In 2004, when this publication was a mere five years of age, we featured a cover story titled ‘Dirty Dozen Corrupt Practices Destroying Indian Education’. Almost two decades later, not only are the dirty dozen corrupt practices of the early millennium omnipresent, several new ones have been added to the list. – Dilip Thakore

There’s a serious blindspot in Indian society. In his address to the nation on the eve of January 26 when the nation observed its 73rd Republic Day, President Ram Nath Kovind made only a cursory reference to human capital development, aka education, of the world’s largest child and youth population. Ditto on February 1, when Union finance minister Nirmala Sitharaman presented the Union Budget 2022-23, the best she could do was to raise the Central government’s outlay for education from Rs.93,223 crore in 2021-22 to Rs.104,278 crore, an increase of 11.86 percent over the previous year but a mere 5 percent over the pre-pandemic 2020-21.

Admittedly, the Centre’s share of the annual expenditure on education is a small percentage (0.5 of GDP) of the national outlay on human capital development. The major share of over 3 percent of GDP is contributed by the country’s state governments and eight Union territories. Nevertheless, the Centre’s annual allocation which funds Central government schools (1,245 Kendriya Vidyalayas and 661 Jawahar Navodaya Vidyalayas) and 54 Central universities and higher education institutions such as the Indian Institute of Science, Bengaluru, 43 IITs and IIMs, is an important marker of the priority that the Centre accords to education of India’s children and youth aged below 24, whose number is estimated at over 500 million.

Curiously, indeed astonishingly, there seems little awareness in New Delhi or in the state capitals of the critical importance of nurturing and upgrading India’s children and youth in an era when all developed countries, including China, are experiencing falling birth rates and rapidly ageing populations. In the remainder of the 21st century India will have the largest working age (18-65) population of any country worldwide. If they are intensively educated and skilled, in the second half of the 21st century, this country could multiply its GDP 5x from the pathetic $3 trillion currently (cf. America’s $22 trillion and China’s $16 trillion) and transform into a respected producer of high quality manufactures, goods and services.

Instead, the annual per capita outlay for educating and skilling India’s 260 million school-going children and 40 million in tertiary education is a mere $970 per year. Against this, per capita expenditure on education in the US is $61,000, UK $46,000 and Japan $39,000.

Way back in 1967, the high-powered Kothari Commission recommended that the annual expenditure (Centre plus states) for educating India’s children should “not fall below” 6 percent of GDP. That target has never been attained. Since India wrested political independence from oppressive British rule in 1947, national expenditure on public education has averaged 3.5 percent of GDP.

Sustained underinvestment in human capital development — the direct outcome of abandoning India’s traditional free enterprise economic development model and adopting the Soviet-inspired public sector enterprises (PSEs)-driven model which resulted in perennially loss-making PSEs becoming a millstone of the Indian economy — has had terrible consequences. Over 300 million adults in 21st century India are comprehensively illiterate. Moreover, learning outcomes in primary education in rural India — which grudgingly hosts 60 percent of the population — as recorded in the Annual Status of Education Report (ASER) of the authoritative Pratham Education Foundation — are rock bottom, especially in government primary/elementary schools.

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According to ASER 2019, 46.6 percent of class III children cannot read class I textbooks and 27.8 percent can’t solve can’t recognise two digit numbers. With tens of millions of under-educated teens spilling over into tertiary education institutions, the consequence is dire. According to Aspiring Minds, a Delhi-based personnel recruitment and placement firm, over 70 percent of engineering and 80-85 percent of arts, science and commerce college graduates are unfit for employment in Indian and foreign multinational companies. Little wonder that the average productivity of an American and Chinese shop-floor worker is 10x and 7x of his Indian counterpart. Similarly, in agriculture per hectare yields, the US and China are many multiples of foodgrain yields in Punjab, India’s most efficient agriculture state. The root cause: substandard and/or poor quality public education.

Nevertheless, even if employee productivity of Indian industry, agriculture and the services sectors compares unfavourably with OECD countries, there’s no gainsaying that absolute and per capita GDP growth has improved significantly, especially after the historic liberalisation and deregulation of the Indian economy in 1991. In 1990, India’s GDP was $320 billion and per capita income was $1,190. Currently, the country’s GDP is $3 trillion and per capita income is $11,000 (unadjusted for inflation). Although it’s a well-kept secret within the academy and the media dominated by champagne socialists and Cadillac communists, the prime factor behind this commendable (by our own standards) increase in GDP is almost entirely due to the private school system which has educated the country’s 300 million middle class. Mainly because the quality of education provided by India’s 1.2 million public (government) schools is grossly inadequate. According to State of the Sector Report on Private Schools in India, a detailed 2020 report of the Delhi-based Central Square Foundation, the number of private schools has swelled to 450,000 with an aggregate enrolment of 119 children, i.e, 48.5 percent of the country’s school-going children.

Yet despite this creditable contribution of private schools to human capital development and the national development effort, and despite India’s private preschools and primary-secondaries dispensing the world’s most affordable education, every effort is made by the corrupt educracies of the Central and state governments to prevent promotion of greenfield private schools, and harass, intimidate and shake down private school promoters and managements. Following the Supreme Court having ill-advisedly condemned “commercialisation of education” in the 1970s when it was packed with socialist and leftist judges by prime minister Indira Gandhi, private schools (and private higher education institutions) are subject to the full rigour of neta-babu controlled licence-permit-quota regimen which has cabined, cribbed and confined India’s private entrepreneurs, and plunged annual GDP growth to an average 3.5 percent for over 40 years.

And even though the licence-permit-quota regimen has been substantially relaxed for India Inc after 1991, it has been intensified in private education. Worse, official corruption which choked Indian industry for over four decades has spilled over into the education sector with dire consequences for the future of the world’s largest child and youth population.

In 2004, when this publication was a mere five years of age, we featured an unprecedented cover feature titled ‘Dirty Dozen Corrupt Practices Destroying Indian Education’. Among the dirty dozen corrupt practices highlighted 17 years ago were: per vasive licence-permit-quota rules and regulations; teacher recruitment and transfer rackets in government schools; kickbacks in government schools construction; textbooks printing and distribution rackets; negligible investment in school infrastructure, especially libraries and laboratories and ubiquitous inspector raj in private schools (see box “Corrupt practices: status quo plus”).

Almost two decades later, not only are the dirty dozen corrupt practices of the early millennium omnipresent, several new ones have been added to the list. Among them: quota admissions under s.12 (1) (c) of the historic Right of Children to Free & Compulsory Education (RTE) Act, 2009, which devolved part of the State’s obligation to provide free and compulsory primary education upon private schools; reimbursement of prescribed tuition fees to private schools under s.12 (2); imposition of arbitrary fees ceilings on private schools by state governments; imposition of dominant state languages as media of instruction in private primary schools despite a Supreme Court judgement mandating parental choice. Meanwhile, promulgation of the National Education Policy, 2020 which mandates a plethora of committees and commissions with wide discretionary powers to supervise public and private education institutions, is likely to tighten the grip of the neta-babu brotherhood and the venal educracy over Indian education.

1. Waste & corruption of human capital

According to Dr. A.S. Seetharamu, former professor of education at the Institute of Social and Economic Change, Bengaluru, established in 1974 as peninsular India’s first think tank and currently education adviser to the Karnataka government, the corruption malaise that has debilitated the country’s education system is as much rooted in the sin of negligence of government as in rent-seeking education ministries of the states.

“For the past half century, successive governments at the Centre and in the states have been maintaining an inherited education — especially school education — system bereft of vision or mission. They have been routinely financing government education institutions without setting new norms and standards, merely maintaining the status quo in learning and skills — including digital skills — education, wasting the time of millions of children and youth aspiring for better lives and upward mobility. Secondly, the Central and state governments have persistently shunned international assessment of education quality such as TIMMS, IMAS and PISA tests that measure students’ learning outcomes worldwide. Nor has it reacted to the ASER reports of the Pratham Education Foundation which for years has been highlighting continuously declining learning outcomes in primary education countrywide. Government has been rigorously controlling the education system without adequate diagnosis and care. This is recklessly negligent corruption which is compounded by unchecked rent-seeking at operational levels,” says Dr. Seetharamu in a scathing indictment of contemporary India’s education system. His solution to stemming the rot? “Make school and higher education completely autonomous of government control.

2. Pernicious licence-permit-quota regimen in education

Another educationist with deep knowledge of the school education system in India and abroad is Geeta Kingdon, professor of education, University College London and president of the City Montessori School, Lucknow. CMS, which has 57,000 students in 14 campuses across Lucknow and is certified as the world’s largest single city school by Guinness World Records.

Prof. Kingdon believes that licence-permit-quota raj which stunted Indian industry for over 40 years until liberalisation and deregulation of the economy in 1991 is very much alive in the education sector. Her education research studies and experience of managing CMS, repeatedly ranked the #1 co-ed day school in Uttar Pradesh (pop.215 million) by EW, indicate that licence-permit-quota raj has intensified in India. Even as governments — especially state governments — continue to be indifferent to improving governance and learning outcomes in the country’s 1.2 million public schools, they are making it incrementally difficult for education entrepreneurs and philanthropists to promote private schools by continuously revising eligibility and operational norms.

“It’s well documented by the annual ASER surveys of the Pratham Education Foundation and several other surveys that learning outcomes in government — especially state government — schools are much worse than in the country’s private schools. Consequently over the past several decades, there is continuous migration of children from government into private schools which teach 48 percent of India’s 260 million school-going children. But instead of focusing on improving and upgrading public schools, the attention of education ministries across the country is focused on monitoring and supervising private schools. Despite government school teachers being paid astronomically high Seventh pay Commission-prescribed salaries — in Punjab, the average salary of an elementary (classes I-VIII) government school teacher is Rs.80,000 per month against Rs.2,000 per month in private schools in rural areas — no accountability is demanded from them. Indeed it’s well-established that 25 percent of government school teachers countrywide are absent everyday. As a result of poor learning outcomes, chronic teacher absenteeism and ill-maintained infrastructure, government schools across the country have emptied out. In 2009, when the RTE Act was passed, the average number of students in government elementaries (classes I-VIII) was a mere 61. Since then, this average has fallen to 34. Despite this, the RTE Act mandates a minimum of two teachers per school. There is a huge waste of human and financial capital in the government school system,” says Kingdon.

3. Continuous harassment of Budget Private Schools

The response of the educracy to the continuous flight of students from dysfunctional government schools with crumbling infrastructure, chronic teacher truancy and pathetic learning outcomes which are also reluctant to teach Inglish— the language of business, courts and upward mobility — is to make life as difficult as possible for private, especially affordable budget private schools (BPS). Often levying monthly tuition fees as low as Rs.500, the country’s estimated 400,000 BPS which claim to offer Inglish-medium education, are the natural option of lower middle and working class households determined to provide their children socio-economic upward mobility. Consequently the neta-babu brotherhood and educracy are making every effort to delegitimise them and force them into bankruptcy and/or closure.

Over the past almost 75 years since independence, India has legislated thousands of laws, rules and regulations. Yet a curious feature of most of this legislation is that it is not applicable to the country’s government schools. A classic instance is provided by s.19 (1) of the landmark RTE Act, 2009. This section prescribes minimum infrastructure provision including teacher-pupil-ratio, classroom capacity, minimum size of kitchen for making mid-day meals, storage space for cooking material, number of toilets and a mandatory playing field for private schools as detailed in an elaborate Schedule of the Act, on pain of heavy monetary fines and forced closure. However, the country’s 1.20 million government schools with an aggregate enrolment of 132 million children are exempt from the provisions of s.19 and the Schedule. Yet there’s hardly a squeak from left-liberal intellectuals about this glaring injustice.

One of the country’s most courageous and indefatigable crusaders against official corruption which is “destroying education day-by-day and blighting the future of hundreds of millions of children” is D. Shashi Kumar, general secretary of the Karnataka Associated Managements of English Medium Schools (KAMS), a representative association of 4,000 mostly affordable private schools in Karnataka (pop.63 million). Also promoter-director of Blossoms School, a model BPS in Bengaluru, Shashi Kumar currently has eight writ petitions questioning the vires and validity of several laws and government regulations and notifications pending in the Supreme Court. Nor is this cranky, frivolous litigation. In 2013, he won a famous victory when the Supreme Court struck down a notification issued in 1994 which made Kannada the compulsory medium of primary education in all schools statewide. This notification which enabled education ministry officials to “earn millions for over two decades” for turning a blind eye to English-medium schools openly violating this diktat, was struck down following a 19-year battle after the apex court held that parents — rather than the State — are best qualified to choose the medium of instruction of their children (see https://www.educationworld.in/karnataka-too-little-too-late/).

Shashi Kumar’s determined activism to clean the augean stables of K-12 education in Karnataka where every well-intentioned law, rule and regulation has been transformed into an opportunity to shake down private schools has dangerous consequences. On July 29, 2021 while driving to his office in the afternoon, he was attacked by machete-wielding goons. But when he pulled out his licensed revolver and fired in the air, the goons took to their heels. An FIR has been registered and police is investigating.

“Over the past decades, corruption has struck deep roots in the education bureaucracy of Karnataka. Laws, policies and regulations governing private schools have been deliberately twisted for extortion and bribery. Right from registration which requires clearance from the land revenue, fire safety and PWD departments and completion of over two dozen documents to be stamped and notarized, private school promoters have to pay bribes at every stage of the process. After registration, recognition is required by exam boards and local government. Moreover as against five years earlier, currently recognition or NOC (no objection certificate) has to be renewed every year. Consequently, promotion of greenfield private schools has been choked, with admissions into reputed top-ranked schools breeding further corruption,” laments Shashi Kumar.

4. Teacher appointments in government schools

Although children’s learning outcomes in government — specifically state and local government schools that constitute 99 percent of the country’s 1.2 million government schools — compare unfavourably with private schools (as repeatedly highlighted in the annual ASER surveys of the Pratham Education Foundation), government school teachers’ pay packages (determined by the Central government Pay Commissions) tend to be several multiples of teachers in private schools, especially budget private schools. Therefore in a low-growth economy where the number of educated unemployed is high (estimated at 40 million-plus) government school (and higher ed) teachers’ jobs are highly prized. With the Centre having transformed government schools into high wage islands, nepotism and corruption have become endemic in the public school system, with a chief minister of Haryana (Omprakash Chautala) sentenced in 2013 to a ten-year jail term by the Supreme Court in a teacher recruitment scam.

With millions of under-qualified kith and kin of politicians and bureaucrats serving in government schools, in 2011 a TET (teacher eligibility test) was made mandatory for all in-service and aspiring teachers. With barely 10 percent of teachers passing TET annually, a new racket of leaked test papers has spread countrywide.

Consequently teacher recruitment in several states, notably West Bengal and Maharashtra has been stymied by disgruntled teachers who have obtained high court stay orders alleging test paper leakages, impersonation and/or fraudulent assessment. On December 17, Tukaram Supe, commissioner of the Maharashtra State Council of Examinations (MSCE), a Pune-based government body that conducts scholastic aptitude exams including TET, was arrested for alleged malpractices in TET 2020. More arrests followed as investigations revealed similar malpractices in TET 2018. (See https://www.educationworld.in/maharashtra-tet-scandals/).

“India’s education system which was mandated to promote equality and provide social justice has conspicuously failed to attain these objectives. Corrupt practices have become too deeply entrenched in the system. The root problem is the reluctance of the Central and state governments to adequately fund public education while spending astronomical amounts on defence and building temples, statues and structures. By tacitly encouraging private education, the Central government is widening the gap between the middle and poor classes,” opines Dr. Samantak Das, incumbent professor of comparative literature at Jadavpur University, Kolkata, and former professor of English at Viswa Bharati University, Shantiniketan.

5. Chronic teacher absenteeism in government school

Way back in 1998, a PROBE (Public Report on Basic Education) report confirmed to a shocked nation that 25 percent of the country’s 5 million government teachers are absent on any given day. Moreover, half present don’t teach. According to most educationists, the situation has not changed for the better. As outlined above by Prof. Geeta Kingdon, government school teachers’ workload has decreased as children are continuously fleeing dysfunctional government schools defined by crumbling buildings, chronic teacher absenteeism and abysmal learning outcomes. But because they are organised into powerful trade unions and supervise polling booths during elections, non-performing government school teachers are almost impossible to sack.

6. De rigueur kickbacks in construction contracts

Government/public schools countrywide are constructed by the public works departments (PWDs) of the Central and state governments. In turn, they award whole or part of construction contracts to local contractors with dubious qualifications and uncertain antecedent, for consideration, aka bribes. With razor thin profit margins, contractors are obliged to cut corners. This includes using sub-standard construction material and often ‘forgetting’ to provide labs, libraries, toilets and drinking water facilities. According to Prof. Seetharamu (quoted above), the award of construction contracts and kickbacks is the largest revenue source of education department officials across the country

7. Denial of information: Opaque state/local government education budgets

Contrary to popular belief, the Centre’s annual budgetary allocation (Rs.104,278 crore in 2022-23) spent on Central education institutions (Kendriya and Jawahar Navodaya Vidyalayas, IITs, IIMs, NITs and Central government universities) aggregates to a mere 0.5 percent of GDP. The remaining 3 percent is contributed by states for funding state government schools, colleges and education institutions. In state education ministries, rackets are rife and access to data and information is invariably a strenuous and time-consuming exercise. This difficulty is deliberately compounded by state government officials, who citing professed love of their native languages, insist on providing papers and data solely in the dominant vernacular. Bilingual or translated documents are very rare.

Surprisingly, neither the Union government nor the growing number of education champions across the country press for bilingual (vernacular and English language) departmental publications and documents in the interests of transparency and data analysis. Moreover, it’s well-known that over 90 percent of the education budget of every state of the Indian Union is consumed by teachers and administrators’ salaries and perquisites.

8. Textbooks writing and printing rackets

Vernacular language chauvinism and self-serving championing of dominant languages in the states have been converted into lucrative businesses by politicians and bureaucrats. With state governments’ insistent on making the dominant state vernacular compulsory in school education, opportunities to award textbook writing and printing contracts to under-qualified kith and kin of the neta-babu brotherhood have multiplied. As a result, errors-strewn textbooks are written by under-qualified subject authors, shoddily printed by small-time publishers, are purchased in bulk by state and local governments and foisted upon captive children in government schools. In 1994, through issuance of a notification, the Karnataka government decreed Kannada or mother tongue the sole media of instruction in all primary schools until class VII. Although this notification was observed more in the breach by English-medium schools, the latter were forced to buy and junk vernacular textbooks and pay continuous bribes to the education ministry for over a decade until 2013, when this notification was struck down by the Supreme Court following a writ petition filed by KAMS as elucidated above.

9. RTE Act, 2009, S.12 (1) (C) Scams

In 2009, half a century after successive governments at the Centre continuously disregarded Article 45 of the Constitution which directed the government to provide free and compulsory education to all children until they attain 14 years of age, the Congress-led UPA government piloted a constitutional amendment through Parliament and enacted the Right of Children to Free and Compulsory Education (RTE) Act, 2009.

Typically, legal eagle Kapil Sibal, the Congress party’s champagne socialist education minister at that time, engineered “partial backdoor nationalisation” of private schools. Under RTE Act s.12 (1) (c) it is mandatory for private aided and unaided (independent) schools to reserve 25 percent of capacity in class I for poor children in their neighbourhood and provide them free-of-charge education until they complete class VIII. However, to partly compensate private schools, s.12 (2) directs state governments to pay private school managements the equivalent of per child expenditure incurred in government schools.

Predictably numerous rackets and scams have mushroomed. Corrupt education ministry officials are having a field day collecting bribes for certifying ‘poor households’ and defining ‘neighbourhoods’. Moreover schools’ dues under s. 12 (2) are unpaid for months and often years. According to Kulbhushan Sharma, president of the Delhi-based National Independent Schools Association (NISA), which represents 60,0000 mainly BPS (budget private schools), an aggregate sum of Rs.10,000 crore is due to private schools under s.12 (2). Sharma adds that bribes are also demanded — and often paid — to release legitimate dues under this section.

10. Shakedowns and extortion under s.19 and Schedule of RTE Act

As recounted above, s.19 (1) of the RTE Act, 2009, prescribes minimal infrastructure norms — building safety, teacher-pupil ratios, hygiene etc — for private schools. Government schools are specifically excluded from the ambit of this provision. NISA sources report that education officials in several states routinely extort bribes from private school managements for overlooking infringements of s.19 (1) on pain of heavy fines and/or forced closure.

11. Government refusal to grant MSME status to private schools during 82-weeks of pandemic lockdown

A few months after outbreak of the novel Coronavirus pandemic, following widespread distress in the economy because of disruption of business and industry, the Union government included numerous MSMEs (micro, small and medium enterprises) in industry and commerce into a list of enterprises eligible for government credit guarantees and concessional loans. However in sharp contrast to governments in developed nations — especially the US, UK and Commonwealth countries — private schools were excluded from this list, indicating a deep State conspiracy to force the permanent closure of thousands of BPS which are the sole option of lower middle and working class households fleeing dysfunctional government schools. As a result an estimated 2,000 BPS forced to shut down operations for over 80 weeks, have reportedly downed shutters permanently. (See EW cover story datelined October 2020 (https://www.educationworld.in/dear-prime-minister-why-no-pandemic-package-for-education/)

12. Miscellaneous corrupt practices

Apart from the major corrupt practices that are destroying and debilitating Indian education across the board from preschools to university — not even one among India’s 1,005 universities, some of whom are of over 150 years vintage, is ranked in the Top 200 World University Rankings of the globally-respected London-based varsity rating agencies QS and Times Higher Education — there are numerous others. Among them: state level politicians and babus who have made the transfer of government school teachers, timely release of their legit salaries, and supressing complaints against non-performing teachers, into big businesses. Unsurprisingly, widespread, unchecked corruption in India’s public education system has spilt over into private schools. For instance it’s fairly common for private schools to pay teachers government prescribed salaries and take back part of the remuneration in cash. Teachers desperate to retain their jobs pay up. Moreover in some top-ranked schools, bribes are demanded and paid for discretionary admissions. “The massive corruption which is slowly but surely destroying India’s education system is rooted in a policy fault which decrees that all education institutions — schools, colleges and universities — must necessarily be not-for-profit charitable enterprises. This faulty policy has corrupted the entire system. The world over private education providers have the option to deliver education charitably or for profit, while it is incumbent on government to provide good quality free-of-charge K-12 education. The fatal infirmity of India’s education system is that even education entrepreneurs are obliged to provide education as a charity. It is absurd to expect knowledge providers who invest heavily in dispensing high quality education — which is inevitably expensive — not to expect return on their investment. Liberalisation and deregulation, which empowered Indian industry in 1991, is urgently needed in the education sector to improve learning outcomes of India’s high-potential children and youth,” says Dhirendra Mishra, a former teacher at the top-ranked Good Shepherd International School, Ooty and currently promoter-director of the Raipur/Bengaluru based Life Educare Pvt. Ltd, an education consultancy which has aided the promotion of 55 K-12 schools across the country.

Liberalisation and deregulation of India’s moribund education sector has been consistently advocated by your editors since EducationWorld was launched 22 years ago with the mission to build public pressure to develop 21st century India’s high-potential human resource. Despite continuous whistle-blowing, because of government and public indifference, licence-permit-quota rules and regulations which proliferate pervasive corruption have multiplied, severely debilitating the education system. The proper role of government is to focus on upgrading, cleaning up and improving learning outcomes in the country’s 1.20 million public schools. Instead their priority seems to be command and control of India’s 450,000 private schools whose administration is best left to parents and institutional managements with light, transparent government regulation.

With the National Education Policy 2020 having proposed the establishment of dozens of committees manned by academics and government officials of unimpeachable integrity — a rare species — the auguries are not good for the world’s largest child and youth population.

Corrupt practices: status quo plus

In 2004 when this sui generis publication promoted with the mission to “build the pressure of public opinion to make education the #1 item on the national agenda”, was five years of age, we published a cover feature titled ‘Dirty Dozen Corrupt Practices Destroying Indian Education’. Sixteen years later those dirty dozen practices flourish unchecked. On the contrary several ingenious new corrupt practices have mushroomed as the establishment including academics and the media stand idly by. The dirty dozen practices of yesteryear were:

1. Pernicious licence-permit-quota regime
2. De rigueur kickbacks in school construction contracts
3. Denial of information: Opaque state/local government education budgets
4. Unchecked textbooks publishing, printing and distribution rackets
5. Teacher appointments in state government and municipal schools
6. Teacher transfer and salary payment rackets
7. Negligible investment in infrastructure — especially libraries and laboratories
8. Inspector raj is pervasive and flourishing
9. Examination paper leakages and correction rackets
10. College entry and admission rackets endanger idealism
11. The great merit hoax and coaching classes boom
12. Obsolete syllabuses and sub-standard teaching in higher education.

Source: EW October 2004

Also read: Dirty dozen corrupt practices destroying Indian education

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