The main goal here would be to protect whistleblowers and promote
whistleblowing in India by implementing a suitable and distinct legal framework. The
topics of discussion will include the framework's shortcomings and delays, the
comparison and approaches used by other nations to regulate the field, and India's
shortcomings. In order to accomplish the goals of the study, we use a thorough
strategy that incorporates qualitative techniques. Understanding the efficacy of
legislative protections, the difficulties experienced by whistleblowers, and the tactics
required to strengthen their position in exposing corporate crime are the objectives of
the study.

Certain laws, such as the Companies Act, SEBI, CVC, and Prevention of Corruption
Act, are partially in charge of overseeing the matter at hand; their applicability needs
to be examined. In order to combat corporate fraud, which is the largest threat to the
economy, people who can lift the curtain of supposedly positive reputations are
needed. The number and scope of reporting must be examined by discussing specific
jurisdictions and laws. Political will to concentrate on citizens' attempts to speak out
against the abuses, harassment, and illegal regimes is lacking.

The literature on the laws currently in effect as well as case studies of significant
instances that are still pending in society will be examined. A thorough investigation
will be carried out, addressing these incidents and their impact on the country,
bridging the gap between the application of the inadequate legal system. These
incidents demonstrate the difficulties whistleblowers face in navigating intricate
business settings and the effect their revelations have on identifying and preventing

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fraud. Many nations still lack appropriate laws for this, and India is one of them,
which places them in a bad position in terms of corporate governance. It is also
essential to analyse international frameworks in order to improve the standing of
whistleblowers.

With citations to global best practices, the primary subject of this study is
whistleblowing in India. It highlights the ethical, legal, and regulatory ramifications of
whistleblower protection in both the public and commercial sectors. However, there
are certain limitations to the study, including the inability to measure the impact of
whistleblower protection laws because of their insufficient implementation in India,
corporate unwillingness to disclose internal fraud cases, and restricted access to
whistleblowers due to legal or security concerns.

In order to implement a decent legislation, technology and the AI component are also
required. Technology may be crucial to anonymising complaints and maintaining
safety and security. One important topic that needs to be addressed is the distinction
between the nation's right to information and transparency, and whether the two
should coexist or which should take precedence.

A thorough grasp of the difficulties faced by whistleblowers and the efficacy of

current legal protections is made possible by this methodology. It offers useful
information that legislators, businesses, and law enforcement organisations may use to
strengthen whistleblower protection and encourage disclosure, which will ultimately
strengthen corporate law enforcement. Journals, research papers, books, and other
materials would be considered primary sources, while websites and search engines
would be considered secondary sources. By combining legal research with empirical
data, it guarantees a thorough and impartial examination of whistleblowing in fraud
cases and offers well-reasoned suggestions for enhancing whistleblower safeguards in
India.

10. CHAPTERIZATION

 CHAPTER 1 – Introduction to Whistleblowing

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 a) Introduction to whistleblower and fraud.
b) Literature Review.
c) India’s stand towards whistleblower protection.
d) Objectives and scope of the research.
e) Hypothesis, statement of problem.

 CHAPTER 2 - Legal Frameworks and Safeguards for Whistleblowers

a) Analysis of existing whistleblower protection laws governed

through separate acts, commissions and boards.
b) Identifying gaps and limitations in current legal safeguards.
c) Discussing the fair balance between transparency and right
to information in enactment of the legal framework.
d) Effects of no proper legal framework.
e) Comparison of international and national regulations.

 CHAPTER 3 - Challenges Faced by Whistleblowers in India

a) Retaliation, professional risks, and psychological impacts.

b) Lack of incentives and issues with confidentiality.
c) Lack of security and death threats.
d) Organizational and cultural barriers to whistleblowing.
e) Overall Impact

 CHAPTER 4 - Role of Whistleblowers in Combating Fraud

a) Uncovering Corruption in Public Schemes

b) Contributions of whistleblowers in fraud detection and
deterrence.
c) Ethical considerations and public perception of
whistleblowers.
d) Case studies of high-profile whistleblower-led investigations
e) Case study of the ongoing case of Open AI Whistleblower
Suchir Balaji.

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 CHAPTER 5 - Strategies to Enhance Whistleblower Engagement

a) Policy recommendations for strengthening legal protections.

b) Organizational measures to foster a whistleblower-friendly
culture.
c) Incentive structures and support mechanisms for
whistleblowers.
d) The importance of technology and AI in the smooth running
of the process.
e) Policies that are followed internationally and what can we
learn from it.

 CHAPTER 6 - Conclusions and Future Directions in Whistleblower

Research

a) Summary of key findings and their implications.

b) Proposed framework for leveraging whistleblowers in
corporate law enforcement.
c) Suggestions for future research and policy development.

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 CHAPTER II – LEGAL FRAMEWORKS AND SAFEGUARDS
FOR WHISTLEBLOWERS

a). 9ANALYSIS OF EXISTING WHISTLEBLOWER PROTECTION LAWS

GOVERNED THROUGH SEPARATE ACTS, COMMISSIONS AND BOARDS.

“10Any informant (suchaka) who supplies information about embezzlement just under
perpetration shall, if he succeeds in proving it, get as reward one-sixth of the amount
in question: if he happens to be a government servant (bhritaka), he shall get for the
same act one-twelfth of the amount.” This idea of whistleblowing dates back to
ancient India, according to the Hindu statesman and philosopher Chanakya.

In today’s India the laws for the protection of whistleblowers, if said in a layman’s
language, is scattered or could be seen in the other provisions or legislations which
makes the protection laws of India weaker than the laws of the other countries.
(Seema gupta)

1. THE COMPANIES ACT, 2013

According to Section 177(9) of the firms Act of 2013, it is mandatory for all
publicly traded firms to set up a watchdog system for its senior executives and
staff. Establishing a whistleblower policy with sufficient and transparent
protections against victimisation of whistleblowers has also been mandated.
Some of the key points to understand the framework can be as following-
 A route and process for reporting violations at any level must be included in
the policy. The board chairman ought to preside over these channels.

9
Whistleblower protection legislation in India: A critical analysis, Seema Gupta, University of Delhi.

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  Reporting policy infractions should be permitted at every level of the
hierarchy, from entry-level staff to the director.
 In the event of such reporting, the senior management shall take-up the
investigation and any false evidence shall be dealt with seriously.
 Discriminations wilful negligence of quality, colluded frauds, and
misappropriation of budgets are some of the events those should get reported.
 Zero harassment should be assured to the whistle- blower by the management
in the policy itself and no retaliation in whatsoever form should be tolerated.
• Full confidentiality shall be maintained at all the times to safeguard the whistle-
blower.
Different sections of the Companies Act 2013, covers complete framework of
inquiry, investigation, and inspection -all under one chapter of the Act through
sections 206 to 229.
These clauses make it easier for an outside agent to spot improper behaviour,
which means the agent can play a significant part in becoming an external
whistleblower. 11While Section 210 of the Act gives the Central Government the
authority to order an investigation upon receiving recommendations from the
Registrar or Inspector, or in the public interest, or upon notification of a special
resolution passed by the company to be investigated, Section 208 of the Act gives
an Inspector (other than the Registrar) the authority to review the records and
recommend a further investigation in such matters of doubt. Accordingly, Section
211 created the Special Fraud Investigation Office (SFIO), which has the authority
to make arrests for crimes classified as fraud. In the past, auditors were only
expected to report instances of misappropriation and lacked the legal authority to
determine if a fraud had occurred. It is now their responsibility to act as
whistleblowers and notify the central government or other relevant authorities
directly of any such act.

2. SECURITIES & EXCHANGE BOARD OF INDIA (SEBI)

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 12
By means of its circular dated August 26, 2003, the Securities and Exchange
Board of India (also known as "SEBI") modified the Corporate Governance
Principles included in the standard Listing Agreement. Clause 49 of the Listing
Agreement said that corporations should create a whistleblower policy.

While implementing a policy was not required, many businesses have done so
because it raises compliance and governance standards. However, it is required to
report how the policy has been modified, how many events have been reported
under it, and how many cases have been settled or are still pending.

Now, SEBI has replaced the Listing Agreement and notified the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 making it mandatory
for listed companies to have a whistle-blower mechanism for their employees and
directors under Regulation 22.

3. WHISTLE BLOWER PROTECTION ACT, 2014

In 1993, then-Chief Vigilance Commissioner Mr. N. Vittal introduced a measure to
protect whistleblowers. Arun Jaitley, the then-Minister of legislation, Justice, and
Public Affairs, received the Law Commission's report on the "Public Interest
Disclosure Bill" and the draft bill in December 2001. The Law Commission
suggested that corruption be eradicated and that a legislation protecting
whistleblowers was necessary. The draft of the Public Interest Disclosure
(Protection of Informers) Bill, 2002 was distributed in January 2003.
The public and media outcry following Satyendra Dubey's 2003 death for
exposing NHAI wrongdoing sparked calls for the passage of a whistleblower's
bill. The Supreme Court ordered in 2004 that procedures be established for
handling whistleblower complaints until legislation was passed in response to the
incident. In order to allow the Central Vigilance Commission to handle corruption
accusations for Central Authorities, the Indian government issued a resolution in
May 2004. In October 2005, the Right to Information Act was notified.

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 According to The Public Services Bill 2006 (Draft), the government must provide
safeguards for whistleblowers within six months of the act's implementation. The
Second Administrative Reforms Commission's 2007 report also suggested that a
particular law be passed to safeguard whistleblowers. 13Since 2005, India has also
been a signatory (though not a ratifier) to the United Nations Convention against
misconduct, which requires states to safeguard witnesses and experts from
reprisals and to make it easier for public officials to disclose misconduct. On
August 26, 2010, Union Minister of State for Personnel, Public Grievances and
Pensions, Prithvi Raj Chavan introduced the Public Interest Disclosure and
Protection to Persons Making the Disclosure Bill, 2010, or the Whistle-blower
Bill, in the Lok Sabha.
The Bill was passed in Lok Sabha on December 27, 2011, along with proposed
amendments. The Whistle-blowers Protection Act, 2014 was passed in Parliament
on February 21, 2014. After the Bill was passed by Lok Sabha, certain
amendments were circulated in Rajya Sabha on August 5, 2013.
The Whistle-blowers Protection (Amendment) Bill, 2015 was introduced in Lok
Sabha on May 11, 2015which has been passed by the Lok Sabha on May 13, 2015.

4. CARTELS & WHISTLEBLOWERS

The Competition Commission of India (CCI) has introduced a new 'lesser penalty
plus' regime under the Competition Commission of India (Lesser Penalty)
Regulations, 2024, to enhance its whistleblowing mechanism. This policy, which
was implemented after a public consultation in November 2023, offers substantial
penalty reductions to encourage whistleblowers to reveal cartel conduct.
According to Section 46 of the Competition Act of 2002, cartel members are
eligible for penalty cuts of up to 30% for the third application, 50% for the second,
and 100% for the first applicant. India's efforts to stop anticompetitive behaviour
and advance fair competition are largely dependent on this expanded leniency
14
policy. The CCI, like the United States and the United Kingdom, bolsters

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 enforcement and discourages cartel formation by incentivising insiders to expose
illicit activity. It is imperative that this whistleblower mechanism be continuously
improved in order to safeguard the public interest and maintain market integrity.

Guidelines for Corporate Governance for Insurers in India: Guidelines issued

by IRDAI advise companies regulated by it to set up a 'Whistle Blower Policy'.
 Protected Disclosures Scheme for Private Sector and Foreign Banks:
Scheme of RBI wherein the banks are required to formulate a whistleblower
policy/vigil mechanism.
Indian Laws/Rules to protect government secret information
 Official Secrets Act, 1923: It provides the framework for dealing with
espionage, sedition, and other potential threats to the integrity of the nation.
 Rule 11 of Central Civil Services (Conduct) Rules, 1964: It deals with the
Communication of Official Information by the government servants.
 Section 8(1) in The Right to Information Act, 2005: It gives exemption from
disclosure of information which would prejudicially affect the sovereignty and
integrity of India.

b). IDENTIFYING GAPS AND LIMITATIONS IN CURRENT LEGAL

SAFEGUARDS

The official secret Act 1923, To stop sensitive information from leaking, the British
government in India passed the Official Secrets Act of 1923. The administration was
concerned that if this information spread, it may jeopardise national security. The Act
stipulated severe punishments, ranging from three to fourteen years in prison.
However, this measure went against the values of open government and information
availability.

The Public Interest Disclosure (Protection of Informers) Act, 2002 was proposed by
the Law Commission of India in 2003 to rectify this discrepancy. The Public Interest
Disclosure and Protection of Person Making Disclosure Bill then made its way into

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the Lok Sabha in August of 2010. In 2011, the measure was revised and renamed the
Whistleblowers Protection Act to reflect its new purpose. The Whistleblowers
Protection Act, 2011 was officially signed into law by the President of India on May 9,
2014.

15
In order to provide legal protection to those who come forward with information that
could help the public, the Whistleblowers Protection Act was created. The country's
struggle for open government and information transparency reached a significant
turning point with the enactment of this law.
By revealing wrongdoing and illegal activity within organisations, whistleblowers
play a vital role in advancing accountability and transparency.

However, whistleblowers often face severe retaliation, including job loss, damaged
relationships, and mental health challenges, which deters potential informants from
coming forward.

The Whistle-blower Protection Act, 2011, The disclosures covered by the Whistle-
blowers Protection Act of 2011 are as follows:

· Information pertaining to infractions or attempted violations of the Prevention of

Corruption Act of 1988 is the first category of information that it protects. Bribery and
wealth acquisition that is out of proportion to an official's salary are both included in
this.

· Second, it includes information about deliberate actions that cost the government
money or benefit others unfairly.

· Finally, it protects information that could incriminate a public official who has
committed or attempted to commit a criminal offence.

The complainant is protected from reprisals by the Act. This defence is optional,
though. The victim must apply to the relevant, accountable authorities in order to
obtain redress. It becomes the responsibility of the public authority, usually the

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employer, to demonstrate that the victim is not being harmed. The Act forbids
victimisation of the complainant, although it is not a distinct crime.

The insufficiency of legal protections for whistleblowers has been cited as a primary
concern. The Whistle Blowers Protection Act was passed in 2014; however, its
implementation has been poor, leaving whistleblowers open to retaliation. This
legislative deficiency is indicative of a larger problem in the Indian legal system,
where well-meaning rules are routinely undermined by inadequate safeguards and lax
enforcement.

The obstacles to effective whistleblowing that are organisational and cultural.

Reporting misconduct is discouraged by a widespread culture of fear and quiet in
many Indian organisations. The lack of anonymous reporting mechanisms and
ignorance of current legal protections exacerbate this situation and further stifle
whistleblowing efforts.

Moreover, the difficulties the courts have when handling cases involving
whistleblowers. Whistleblowers seeking justice confront additional challenges due to
the under-representation of vulnerable groups, including women, and delays in court
proceedings. The necessity for court reforms to guarantee prompt and fair
consideration of these matters is highlighted by these systemic inefficiencies.

To strengthen India's whistleblower system, extensive reforms are required. The

recommendations include strengthening legislative safeguards, creating a culture of
support inside the organisation, raising public awareness, and refining judicial
procedures in order to effectively protect whistleblowers. Closing these gaps is crucial
to fostering an atmosphere that encourages accountability and openness, which will
eventually improve governance and uphold social integrity.

The Act applies only to public sector employees, excluding those in the private sector,
armed forces, and intelligence agencies—sectors equally prone to corruption and
misconduct. This exclusion significantly undermines the legislation's effectiveness, as
a vast portion of the workforce remains unprotected.

The ban on anonymous complaints is yet another significant restriction. Because they
must disclose their identities, whistleblowers are deterred from coming forward out of

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concern for possible reprisals. In-depth procedural protections, including investigative
deadlines, transparent witness protection procedures, and strong sanctions for
harassing or intimidating whistleblowers, are also absent from the Act. The
enforcement mechanism is further undermined by the lack of a robust institutional
framework to monitor whistleblower complaints.

There is also government apprehension about potential misuse of the Act, although
such concerns could be addressed through proper oversight. Ultimately, the failure to
enforce the Act reflects a deeper reluctance to prioritize transparency and
accountability in governance, thereby sustaining a hostile environment for
whistleblowers.

16 17
Additional limitations were imposed by the Whistle Blowers Protection
(Amendment) Bill, 2015, which forbade disclosures pertaining to ten distinct
categories, such as information that could jeopardise India's economic, strategic,
scientific, or sovereignty interests. Opponents contend that these changes lessen the
original Act's impact and would deter future whistleblowers from coming forward.
Chakraborty also looks at Section 177(9) of the Companies Act of 2013, which
requires specific company classes to set up a surveillance system for reporting
infractions or unethical activity. However, the Act fails to prescribe detailed
procedures or protective measures, leaving implementation to company discretion.
This results in inconsistent application and often inadequate safeguards for
whistleblowers in corporate settings.

18
Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, the Securities
and Exchange Board of India (SEBI) additionally added clauses that permit

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informants to privately disclose insider trading infractions. Nevertheless, SEBI's rules
only address market-related infractions and provide whistleblowers with limited
protection beyond monetary rewards and secrecy guarantees. Listed businesses are
likewise not required by law to have comprehensive whistleblower protection
procedures.

Fear and revenge are encouraged by these disjointed and laxly implemented legal
systems. for combining these laws into a single, all-encompassing system of
protection for whistleblowers that covers the public and private sectors, guarantees
anonymity, offers financial and legal assistance, and creates impartial organisations to
handle complaints. India's whistleblower policy is still mainly ineffectual if these
institutional and legislative shortcomings are not fixed.

c). DISCUSSING THE FAIR BALANCE BETWEEN TRANSPARENCY AND

RIGHT TO INFORMATION IN ENACTMENT OF THE LEGAL
FRAMEWORK.

“A whistle without an echo is just wind—when laws are weak, truth dies in
isolation”. There exists a sensitive equilibrium between transparency and the right
to privacy, particularly within the corporate and governance frameworks. Although
whistleblowing is essential for exposing fraud, corruption, and unethical activity, it
frequently entails making disclosures that walk a tightrope—one that requires
transparency for accountability but moderation to protect individual rights.

Transparency is essential to business and democratic governance. It enables public,

regulatory, and stakeholder accountability for institutions. Nevertheless, unrestricted
openness can occasionally come at the expense of individual privacy, resulting in
damage to one's reputation, improper use of private data, or unfair treatment of those
who have not been charged or found guilty.

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19
The RTI Act, of 2005 is also called a ‘twin sister’ of whistleblowing. The right to
privacy, a fundamental right under the Indian Constitution (recognized by the
Supreme Court in the Puttaswamy judgment), must be protected not only for
whistleblowers but also for the subjects of the allegations. There have been about 100
activists assassinated since the RTI Act went into effect, and many more have been
harassed. Most of these instances are reported in Bihar. In order to strike a balance
without sacrificing due process or individual dignity, whistleblowing methods must be
created to guarantee that accusations are looked into in confidence, that disclosures
are safeguarded, and that only confirmed findings are released to the public.
Whistleblowing should be a safe, responsible procedure rather than a selfless deed.
Institutions must foster an ethical culture and trust in which privacy and transparency
are carefully balanced rather than at odds, each of which strengthens the system's
legitimacy and accuracy.

"Transparency and Accountability in Governance and Right to Information in India,"

investigates the development and effects of the Right to Information (RTI) Act on
Indian governance. Effective governance is predicated on accountability and
transparency, and the RTI Act is a crucial instrument for advancing these ideals. The
Act gives citizens the ability to hold public authorities accountable and actively
engage in democratic processes by facilitating their access to information.

The RTI Act offers a legal framework that encourages people to come forward with
information about corruption and poor management. In order to gather the proof, they
need to support their allegations, whistleblowers frequently turn to the RTI Act's
provisions. whistleblowers' difficulties, such as dangers to their safety and
consequences for their careers. Whistleblower protection requires strong mechanisms,
as the RTI Act's ability to effectively fight corruption is undermined in the absence of
sufficient protections.

While the RTI Act has significantly contributed to enhancing transparency in India, its
success is contingent upon the protection of those who utilize it to expose

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wrongdoing. Strengthening legal protections for whistleblowers is imperative to
ensure that the RTI Act fulfils its role as a catalyst for accountable governance. 20RTI
plays a significant role in Whistleblowing:

 Data Collection: The RTI Act enables whistleblowers to gather evidence of

unlawful activities.
 Exposure of Malpractices: Activists utilize RTI to uncover administrative
corruption.
 Promotion of Transparency: RTI facilitates public awareness and
accountability within authorities.

By cutting off Section 4(1), the proposed modification to the Whistle Blowers
Protection Act severely compromises its fundamental goal by taking away its supreme
jurisdiction over the Official Secrets Act (OSA). Whistleblowers were formerly
protected from prosecution under the OSA under the Act. Eliminating this safeguard
puts whistleblowers at risk of legal repercussions and severely reduces their
motivation and sense of security to reveal misconduct.

The ten categories of exemptions mentioned in Section 8(1) of the Right to

Information (RTI) Act are imported into a new sub-section (1A) that is also inserted
by the modification. The range of "protected disclosures" is reduced by these
exemptions, which limit whistleblowers to sharing only documents that are already
accessible under the RTI Act. Absolute exemption is given to some categories,
including those pertaining to parliamentary privilege, contempt of court, international
relations, national security, and investigative procedures. Only conditional exemption
is granted to others, such as personal privacy, fiduciary connections, and commercial
confidence.

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 21
It is troublesome that RTI exemptions have been incorporated into whistleblower
legislation. Whistleblowing frequently entails the release of private information for
the sake of transparency, whereas RTI disclosures are public in nature. Since the kind
of sensitive information that whistleblowers usually divulge would already be exempt
from exposure under the RTI framework, applying public-domain constraints to
protected disclosures essentially makes whistleblowing unnecessary.

Furthermore, the revision disregards important overriding clauses in the RTI Act,
including Sections 8(2) and 22, which permit public agencies to reveal exempted
material where the public interest justifies it. These clauses uphold the OSA's and
RTI's superiority over other laws. The removal of these overrides weakens the
independence of the OSA and places the Whistle Blowers Protection Act within its
authority.

In essence, the amendment dilutes the Act’s intent by shifting its focus from
protecting whistleblowers to shielding secrecy under the guise of public interest,
thereby discouraging transparency and weakening the framework for combating
corruption.

d). EFFECTS OF NO PROPER LEGAL FRAMEWORK.

“Truth knocks, but without protection, even doors of justice remain bolted”, well
said, that even if truth emerges within people to set itself out, without the long-lost
protection from the guardians of laws, it will get buried with the one who would dare
to let it escape. Where laws are brittle, the brave go unheard—whistleblowers speak
into voids carved by indifference.

22
According to the 2024 Global Integrity Report (India edition), major reasons for not
reporting wrongdoing include a lack of confidence in issue resolution (52%), loyalty

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to the organisation (50%), pressure from management (38%), loyalty to colleagues
(33%), and a belief that it’s not their responsibility (29%). Additionally, 51% of
people said they had seen or experienced retaliation against whistleblowers in their
organisations. A 2023 Transparency International report also found that only 35% of
whistleblowers felt protected by existing laws.

The absence of a robust legal framework is a significant issue. In the absence of

adequate legal protection, whistleblowers frequently suffer grave repercussions, like
as demotions, harassment, discrimination, legal threats, suspension, or even
termination. For instance, a well-known IT company has a whistleblower protection
program in place, yet an employee was suspended for exposing a security flaw on
Reddit. This demonstrates that rules by themselves are insufficient in the absence of
appropriate execution and legal support.

When internal systems don't work, whistleblowers could use outside channels, which
could result in media coverage, regulatory attention, and reputational harm to the
business. The fight against corruption and unethical behaviour is weakened when
there are insufficient legal protections because they deter people from speaking up and
permit wrongdoing to continue unchecked.

Numerous news stories that have required workplaces to repair the harm done to
employee trust and public opinion have illustrated the detrimental effects and financial
costs of lacking a whistleblower system. If there had been better procedures and
resources for reporting misconduct, the issues probably would have been brought to
light sooner, thereby preventing a financial meltdown. Here is a list of important
consequences of not having a whistleblower system in place:

 Lack of Transparency
 Less motivation and productivity
 Drop in Public trust
 Financial loss
 Reputation damage
 Reduced staff retention

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e). COMPARISON OF INTERNATIONAL AND NATIONAL REGULATIONS.

23
Whistleblower protection laws vary widely across countries, with some providing
strong legal safeguards while others leave whistleblowers vulnerable. Here are a few
key examples from different parts of the world:

1. United States

24
The Dodd-Frank Act (2010) provides financial rewards and anti-retaliation
protections for whistleblowers who expose corporate fraud.

The Sarbanes-Oxley Act (2002) protects employees of publicly traded companies

from retaliation when reporting financial misconduct.

The False Claims Act allows whistleblowers to file lawsuits on behalf of the
government and receive a portion of recovered funds.

2. United Kingdom

25
The Public Interest Disclosure Act (PIDA) 1998 protects employees who report
wrongdoing in good faith. The law applies to both private and public sector employees
but does not cover all types of workers (e.g., intelligence services).

3. European Union

The EU Whistleblower Protection Directive (2019) sets minimum standards for all
member states, requiring safe reporting channels and protections against retaliation.

Some countries, like France (Sapin II Law) and Germany, have expanded on this
directive with additional legal frameworks.

23
Banisar, D. (2006). “Whistleblowing: International Standards and Developments.” Open Society
Institute.

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4. Australia

The Corporations Act 2001 and Public Interest Disclosure Act 2013 protect
whistleblowers from legal and workplace retaliation.

The laws were strengthened in 2019 to provide anonymous reporting and stronger
protections for corporate whistleblowers.

5. Canada

26
The Public Servants Disclosure Protection Act (PSDPA) protects government
whistleblowers but has been criticized for weak enforcement.

Corporate whistleblower protections are less comprehensive, relying more on

securities regulators and common law.

6. South Africa

The Protected Disclosures Act (2000) safeguards whistleblowers in both public and
private sectors. Despite legal protections, whistleblowers often face severe retaliation,
including legal threats and job loss.

27
Let’s compare the regulations of India with the most powerful country in regards to
the Whistleblower protection laws that is, the United States, Whistleblower laws in the
United States play a critical role in safeguarding public interest by protecting
individuals who expose misconduct, fraud, or illegal activity within organizations.
These laws are designed to encourage transparency and accountability, particularly in
corporate, governmental, and financial sectors.

India does provide certain legal protections for whistleblowers, but they are still far
less robust than those in the United States, where a more extensive and formalised
system is in place. In the United States, a number of clearly defined laws,

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27
Sharma, S. (2018). “The Effectiveness of Whistleblower Protection Laws in India.” Economic and
Political Weekly.

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 28
organisations, and enforcement systems support whistleblower protection. The
Securities and Exchange Commission (SEC), which runs a special whistleblower
program under the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a
prominent example. This program offers financial incentives, secrecy, and robust legal
protection against retaliation in addition to encouraging people to expose corporate
fraud and malfeasance. In the words of former SEC Chair Mary Schapiro, "We want
whistleblowers to come forward." We want to make sure kids are safe when they do.

On the other hand, India's legal system is not as advanced in this area. In order to look
into whistleblower concerns, companies listed on stock exchanges must set up an
audit committee in accordance with the Companies Act of 2013. Despite mentioning
protections against victimisation, the Act lacks a strong system to protect
whistleblowers from reprisals or danger to their safety. The safeguards are mostly
based on internal corporate policies, and no impartial body is in charge of monitoring
whistleblower grievances or offering institutional assistance or enforcement.

29
The Whistle Blowers Protection Act of 2014, India's major legislation focused at
protecting whistleblowers, was designed to provide legal protection for persons who
expose corruption inside government entities. However, the Act has been delayed in
implementation and does not provide full coverage. Furthermore, a recent amendment
passed last year faced criticism for weakening rather than increasing protections. In
practice, the whistleblower landscape in India is marked by legal uncertainty, lax
enforcement, and a restricted understanding of what constitutes whistleblowing.

In comparison, the United States has a much more developed environment for dealing
with whistleblower complaints. Several legislations, including the Sarbanes-Oxley Act
of 2002, the False Claims Act, and the Whistleblower Protection Act of 1989, have
developed a layered structure of protection, each targeting a particular sector and type
of malfeasance. These rules provide not only protection, but also mechanisms for

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reporting and legal remedy in cases of retaliation. In reality, under the False Claims
Act, whistleblowers (or "relators") might get a percentage of the recovered damages,
giving them a financial incentive to come forward.

30
The United States' approach has been impacted by a series of high-profile corporate
and government crises that have received extensive media coverage. These revelations
have heightened public demand for legislative reform and increased accountability.
While whistleblowing has occasionally garnered national attention in India, such as in
cases of corruption in public officials or corporate malpractices, the institutional
response has frequently been delayed and inadequate.

Given the current situation, India can learn various lessons from the United States
31
model. First, the Indian government should consider establishing an independent
whistleblower authority, one that can investigate accusations in both the public and
private sectors. Second, whistleblower protection laws in India must be broadened to
include corporate fraud, environmental violations, public health issues, and other
forms of organisational malfeasance in addition to government corruption.

32
Furthermore, India's media must be strengthened. An independent and alert press
may be a valuable ally to whistleblowers, ensuring that their disclosures reach the
public and putting pressure on authorities to act. In the United States, investigative
journalism has frequently played an important role in magnifying whistleblower
accusations, resulting in legislative reforms and enforcement actions.

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Governance

31
“Are whistleblowing laws working? A global study of whistleblower protection litigation.”
Government accountability project.

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Another important shortcoming in Indian legislation is the lack of protection provided
to whistleblowers' families. Unlike American law, Indian statutes do not examine the
broader consequences of retaliation, which can frequently extend beyond the
individual whistleblower to their family ones. The Indian legal structure should be
amended to give comprehensive protection, including safeguarding whistleblowers'
personal safety, careers, and financial stability, as well as their families'.

In conclusion, While India has made some strides in recognising the significance of
whistleblower protection, it still falls far below worldwide best practices.
Comprehensive, explicit, and enforceable legislation is urgently required. With more
media participation, public knowledge, and legislative will, India may establish a safer
and more supportive atmosphere for people who speak up against wrongdoing, similar
to the model seen in the United States.

CHAPTER III – CHALLENGES FACED BY

WHISTLEBLOWERS IN INDIA

“The World will not be destroyed by those who do evil, but by those who watch them
without doing anything”- Albert Einstein

Whistleblower hotlines are a valuable tool for corporate governance and compliance,
but they are not without issues. Whistleblowers confront a variety of obstacles,
including fear of retaliation, a lack of protection, a lack of trust in the hotline, and a
lack of support from coworkers and supervisors. These obstacles must be addressed so
that whistleblowers feel safe and protected while revealing wrongdoing within their
organisations.

33
a). RETALIATION, PROFESSIONAL RISKS, AND PSYCHOLOGICAL
IMPACTS.

33
Jain, P., & Gupta, R. (2020). “Cultural and Systemic Barriers to Whistleblowing in India.” Indian
Journal of Corporate Governance.

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34
Whistleblowers play an important role in exposing corruption, fraud, and
malpractice in both public and commercial sectors. They serve as sentinels of
transparency and accountability, often jeopardising their careers, safety, and social
standing. While the Whistleblower Protection Act (WPA) of 2014 was heralded as a
watershed event for openness and good governance in India, the reality remains
gloomy. A decade after the Act went into effect, whistleblowers continue to confront a
slew of obstacles, ranging from direct retaliation to systemic apathy and bureaucratic
sloth.

35
There are multi-dimensional challenges faced by whistleblowers in India, despite
legislative efforts like the WPA. It explores legal, institutional, social, and
psychological barriers that continue to deter individuals from exposing wrongdoing,
and proposes areas where India can learn from global best practices.

1. Retaliation and Reprisal: A Culture of Punishment

The possibility of reprisal is one of the most immediate and serious challenges that
whistleblowers in India face.36 Individuals who disclose misconduct frequently face
direct and indirect retaliation, including as harassment, threats, surveillance, demotion,
forced transfers, character assassination, or even termination of job. In severe
circumstances, whistleblowers have been physically assaulted or murdered.

Numerous examples, such as the killings of Satyendra Dubey (2003), Lalit Mehta
(2008), and Amit Jethwa (2010), underscore the grave dangers whistleblowers face.
These high-profile cases serve as chilling reminders of the risks associated with
exposing systemic corruption. Although the WPA aims to offer protection against

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such retaliation, it has proven largely ineffective in preventing it, particularly when the
perpetrators are powerful public officials or politically connected individuals.

2. Fear of Consequences: Psychological and Economic Risks

Fear serves as a potent barrier. 37Many potential whistleblowers are hesitant to reveal
misconduct due to the risk of personal consequences. These include job loss, financial
insecurity, social isolation, defamation, or harm to their future career chances.
The emotional toll is huge.

Whistleblowers frequently suffer from anxiety, despair, and loneliness.

Whistleblowers' families are likewise subjected to harassment and shame, often more
severely than whistleblowers. Individuals are frequently left to fend for themselves in
the absence of comprehensive psychosocial support networks, navigating a harsh
environment without institutional assistance.

3. Lack of Awareness and Legal Literacy

A fundamental barrier to effective whistleblowing in India is a lack of public

awareness of the rights and safeguards provided by the WPA. Many employees,
particularly those in smaller towns or rural areas, are ignorant of the tools available to
them for reporting wrongdoing, or that the Act even exists.

This ignorance is exacerbated by a lack of training and institutional awareness.

Organisations, whether public and commercial, rarely educate their personnel on
whistleblower rules or anti-retaliation frameworks. As a result, many well-intentioned
people refrain from coming forward because they are afraid of the unknown or
mistrust the system.

37
“Whistleblowing in India”, Kochhar & Co.

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4. Inadequate Legal Protections under the WPA

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While the Whistleblower Protection Act, 2014, was intended to be a watershed
moment in India’s fight against corruption, it has several glaring limitations. For
instance:

 The WPA only covers public servants and workers of public sector
organisations. It completely ignores the private sector, despite countless
examples of corporate fraud (e.g., the Satyam case) demonstrating that
corruption is not limited to government agencies.
 Whistleblowers are not completely anonymous under the Act, making them
more vulnerable to identification and targeting.

 There is no clear time frame within which the competent authority must act,
which leads to delays and discouragement.
 The law is vague on issues like interim relief, compensation, or penalties for
retaliation.
 The WPA does not extend protection to family members, despite many
documented cases of relatives of whistleblowers being harassed or harmed.

Further, proposed amendments to the Act have been criticized for attempting to
weaken rather than strengthen the law, such as by introducing exclusions for matters
related to national security, which can be misused to silence whistleblowers.

5. Bureaucratic Delays and Procedural Hurdles

The process of filing a whistleblower complaint and seeking protection under the
WPA is cumbersome and riddled with bureaucratic red tape. 39The Act designates a

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"competent authority" to handle complaints, but this often translates into a lengthy and
opaque process with limited transparency or feedback.

Delays in resolving complaints not only irritate whistleblowers, but also put them at
risk. In many cases, irreversible damage has already occurred by the time action is
taken—or even noticed. Investigations might last months or years, during which
whistleblowers face reprisal or professional marginalisation.

6. Lack of Institutional and Peer Support

Whistleblowers are typically isolated in their workplace. Colleagues may withdraw

themselves out of fear, and superiors may see the whistleblower as a threat to the
organization's image or internal harmony.

The lack of peer support might be discouraging. Many Indian workplaces stress
loyalty over honesty, and speaking up is synonymous with treachery. There is little
institutional encouragement to come forward. To the contrary, the current culture
frequently inhibits whistleblowers, tacitly urging employees to remain silent in the
face of injustice.
Hierarchical systems and political involvement, particularly in government
organisations, make it even more difficult for lower-level employees to disclose
misconduct perpetrated by their superiors.

7. Social Stigma and the ‘Traitor’ Narrative

Another key issue that whistleblowers face in India is social stigma. Whistleblowers
are frequently referred to as40 "troublemakers," "traitors," or "attention seekers," rather

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than being praised for their bravery. This view is based on deeply ingrained societal
standards that promote compliance and discourage disagreement.

Whistleblowers are frequently accused of carrying out personal vendettas or pursuing

celebrity or financial gain. This poor representation may result in a loss of social
capital, strained relationships, and mental health problems. The repercussions are
sometimes amplified in rural or conservative areas due to close-knit communities and
reputational damage.

8. Limited Access to Legal Assistance

Navigating India's judicial system is notoriously tough, and whistleblowers sometimes

lack the financial resources or legal knowledge to adequately defend themselves.
Legal aid is often unavailable or insufficient, and many lawyers are hesitant to take on
whistleblower cases because of political sensitivity or potential retribution.
Even when whistleblowers are able to obtain legal counsel, the proceedings are time-
consuming and emotionally exhausting. Filing petitions, replying to counter-
allegations, and appearing in court on a regular basis all need financial and emotional
resources that many people do not have.

9. Risk of Counter-Accusations and Malicious Allegations

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Whistleblowers are routinely charged with making false or malicious accusations,
especially when the information they disclose implicates powerful individuals. In
many cases, FIRs (First Information Reports) are filed against them as retaliation,
frequently on unrelated allegations such as defamation, corruption, or violation of
confidentially.

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This technique not only discredits the whistleblower, but it also serves as a warning to
others who may take similar activities. Whistleblowers continue to be very exposed to
retaliatory abuse of the law in the absence of adequate legal protections against
counter-litigation.

10. The Private Sector: A Legal Blind Spot

One of the most obvious flaws in India's whistleblower structure is the entire
exclusion of the private sector from the WPA's jurisdiction. Corruption and
malpractice in the private sector have a direct influence on the public as privatisation
continues and private corporations play a larger role in public services (e.g.,
healthcare, infrastructure, education).
Cases such as the Infosys whistleblower complaint (2019), in which employees
exposed unethical accounting procedures, emphasise the importance of legal
protections beyond government bodies. However, without a legal mandate, private
companies are not required to provide secure reporting channels or whistleblower
protection.

b). LACK OF INCENTIVES AND ISSUES WITH CONFIDENTIALITY.

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India's attempts to tackle corruption and financial misconduct have grown over the
previous two decades, particularly since joining the Financial Action Task Force
(FATF) in 2006. As part of its efforts to combat money laundering, corporate fraud,
and economic crimes, India has implemented a number of legislative reforms and
enhanced the enforcement powers of major investigative authorities.

The Securities and Exchange Board of India (SEBI), the Directorate of Enforcement
(ED), and the Central Bureau of Investigation (CBI) have greatly increased their
efforts against corporate criminals and economic violators. This is evidenced by
modifications to basic legislation such as the 43Prevention of Money Laundering Act
(PMLA), 2002, the Prevention of Corruption Act, 1988 (amended in 2018), and the

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Companies Act, 2013. These reforms seek to increase transparency, improve
corporate governance, and hold individuals and corporations accountable for unethical
and illegal conduct.

Statistics demonstrate the efficacy of these regulatory initiatives. The number of

financial crime cases reported has risen dramatically, from 2.62 lakh in 2020-21 to
6.64 lakh in 2022—a startling increase of almost 150%. As of the past financial year,
the ED issued provisional attachment orders worth over ₹1 lakh crore under the
PMLA, seeking properties linked to criminal gains.

Despite this harsh enforcement climate, India's approach to fostering whistleblowing

—one of the most effective ways of detecting white-collar crime—remains restricted
and inadequate.

Limited Incentives for Whistleblowers: A Glaring Gap

Whistleblowers are widely recognised as the first line of defence against corporate
fraud and regulatory infractions on a global scale. Their revelations have the power to
establish moral business practices, enhance public service delivery, and save
governments billions of dollars. This is why several nations have put in place
whistleblower incentive schemes to incentivise insiders to provide important
information.

However, such incentives are still few in India. 44SEBI's Prohibition of Insider Trading
Regulations, 2015, is the only noteworthy framework that provides whistleblowers
with financial rewards. This rule allows for financial rewards for those who disclose
insider trading and stock market manipulation. In recognition of the significance of

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reliable disclosures in preserving the integrity of the capital market, SEBI updated its
regulations in 2021 and raised the maximum incentive to ₹10 crore.

This is the exception rather than the rule, though. Banking, healthcare, infrastructure,
and education are just a few of the many economic sectors that are equally vulnerable
to financial malfeasance, but the SEBI framework's purview is restricted to capital
markets. This sectoral restriction strengthens the argument for India to implement a
more thorough and cross-sectoral whistleblower compensation system.

People who contribute reliable, useful, and unique information that results in the
recovery of illegal gains or the prosecution of wrongdoers should be compensated
financially by the program. However, stringent measures to discourage malicious or
misleading reporting must be implemented in order to preserve the program's
integrity. People should face financial penalties or judicial punishment if they wilfully
mislead authorities.

Protection of Identity and Confidentiality

The danger of being exposed and facing reprisals is one of the main worries of
45
whistleblowers. Unfortunately, anonymity is compromised in India by procedures
that require the disclosure of personal information, such as those run by the
Competition Commission of India (CCI). Secure digital reporting platforms, witness
protection-style assistance in high-risk situations, and guaranteed secrecy are all
essential components of a strong incentive scheme.

Wherever possible, whistleblowers should be obliged to report through internal

channels in order to prevent undue strain on external regulators and to promote
responsible internal grievance redressal. The establishment of independent ethics and
vigilance committees capable of objectively evaluating complaints must be required of
organisations. External authorities should only be contacted by the whistleblower
when internal processes are biassed or fail.

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Applicability to Private Sector and NGOs

The Whistleblower Protection Act, 2014's primary drawback is that it only applies to
public employees and public sector projects, excluding the sizable private sector.
Since they frequently have direct access to insider knowledge about illegal activities,
private sector workers, contractors, and consultants must be included in any reward
system. Additionally, as non-profits and educational organisations are similarly
vulnerable to financial mismanagement and power abuse, they ought to be covered.

Standardisation and Oversight

46
Perhaps the Lokpal, SEBI, or a new Whistleblower Authority might serve as the
central regulatory agency overseeing the award program. In addition to developing
standard operating procedures, this committee is responsible for evaluating reward
claims and supervising corporate compliance. A mechanism that allows the public to
see how many tips are received, how many cases are looked into, and how many
incentives are given out might guarantee openness and public confidence in the
initiative.

A Strategic Move Toward Ethical Governance

47
The establishment of a systematic, all-encompassing whistleblower reward program
aims to foster a transparent culture in addition to providing monetary rewards. In order
to draw in international investment, maintain regulatory compliance, and uphold
company reputation, India will need to fortify its internal accountability systems as it
postures itself as a global economic leader.

Supporting those who risk everything to expose wrongdoing is even more important in
India because of its complicated sociopolitical environment. Many Indian
whistleblowers only ever obtain acknowledgement from outside sources, like the 2015

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Miceli, M. P., Near, J. P., & Dworkin, T. M. (2008). “Whistle-blowing in Organizations.” Routledge.

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Ramon Magsaysay Award given to Sanjiv Chaturvedi. Whistleblowers in the country
are far too frequently suppressed, disregarded, or penalised.

c). LACK OF SECURITY AND DEATH THREATS.

“The greatest threat to a whistleblower is not the exposure of truth, but the
abandonment by the institutions meant to protect them.”
— Trevor Timm, Executive Director, Freedom of the Press Foundation. As simple as
it could be said, if the government could not provide the security to the truth bearer,
the truth will smoke out like a thin air. In India, whistleblowers don’t just risk their
jobs — they risk their lives. The laws should not be implemented for the sake of the
papers cause its not only about the careers and its aspirations but it could up cost some
their life.

The predominance of baseless or malicious reports is a serious issue within the

whistleblowing framework that is frequently disregarded, despite the fact that
victimisation of whistleblowers is a serious concern that requires strong legal
protections. Sometimes, motivated by internal company problems or personal grudges,
unhappy employees will abuse whistleblower privileges by presenting unfounded
accusations. Such untrue statements can have disastrous effects on businesses,
damaging their hard-won reputation, undermining stakeholder confidence, and
resulting in large financial losses.

48
A notable example of this occurred in 2019, when Infosys, one of India’s most
reputed IT companies, was shaken by an anonymous whistleblower complaint. The
complaint, allegedly originating from an employee in the finance department, accused
the CEO, Salil Parekh, of bypassing internal review mechanisms and pressuring the
finance team to manipulate financial results to present inflated profits. The leak of this
letter to the media triggered widespread speculation and panic, leading to a sharp 16%
drop in Infosys’ share price on the same day. However, the company's Audit
Committee determined that the complaint was "without substantial merit" following a

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thorough inquiry. Even though the CEO was ultimately found not guilty, the harm to
the company's reputation and investor trust had already been done. This episode
highlights a serious weakness in the current legal system: even in cases where
intentionally false accusations cause quantifiable harm to the business, there is no
obvious way to hold people accountable.

It seems that the current system for whistleblowers, especially in India, is based on the
assumption that people who come forward with information do so in good faith.
Although this presumption shields sincere whistleblowers from reprisals, it ignores the
possibility of misuse. Businesses are exposed to reputational harm and market
instability since they lack particular legal protections against abusive whistleblowing.

This disparity leads to a policy conundrum, which is finding a delicate balance

between preserving the organization's integrity and protecting the whistleblower. On
the one hand, granting businesses excessive authority to react or censor disclosures
may stifle legitimate worries and promote a culture of fear. However, unrestrained
whistleblowing without accountability systems can lead to fraudulent reporting and
undermine corporate control. Companies may suffer financial and reputational losses
if resentful workers abuse these safeguards to target senior management or sow
discord inside the company.

Furthermore,49 many private and unlisted businesses are exempt from the necessity to
establish whistleblower or vigil systems, even if public firms and those outlined in the
firms Act of 2013 must. This results in a substantial regulatory void. By requiring
auditors to provide feedback on the availability of whistleblower channels, the
Companies Auditor's Report Order (CARO) 2020 seeks to solve this issue and provide
indirect accountability. How such systems should be put into place, tracked, and
evaluated, however, requires more clarification. Penalties for malicious
whistleblowing must be considered in future legislative initiatives, but they must be
tempered with enough safeguards to prevent true whistleblowers from being deterred.

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 d.) ORGANIZATIONAL AND CULTURAL BARRIERS TO
WHISTLEBLOWING.

Cultural conventions and beliefs influence how people view whistleblowing. There
are situations in India were speaking up against wrongdoing or questioning
established norms may be seen adversely due to the country's hierarchical systems and
widespread deference to authority. Corporations with a culture that supports
whistleblowers are more accountable, trustworthy, and behave ethically. When
workers feel encouraged and protected by their employers and the legal system, they
are more likely to follow moral guidelines and report misconduct. Because
whistleblowing can reveal systematic inequalities, discrimination, and violations of
fundamental rights, it can help advance social justice and the defence of human rights.
It enables under-represented people and groups to speak out against injustice and push
for reform.

In essence, an organization's official policy reflects its dedication to creating an

efficient whistleblower process. The fundamental goal of a whistleblower policy is to
detect hazards and mitigate them by utilising an effective system. Risks like
malpractice, fraud or corruption, criminal offences, etc., are present here. The
whistleblower faces a serious moral conundrum and must make a decision that could
jeopardise his career, relationships, and occasionally even his life. The act of blowing
the whistle carries major repercussions.

Among competing moral, legal, personal, and professional demands and choices, a
decision must be made. It is not a difficult decision for someone with high morals
because he is also willing to suffer the repercussions. Sharmila Chowdhary, a certified
radiographer, was sacked by her employer after she revealed that a significant amount
of NHS funds was flowing to consultants' own pockets instead of NHS patient care.
She was paid and won an interim relief hearing, but she lost her job and was
diagnosed with cancer, which the doctors attributed to her courageous fight against the
powerful and corrupt leadership.

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When their bosses do not listen to their concerns, people are willing to publicly call
out unethical or improper behaviour, as evidenced by recent incidents. Employers can

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no longer afford to use a "tick-box" approach to internal reporting since employee
expectations are rising.
Reporting channels are important to the risk and compliance programs of the most
successful businesses. Generally, they will provide a variety of reporting avenues,
training for staff, thorough investigation procedures, and stringent anti-retaliation
policies.

This is due to the fact that these organisations understand that more reports are
beneficial. They see their reporting channels as an early warning system against
cultural problems and illegal or unethical behaviour that might lead to penalties,
reputational harm, and even imprisonment. Now is the ideal moment for organisations
to embrace and promote a positive workplace whistleblowing culture, as more nations
make progress in strengthening their whistleblower protection legislation.

There are several ways to define whistleblowing. To put it simply, whistleblowing is

the practice of informing both internal and external parties about misconduct
occurring within a company. Reporting information to a source inside the company is
known as internal whistleblowing, whereas taking the information outside the
company, like to the media or authorities, is known as external whistleblowing. An
organisation, institution, or economy that practices good governance will report any
negative events that occur inside it. Whistleblowing, or the reporting of wrongdoing,
is not intended to harm the organisation; rather, it is intended to help expose
misconduct by one or more individuals that goes against the organization's interests or
ideals. In current era of globalisation, where economic interests take precedence over
all other values and customs, safeguarding the general public's interest from
significant corporate scandals has become crucial. Worldwide, one of the finest ways
to guarantee sound corporate governance is through corporate whistleblowing. A
whistleblower policy is seen as one of the fundamental components of corporate
governance.

One way to reduce the likelihood of anomalies and unethical behaviour in the
workplace is through organisational whistleblowing. Encouraging employees and
stakeholders who have the capacity to report abnormalities aids in obtaining

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 51
information that needs to be addressed right away. In corporations that take their
Code of Conduct seriously, strategies to encourage internal whistleblowing will be
developed. In terms of public whistleblowing, these procedures are non-existent, and
an anonymous whistleblower could not possibly come forward openly. Reporting to
the police or even using social media would be necessary for this, and both pose a
serious risk to a company's reputation. In certain cases, it is required to report the
matter to a regulator or a professional association.

More and more corporate wrongdoings are coming to light globally as a result of
whistleblowers' activities. Employees who utilise their right to free speech to expose
organisational power abuses, illegalities, or misconduct that goes against the public
interest are known as whistleblowers. 52Either internally or outside, they can reveal the
misconduct. By being honest about what is good and wrong, whistleblowing can be a
means of upholding and advancing integrity. It is a multifaceted strategy that
influences justice, upholds rights, and safeguards interests. Since whistleblowing
encourages sound corporate governance, which is crucial and vital for a company's
growth, every whistleblower policy should set forth a precise definition and process
for whistleblowing. Directors of all kinds of companies are required to show a strong
dedication to their moral and legal responsibilities when running their companies. In
addition to being held accountable for poor management, the management and
employees also have a need to behave properly. This is a result of the public's
attention being drawn to corporate governance, media initiatives, and the growing
interest in whistleblowing.

Even as organisational actors dominate modern social life, the law lacks the doctrines,
institutions, and regulatory tools necessary to effectively regulate corporate
organisations, making corporate governance standards more important than ever.
Because the corporate veil often prevents legal values from penetrating and, in fact,
from being imposed on the corporate entity, it is now essential to design and

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“Detecting and investigating corruption”.

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implement a dynamic corporate governance mechanism that protects the interests of
pertinent stakeholders without impeding the growth of enterprises.

e.) OVERALL IMPACT

Despite being a significant step in acknowledging the importance of whistleblowers in

India, the Whistleblower Protection Act of 2014 is still insufficient, underutilised, and
not sufficiently enforced. There is a pressing need for legal revisions to broaden the
Act's application to cover private sector workers, protect family members, preserve
confidentiality, and offer temporary respite and legal assistance.

Institutional and cultural change is also required. Governmental organisations,

academic institutions, and commercial businesses must encourage moral conduct and
awareness of whistleblowers. While civil society organisations can provide isolated
whistleblowers with support networks, the media must continue to play its role in
exposing injustices and safeguarding sources.

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In the end, safeguarding whistleblowers reflects the country's dedication to justice,
democracy, and openness and goes beyond personal security. Systemic corruption will
continue to be ingrained in India until it establishes an environment in which speaking
the truth is not frowned upon but rather encouraged, and whistleblowers will continue
to suffer in silence.

India is at a watershed. As the economy expands and financial crimes increase, the
nation's systems for safeguarding and promoting whistleblowers must change. A
carefully thought-out whistleblower incentive program that is based on international
best practices and customised for India's legal and cultural context has the potential to
revolutionise public and corporate accountability. It would promote the idea that
honesty is rewarded rather than punished in addition to acting as a deterrence to
wrongdoers.

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In doing so, India would move one step closer to realising the constitutional ideals of
justice, transparency, and good governance—principles that every democracy must
uphold.

India needs to protect corporate whistleblowers and expand the scope of a monitoring
system to include large private companies, experts say. Companies that receive public
deposits, listed organisations, and those with bank or public financial institution debts
above Rs 50 crore are now the only entities required by the Companies Act to have a
monitoring framework in place to handle whistleblower accusations. Corruption and
fraud in a company's internal transactions can be prevented by creating clear and
effective policies and ensuring that they are properly implemented. Whistle-blower
policies must ensure that not only the company’s interests are secured, but also that a
chain of free communication is built, where employees are not dubious to asseverate
their grievances regarding their internal organization. The four key tenets to bear in
mind while establishing appropriate whistle-blowing policies are: (i) protect and
anonymize the whistle-blowers; (ii) give the alleged wrongdoer a fair hearing; and (iii)
ensure an expeditious legal analysis to assess regulatory and disclosure obligations.

Companies are required to indicate in their annual reports how many whistleblower
complaints they have filed and how many of those complaints have been addressed.
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Through the corporations (Auditor’s Report) Order, 2020 (CARO 2020), the
Ministry of Corporate Affairs (MCA) mandated that corporations submit to the
auditor any whistleblower complaints and the due diligence that the company has
conducted in order to improve transparency and governance.

The mechanism's performance also depends on how well-informed personnel are

about it, through training and awareness campaigns, so they may report any
misbehaviour or wrongdoing. It is equally crucial to create the assurance that a
whistleblower's identity will remain private and that they won't be harassed or
victimised.

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This mechanism is getting stronger and stronger. Strong whistleblower policies
encourage staff members to disclose any misbehaviour or wrongdoing that may come
to their attention. While preserving the company's reputation, it aids in upholding an
ethical workplace.

“The problem is not the lack of laws to protect whistleblowers, it is the lack of
political will to enforce them.”— Annie Machon, former MI5 intelligence officer
and whistleblower.

Legal ramifications may result from false accusations or violations of confidentiality

agreements. When faced with threats and reprisals, they frequently lack the support of
friends, family, and coworkers. Employability may suffer as a result of
whistleblowing because of damaged reputations and industry blacklisting.

In conclusion, strengthening the whistleblowing ecosystem in India demands a more

nuanced approach—one that shields truth-tellers without allowing the system to be
weaponised for personal gain.

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CHAPTER IV- ROLE OF WHISTLEBLOWERS IN COMBATING
FRAUD

“Fraud thrives in silence. Whistleblowers break that silence with truth.”

Deliberate deception or misrepresentation meant to obtain an unfair or illegal gain is

referred to as fraud. It can take many different forms, such as corporate, financial,
governmental, or personal, and frequently entails manipulating data, fabricating
documents, or hiding truths. Fraud erodes public confidence, warps markets, and can
result in large financial losses as well as harm to one's reputation. It could involve tax
evasion, insider trading, embezzlement, or accounting errors in business contexts.
Mechanisms including audits, regulatory supervision, and whistleblower disclosures
are essential in identifying and preventing fraud because it can be difficult to detect
due to its frequently complicated and clandestine nature.

a). UNCOVERING CORRUPTION IN PUBLIC SCHEMES

Overall, the score indicates that during the past ten years, corruption control has either
remained the same or gotten worse in the majority of countries. In 2023, the India
Corruption Perceptions Index was 40 points.

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When those in positions of authority act dishonestly, it's called corruption. The

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inclination to use public office for personal gain is the first step.
Furthermore, it is regrettable that many people now consider corruption to be a habit.
Corruption has become so ingrained that it is now accepted as the standard. Therefore,
corruption suggests that ethics have failed.

Many of India's institutions responsible for enforcing laws and regulations are either
weak or compromised. This includes law enforcement agencies, the judiciary, and
oversight bodies. Weak institutions can fail to hold corrupt individuals accountable
and may even facilitate corruption.

Further corruption may be encouraged by the impression of impunity brought about

by the insufficient punishment of corrupt officials. People are more inclined to engage
in corrupt activities when they think they can get away with it.

People may be discouraged from revealing wrongdoing if whistleblowers are not

given enough protection. Potential whistleblowers may be silenced out of fear of
reprisals, which fosters corruption.

Reasons for the Prevalence of Corruption in Civil Services:

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 Politicisation of Civil Services: High levels of corruption are greatly
increased when civil service positions are exchanged for bribes or utilised as
rewards for political support.

 Lower Wages: Lowering civil servants' pay in comparison to private sector

workers. To make up the disparity in pay, some workers can turn to accepting
bribes.

 Administrative Delays: Because ordinary persons are forced to grease the

palms of corrupt officials and authorities in order to speed the clearing of files,
delays in file clearance are the primary cause of corruption.

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  Colonial Legacy of Unchallenged Authority: In a society which worships
power, it is easy for public officials to deviate from ethical conduct.

 Weak Enforcement of Law: Various laws have been made to curb the evil of
corruption but their weak enforcement has acted as a hindrance in curbing
corruption.

Exposing corruption and encouraging accountability in Indian governance have been

made possible in large part by whistleblowing. Though there are still issues with
implementation and enforcement, the legal framework governing whistleblowing has
evolved over time. The risks that whistleblowers confront are high and include legal
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ramifications, social exclusion, and retaliation. Civil society involvement, media
coverage, and organisational climate are some of the factors that affect
whistleblowing. Improving the effectiveness of whistleblowing in India requires
bolstering protection for whistleblowers, raising awareness, and creating an
accountable culture.
One effective way to improve accountability and governance in India is through
whistleblowing. The act of exposing corruption and unethical activities is nevertheless
essential to ensuring that organisations operate in the public interest, even while
whistleblowers suffer serious risks. The importance of whistleblowing in advancing
accountability, openness, and sound governance in India is highlighted by this study.
Even if the legal system and whistleblower protections have improved recently, much
more needs to be done to address the difficulties whistleblowers experience and foster
an atmosphere that is more encouraging for disclosing misconduct. Through the
implementation of the recommendations presented in this report, India may step up its
efforts to fight corruption and advance moral leadership.

b). CONTRIBUTIONS OF WHISTLEBLOWERS IN FRAUD DETECTION

AND DETERRENCE.

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Employee whistleblowing is crucial to exposing corporate malfeasance. In order to
promote the willingness to report and to uncover and discourage misconduct, recent
laws and international policy suggestions seek to facilitate whistleblower protection.
We investigate these problems in a lab experiment that is guided by theory. As
anticipated, more misconduct is reported when whistleblowers are protected.
Nevertheless, the experiment fails to produce the anticipated gains in detection and
deterrent. The primary reason for this is that when protection is in place, prosecutors
are less likely to look into a report.

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Employee whistleblowers are crucial in exposing fraud, which is a significant
problem in both developed and developing nations. Indeed, safeguarding employee
whistleblowers is a top priority on the global anti-corruption agenda of the OECD, the
Council of Europe, and the G20 group. In fact, some nations, like the United States
and the United Kingdom, already have laws protecting whistleblowers.

Employee whistleblowers undoubtedly deserve robust protection. Current

whistleblower protection measures may also result in dysfunctional responses in the
form of unfounded allegations, according to a number of academics, practitioners, and
law enforcement organisations. Low-performing employees may be more inclined to
file claims in order to protect themselves from negative actions like termination,
according to certain arguments.

Given the global scale of corporate fraud and the importance of employees in
uncovering it, whistleblower protection plays an instrumental role. To achieve the
aims of improved reporting, detection, and deterrence of misbehaviour, the effects of
legal whistleblower-protection policies need to be well understood.

A key component of preventing fraud in organisational contexts is the whistleblower

system. The analysis of the data revealed that the whistleblowing mechanism had a
54.3% influence on the avoidance of fraudulent activities. The effectiveness and
impact of whistleblowing as a vital tool in the fight against fraudulent activity are
shown by this noteworthy percentage. According to the theoretical framework
previously stated, fraud is defined as any illegal act characterised by aspects of deceit,

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concealment, or abuse of trust. The results are within this paradigm. Notably, physical
force or threats are not always necessary for such acts to occur. Instead, fraud
frequently refers to a broad range of dishonest actions taken by people or
organisations in an effort to generate money, acquire goods or services, avoid paying,
or obtain advantages for their businesses or personal lives.

This concept, which is backed by 59The Institute of Internal Auditors (2017), places
fraud in a larger framework where it can occur covertly and subtly, making effective
detection techniques like whistleblowing even more crucial. By identifying,
discouraging, and eventually stopping fraudulent activity before it becomes a bigger
crisis that could seriously harm an organization's finances and reputation,
whistleblowing offers a proactive strategy.

Scholars have long highlighted the importance of organisational governance and

whistleblowing. Bhal and Dadhich (2011) point out that whistleblowing is an essential
tool for identifying and correcting unethical behaviour and organisational mistakes.
This perspective sees whistleblowing as a preventative strategy that enables members
of the organisation to preserve integrity and moral principles rather than only a
reactive one. By encouraging staff members to report misconduct, it strengthens
accountability by establishing an internal system of checks and balances.

The whistleblowing mechanism was found to be the most successful fraud prevention
strategy by the Association of Certified Fraud Examiners (ACFE), which supported
the study's conclusions in a 2016 report released by its Indonesian chapter. With a
focus on both detection and prevention, the research offered an anti-fraud strategy that
was customised for both conventional and Islamic banks. The two main components
of a thorough fraud control system are detection and prevention. Numerous activities
are part of this system, including the creation of monitoring tools, the execution of
surprise audits, and the creation and use of whistleblower regulations.

These tactics are intended to dissuade potential offenders by increasing their perceived
risk of detection, in addition to exposing already-existing fraudulent activity. A

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whistleblower system's very existence sends a strong message that unethical activity
will not go unreported and will be taken seriously.

The consequences of an efficient whistleblower system are numerous and extensive. It

promotes an open and trustworthy culture in addition to organisational advantages. It
promotes the involvement of internal staff members and members of the public in
reporting questionable or immoral behaviour. The ethical climate of an organisation
can be drastically changed by this cultural transition from silence and complicity to
transparency and honesty. It gives people the ability to take accountability and behave
morally and legally, which lessens the opportunity for dishonest behaviour to thrive.

The Komite Nasional Kebijakan Governance (2008) states that the quantity of fraud
instances that are discovered as a result of a whistleblowing system and the
promptness of the actions that follow the reports are indicators of the system's
efficacy. Whistleblowing enables speedier reactions and earlier intervention than
traditional audit techniques, which can need a significant investment of time and
assets and might not always reveal internal malfeasance. Because of their close
proximity to operational processes, employees are frequently the first to notice
abnormalities. This positions them uniquely to report misconduct, making internal
whistleblowing a highly valuable resource.

This is corroborated by data and research that indicates a sizable percentage of fraud
instances are discovered through employee tips rather than official audits or
investigations. This data emphasises how important whistleblowers are to risk
management and corporate governance.

Moreover, this study’s findings align with a robust body of previous research that has
similarly concluded that the whistleblowing system significantly affects fraud
prevention. Notable studies by Wardana et al. (2017), Atmadja et al. (2019),
Nurfadillah (2018), Sabdelino (2016), Yuniarti (2017), Ramdhani (2018), Pamungkas
et al. (2017), and Purnamawati (2018) all support the assertion that whistleblowing
systems contribute positively to preventing fraud within various institutional and
corporate settings.

It's interesting to notice that although Atmadja et al. (2019) are mentioned as one
study whose findings support this one, their work also shows some discrepancies with
the present findings. This draws attention to a crucial component of scholarly

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research: the availability of varied viewpoints and findings based on the study's
methodology, sample, or setting. These disparities serve as a reminder that, although
broad trends may be seen, a variety of factors, such as organisational culture,
whistleblower legal protections, and the strength of internal reporting procedures, can
affect fraud prevention and the efficacy of whistleblowing systems.

The institutional environment and national regulatory framework are important in this
regard. Strict legal protections that prevent retaliation are necessary for a
whistleblowing system to operate as best it can. Employees may be reluctant to report
malfeasance in the absence of such protections, even if they have important
information. Legal and policy frameworks must therefore be regularly reinforced to
safeguard whistleblowers and guarantee that their concerns are duly considered and
dealt with.

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Moreover, the ethical tone and organisational leadership at the top also have a
significant influence. When leaders publicly encourage whistleblowing and provide an
example of moral behaviour, staff members are more likely to feel secure and
encouraged to disclose unethical activity. This top-down dedication to morality and
honesty can greatly improve the whistleblowing system's legitimacy and efficacy.

It takes more than merely setting up a hotline or suggestion box to effectively deploy a
whistleblowing system. Training, awareness campaigns, and communication tactics
are necessary to inform staff members about fraud, how to report it, and their legal
safeguards. Organisations must also make sure that the system is easily accessible,
anonymous when needed, and run by unbiased staff members who have received the
appropriate training to quietly and properly investigate concerns.

c). ETHICAL CONSIDERATIONS AND PUBLIC PERCEPTION OF

WHISTLEBLOWERS.

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A sincere and committed government servant in the public works department
discovers egregious errors in the road construction in border regions. Further inquiry
revealed a connection between local contractors that use subpar materials for building
and other officials. The route is intended to serve the military after construction is
complete. It would help with national security and make it easier for troops to move
during an emergency. However, bringing up the irregularities with higher authorities
or exposing them in the media would cause the project to be delayed, and he might be
threatened with reprisals from related stakeholders. So, now what would be the correct
solution to this?

Protection of whistleblowers vs. National security: Strike a balance between

protecting those who reveal misconduct and making sure the government is held
accountable while taking national security risks into account.

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Media responsibility vs. Ethical Information handling: The media has a moral
obligation to inform the public about government actions while responsibly handling
delicate or harmful information.

Information Ethics concerns with moral issues arising from the creation, collection,
organization, access, and use of information arising out of whistleblowing.

Public right to information vs. Government need for confidentiality: Balance

between citizens' right to know about government's actions and the government's
necessity to uphold confidentiality in certain matters.

Duty of loyalty vs. Moral obligation: Conflict between an employee's duty to their
employer and their moral obligation to report wrongdoing.

Protection vs. Accountability: Ethical considerations in protecting whistleblowers

from retaliation and Ensuring accountability for false or malicious reporting.

Actions related to whistleblowing are motivated by ethical considerations. The moral

obligation to reveal wrongdoing and organisational loyalty are two ethical

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conundrums that whistleblowers frequently encounter. Utilitarianism, an ethical
theory that emphasises the greatest good for the greatest number of people,
encourages whistleblowing when it benefits the public, even if it goes against
organisational loyalty.

Politics, society, and culture all have an impact on how the public views
whistleblowers. Others see whistleblowers as traitors or troublemakers, while others
see them as brave truth-seekers. Public opinion and governmental responses can be
influenced by how whistleblowers are portrayed in the media, underscoring the
connection between public discourse, media, and whistleblowing.

Previous studies on public perceptions towards whistleblowers:

Public Attitudes towards Whistleblowing: Examining the Role of Culture and

Legal Frameworks (Smith et al., 2018): This study examined how legal frameworks
and cultural norms affect how the public views whistleblowers in various nations. The
results showed that opinions about whistleblowing varied greatly, and that views were
greatly influenced by cultural influences.

Media Framing of Whistleblowers: A Comparative Analysis of Newspaper

Coverage (Jones & Patel, 2016): This research studied how whistleblowers are
portrayed in newspapers across several nations, looking at how various frames—such
as victimisation, treachery, or heroism—affect public opinion. The public's perception
of whistleblowers is greatly influenced by media framing, according to the study.

The Influence of Organizational Culture on Whistleblowing Intentions: A Cross-

Cultural Comparison (Chen & Okumura, 2017): This cross-cultural study examined
the ways in which corporate culture affects workers' motivations to report unethical
activity. The results indicated that whistleblowing intentions are greatly influenced by
organisational elements, including perceived support for whistleblowing and the
ethical atmosphere.

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Whistleblowing in India: A Study of Attitudes and Behaviours (Kumar & Singh,
2019): This study examined public attitudes towards whistleblowing in India, focusing
on factors such as social norms, legal protections, and perceptions of risk. The
research identified cultural barriers and fears of retaliation as significant obstacles to
whistleblowing.

Perceptions of Whistleblowers in the Workplace: A Qualitative Study Brown &

Horvath (2015): This qualitative study examined how employees in different
organisational contexts see whistleblowers. The results showed that opinions of
whistleblowers were complicated and influenced by a number of variables, including
perceived goals, organisational loyalty, and perceived influence on workplace
dynamics.

The significance of organisational, legal, and cultural elements in influencing attitudes

and actions is highlighted by these earlier studies, which offer insightful information
about the dynamics of public perceptions of whistleblowers. To comprehend the
intricacies of whistleblowing and create plans to encourage moral conduct and
responsibility in society, more study in this field is necessary.

d). CASE STUDIES OF HIGH-PROFILE WHISTLEBLOWER-LED

INVESTIGATIONS

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International whistleblowers have made headlines in India during the past ten years,
including Frances Haugen, Julian Assange, and Edward Snowden. Nonetheless, India
has its own roster of whistleblowers who, frequently at the expense of their lives, have
played a crucial role in recent years in bringing to light significant corruption cases
and high-profile national scandals.

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Six prominent Indian whistleblowers are highlighted in this section; their tales
exemplify the bravery, selflessness, and hardship that come with whistleblowing in
India. In addition to highlighting the significance of accountability, their actions also
highlight the pressing need for strong whistleblower protection laws.

1. Satyendra Dubey: A Voice Silenced Too Soon

In contemporary India, one of the first and most terrible instances of whistleblowing is
the case of Satyendra Dubey, an officer in the Indian Engineering Services (IES). He
was assigned to supervise a portion of the Aurangabad-Barachatti segment of NH 2 as
a project director for the National Highways Authority of India (NHAI). This section
is an essential part of the Golden Quadrilateral Project, a major infrastructure project
led by the then-prime minister Atal Bihari Vajpayee.

During his assignment in the Koderma area of Jharkhand, Dubey encountered

pervasive corruption in the execution of this massive highway project. His reports
resulted in the suspension of three engineers and revealed financial irregularities and
poor contractor work. Sadly, his letter was not kept anonymous even though he
requested anonymity. He also wrote to the Prime Minister's Office, exposing
widespread corruption and contractor collaboration.

On November 27, 2003, Dubey was killed as he arrived in Gaya after returning from a
wedding in Varanasi. Outrage across the country erupted when his driver found his
dead laying close to the A.P. Colony. His murder, which occurred shortly after he
came forward with information about corruption, raised awareness of the dangers that
people who expose wrongdoing face. A London-based group called Index on
Censorship honoured him posthumously with the "Whistleblower of the Year" award,
solidifying his reputation as a martyr for openness and responsible leadership.

2. Shanmugam Manjunath: Fighting Fuel Adulteration with Integrity

In India, computer science engineer Shanmugam Manjunath, a Grade "A" officer with
the Indian Oil Corporation (IOC), became another potent figurehead for
whistleblowing. When Manjunath was employed in Uttar Pradesh, he firmly opposed
the sale of tainted petrol. He closed two petrol stations in the Lakhimpur Kheri district

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and took action to guarantee compliance after he found unlawful activity there. But he
launched surprise raids when these pumps, in flagrant defiance, restarted operating
within a month.

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The body of Manjunath, who was shot six times in Gola Gokarannath on November
19, 2005, was discovered in the backseat of his vehicle while two petrol station
personnel were operating it. Demands for justice and worldwide criticism followed his
murder, which served as a terrifying reminder of the dangers whistleblowers face. The
message was clear: maintaining integrity in a corrupt system can be life-threatening.
However, the ensuing legal proceedings resulted in the conviction of multiple persons.

In Manjunath’s memory, the IIM alumni and others established the Shanmugam
Manjunath Foundation, dedicated to promoting transparency and ethical behaviour in
public and corporate life. His legacy continues to inspire those fighting against
institutionalized corruption.

3. Lalit Mehta: Champion of the Right to Food

An engineer by trade, Lalit Mehta was a key figure in grassroots activism and was
connected to the Right to Food movement in Jharkhand's Palamu area. He was
dedicated to uncovering corruption in social programs, especially the Mahatma
Gandhi National Rural Employment Guarantee Act (MGNREGA), which was created
to provide infrastructure and jobs in rural areas.

Together with activists and economists, Mehta led a social audit of the program to
evaluate its actual execution. He discovered significant anomalies during his audit,
such as funding misappropriation, non-execution of approved projects, and ghost
beneficiaries. But Mehta was killed before he could finish analysing the entirety of his
findings. On May 15, 2008, he was viciously attacked and killed while riding his
motorbike through the area of Chhatarpur.

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The social activist community was rocked by his passing, and questions were raised
about the safety of people opposing influential local interests. Even if official
investigations had trouble establishing unambiguous responsibility, Mehta's work
strengthened the usefulness of citizen-led audits by laying the foundation for further
examination of MGNREGA and related programs.

4. IPS Officer Narendra Kumar Singh: The Martyr Who Took on the Mining
Mafia

Narendra Kumar Singh, an Indian Police Service officer, is a prime example of the
lethal intersection between political-criminal networks and illicit mining. In Madhya
Pradesh's Morena district, which is well-known for its sand mining operations, Singh
was assigned in 2012. An important building material, sand has frequently been
illegally harvested, causing environmental damage and enormous unreported profits.

Singh aggressively targeted the sand mafia in spite of growing threats, exposing a
sizable illegal mining network that was functioning in the area. Following a tip on a
tractor carrying illegally mined stones, Singh made an attempt to stop the truck on
March 8, 2012. The motorist responded by running him over, instantly killing him.

Singh's death served as a reminder of the serious dangers associated with taking on
powerful political mafias. Outrage across the country followed his death, and requests
for improved protection for law enforcement and civil personnel engaged in anti-
corruption and anti-mafia operations were redoubled.

5. Sanjiv Chaturvedi: Whistleblowing with Bureaucratic Resolve

An Indian Forest Service officer from the 2002 class, Sanjiv Chaturvedi is well known
for his tenacious attempts to combat corruption in the realm of forest administration
and, subsequently, in the healthcare industry. When he discovered that contractors
working on the Hansi-Butana canal project in Uttarakhand were unlawfully destroying
trees, he started his whistleblowing career. Despite being harassed and transferred
frequently, Chaturvedi never wavered in his dedication to environmental preservation
and openness.

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His most well-known position was held from 2012 to 2016 when he served as the All-
India Institute of Medical Sciences' (AIIMS) Chief Vigilance Officer (CVO). He
discovered and looked into about 200 corruption instances in this capacity, including
financial irregularities involving high managers and senior doctors travelling abroad
without authorisation.

Among the several honours he received for his dedication to institutional integrity was
the Ramon Magsaysay Award for Emergent Leadership. His continuous service as
Uttarakhand's Chief Conservator of Forests is evidence of his unwavering
commitment to public service, and his work exposed the structural obstacles
whistleblowers encounter in bureaucracy.

6. Vijay Pandhare: Exposing the Irrigation Scam in Maharashtra

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In 2012, Vijay Pandhare, a chief engineer in the Maharashtra Water Resources
Department, gained widespread notoriety for exposing significant anomalies in the
irrigation projects in the state. Concerning unreported expenses and poor planning in
irrigation projects around the state, Pandhare wrote directly to the Chief Minister.
The things he disclosed were astounding. Despite spending Rs 120 billion on lift
irrigation schemes, 99 percent of the 227 projects were non-functional, he noted. Ajit
Pawar, the deputy Chief minister in charge of water resources, resigned as a result of
his whistleblowing, which set off a political earthquake.

The way that corruption and administrative indifference can undermine vital public
infrastructure was brought to light by Pandhare's revelations. In contrast to many other
whistleblowers who experienced assault, Pandhare was rather secure, but he still had
to deal with bureaucratic animosity and attempts to discredit him. Because of his
bravery, public spending has come under closer examination, and the need of
responsible authorities in advancing good governance has been reaffirmed.

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 e). CASE STUDY OF THE ONGOING CASE OF OPEN AI
WHISTLEBLOWER SUCHIR BALAJI.

Coming up from one of the most powerful countries, having the most reliable laws for
the whistleblowers’ protection, one of the shocking and recent biggest case.

Known for playing a crucial part in the development of ChatGPT, one of the most
sophisticated generative AI tools, 26-year-old Suchi Balaji, a former researcher at
Open AI, turned whistleblower and raised grave concerns. on how AI training
techniques affect morality and the law. Questions concerning the pressure and
difficulties faced by those who dare to speak out against strong companies have been
raised by his public condemnation of OpenAI's alleged copyright violations and his
involvement in ongoing 65legal battles against the company.

Suchir Balaji, was found dead in the late November 26, 2024, in his San Francisco
apartment, after friends raised concerns about his well-being. Responding to welfare
checklist at his lower haight residence around 1P.M., police discovered his body.

According to the report, Suchir was alone himself when he passed away, and the
OCME forensic study revealed no additional wounds or bruises on his body, nor any
indications of forced entrance. The firearm discovered at the incident was bought and
registered in January 2023 under Mr. Balaji's name. Upon examining the desktop
computer, searches for brain anatomy were found. Additionally, Mr. Balaji's mother's
witness statement revealed that he had been under stress as a result of leaving his
work. Other than a self-inflicted gunshot wound to the head, the SFPD could find no
information or evidence that Mr. Balaji died. SFPD considers this case closed and will
only reopen the criminal investigation if there is a basis for a chargeable offence. “The
statute of limitations has not expired,” the report states.

The SFPD discovered Suchir's DNA on the gun that killed him while conducting their
investigation. Balaji's hands had distinctive gunshot residue particles, according to an

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examination of the gunshot residue kit. Poornima Ramarao and Balaji Ramamurthy,
Balaji's parents, maintain that their son's death was not a suicide and that foul play
was involved. After resigning from his position as a researcher at Open AI, Suchir
exposed the company's purported infringement of copyright laws. According to his
parents, he was killed as payback for his whistleblowing efforts. Although the 26-
year-old whistleblower's death was determined to be suicide, it follows the deaths of
other whistleblowers connected to the massive aircraft manufacturer Boeing this year.
Joshua Dean, another Boeing whistleblower, supposedly died of illness and infection,
while John Barnett was declared dead by suicide.

Now, following extensive research on India's FEW laws and their limited ability to
protect their population. This is the story of an innocent person being murdered in a
country with strict laws "for protection of whistleblowers."
This ultimately leads to a reaffirmation of the fact that Indian laws require a great deal
of work to be implemented; they are not legally binding if they only exist on paper.
Even if a nation has the most advanced legal system, nothing can be done to make it
operate in practice if it is not properly implemented or investigated.

Whistleblower protection legislation is a delicate framework. The truth will be

presented in fragments, like shattered glass, if it is not handled carefully. It is the
responsibility of both the government and the people to keep the money and power in
check. Despite this, the government is heavily involved in protecting the same. If this
poor management and execution persist, the pursuit of truth will only result in the loss
of lives.

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CHAPTER V- STRATEGIES TO ENHANCE WHISTLEBLOWER
ENGAGEMENT

"Whistleblowers will speak when silence no longer feels safe—

but they’ll rise stronger when truth is welcomed, not feared.
Build a culture where courage finds a home,
and every voice for justice echoes without echoing back harm."

a). POLICY RECOMMENDATIONS FOR STRENGTHENING LEGAL

PROTECTIONS.

In order to keep organisations accountable and transparent, whistleblowers are

essential. However, they frequently run serious risks, like as retaliation, which may
discourage people from coming forward with misbehaviour reports. In light of this,
the WPAC report provides best practices for creating an environment that promotes
whistleblowing while protecting people from negative outcomes.

Key Recommendations

1. Establish Clear Anti-Retaliation Policies

Establishing and distributing clear policies that forbid retribution against

whistleblowers is a good idea. These guidelines must define retribution, list activities
that are forbidden, and spell out the penalties for retaliating.

2. Implement Confidential Reporting Mechanisms

Employers should offer safe and private avenues for staff members to voice concerns
in order to promote reporting. This includes designated ombudspersons, internet
portals, and anonymous hotlines.

3. Conduct Regular Training and Awareness Programs

Employees should get regular training on their rights and duties with regard to
whistleblowing. Managers and supervisors should also learn from these programs the

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value of non-retaliation and proper report handling techniques. clearance of the
environment.

4. Ensure Prompt and Thorough Investigations

Organisations are required to launch an unbiased investigation as soon as they receive

a report. Investigators ought to be qualified experts that can manage private data and
uphold secrecy at all times.

5. Monitor and Address Retaliation

Companies should keep an eye out for indications that whistleblowers are being
targeted for retaliation. Corrective steps must be done right away if retaliation is
suspected; these may include disciplinary actions against the offenders and
compensation for the harmed parties.

6. Foster a Supportive Organizational Culture

An organisational culture that promotes moral behaviour and candid communication

should be fostered by leadership. Integrity in the workplace can be emphasised by
praising and rewarding moral behaviour.

7. Provide Support Resources

Organizations should offer support services to whistleblowers, such as counselling or

legal assistance, to help them cope with the stress and potential repercussions of
reporting misconduct.

8. Regularly Review and Update Policies

Anti-retaliation policies and procedures should be periodically reviewed and updated

to ensure their effectiveness and alignment with current laws and best practices.

9. RTI

RTI should collaborate with the Whistleblowing Protection Act to provide

comprehensive rules that specify when an information request may be denied for
national security reasons. But when it comes to legislation protecting whistleblowers,
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they don't consider things from the perspective of the whistleblower. The state is
obviously responsible for achieving a balance between the rights of whistleblowers
and what should be considered national security, as well as for implementing policies
that foster a positive link between its security and whistleblowing laws.

10. Role of Technology in Enhancing Transparency

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Technology can play a significant role in improving the RTI process. For instance:

 Online portals can be developed for easier submission of RTI requests.

 Mobile applications can help citizens track their requests and receive updates.
 Data analytics can be used to identify trends in information requests, helping
to address common concerns.

The RTI Act is a powerful tool for citizen empowerment, but its full potential is yet to
be realized. Addressing the challenges of awareness and resistance is crucial for its
success.

11. International Best Practices

Taking inspiration from global models, including the US and EU, might yield
important lessons about successful whistleblower protection laws. Implementing best
practices, such as thorough anti-retaliation policies and strong confidentiality
safeguards, can improve the Indian framework's efficacy. More successful
international whistleblower protection initiatives may result from working with
international organisations to standardise practices and exchange best practices.

b). ORGANIZATIONAL MEASURES TO FOSTER A WHISTLEBLOWER-

FRIENDLY CULTURE.

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Establishing transparent and easily available reporting channels, educating staff
members on the policy and procedures, encouraging an environment of honesty and
integrity, and providing robust protection against reprisals are all ways to establish a
culture that is welcoming to whistleblowers. Assuring whistleblowers' anonymity and
secrecy, offering a variety of reporting channels, and consistently assessing and
enhancing the whistleblower system are also essential.

Here's a more detailed breakdown of key organizational measures:

1. Establish Clear Whistleblowing Policies and Reporting Channels:

 Create a thorough policy that explains the definition of whistleblowing, the

reporting procedure, and the safeguards available to those who come forward.
 To accommodate varying preferences, offer a variety of reporting channels,
such as secure email, hotlines, and in-person reporting to designated persons.
 Ensure that all staff members have simple access to and comprehension of the
policy and reporting procedures.

2. Foster a Culture of Openness and Integrity:

 Encourage a work environment where staff members can voice issues without
worrying about reprisals.
 Set a good example by acting morally and committing to openness at the
highest level.
 Encourage staff members to share their opinions and give them a way to do so.

3. Train Employees and Managers:

 Conduct frequent training sessions regarding the whistleblower policy, its

procedures, and the significance of disclosing malfeasance.
 Employees should be informed of their rights and obligations as
whistleblowers.
 The Managers should receive training on how to properly handle
whistleblower allegations and maintain anonymity.

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4. Ensure Protection Against Retaliation:

 Create a robust non-retaliation policy that protects whistleblowers from

unfavourable treatment.
 Offer resources and assistance, such as legal advice and mental health help, to
whistleblowers who are the targets of reprisals.

5. Implement Secure Reporting Channels and Systems:

 Invest in digital systems that are safe and easy to use for reporting
misbehaviour.
 Ensure whistleblowers remain anonymous and confidential.
 Offer resources that make the process of investigation and follow-up more
efficient.

6. Continuously Monitor and Improve:

 Assess the whistleblower system's efficacy on a regular basis and make any
adjustments.
 Keep abreast of changing laws and industry best practices for protecting
whistleblowers.
 To show that reports are taken seriously, share the results of investigations
and the steps that were taken.

By implementing these measures, organizations can create a whistleblower-friendly

culture that encourages employees to report misconduct, protects whistleblowers, and
fosters a more ethical and accountable workplace.

7. Develop a robust, inclusive whistleblowing programme:

Implement a program and policy for whistleblowing.

The policy will incentivise people to express their concerns. It should outline the
process for voicing concerns, describe the next steps, and inform individuals about the

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safeguards in place to prevent retaliation against those who come forward with
information about their concerns.

Employees will see that the organisation is prepared to listen when they are ready to
speak up if the program is developed to include clear, thorough investigation
procedures and confidential reporting channels.

It is imperative that the strategy and program be communicated, and both the senior
and intermediate management teams should fully "buy in." It will be easier to foster a
healthy speak-up culture if you set the correct tone.

8. Train people:

Training can take many forms, but as a bare minimum it should include:

 A summary of the ethical standards expected of employees

 How (and why) the reports can be raised about breaches of these standards

 How reports will be handled and processed

 How those who speak up will be protected

The EU Whistleblower Protection Directive would mandate that companies with

headquarters in EU Member States provide their staff with training on their reporting
rights. Additionally, proper training should be implemented for those who are likely to
handle or receive whistleblowing complaints.

Speaking up can be intimidating, especially when it involves a coworker. Educating

people on how whistleblowers would be shielded from reprisals will help allay their
fears, which may encourage more reporting and keep them from venting their
concerns to third parties.

In training, case studies can also be quite effective.

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By showing what happens when a report is raised and what happened as a direct result
of it, it is possible to dispel much of the fear and uncertainty that surrounds speaking
up.

9. Respond to every report:

All reports, regardless of their nature, should be acknowledged and addressed. People
will see that their contributions are appreciated and acknowledged as a result.
Not only would a two-way communication channel improve the user experience, but it
will also make it simpler to follow up with the discloser when you need further details.
Additionally, employees are likely to inform their coworkers about a wonderful
experience they had, while it's vital to keep in mind that this can happen both ways.

10. Prevent retaliation:

Measures must be put in place to protect disclosures from retaliation if you want to get
high-quality risk intelligence from your staff.

It is likely to discourage other coworkers from coming forward if an employee is

aware that a colleague has received less favourable treatment after voicing concerns.
In many nations, including the UK, it is illegal to retaliate against those who speak up.
The new Whistleblower Protection Directive will make this practice illegal throughout
the EU. In order to protect whistleblowers and those who support them, such as family
members, coworkers, etc., the Directive also establishes protections against bullying,
demotions, suspensions, and other forms of retaliation.

c). INCENTIVE STRUCTURES AND SUPPORT MECHANISMS FOR

WHISTLEBLOWERS.

In the financial sector it is relatively straightforward to calculate a reward in most

countries with whistleblower incentive schemes, whistleblowers tend to be rewarded

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with a percentage of the money that the government recovers as a result of the
information provided. However, there has been little attention paid so far to how
reward schemes could operate in other sectors. What would happen if the reported
wrongdoing did not generate funding? Wrongdoing in other areas such as health and
safety or damage to the environment could be considered just as serious, perhaps even
more so from a public interest perspective, than financial abuse. Would the reward be
calculated based on the public interest value of the information uncovered, and, if so,
how can the public interest value itself be calculated?

India still lacks effective systems for rewarding and safeguarding whistleblowers,
even though it is home to a thriving democracy and a continuously changing
regulatory environment. The current whistleblower support and incentive systems in
India are criticised for their flaws, and best practices from nations including the US,
UK, and South Korea are examined that India may implement to improve its
whistleblower ecosystem.

Whistleblower Framework in India: An Overview

The Whistle Blowers Protection Act, 2014, which was passed in response to public
pressure after prominent whistleblowers like Shanmugam Manjunath and Satyendra
Dubey passed away, has a significant influence on India's whistleblower framework.
The Act offers protection from victimisation and permits people to denounce
corruption by public officials.

However, several limitations persist:

 The law does not include provisions for financial incentives and solely applies
to employees of the public sector, leaving out the sizable private sector.
 Total anonymity is not guaranteed by it.
 By removing disclosures pertaining to national security, the 2015 revisions
(which have not yet been implemented) attempted to weaken protections.

In contrast, private-sector whistleblowers have little to no legal recourse, apart from

internal grievance redressal mechanisms, which are often ineffective or biased.

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The Need for Incentive Structures

Incentive structures for whistleblowers serve two essential purposes:

1. Risk Mitigation – Financial and institutional incentives act as a buffer against

the potential personal and professional risks.

2. Encouragement – A structured reward system increases the likelihood that

individuals will report wrongdoing, especially when moral motivations are not
enough.

In India, whistleblowing is largely driven by personal ethics and civic responsibility,

as no formal reward system exists under current law. A few private companies have
introduced internal reporting mechanisms, but these are mostly reactive rather than
protective or rewarding in nature.

Global Best Practices: What India Can Learn

1. United States: SEC Whistleblower Program

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010), the
U.S. Securities and Exchange Commission (SEC) launched one of the most effective
whistleblower programs in the world. Among its notable characteristics are:
• Financial Rewards: If their information results in a successful enforcement action
worth more than $1 million, whistleblowers can get 10–30% of the money collected.
• Anonymity: Through legal representation, whistleblowers can submit accusations in
an anonymous manner.

Anti-Retaliation Protections: The law offers robust safeguards against retaliation by

employers, such as back pay, reinstatement, and reimbursement for legal fees.

The SEC has given out more than $1 billion to whistleblowers since its founding, and
the number of tips has significantly increased annually. This concept illustrates how
financial incentives can greatly increase reporting rates and foster an accountable
culture.

2. United Kingdom: Public Interest Disclosure Act (PIDA), 1998

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The UK places a strong emphasis on legal protections even when it does not provide
financial incentives:

 Wide Coverage: Employees in the public and private sectors are protected.
 Legal Recourse: Employees who feel their employers have treated them
unfairly or fired them may bring their case before tribunals.
 Committed Organisations: Protect UK and the Whistleblowing Helpline are
two organisations that provide private assistance

Strong institutional and legal support can also act as powerful incentives, lowering the
fear of reprisal, as the UK example demonstrates.

3. South Korea: Korea Anti-Corruption and Civil Rights Commission (ACRC)

By offering both financial incentives and protection, South Korea presents a well-
rounded strategy:

 Reports that successfully recover government cash can earn rewards of up to

KRW 2 billion, or around $1.5 million.
 Identity Protection: To guarantee anonymity, strong procedures are in place.
 Support Services: When required, physical protection, legal assistance, and
psychological counselling are offered.

South Korea's strategy is successful because it acknowledges that whistleblowers are

interested in the public interest and should be protected and appreciated.

Implementing Incentive Structures in India

India can adopt a blended model that incorporates the most effective elements of
global practices while being sensitive to the local socio-political context. Here are
some strategic recommendations:

1. Financial Incentives and Rewards

 Create a Whistleblower Reward Fund to offer financial rewards according to

the amount of corruption or fraud discovered.
 As the SEC and ACRC have done, link rewards to real recovery or the
avoidance of monetary loss.
 To incorporate smaller but symbolic incentives for minor disclosures,
introduce tiered awards.

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2. Broaden Legal Coverage

 Amend the Whistle Blowers Protection Act to cover private sector

employees, contractors, consultants, and volunteers.

 Include areas like environmental violations, sexual harassment, health & safety
violations, and financial misreporting.

3. Anonymity and Confidentiality

 Enable anonymous reporting through encrypted digital portals, third-party

platforms, or legal intermediaries.

 Penalize any unauthorized disclosures of whistleblower identities.

4. Stronger Retaliation Protections

 Create a fast-track mechanism to address retaliation complaints with reverse

burden of proof (i.e., the employer must prove they did not retaliate).

 Mandate reinstatement, back pay, and compensation for psychological trauma.

5. Independent Whistleblower Authority

 Establish a National Whistleblower Authority that operates independently

from government departments.

 It should handle complaints, dispense rewards, and offer legal, medical, and
psychological assistance.

6. Whistleblower Support Systems

 Partner with NGOs and civil society organizations to offer:

o Counselling services

o Legal aid

o Shelter or relocation assistance, if necessary

 Ensure the availability of a dedicated 24/7 helpline for whistleblowers.

d). THE IMPORTANCE OF TECHNOLOGY AND AI IN THE SMOOTH

RUNNING OF THE PROCESS

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67
Through increased accessibility, anonymity, and effectiveness in reporting and
handling issues, technology and artificial intelligence (AI) significantly contribute to
the improvement of whistleblower policies. AI can automate processes like
translation, triage, and report analysis. Technology also makes it easier to
communicate securely and protect data, which encourages more people to report
misconduct without worrying about reprisals.

Here's a more detailed look at how technology and AI contribute to effective

whistleblower policies:

1. Enhancing Accessibility and Anonymity:

 Secure Communication Channels

Technology provides secure platforms for whistleblowers to report concerns

anonymously, reducing the risk of identification and retaliation.

 Virtual AI Agents

Chatbots can assist or even handle the submission of reports, making the process more
user-friendly and accessible.

 AI-based Translation

Live translation capabilities can ensure that reporting services are accessible to a
wider range of individuals across different cultural and linguistic backgrounds.

2. Improving Efficiency and Report Management:

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“The role of AI in preventing corporate crime”, Luis A. Garcia-Segura.

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  Automated Report Analysis

AI can analyse the content of whistleblower reports, identify patterns, and categorize
issues, streamlining the triage process and allowing for faster investigation.

 Advanced Analytics

AI can be used to extract critical information from reports, identify relationships

between complainants, and assess the urgency and criticality of issues.

 Data Protection and Security

Technology, including firewalls and encryption, safeguards sensitive information and

protects whistleblowers' anonymity and privacy.

3. Promoting Transparency and Accountability:

 Enhanced Visibility

Technology allows for easier tracking of the progress of investigations and the
resolution of reported issues, promoting transparency and accountability.

 AI-powered Compliance Monitoring

AI algorithms can be used to identify potential misconduct and policy violations,

alerting compliance officers to issues that require immediate attention.

 AI in Risk Management

AI can help identify emerging risks, such as those related to the use of new
technologies and AI, and inform the development of effective compliance policies.

4. Ethical Considerations and Challenges:

 Transparency in AI Use

Organizations must be transparent about how AI is being used in whistleblower

systems, including how data is collected, processed, and stored.

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  Bias in AI Systems

It's crucial to address potential biases in AI systems that could unfairly impact
whistleblowers or compromise their anonymity.

 Potential for Surveillance

AI has the potential to suppress whistleblowing by monitoring employee

communications and activities.

In conclusion, whistleblower policies can be strengthened and made more accessible

with the use of technology and artificial intelligence. Assuring that these technologies
are used responsibly and transparently to safeguard whistleblowers and encourage
moral behaviour, it is imperative to address the ethical issues and potential difficulties
related to AI deployment.

e.) POLICIES THAT ARE FOLLOWED INTERNATIONALLY AND WHAT

CAN WE LEARN FROM IT.

Whistleblowers are pivotal in uncovering corruption, environmental degradation,

financial fraud, and human rights violations. Their disclosures have led to significant
reforms and accountability in various sectors. Recognizing their crucial role,
international bodies have emphasized the need for robust whistleblower protections.

International Legal FrameworksIn recognition of the importance of whistleblowers in

the fight against corruption, the United Nations approved the Convention Against
Corruption in 2003.68 The international commitment to protecting those who reveal
wrongdoing is exemplified by this convention, which has been ratified by 137
countries and signed by 140. Furthermore, regional accords such as the Inter-
American Convention against Corruption of the Organisation of American States and

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Articles.

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the African Union Convention on Preventing and Combating Corruption serve to
further solidify this commitment.

Additionally, groups like the G20, OECD, and APEC have pushed for stronger
whistleblower protections, calling on member nations to enact comprehensive
legislation that protects informants against reprisals.

Variations in National Laws

Despite international agreements, the strength and scope of whistleblower laws vary
significantly across countries:

 United States: The United States has put strong safeguards in place for
whistleblowers. Legal protections and financial incentives are provided to
whistleblowers by laws such as the False Claims Act and the Dodd-Frank Act.
There are notable programs run by the Internal Revenue Service (IRS) and the
Securities and Exchange Commission (SEC) that provide whistleblowers a
portion of the money that is recovered.

 South Korea: The Anti-Corruption and Civil Rights Commission of South

Korea offers whistleblowers financial incentives in addition to protection. The
nation has a number of laws that protect whistleblowers and promote the
reporting of corruption.

 European Union: The EU's Whistleblower Protection Directive mandates

member states to establish secure reporting channels and protect
whistleblowers from retaliation. However, implementation has been
inconsistent, with some countries facing legal action for non-compliance.

The Role of Non-Governmental Organizations

NGOs play a crucial role in supporting whistleblowers by:

 Offering Legal Assistance: To help whistleblowers navigate complicated legal

environments, organisations provide legal guidance.
 Promoting Stronger Laws: Nonprofits work to enact comprehensive laws
protecting whistleblowers and keep an eye on how they are being used.

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  Increasing Awareness: NGOs educate the public and possible whistleblowers
about their rights and safeguards through campaigns and educational
initiatives.

Best Practices for Effective Whistleblower Protections

To ensure whistleblowers are adequately protected, countries should consider:

 Comprehensive Legal Frameworks: Laws should cover both public and private
sectors and include provisions for anonymity and protection against retaliation.

 Financial Incentives: Offering rewards can encourage individuals to report

wrongdoing, especially in high-risk situations.

 Independent Oversight Bodies: Establishing autonomous agencies to handle

whistleblower reports ensures impartiality and builds trust in the system.

 Public Awareness Campaigns: Educating citizens about whistleblower

protections can empower more individuals to come forward.

Whistleblowers are critical for increasing transparency and accountability. While

progress has been made globally, countries must urgently enhance their legislative
frameworks, ensure effective enforcement, and cultivate a culture that appreciates and
protects individuals who speak out against wrongdoing.

CHAPTER VI- CONCLUSIONS AND FUTURE

DIRECTIONS IN WHISTLEBLOWER RESEARCH

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“When institutions falter, it is the lone voice of a whistleblower that becomes the first
step toward reform.”

From Sherron Watkins (Enron whistleblower):

“I’m not a hero. I’m just doing what’s right. And what’s right shouldn’t cost your
job, your peace of mind, or your life.”

Key Findings

 The Indian statutory and institutional framework for whistleblower protection

is fragmented, obsolete, and ineffectual. Although statutes such as the
Companies Act of 2013 and the Whistleblowers Protection Act of 2014 exist,
their scope is limited, enforcement is ineffective, and implementation is
inconsistent.
 The Whistle Blowers Protection Act is largely inactive. Despite its purpose to
protect public sector whistleblowers, it excludes the private sector, offers no
legislative awards, does not ensure anonymity, and fails to establish an
independent institution for enforcement.
 Amendments to the 2014 Act, including the 2015 Bill, have undermined the
statute. Proposed RTI-style exemptions would exclude disclosures critical to
public interest accountability, undermining the entire essence of
whistleblowing.
 India does not have a consistent policy or regulatory incentive framework for
whistleblowers. Unlike international regimes that pay informants or protect
them institutionally, Indian laws offer little formal support other than
ambiguous regulatory procedures.
Institutional redress systems are inefficient, with bureaucratic delays and a
lack of independence. Reports frequently go un-investigated, and retaliation
goes unchecked, discouraging potential whistleblowers.
 Cultural differences create substantial difficulties. Whistleblowers are
stigmatised in Indian organisational culture, which is formed by hierarchy and
loyalty. They are often portrayed as disloyal or disruptive. This social
exclusion provides an extra degree of discouragement.
Case studies show common patterns: whistleblowers face legal, economic, and

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 bodily punishment, regardless of industry. Whistleblowers are vulnerable in
the absence of structural protections, whether in public businesses or global
corporations such as Infosys.
 The lack of understanding regarding rights and protections exacerbates the
problem. Most employees, particularly in smaller or non-urban organisations,
are unaware of their legal options.
 Inadequate or ineffective internal reporting systems. Many organisations lack
designated whistleblower routes or fail to train employees to handle sensitive
revelations. This contributes to the overall unfriendly reporting environment.
 Countries such as the United States, United Kingdom, South Korea, and those
under the EU Directive have implemented proactive and progressive methods.
The U.S. Dodd-Frank Act provides whistleblowers with up to 30% of
recovered sanctions and anonymity through legal representation. In South
Korea, the ACRC model combines legal protection, anonymity, and
considerable monetary awards. Australia and Canada have specific
whistleblower assistance agencies that use secure reporting technology. These
models show the advantages of combining legal infrastructure, cultural
backing, and financial incentives.

 Technological platforms for anonymous and secure reporting are almost non-
existent in India. With increasing reliance on digital communication, such
tools can provide critical channels for disclosures if integrated properly.

Implications

 India requires a comprehensive, enforceable, and inclusive whistleblower

policy. A strong framework should encompass commercial and public sector
employees, non-governmental organisations (NGOs), and other parties
interested in public interest activity.
 Establishing a national independent whistleblower protection authority is
crucial. The organisation should have the authority to examine retaliation
claims, offer protective measures, and allow open contact with relevant
departments. Financial incentives should be explored for disclosures that lead
to the recovery of public monies or the prevention of major harm. These
should be proportionate to the damage and risk incurred by the whistleblower.

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 Legal provisions should ensure secrecy and allow for anonymous disclosures.
Identity protection should be integral to the process, aided by end-to-end
encrypted systems and overseen by independent regulatory bodies.
 Investment in capacity-building is necessary from both the state and
commercial organisations. Regular training, awareness initiatives, and
compliance audits are necessary to foster a supportive ecosystem.
Organisational reforms should include various, well-publicized reporting
routes, clear anti-retaliation clauses in employment contracts, whistleblower
liaison offices, and regular reviews of grievance redressal efficiency.
 The government should work with civil society, tech enterprises, and
academics to create and maintain safe technology for internal and external
disclosures. Blockchain, AI-based fraud detection, and whistleblower hotlines
can significantly reduce friction.
 A cultural shift is necessary. Whistleblowing should be positioned as civic
responsibility and ethical leadership, rather than as dissent. Schools,
universities, and professional institutions should implement ethics and
integrity programs to promote long-term reform.
 Whistleblower retaliation cases should also be expedited through courts or
tribunals. Timely adjudication and alleviation can improve the framework's
credibility and usability.
 India must not conflate whistleblower laws with secrecy legislation. While
national security concerns are valid, employing them to deny protection or
information undermines democratic transparency.
 Institutionalise periodic assessment and benchmarking of whistleblower
policies against global standards. This will ensure that India's legal structure
keeps up with international standards and growing dangers.
 Recognising whistleblowers through prizes, rehabilitation, and reintegration
can reduce stigma and encourage others to speak up.
 Whistleblower protection should be included in India's overall anti-corruption
strategy. Coordination among anti-corruption authorities, law enforcement,
and the judiciary will result in a more comprehensive and coordinated
response. Finally, whistleblower protection is more than just a legal issue; it is
also a test of ethical governance. Whistleblower-friendly policies help to

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 improve institutions, increase public trust, and reduce financial losses due to
fraud.

b). PROPOSED FRAMEWORK FOR LEVERAGING WHISTLEBLOWERS

IN CORPORATE LAW ENFORCEMENT.

“Whistleblowers are part of a healthy democracy. They provide a necessary check

on abuses of power.”- Barack Obama

 Expansion of Whistleblower Protections

The reforms aimed to broaden who is qualified for whistleblower protections. This
covered not only present employees, but also past employees, contractors, and family
members. The goal was to establish an environment in which a greater number of
people could report misconduct without fear of punishment.

 Consolidation of Whistleblower Laws

Prior to the amendments, whistleblower rights were dispersed across multiple pieces
of legislation. The proposed framework sought to combine these into a single, stronger
system that included the business, financial, and credit sectors. This unification was
intended to simplify the legal landscape by making protections more accessible and
comprehensible.

 Mandatory Whistleblower Policies for Companies

The amendments imposed a duty on public businesses, big proprietary companies,

and corporate trustees of registrable superannuation organisations to design and
implement whistleblower procedures. These policies were intended to explain the
company's strategy to managing disclosures, safeguarding whistleblowers, and
guaranteeing equitable treatment of those involved.

 Enhanced Confidentiality and Protection from Detriment

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  The suggested framework emphasised the significance of safeguarding
whistleblower confidentially and protecting them from any type of retaliation,
including firing, harassment, or discrimination. Individuals or companies that
violated these rights would face civil and criminal sanctions.

 Introduction of Compensation Mechanisms

Whistleblowers who incurred harm as a result of making a disclosure were to be

offered with compensation options. This includes access to court-based remedies, as
well as protection from cost orders unless the claim was deemed to be frivolous or
disproportionate.

 Recognition of Anonymous Disclosures

The reforms recognised the validity of anonymous disclosures, allowing people to

denounce malfeasance without revealing their identities. This was done to remove
barriers to reporting and encourage more people to come forward with information.

Proposed Framework for Leveraging Whistleblowers in Corporate Law

Enforcement

The RIS outlined a strategic framework to integrate whistleblowers into the broader
corporate law enforcement landscape effectively.

1. Establishment of a Whistleblower Protection Authority

A key recommendation was the establishment of an independent Whistleblower

Protection Authority. This group would be in charge of assisting whistleblowers,
reviewing and prioritising disclosures, investigating retaliation, and overseeing the
implementation of the whistleblower system in both the public and private sectors.

2. Integration with Regulatory Bodies

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The framework called for tight collaboration between the Whistleblower Protection
Authority and existing regulatory organisations. This integration was intended to
ensure that disclosures were thoroughly examined and enforcement actions were
coordinated.

3. Public Awareness and Cultural Change

Understanding how organisational culture may either help or hinder whistleblowing,

the framework placed a strong emphasis on the necessity of training initiatives and
public awareness campaigns. These activities were aimed to establish an environment
that values transparency and fosters the reporting of misbehaviour.

4. Use of Technology for Secure Reporting

The suggested approach emphasised how crucial it is to use technology to enable safe
and private channels for reporting. Creating digital venues that safeguard
whistleblowers' identities and guarantee the privacy of the information they share was
part of this.

5. Monitoring and Evaluation Mechanisms

In order to evaluate the efficacy of the enforcement mechanisms and whistleblower

protections, the framework suggested the implementation of monitoring and
evaluation systems. These tools would monitor the results of disclosures, how
whistleblowers are handled, and the overall effect on company compliance.

The implementation of this comprehensive framework was expected to have several

significant implications:

 Enhanced Detection of Corporate Misconduct: By encouraging more

individuals to report wrongdoing, regulators would have access to critical
information that could lead to the early detection and prevention of corporate
misconduct.
 Improved Corporate Governance: Mandatory whistleblower policies and the
promotion of a culture that supports transparency were anticipated to
strengthen corporate governance practices.

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  Increased Public Confidence: Demonstrating a commitment to protecting
whistleblowers and addressing misconduct was expected to enhance public
trust in the corporate sector and regulatory institutions.
 Alignment with International Standards: The reforms aimed to bring
Australia's whistleblower protections in line with international best practices,
reinforcing the country's reputation as a leader in corporate regulation.

Now, in relation with the corporate entities

Enhancing a company's worth and guaranteeing long-term prosperity for shareholders

and other stakeholders depend heavily on effective corporate governance, which is
frequently shortened to GCG. Fundamentally, GCG promotes openness,
responsibility, and moral leadership in order to help a business run smoothly. A
company's financial performance and investor opinions are strongly related to its
value and have a big impact on changes in stock prices. According to studies by
Darmawan & Iskandar (2021) and Alharbi et al. (2023), financial indicators such as
the price-to-book value (PBV) ratio are crucial in establishing market valuation.

Therefore, GCG plays a strategic function in addition to a regulatory one, working to

align the goals and responsibilities of different parties. GCG fosters positive and
fruitful relationships between managers, shareholders, and other stakeholders when it
is properly applied, and thus improves business results. Through the alignment of
corporate actions with ethical and legal norms, it not only enhances stock market
performance but also supports sustainable business operations. Good governance,
according to Marcos & Castrillo (2021), guarantees legal compliance while advancing
stakeholder welfare and shareholder value.

A collection of organised principles known as "good corporate governance" are used

to control business operations, direct leadership conduct, and strike a balance between
authority and responsibility. Establishing an atmosphere of honesty, professionalism,
and trust is the goal of these guidelines. Businesses improve performance, boost
investor confidence, and foster long-term corporate sustainability by implementing
GCG.

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According to Junaidi (2022) and Putri & Chandra (2023), GCG is a holistic
framework consisting of procedures and policies that manage stakeholder
relationships, aiming to optimize efficiency and generate sustainable value. The core
principles of GCG are:

 Transparency: Companies must disclose key information clearly and

accessibly to stakeholders, going beyond legal minimums to build trust and
ensure informed decision-making.
 Accountability: Firms must be able to justify their actions and performance to
stakeholders, ensuring decisions are made responsibly and operations are
effectively managed.
 Responsibility: Adherence to legal standards and a commitment to societal
and environmental obligations are essential. Corporations must operate
ethically and consider their impact on all stakeholders.
 Independence: Management and boards must maintain autonomy in decision-
making, free from external pressures or undue influence, to uphold the
integrity of operations.
 Fairness: Equal treatment of all shareholders, including foreign and minority
investors, is critical. Non-discriminatory practices ensure that every
stakeholder has a fair opportunity in corporate affairs.

By putting these ideas into practice, GCG provides the framework for long-term
business expansion, strong performance, and enduring market value. Fostering a
culture of ethical governance and strategic excellence, where commercial objectives
coincide with social responsibility and long-term stakeholder involvement, is more
important than simply adhering to regulations.

c). SUGGESTIONS FOR FUTURE RESEARCH AND POLICY

DEVELOPMENT.

Numerous large-scale corporate frauds have jolted the world economy over the years.
Corporate governance issues are always brought up when we reflect on how we might
have prevented these frauds from occurring. Given the numerous scams that have
transpired in recent years, it may be concluded that few of these scams might have
been avoided if there had been an appropriate whistleblower system in place for the

100 | P a g e
staff to report corruption and misbehaviour. For the few who would have the guts to
come forward and expose their companies, the absence of adequate protection might
have been a barrier. Scams like Enron, Satyam, Kingfisher, ICICI Bank, Punjab
National Bank, and others have had a severe impact on millions of individuals. The
daily lives of these individuals are impacted by major corporations, and their interests
must be considered in the management of large corporations. While employees'
decision to report unlawful activity occurring in businesses is ultimately their own, the
government has a responsibility to provide a safe and supportive environment that
encourages and permits them to do so. It would be interesting to see if we see a
separate Whistle Blower Protection Act for the private sector in addition to the SEBI
Regulations and Section 177 of the Companies Act, 2013.

One of the most important instruments for maintaining accountability, ethics, and
openness in institutions is the phenomena of whistleblowing, which is the act of
speaking up about fraud, corruption, or wrongdoing. Through a thorough examination
of India's whistleblower protection, comparable international policies, incentive
schemes, case studies, and technology advancements, this conclusion aims to compile
the knowledge acquired and provide a roadmap for future change and resilience.
Despite its bravery and sorrow, India's history shows how urgent reform is and how
ethical rebirth in governance is possible.

Whistleblower Protections in India: Where We Stand

The existing structure for protecting whistleblowers in India is characterised by

systemic inefficiencies, limited application, and legal ambiguity. Even though the
Whistle Blowers Protection Act of 2014 was a historic milestone, it is still poorly
implemented, has a limited scope, excludes disclosures from the commercial sector,
and provides whistleblowers with little to no institutional or financial assistance. The
proposed 2015 revisions run the possibility of further weakening the law by limiting
disclosures under the guise of national security, which is concerning considering that
democracy depends on openness.

In the absence of strong institutional support, whistleblowers continue to work in

hostile, fearful, and isolated contexts, as seen by case after case—from Satyendra
Dubey's untimely death to disclosures within AIIMS and Infosys. Rather of

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acknowledging whistleblowers as defenders of the public good, Indian society, which
is frequently culturally resistant to dissent, stigmatises them as "traitors." This
emphasises even more how urgently legal reform, education, and institutional support
are needed.

Global Best Practices: A Template for Reform

A comparative analysis highlights how global models have successfully

operationalized whistleblower protections:

 The United States, The Dodd-Frank Act and the Sarbanes-Oxley Act provide
whistleblowers with substantial financial incentives, legal protection from
reprisals, and even anonymous reporting tools. More than $1 billion in prizes
have been given out by the SEC Whistleblower Program alone, encouraging
high-caliber disclosures.
 The European Union has put into effect a legally enforceable Whistleblower
Protection Directive that mandates that member states set up secure internal
and external reporting routes, provide anonymity guarantees, and protect
against retribution. Its multi-sectoral coverage provides a contemporary, well-
rounded model.
 South Korea’s Anti-Corruption and Civil Rights Commission (ACRC)
provides not only legal protection and anonymity but also substantial financial
rewards, sometimes exceeding $1 million. It showcases how institutionalizing
support can generate meaningful results.
 Australia’s 2017 regulatory reforms aim to consolidate laws across the
corporate sector, increase confidentiality protections, and offer compensation
routes to whistleblowers.

These models show that the key to an effective whistleblower regime lies in
convergence—bringing legal support, cultural validation, financial security, and
technological access together.

Proposed Institutional Frameworks and Strategies for India

Drawing from these insights, an ideal whistleblower framework for India would
involve:

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 1. Whistleblower Reward Authority: An impartial, legally mandated
organisation with the authority to evaluate disclosures, look into allegations,
provide anonymity, and give out cash rewards. Its autonomy from corporate or
governmental meddling is crucial.
2. Financial Incentives: Organised compensation based on the amount of money
recovered or fraud discovered. This might serve as a reward and recompense
for taking risks.
3. Anonymity and Digital Reporting Tools: Encrypted hotlines and blockchain-
secured portals can help whistleblowers come forward without worrying about
being discovered.
4. Sector-Wide Coverage: Protections are extended beyond the state sector to
include media outlets, academic institutions, private businesses, and non-
governmental organisations.
5. Retaliation Redressal: It is necessary to require fast-track tribunals, interim
protection measures, and the reverse burden of proof in retaliation cases.
6. Training and Awareness: Initiatives to demystify whistleblowing, normalise
ethical reporting, and foster an integrity-based culture in schools, colleges, the
government, and businesses.
7. Public Recognition and Rehabilitation: Whistleblowers can be encouraged
by receiving rehabilitation packages, career assistance, and national honours
that de-stigmatize their involvement.

8. Legal Reform and Benchmarks: Regular review and benchmarking of laws

against international best practices to ensure adaptability and effectiveness.

In the corporate domain, whistleblowers from Infosys and other private institutions
have highlighted the lack of internal redressal systems and the risks associated with
speaking out. The repeated recurrence of such issues underlines the need for
mandatory whistleblower mechanisms within firms, regulated externally and audited
periodically.

The Promise of Technology and Organizational Culture

Technology can play a significant role in facilitating safe disclosures. Digital records
of wrongdoing, decentralised platforms, and encrypted communication can all lower

103 | P a g e
exposure and boost trust. Safe spaces for telling the truth can be created at the same
time by changing the organisational culture away from punitive responses and towards
appreciation and protection.

Reforms in corporate governance, especially Good Corporate Governance (GCG),

offer a favourable environment for the integration of whistleblowers. The fundamental
principles of GCG—transparency, accountability, responsibility, independence, and
fairness—align perfectly with policies that protect whistleblowers. Mechanisms for
whistleblowing may flourish in an efficient business culture that upholds GCG.

Implications for Governance, Regulation, and Society

Strong whistleblower frameworks are strategic governance instruments, not merely

compliance measures. They prevent financial leaks, boost investor trust, protect the
reputation of the institution, and encourage moral behaviour. For regulators,
whistleblowing is a low-cost, high-impact way to uncover problems early and enforce
laws quickly. It is a tribute to individual bravery and participatory democracy,
according to civil society.

Whistleblower protection needs to be seen as a democratic need and a fundamental

human right by the Indian regulatory system, from the court to the executive.
Organisations such as the RBI, SEBI, and Central Vigilance Commission (CVC)
ought to work together to establish interagency whistleblower procedures. Academic
institutions, media outlets, and non-governmental organisations must serve as allies
and watchdogs.

Toward a Whistleblower-Friendly India

India is in a pivotal moment. It has given rise to some of the most courageous
whistleblowers the world has ever seen, but it is also still beset by institutional
underfunding, legal loopholes, and cultural reaction. Whistleblowing must be
transformed from a dangerous act of individual opposition into a recognised,
institutionalised, and protected form of civic engagement.
India can create an ecosystem for whistleblowers that not only preserves but also

104 | P a g e
celebrates integrity with extensive law reform, technical protections, financial
incentives, and most importantly, a change in the country's mindset. No one's life or
means of subsistence should have to be sacrificed for the guts to speak up. It ought to
be the cornerstone of an India that is not only tall but also upright instead.

This vision is necessary, not just idealistic. Because every whistleblower represents a
country's conscience, and their protection holds the key to a brighter future.

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