Whistle Blowers Protection Act: An Overview

Whistleblowing, which is defined as blowing a whistle or disclosing facts in front of the public, combines the terms "whistle" and "blowing." The materials might be concerning institutions or organizations that are public or private and pertain to actions that are thought to be unethical, dishonest, or criminal. “Whistle-blowers” are those who come forward and report wrongdoings.

Information on tax avoidance by the global rich through offshore companies and shell firms in tax havens was made public by the Panama Papers leak. The Uber Files exposed Uber's unscrupulous tactics used to dominate the ride-hailing market on a worldwide scale. Experts regret that such large-scale exposures are not conceivable in India. This necessitates taking decisive action to strengthen India's whistle-blower protection framework.

Objective of the Whistle Blowers Protection Act

Whistleblowing is the legal revelation of information to a designated recipient that the discloser has a good faith belief supports wrongdoing. It is a system for countering misconduct and promoting the correct, effective, and efficient functioning of IC operations by getting the right information to the right people.

Types of Whistle-blowers

There are two types of whistlers. These are as follows −

• Internal Whistle-blowers − These are the organizations' higher authorities who receive information from whistle-blowers on wrongdoing within their organizations. Only the organization's or company's superior has the authority to check that action. Typically, the investigation and process to stop the illegal work are not handled by the government. Without the involvement of a third party, the organization handles it on its own

• External Whistle-blowers − They refer to those who alert external parties, such as reporters from the media or concerned government officials, about ongoing illegal activities in a particular organization. The main goal of reporting it to the outside authorities is for the public benefit and safety. Another justification for reporting it to outside authorities may be the organization's lax response to fraud or other illegal activities

Provisions under the Whistle Blowers Protection Act

The Act consists of 31 sections in 7 chapters. Thus, the following are the provisions under the act −

Provisions	Chapters	Description
Section 1-Section 3	I	Preliminary
Section 4	II	Public interest disclosure
Section 5-Section 6	III	Inquiry in relation to public interest disclosure
Section 7-Section 10	IV	Powers of competent authority
Section 11-Section 14	V	Protection to the persons making disclosure
Section 15-Section 22	VI	Offences and penalties
Section 22-Section 31	VII	Miscellaneous

Whistle-blower Protection Framework in India

The Public Interest Disclosure and Protection of Informers (PIDPI) Resolution was adopted by the government in 2004 to provide for the recording of complaints alleging corruption or abuse of office by a government officer or department. The Central Vigilance Commission (CVC) was chosen to handle complaints, which are still frequently forwarded to the appropriate division after the whistle-blower’s identity has been concealed.

In 2005, India ratified the UN Convention against Corruption. The Convention addresses the reporting of corruption by public or private bodies as well as safeguarding witnesses and whistle-blowers from reprisal.

• Companies Act, 2013 − The Companies Act, 2013, from sections 206-229, covers the inspection and inquiry topics comprehensively. In the event of a question, an Inspector may review the records and recommend an additional inquiry under Section 208 of the Companies Act, 2013, which gives this authority. Additionally, Section 210 gives the Union government the authority to look into any alleged criminal activity upon notification from the inspector or the registrant of the firm.

• Securities and Exchange Board of India − Every firm registered under SEBI was required to have a whistle-blower policy and be accountable for informing each employee about it. A reward mechanism has also been implemented by SEBI as of December 2019 as a kind of incentive for informants who report a breach of insider trading regulations to SEBI.

• The Whistle-blowers Protection Act, 2014 − The Act intends to safeguard those who alert the appropriate authorities to charges of corruption, abuse of authority, or criminal activity against a public employee. According to the Act, each complaint must include the complainant's name. If the department head feels it is essential, the Vigilance Commission may disclose the complainant's identity. Any individual who has revealed the complainant's identity is subject to punishment under the Act.

We Need to Strengthen Our Whistle-blower Protection Framework

To strengthen whistle-blower protection, the following are the essentials to be fulfilled −

• Augmenting Transparency and Accountability

• Protecting Citizen Rights

• Preventing hardships for whistle-blowers, which include livelihood loss, death threats, etc.

What should be done to strengthen the Whistle-blower Protection Framework?

In order to give all whistle-blowers in India protection, the government needs to first reform the Whistle-blowers Protection Act. Both public and private sector employers have been seen by several US states (including Florida, Hawaii, and Minnesota) as being under the purview of whistle-blower protection laws.

Second, a strong incentive system must be developed under the Whistle-blowers Act. Additionally, penalties for making false or pointless complaints need to be increased.

Third, the government must create the rules required to put the Whistle-blower Protection Act into practice.

Fourth, whistle-blowers should have the freedom to contact independent authorities rather than top officials when they have a complaint to make. For instance, in the United States, there are distinct agencies with impartial investigators who are in charge of looking into any charges made against them by a whistle-blower under various laws that have been created. They were created in particular to collect and look into complaints from whistle-blowers

Conclusion

The government must make sure that whistle-blowers have access to a supportive environment where they are encouraged to report illegal activity occurring in any company without fear of retaliation. The whistle-blower protection process has to be strengthened in order to increase accountability and openness in public institutions.

Frequently Asked Questions

Q1. When was the Whistleblowing Protection Act passed?

Ans. The Act was passed on May 9, 2014.

Q2. When was the whistle-blower billed in the Indian Parliament?

Ans. The Whistle-blower Bill 2014 was sanctioned by the Cabinet of India as part of a drive to eliminate corruption in the country's bureaucracy and passed by the Lok Sabha on December 27, 2011. Subsequently, the Bill was passed by the Rajya Sabha on February 21, 2014.

Q3. Which country adopted the first whistle-blower law?

Ans. First of all, the US law adopted whistle-blower law, specifically in the 1863. United States False Claims Act, which was revised in 1986, tried to curb fraud by suppliers to the United States government during the American Civil War.

Q4. Who was the first whistle-blower?

Ans. Samuel Shaw who was a revolutionary war naval officer who, along with Richard Marven, were believed as the first whistle-blowers of the United States.