Are Whistleblowers protected in India?

Have you come across people who despite the risks, expose instances of corruption and wrongdoing taking place within their organization??

These people are called whistleblowers, and they expose information about illegal or unethical activities within an organization or government entity.?

It is crucial to protect whistleblowers, but do we have any safeguards and laws for them in India? And if we have such laws, how could we as managers, employees, and HR professionals use the existing laws better? Let us explore by looking at the safeguards in India to shield its vigils.

In India, the Whistleblower Protection Act 2014 protects whistleblowers, that is, anyone who accuses a public servant of corruption or willful misuse of power. The intention behind the Act was:?

• To establish a mechanism to receive complaints if anyone has disclosed information about a whistleblower.?
• To inquire into such disclosures.
• To safeguard the person who reports the wrongdoing from being victimized in any manner.

How did the law come about?

In 2001, the Law Commission of India, recommended a law to protect whistleblowers.? In 2004, the Supreme Court directed the Central government to make interim measures for handling whistleblower complaints until a formal law was enacted. This led to ‘Public Interest Disclosure and Protection of Informers Resolution’, granting the Central Vigilance Commission permission to deal with whistleblower complaints.?

In 2007, the Second Administrative Reforms Commission also stressed the need for a dedicated whistleblower protection law. In addition to that, India's commitment to the UN Convention against Corruption since 2005 called for encouraging corruption reporting and protecting witnesses. To meet these requirements, the Whistleblowers Protection Bill was proposed in 2011 and became a law in 2014.?

Today, the Companies Act, 2013, and Securities and Exchange Board of India regulations mandate companies to address whistleblower complaints.

Basics of the Whistleblower Act

What is whistleblowing?

Whistleblowing is an act of disclosing information. This can be by an employee or any concerned stakeholder of a company or a government agency. This disclosure could be about any illegal or unethical conduct taking place within the organization. It is a vigil mechanism that:

• Provides people a platform to report wrongdoing. This can be corruption, misuse of funds and audit reports, fraud, etc.
• Keeps the identity of the whistleblower confidential.
• Protects whistleblowers from harassment.
• Includes a hierarchy from the entry-level employee to the top management.
• Takes disciplinary action against those who provide false information, including those who make false disclosures with malicious intent.

Who is a whistleblower?

A whistleblower can be anyone disclosing internal unethical or illegal information about a company. This includes employees, self-employed individuals, and shareholders. Volunteers and unpaid interns, contractors and subcontractors, suppliers, or even former employees can blow the whistle against an organization. Someone attending a job interview can become a whistleblower too.?

What are unethical and illegal activities?

Illegal or unethical activities could be fraud, corruption, or embezzlement. They may also include employee deception and misconduct. Additionally, these can involve abuse of power, criminal activity, and regulatory violations too.?

?What protection does the Act afford?

According to the Act, a complainant is any person who makes a complaint that discloses illegal or unethical behavior in the organization. Section 3(d) of the Act states ‘disclosure’ means a whistleblower complaint when?someone:

1. Tries to commit a crime under the Prevention of Corruption Act 1988.
2. Abuses their power in a way that harms the government or benefits themselves or someone else.
3. Tries to commit a crime when they are a public servant.

This complaint can be in writing or via email, against a public servant or in public interest.

Section 11 of the Act gives the relevant Competent Authority power to safeguard complainants. The reason this was introduced was to protect whistleblowers from harassment, threats, or murder. For instance, consider the murder of Satyendra Dubey for revealing the Golden Quadrilateral project corruption or that of Shanmughan Manjunath, the Indian Oil Corporation officer who uncovered the sale of adulterated fuel.??

The Act also allows any person to make a public interest disclosure. In such cases, the Competent Authority can give temporary orders to stop corruption during an ongoing investigation.

What should the management do to protect whistleblowers?

A company's management should create a safe reporting environment where employees feel comfortable coming forward with concerns. False identities or anonymous complaints are not recognized, according to the Act.?

Few best practices include:?

• Establishing clear reporting channels.
• Developing a non-retaliation policy.
• Setting up an impartial committee to investigate reports.
• Protecting the confidentiality of whistleblowers.
• Training employees and management on whistleblowing and how to handle reports.

?Why should your workplace have a whistleblower policy?

Workplaces should establish a whistleblower framework to encourage employees to report illegal or unethical activities as early detection can save an organization its reputation, legal troubles, and financial losses.?

With the right whistleblower framework, you can empower your team to speak up about wrongdoings before a bad situation escalates. This not only builds accountability, trust, and loyalty, but will create a safer workplace and more secure company for everyone.

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