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Whistleblower Protection Act Falls Short: No Sanctions for Obstruction

The Whistle Blower Protection Act and Companies Act in India have been found to lack any provisions that impose sanctions on individuals who obstruct whistleblowers from reporting fraudulent activity or non-compliance.

Lack of Clarity and Protection

The Whistle Blower Protection Act allows individuals to seek protection if they believe they are being victimized due to their complaints, disclosures, or assistance in an inquiry. However, the act does not define what constitutes “victimization” and leaves it to the assessment of the competent authority.

• The process for whistleblowers to receive protection is unclear and subject to the policy adopted by the concerned establishment.
• The competent authority has a wide range of powers to take action, but it is limited to giving directions to public servants or authorities to protect the whistleblower or witnesses.

Failure to Support Whistleblowers

Despite the lack of clarity on the scope of protection, the Whistle Blower Protection Act does not provide any support measures to whistleblowers who face risks such as retaliation, adverse actions, and even physical harm. Historically, whistleblowers in India have faced risks of death and physical injury, especially when reporting fraudulent activities involving public institutions.

Recommendations for Strengthening Whistleblower Protection

• Prescribe Sanctions: It is imperative to prescribe sanctions against individuals who obstruct whistleblowers, as it would create a culture of accountability and encourage more people to come forward with reports of fraud.
• Clear Guidelines: Provide clear guidelines on the process for whistleblowers to receive protection and support measures to mitigate risks.
• Protection from Retaliation: Ensure that whistleblowers are protected from retaliation, including physical harm and adverse actions.
• Public Awareness: Increase public awareness about the importance of whistleblower protection and the benefits of reporting fraudulent activity or non-compliance.

By implementing these recommendations, India can create a culture of accountability and encourage more people to come forward with reports of fraud, ultimately leading to a more transparent and corruption-free society.