Swachh Bharat Mission (SBM)

“Everyone must be his own Scavenger”                                                                         -Mahatma Gandhi

Swachh Bharat Mission (SBM)

It is a joint mission of the Ministry of Urban Development and the Ministry of Drinking Water and Sanitation (Rural). The Mission was launched by the Prime Minister Shri Narendra Modi on 2.10.2014 to fulfill Mahatma Gandhi’s vision of Clean India and to ensure hygiene, waste management and sanitation across the nation, which will be India’s tribute to Mahatma Gandhi on his 150th birth anniversary to be celebrated in the year 2019.

The program will be implemented two sub-missions by the Urban Development Ministry (Urban areas) and Ministry of Drinking Water and Sanitation (Rural).

Swachh Bharat Mission for Urban Areas:


The overall goal of the National Urban Sanitation Policy is to transform Urban India into community – driven, totally sanitized, healthy and livable cities and towns. The Swachh Bharat Mission strives to achieve this goal.

Objectives of SBM (Urban):

The objectives of the Mission are:

  • Eliminate open defecation.
  • Conversion of insanitary toilets to pour flush toilets.
  • Eradication of manual scavenging
  • 100% collection and scientific processing/disposal/reuse/recycle of Municipal solid waste.
  • To bring about a behavioral change in people regarding healthy sanitation practices.
  • Generate awareness among the citizens about sanitation and its linkages with public health.
  • Strengthening of urban local bodies to design, execute and operate systems.
  • To create enabling environment for private sector participation in Capital expenditure and Operation and Maintenance expenditure (O&M).

SBM aims to achieve these objectives of providing sanitation and household toilet facilities for all 4041 statutory towns in the country. These towns are home to 31% of the country’s population or about 377 million people. The numbers are expected to go up to 600 million by 2031.

Components of SBM (Urban):

The Mission has the following components:

  • Provision of household toilets
  • Community toilets
  • Public toilets
  • Solid waste management
  • Information Education and Communication (IEC) and Public Awareness
  • Capacity Building and Administrative and Other Expenses.

Swachh Bharat Mission (Rural):

A direct relationship exists between water, sanitation, health, nutrition, and human well being. Though a lot of work has been done in the field of rural sanitation in the past decade under Total Sanitation Campaign (TSC) in the country, sanitation coverage, which ought to be a way of life to safeguard health, is still inadequate. While the programs like TSC, Nirmal Bharat Abhiyan (NBC) has been successful to some extent, the fact that there are still a large number of rural households without access to safe sanitation facilities, which is a issue which needs to be tackled on war footing in a time bound manner, the SBM (Rural) has been launched, which aims at attaining a 100% Open Defecation Free India by 2019.

Objectives of the SBM (Rural):

The objectives are as follows:

  • Bring about an improvement in the general quality of life in the rural areas.
  • Accelerate sanitation coverage in rural areas to achieve the vision of Swachh Bharat by 2019 with all Gram Panchayats in the country attaining Nirmal status.
  • Motivate communities and Panchayati Raj Institutions promoting sustainable sanitation facilities through awareness creation and health education.
  • Encourage cost effective and appropriate technologies for ecologically safe and sustainable sanitation.
  • Develop community managed environmental sanitation systems focusing on solid and liquid waste management for overall cleanliness in the rural areas.

Components of SBM (Rural):

The components are as under:

  • Provision of individual household latrines.
  • Construction of community sanitary complexes
  • Assistance to production centers of sanitary materials and Rural Sanitary Marts
  • Funds for solid and liquid waste management.
  • Provision for IEC
  • Provision for Administrative cost


Alcoholism is a broad term for problems with alcohol, and is generally used to mean compulsive and uncontrolled consumption of alcoholic beverages, usually to the detriment of the drinker’s health, personal relationships, and social standing. It is medically considered a disease, specifically an addictive illness, and in psychiatry several other terms are used, specifically “alcohol abuse” and “alcohol dependence,” which have slightly different definitions. In 1979 an expert World Health Organization committee discouraged the use of “alcoholism” in medicine, preferring the category of “alcohol dependence syndrome“. In the 19th and early 20th centuries, alcohol dependence in general was called dipsomania, but that term now has a much more specific meaning. People suffering from alcoholism are often called “alcoholics“. Many other terms, some of them insulting or informal, have been used throughout history. The World Health Organization estimates that there are 140 million people with alcoholism worldwide.

The American Medical Association supports a dual classification of alcoholism to include both physical and mental components. The biological mechanisms that cause alcoholism are not well understood. Social environment, stress mental health, family history, age, ethnic group, and gender all influence the risk for the condition. Significant alcohol intake produces changes in the brain’s structure and chemistry, though some alterations occur with minimal use of alcohol over a short term period, such as tolerance and physical dependence. These changes maintain the person with alcoholism’s compulsive inability to stop drinking and result in alcohol withdrawal syndrome if the person stops. Alcohol misuse has the potential to damage almost every organ in the body, including the brain. The cumulative toxic effects of chronic alcohol abuse can cause both medical and psychiatric problems.

Identifying alcoholism is difficult for the individual afflicted because of the social stigma associated with the disease that causes people with alcoholism to avoid diagnosis and treatment for fear of shame or social consequences. The evaluation responses to a group of standardized questioning is a common method for diagnosing alcoholism. These can be used to identify harmful drinking patterns, including alcoholism. In general, problem drinking is considered alcoholism when the person continues to drink despite experiencing social or health problems caused by drinking.

Treatment of alcoholism takes several steps. Because of the medical problems that can be caused by withdrawal, alcohol detoxification is carefully controlled and may involve medications such as benzodiazepines such as diazepam (Valium).

People with alcoholism also sometimes have other addictions, including addictions to benzodiazepines, which may complicate this step.

After detoxification, other support such as group therapy or self-help groups are used to help the person remain sober.

Thombs (1999) states according to behavioral sciences alcoholism is described as a “maladaptive behavior”. He explains this must not be confused with “misbehavior”. Behavioral scientists explain that addicts have a behavior pattern that may lead to destructive consequences for themselves, their families and society. This does not label addicts as bad or irresponsible

Compared with men, women are more sensitive to alcohol’s harmful physical, cerebral, and mental effects

Signs and symptoms

Early signs

The risk of alcohol dependence begins at low levels of drinking and increases directly with both the volume of alcohol consumed and a pattern of drinking larger amounts on an occasion. Young adults are particularly at risk.

Long-term misuse

Alcoholism is characterized by an increased tolerance of and physical dependence on alcohol, affecting an individual’s ability to control alcohol consumption safely. These characteristics are believed to play a role in impeding an alcoholic’s ability to stop drinking.

Alcoholism can have adverse effects on mental health, causing psychiatric disorders and increasing the risk of suicide. The onset of depression is a common symptom.

The National Institute on Alcohol Abuse and Alcoholism defines binge drinking as the amount of alcohol leading to a blood alcohol content (BAC) of 0.08, which, for most adults, would be reached by consuming five drinks for men or four for women over a 2-hour period.

According to the National Institute on Alcohol Abuse and Alcoholism [NIAAA], men may be at risk for alcohol-related problems if their alcohol consumption exceeds 14 standard drinks per week or 4 drinks per day, and women may be at risk if they have more than 7 standard drinks per week or 3 drinks per day. (A standard drink is defined as one 12-ounce bottle of beer, one 5-ounce glass of wine, or 1.5 ounces of distilled spirits.


Long-term alcohol abuse can cause a number of physical symptoms, including cirrhosis of the liver, pancreatitis,epilepsy, polyneuropathy, alcoholic dementia, heart disease, nutritional deficiencies, peptic ulcers and sexual dysfunction, and can eventually be fatal. Other physical effects include an increased risk of developing cardiovascular disease, malabsorption, alcoholic liver disease, and cancer. Damage to the central nervous system and peripheral nervous system can occur from sustained alcohol consumption. A wide range of immunologic defects can result and there may be a generalized skeletal fragility, in addition to a recognized tendency to accidental injury, resulting a propensity to bone fractures.

Women develop long-term complications of alcohol dependence more rapidly than do men. Additionally, women have a higher mortality rate from alcoholism than men.  Examples of long-term complications include brain, heart, and liver damage and an increased risk of breast cancer. Additionally, heavy drinking over time has been found to have a negative effect on reproductive functioning in women. This results in reproductive dysfunction such as an ovulation, decreased ovarian mass, problems or irregularity of the menstrual cycle, and early menopause.

Alcoholicketoacidosis can occur in individuals who chronically abuse alcohol and have a recent history of binge drinking.


Long-term misuse of alcohol can cause a wide range of mental health problems. Severe cognitive problems are common; approximately 10 percent of all dementia cases are related to alcohol consumption, making it the second leading cause of dementia.

Excessive alcohol use causes damage to brain function, and psychological health can be increasingly affected over time. Social skills are significantly impaired in people suffering from alcoholism due to the neuro toxic effects of alcohol on the brain, especially the pre frontal cortex area of the brain. The social skills that are impaired by alcohol abuse include impairments in perceiving facial emotions, prosody perception problems and theory of mind deficits; the ability to understand humor is also impaired in alcohol abusers.

Psychiatric disorders are common in alcoholics, with as many as 25 percent suffering severe psychiatric disturbances. The most prevalent psychiatric symptoms are anxiety and depression disorders. Psychiatric symptoms usually initially worsen during alcohol withdrawal, but typically improve or disappear with continued abstinence. Psychosis, confusion, and organic brain syndrome may be caused by alcohol misuse, which can lead to a misdiagnosis such as schizophrenia. Panic disorder can develop or worsen as a direct result of long-term alcohol misuse.

The co-occurrence of major depressive disorder and alcoholism is well documented. Among those with co morbid occurrences, a distinction is commonly made between depressive episodes that remit with alcohol abstinence (“substance-induced”), and depressive episodes that are primary and do not remit with abstinence (“independent” episodes). Additional use of other drugs may increase the risk of depression.

Psychiatric disorders differ depending on gender. Women who have alcohol-use disorders often have a co-occurring psychiatric diagnosis such as major depression, anxiety, panic disorder,bulimia, post-traumatic stress disorder (PTSD), or borderline personality disorder. Men with alcohol-use disorders more often have a co-occurring diagnosis of narcissistic or antisocial personality disorder, bipolar disorder, schizophrenia, impulse disorders or attention deficit/hyperactivity disorder. Women with alcoholism are more likely to have a history of physical or sexual assault, abuse and domestic violence than those in the general population, which can lead to higher instances of psychiatric disorders and greater dependence on alcohol.

Social effects

The social problems arising from alcoholism are serious, caused by the pathological changes in the brain and the intoxicating effects of alcohol. Alcohol abuse is associated with an increased risk of committing criminal offences, including child abuse, domestic violence, rape, burglary and assault. Alcoholism is associated with loss of employment, which can lead to financial problems. Drinking at inappropriate times, and behavior caused by reduced judgment, can lead to legal consequences, such as criminal charges for drunk driving or public disorder, or civil penalties for tortuous behavior, and may lead to a criminal sentence.

An alcoholic’s behavior and mental impairment, while drunk, can profoundly affect those surrounding them and lead to isolation from family and friends. This isolation can lead to marital conflicts and divorce, or contribute to domestic violence. Alcoholism can also lead to child neglect, with subsequent lasting damage to the emotional development of the alcoholic’s children.

For this reason, children of alcoholic parents can develop a number of emotional problems. For example, they can become afraid of their parents, because of their unstable mood behaviors. In addition, they can develop considerable amount of shame over their inadequacy to liberate their parents from alcoholism. As a result of this failure, they develop wretched self-images, which can lead to depression.


In the United States there are four currently approved medications for alcoholism: disulfiram, two forms of naltrexone, and acamprosate. Several other drugs are also used and many are under investigation.

  • Acamprosate(Campral) may stabilize the brain chemistry that is altered due to alcohol dependence via antagonizing the actions of glutamate, a neurotransmitter which is hyperactive in the post-withdrawal   By reducing excessive NMDA activity which occurs at the onset of alcohol withdrawal, acamprosate can reduce or prevent alcohol withdrawal related neurotoxicity. A 2010 review of medical studies found that acamprosate reduces the incidence of relapse among st alcohol dependent persons.
  • Baclofen, aGABAB receptor agonist, is under study for the treatment of alcoholism. A systematic review concluded that there is insufficient evidence for the use of baclofen for withdrawal symptoms in alcoholism.
  • Benzodiazepines, while useful in the management of acute alcohol withdrawal, if used long-term can cause a worse outcome in alcoholism. Alcoholics on chronic benzodiazepines have a lower rate of achieving abstinence from alcohol than those not taking benzodiazepines. This class of drugs is commonly prescribed to alcoholics for insomnia or anxiety management.
  • Initiating prescriptions of benzodiazepines or sedative-hypnotics in individuals in recovery has a high rate of relapse with one author reporting more than a quarter of people relapsed after being prescribed sedative-hypnotics. Those who are long-term users of benzodiazepines should not be withdrawn rapidly, as severe anxiety and panic may develop, which are known risk factors for relapse into alcohol abuse. Taper regimes of 6–12 months have been found to be the most successful, with reduced intensity of withdrawal.
  • Calcium carbimide (Temposil) works in the same way as disulfiram; it has an advantage in that the occasional adverse effects of disulfiram, hepatotoxicity and drowsiness, do not occur with calcium carbimide.
  • Disulfiram (Antabuse) prevents the elimination of acetaldehyde, a chemical the body produces when breaking down ethanol. Acetaldehyde itself is the cause of many hangover symptoms from alcohol use. The overall effect is severe discomfort when alcohol is ingested: an extremely fast-acting and long-lasting uncomfortable hangover. This discourages an alcoholic from drinking in significant amounts while they take the medicine. A recent nine-year study found that incorporation of supervised disulfiram and the related compound carbimide into a comprehensive treatment program resulted in an abstinence rate of over 50 percent.
  • Naltrexoneis a competitive antagonist for opioid receptors, effectively blocking the effects of endorphins and opiates. Naltrexone is used to decrease cravings for alcohol and encourage abstinence. Alcohol causes the body to release endorphins, which in turn release dopamine and activate the reward pathways; hence when naltrexone is in the body there is a reduction in the pleasurable effects from consuming alcohol.
  • Naltrexone is also used in an alcoholism treatment method called theSinclair Method, which treats patients through a combination of Naltrexone and continued drinking.
  • Ondansetron, a 5HT3 antagonist, is effective in the treatment of alcoholism; the combination of ondansetron and naltrexone is superior than either treatment alone.

Dual addictions

Alcoholics may also require treatment for other psychotropic drug addictions. The most common dual addiction in alcohol dependence is benzodiazepine dependence, with studies showing 10–20 percent of alcohol-dependent individuals had problems of dependence and/or misuse problems of benzodiazepines. Benzodiazepines increase cravings for alcohol and the volume of alcohol consumed by problem drinkers.

Benzodiazepine dependency requires careful reduction in dosage to avoid benzodiazepine withdrawal syndrome and other health consequences.

Dependence on other sedative hypnotics such as zolpidem and zopiclone as well as opiates and illegal drugs is common in alcoholics.

Alcohol itself is a sedative-hypnotic and is cross-tolerant with other sedative-hypnotics such as barbiturates, benzodiazepines and nonbenzodiazepines.


Social Diversity of India

Social Diversity:

Social diversity is a feature of a society which is determined by caste, class, religion, occupational pattern in a given territory. In the social sphere, the general customs and manners of the people greatly differ. People of different regions use different types of dresses, their eating habits and customs differ. Certain people are quite civilized while others are very backward in their customs. In short, “India is a museum of cults and customs, creeds and cultures, faiths and tongues, racial types and social systems”.

  • Racial Diversity:

A race is a group of people with a set of distinctive physical features such as skin, color, type of nose, form of hair etc. A. W. Green says, “A race is a large biological human grouping with a number of distinctive, inherited characteristics which vary within a certain range.”

India possesses a rich variety of races. In view of this variety Prof. V.A.Smith says, “From the human point of view India has been often described as an ethnological or racial museum in which numerous races of mankind may be steadied.”

The Indian sub-continent received a large number of migratory races mostly from the Western and Eastern directions. Majority of the people in India are descendants of immigrants from across the Himalayas. Their dispersal into sub-continent has resulted in the consequent regional concentration of a variety of ethnic elements. Dr B.S.Guha identifies the population of India into six main ethnic groups based on 1931 census operations, namely (1) the Negritos (2) the Proto-Austaloids, (3) the Mongoloids, (4) the Mediterranean or Dravidian, (5) the Western Brachycephals, (6) the Nordic. People belonging to these different racial stocks have little in common either in physical appearance or food habits. The racial diversity is very perplexing.

Herbert Risley had classified the people of India into seven racial types. These are – (1) Turko – Iranian, (2) Indo-Aryan, (3) Scytho – Dravidian, (4) Aryo – Dravidina, (5) Mongo Dravidian, (6) Mongoloid and (7) Dravidians. These seven racial types can be reduced to three basic types – the Indo-Aryan, the Mongolian the Dravidian. The vast population of India consists of the jungle tribes like the Bhils, the Konds, the Santhals, the Jarawas etc,.

  • Religious Diversity:

In the religious sphere, India possesses a great diversity. India is a multi-religious country. Religion is both a factor of unity and diversity in Indian society. But, all are differentiated internally. Traditionally, different religious groups have lived in India in more or less peaceful coexistence. India is not religiously a homogenous state even though nearly 80 percent of the population is Hindus. There are six major religions in India, namely Hinduism, Islam, Christianity, Sikhism, Buddhism, Jainism and Zoroastrianism. There are also other religions like Judaism, Zoroastrianism and Bahaism.

Then there are sects within each religion. Hinduism has sects like Shaivas and Vaishnavas. Similarly, in Islam the Shias and the Sunnis, Sikhs as Namdharis and Niirankaris, Jainism into Digambar and Shwetambar and Buddhism into Hinayana and Mahayana.

In addition, the primitive men like the tribes have their own peculiar cults which are quite distinct from these major religions. Thus India possesses complete diversity in the religious sphere.

  • Caste Diversity:

India is a country of castes. The term caste is generally used in two senses: sometimes in the sense of Varna and sometimes in the sense of Jati.

  • Varna refers to a segment of the four-fold division of Hindu society based on functional criterion. The four varnas are Brahman, Kshatriya, Vaishya and Shudra with their specialized functions as learning, defense, trade and manual service. The Varna hierarchy is accepted all over India.
  • Jati refers to a hereditary endogamous status group practicing a specific traditional occupation. There are more than 3,000 jatis in India. These are hierarchically graded in different ways in different religions.

The practice of caste system is not confined to Hindus alone. One can find castes among the Muslims, Christians, Sikhs as well as other communities. There is the hierarchy of Shaik, Saiyed, Mughal and Pathan among the Muslims. Furthermore, there are castes like teli (oil presser), dhobi (washerman), etc among the Muslims. Similarly, caste consciousness among the Christians in India is not unknown. Since a vast majority of Christians in India were converted from Hindu fold, the converts carried the caste system into Christianity. In this view, one can imagine the extent of caste diversity in India.

In addition to the above described major forms of diversity, we have diversity of many other sorts like settlement patterns – tribal, rural, urban; marriage and kinship pattern along religious and regional lines and so on.

In this way diversity pervades on the whole of Indian subcontinent. And such diversities are not the hallmarks of Indian culture. The main theme of Indian culture is unity which absorbs all these diversities.

Diversity of India – Geographical and Cultural contexts

The diversity of India is unique. India has retained its diversity from an ancient time to till date. Being a large country with large population, India presents endless varieties of physical features and cultural patterns. It is a land of diversity in race, religion, caste, language, landforms, flora, fauna and so on. In short, India is “the epitome of the world”. Some of the important forms of diversity in India are:

Geographical Diversity:

Spanning an area of 3,287,263 square kilometers, India is a vast country with great diversity of physical features like dry deserts, evergreen forests, snowy Himalayas, a long coast and fertile plains. Certain parts in India are so fertile that they are counted amongst the most fertile regions of the world, while other are so unproductive and barren that hardly anything can be grown there.

The region of Indo-Gangetic valley belongs to the first category, while certain areas of Rajasthan fall under the latter category. From the point of climate, there is a sharp contrast; India has every variety of climates from the blazing heat of the plains, as hot in places as hottest Africa to freezing points of the Himalayas as in the Arctic.

The Himalayan ranges which are always covered with snow are very cold while the deserts of Rajasthan are well known for their heat. As India is dependent on Monsoons, the rainfall is not uniform across the country. While the places like Mawsynram and Cherapunji in Meghalaya, which are considered to be the places which receives highest amount of rainfall in the world gets rainfall almost all the year, places like Sindh and Rajasthan gets hardly any rainfall in an year.

This variation in the climate has also contributed to a variety of flora and fauna in India. In fact, India possesses the richest variety of plants and animals known in the world. The unique geographic demographics also host a unique eco-system rich with vegetation, wildlife, rare herbs, and a large variety of birds.

Cultural Diversity of India:

Indian culture is one of the oldest and unique. In India, there is an amazing cultural diversity throughout the country. The South, North, and the Northeast have their own distinct cultures and almost every state has carved its own cultural niche. If compare, there is hardly any culture in the world that is as varied and unique as India’s.

India, a place of infinite variety, is fascinating with its ancient and complex culture, dazzling contrasts and breathtaking physical beauty. India is the best place in the world to see the different cultures from modern to ancient and find the similarities in these diversified cultures.

The years of foreign rule, religious movements, and spiritual discoveries in the ancient land of India has given way to a rich culture of social habits, festivals and customs. Indian culture has never been rigid and that’s why it’s surviving with pride in the modern era. It timely imbibes the qualities of various other cultures and comes out as a contemporary and acceptable tradition. The flexibility and movement with time has made Indian Culture fashionable and acceptable too.

  • Linguistic Diversity:

In India there is a good deal of linguistic diversity. The census of 1961 listed as many as 1652 languages and dialects. India’s schools teach 58 different languages. The number of languages is much higher and Census, 2001 recognized 122 languages belonging to five families of Indo-European, Dravidian, Austro-Asiatic, Tibeto-Burmese and Semito-Hamitic. The nation has newspapers in 87 languages, radio programs in 71, and films in 15.  In terms of the number of languages spoken in the country, the situation was complex indeed and yet in terms of the hierarchy between the languages among different groups there was a stable pattern which did not allow India to be reduced into a “veritable Tower of Babel”.

Since most of these languages are spoken by very few people, the subsequent census regarded them as spurious but the 8th Schedule of the Constitution of India recognizes 22 languages. These are Assamese, Bengali, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu, Urdu, Sindhi, Santali, Boro, Maithili and Dongri.  These languages belong to two linguistic families: Indo-Aryan and Dravidian.

This linguistic diversity notwithstanding, India has always had a sort of link language, though it has varied from age to age. In ancient times it was Sanskrit, in medieval age it was Arabic or Persian and in modern times we have Hindi and English as official languages.

  • Indian Festivals:

India is undoubtedly, a land of festivals. There are festivals for every season, for every legend and myth, every region and every religious place. Some are exclusive to certain communities and religions while others have a national and secular character about them. The numerous and varied festivals that are held throughout the year offer a unique way of seeing Indian culture at its best.

  • Indian Cuisine:

The cuisine in India is classified into three major categories. Sattva, Rajas and Tamas. Sattva stands for balance, Rajas for Passion and Tamas for indulgence. Food is consumed according to the lifestyle of a person. India is known for its love for food and for its diverse multi cuisine. The cooking style varies from region to region. Major Indian foods include South Indian, Punjabi, Mughali, Bengali, Kashmiri, Rajasthani and Gujarati.

  • Indian Art forms:

Dance, drama, theatre or music, every art is unique in itself. In India, religions, mythology and classical literature form the basis of most of the performing arts.

  • India has thousands of year old tradition of fine arts and classical and folk music and dances. Some of the world-famous dance forms that originated and evolved in India are Bharatnatyam, Kathak, Kathakali, Kuchipudi, Manipuri, Mohiniattam and Odissi. Indian dance too has diverse folk dance forms such as Bhangra of Punjab, Yakshagana of Karnataka, Bihu of Assam and Chhau of Jharkhand.
  • The music of India plays a very important role in the lives of Indians. The music of India includes multiple varieties of religious, folk, pop and classical music.
  • Indian architecture has evolved through various ages in different regions of the country. Sculpture and architecture in India dates back to the Indus valley civilization, where stone and bronze figurines have been discovered. Indian temple carvings have their unique styles which are world famous.
  • The earliest Indian paintings were the rock paintings, Cave paintings such as Ajanta, Ellora and temple paintings.

Prevention of Money Laundering Acts in India

Prevention of Money Laundering Act, 2002:

This Act was enacted to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering. The Act extends to the whole of India including J&K.

Salient features of the Act:

  • Offence of Money laundering and Punishment.
    • Offence of money laundering means the projection of tainted money as untainted.
    • Punishment prescribe for the offence in normal crime is rigorous imprisonment for a term which shall not be less than 3 years and for that of criminal cases is rigorous imprisonment of 7 years.
  • Attachment of property involved in money laundering
    • If the Director has reason to believe that a person is in possession of property involved in money laundering or he is dealing in such property, the ED is empowered to attach the property.
  • The Act prescribes for formation of a three member Adjudicating Authority for dealing with matters relating to attachment and confiscation of property under the Act.
  • Every banking company, financial institution and intermediary is under an obligation to maintain a record for a period of 10 years and furnish information to the Director whenever it asked for.
  • The Authorities under the Act have power to enter any place for survey when the said authority has a reason to believe on the basis of material in his possession that any offence of money laundering has been committed.

The Prevention of Money Laundering (Amendment) Act, 2012:

The PMLA was enacted in 2002, but was amended thrice, first in 2005, then in 2009 and then 2012. The law became operation from Feb 15, 2013. PMLA (Amendment), 2012 has enlarged the definition of money laundering by including activities such as concealment, acquisition, possession and use of proceeds of crime as criminal activities. Some features are as follows:

  • The amendment has introduced the concept of Corresponding law to link the provisions of Indian law with the laws of foreign countries and to provide for transfer of the proceeds of foreign predicate offence committed in any manner in India.
  • It also adds the concept of ‘reporting entity’ which would include a banking company, financial institution, intermediary or a person carrying on a designated business or profession.
  • The act has provided for provisional attachment and confiscation of property of any person (for a period not exceeding 180 days). This power may be exercised by the authority if it has reason to believe that the offence of money laundering has taken place.
  • The act has conferred the powers upon the Director to call for records of transactions or any additional information that may be required for the purposes of investigation. The Director may also make inquiries for non-compliance of the obligations of the reporting entities.
  • Part B of the Schedule in the erstwhile Act included only those crimes that are above Rs 30 lakh or more whereas part A did not specify any monetary limit of the offence. The amended act has brought all the offences under Part A of the Schedule to ensure that the monetary thresholds do not apply to the offence of money laundering.

Trends and Prevention of Money Laundering in India

Present Trend of Money Laundering in India:

With its growing financial strength, India is vulnerable to money laundering activities even though the country’s strict foreign exchange laws make it difficult for criminal to launder money. Money laundering in India has to be seen from two different perspectives, i.e., Money-laundering on international forum and money-laundering within the country. As far as the cross-border money-laundering is concerned India’s historically strict foreign exchange laws and reporting norms have contributed to a great extent to control money laundering on international forum. However, there has been a threat from informal transactions like ‘Hawala’.

According to Indian observers, funds transferred through the hawala market are equal to between 30 to 40 percent of the formal market. India has considerably stepped up its investigations into money laundering and terror funding with the number of cases under probe rising, even though a low conviction level remains a “serious effectiveness issue”.

The current status of money laundering in India can also be evaluated by looking at the Basel index prepared by the Basel Institute on governance, Switzerland. The Basel AML index scores countries on the basis of AML laws, financial regulations, political disclosure, etc. in that country. The overall score, ranges from 0 (low risk) to 10 (high risk). Out of 140 countries, India has been ranked 93 (6.05).

Prevention of Money Laundering in India:

Combating money laundering is a dynamic process because the criminals who launder money are continuously seeking new ways to achieve their illegal ends. Moreover, it has become evident to the FATF through its regular typologies exercises that as its members have strengthened their systems to combat money laundering the criminals have sought to exploit weaknesses in other jurisdictions to continue their laundering activities.

In India, before the enactment of the Prevention of Money Laundering Act 2002 (PMLA), the following statutes addressed scantily the issue:

  • The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
  • The Income Tax Act, 1961.
  • The Benami Transactions (Prohibition) Act, 1988.
  • The Indian Penal Code and Code of Criminal Procedure, 1973.
  • The Narcotic Drugs and Psychotropic Substances Act, 1985.
  • The Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988

However, this was not sufficient with the growth of varied areas of generating illegal money. Money laundering was an effective way to launder the black money so as to make it white. In view of the need for the enactment of a comprehensive legislation inter alia for preventing money laundering and connected activities, confiscation of proceeds of crime, setting up of agencies and mechanisms for coordinating measures for combating money-laundering, India took the following steps:

  • The financial intelligence unit – India (FIU-India) which is the nodal agency in India for managing the anti-money laundering ecosystem. It helps in coordinating and strengthening efforts to reduce money laundering and related crimes in India.
  • Prevention of Money Laundering Act, 2002 has been the core framework for combating it.
  • In 2010, India admitted as the 34th country member of Financial Action Task Force (FATF). This membership helped Indian enforcement agencies to exchange information and financial institutions to gain much better access to markets of other member countries.
  • Prevention of money laundering (Amendment) Bill, 2012.
  • The Enforcement Directorate carries out investigations and it is also empowered to attach property entities involved in money laundering.

Prevention of Money Laundering at International Level

Money laundering methods and techniques change in response to developing counter-measures. In recent years, there is an increase in sophisticated combinations of techniques, such as the increased use of legal persons to disguise the true ownership and control of illegal proceeds, and an increased use of professionals to provide advice and assistance in laundering criminal funds. It’s now the time for all countries to take the necessary steps to bring their national systems for combating money laundering and terrorism fianancing.

Some steps taken to prevent money laundering at the Global level

  • United Nations Convention in 1988 against illicit Traffic in Narcotic Drugs and Psychotropic Substances is the first international legal instrument providing provisions against money laundering. Also this is the first international convention which criminalized Money Laundering.
  • UN convention against Transnational Organized crime in 2003 and UN Convention against Corruption in 2005 came into force.
    • Both convention states that money laundering should not only apply to the proceeds of drug trafficking, but should also cover the proceeds of all serious crimes.
    • Both convention urge states to create domestic supervisory and regulatory regime for banks and non-financial institutions.
    • Both conventions also call for the establishment of Financial Intelligence Units (FIUs)
  • Financial Action Task Force on Money Laundering (FATF)

In response to mounting concern over money laundering, the Financial Action Task Force on Money Laundering (FATF) was established by the G-7 summit that was held in Paris in 1989. Recognizing the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member states, the European Commission and eight other countries.

The Task Force was given the responsibility of examining money laundering techniques and trends, reviewing the action which had already been taken at a national or international level, and setting out the measures that still needed to be taken to combat money laundering. In April 1990, less than one year after its creation, the FATF issued a report containing a set of forty recommendations, which provide a comprehensive plan of action needed to fight against money laundering.

FATF on Money Laundering has identified certain choke points in its process. These choke points are:

  • Entry of cash into financial system
  • Transfers to and from the financial system
  • Cross border flow of cash

Some of the recommendations are:

  • Implement relevant international conventions
  • Criminalize money laundering and enable authorities to confiscate the proceeds of money laundering
  • Implement customer due diligence (e.g., identity verification), record keeping and suspicious transaction reporting requirements for financial institutions and designated non-financial businesses and professions.
  • Establish a financial intelligence unit to receive and disseminate suspicious transaction reports, and
  • Cooperate internationally in investigating and prosecuting money laundering

Money Laundering and it’s Stages


The goal of a large number of criminal acts is to generate profit for the individual or group that carries out the act. Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardizing their source.

Illegal arms sales, smuggling, and the activities of organized crime, including for example drug trafficking and prostitution rings, can generate huge amounts of proceeds. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to “legitimize” the ill-gotten gains through money laundering.


Money Laundering is the process by which large amounts of illegally obtained money is given the appearance of having originated from a legal source.

INTERPOL’s definition of money laundering is: “any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources”.

Illegally obtained funds are laundered and moved around the globe using and abusing shell companies, intermediaries and money transmitters. In this way, the illegal funds remain hidden and are integrated into legal business and into the legal economy.

According to Investopedia, Money Laundering “is the process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source.

Money laundering involves disguising financial assets so that they can be used without detection of the illegal activity that produced them. Through money laundering, the launderer transforms the monetary proceeds derived from criminal activity into funds with an apparently legal source.

Stages of Money Laundering:

It has three stages. They are:

  1. Placement Stage – in this stage, vast amounts of money is generated from an illegal source (like drug dealing, terrorist activity or other crimes) and it is placed into the financial system or retail economy or smuggled out of the country. The aim of this stage is to remove the cash from the location of acquisition and then transform it into other assets.
  2. Layering Stage – at this stage, complex layers of financial transactions are designed to disguise the audit trail and provide anonymity.
  3. Integration stage – in this stage, money is integrated into the legal economic and financial systems and is adopted with all other legal assets in the system.

Structuring or Smurfing, Casinos, real estate, cash intensive businesses, black salaries are some of the methods of money laundering.

(Prevention follows….)

Linkages of organized crime with terrorism

Mutually beneficial partnership (Terrorist groups and Syndicate Criminals)

  • While organized crime involves many activities, its linkages with terrorism stem from illegal trafficking of drugs, arms and human beings and money laundering. Terrorist groups, whether indigenous or sponsored by outside states, need arms and money for their fight against the security forces. Organized crime conglomerates need a clientele and couriers who can smuggle drugs, arms and human beings across the countries and regions.
  • Terror groups as they are anti-state, they cannot have control on legal source of money, hence takes help from the syndicate criminal gangs, as they can provide them legal investments. Terror groups make use of organized crimes for terror finance.

Help in Trans-border Terrorism

  • In India, the linkages between the two exist at national and transnational levels. At the national level, both terrorist and those involved in organized crime are within India. At the international level, collaboration exists between transnational syndicates and terrorists from inside and outside India.
  • In India’s northeast, almost all the militant groups run a parallel government or have their areas of influence and are involved in collecting money directly from the people. Much of the government funds reach the militants indirectly due to misgovernance. Government officials in conflict zones are either threatened or bribed to award contracts to individuals patronized by the militant groups. contracts apart, essential commodities like rice and kerosene reach the militant groups directly which are then sold to the public at much higher prices. This cycle, though unnoticed in other parts of India, is a clear example of the linkage between organized crime and terrorism inside India.

For terror groups, Organized crime helps to take the covert activities through the country.

  • Extortion, kidnap, contracts and black marketing still fall short of financing the nefarious activities of the militants. This is where transnational drugs and arms syndicates come into play. Terrorist organizations in India, especially in the northeast, mobilize funds by becoming couriers of illegal drugs and arms and at times even human beings from one point to another within the country.
  • In Kashmir, the linkages between terrorists and organized crime exist at a different level. Unlike the northeast, reliance on funds from extortion and other related means is minimal. There is no parallel government in Kashmir and government resources do not reach militant hands. However, external funds compensate for inadequate internal mobilization.
  • Money laundering plays a significant role. Hawala (money laundering) transactions take place swiftly and effectively in Kashmir.
  • Spread of counterfeit currency. Terrorists are the main couriers of Indian counterfeit currency inside Kashmir, which then spreads all over India.

Terror groups maintain linkages with organized crimes to get safe advice sanctuaries.

Why does Organized crime support Terrorist Groups?

  • Organized crime obtains weapons and arms from the terrorist groups.
  • Terror groups are the easy way of carrying mechanisms like drugs, smuggling operations.
  • To settle rivalries.
  • Criminal activities of Organized criminal gangs can be passed off as terrorist activities to confuse the law and judiciary systems.

Rise and Pattern of Organized Crimes in India

Rise of Organized crime in India:

Organized Crime in India is on the rise. Extortions, kidnappings for ransom, gun running, illicit trafficking in women and children, narcotics trade, money laundering using the hawala network, every conceivable kind of cheating and fraud, bank scams and so on, not only spread a sense of insecurity in the common man but also drain the country of thousands of crores of rupees. What gets reported to and investigated by the law enforcement agencies is only a minuscule percentage of the overall quantum of organized criminal activity.

In recent months the pressure of organized criminal groups has become so intimate that business houses have been forced to relocate themselves and foreign investors have had to flee. Mafia activity is finding greener pastures and virgin territories everyday. What is most disturbing is the inroads organized crime has made into the politics of the country.

Safely ensconced in enemy territory, the dons provide a classical example of transnational organized criminal groups for whom boundaries between nations have ceased to matter as far as operational requirements are concerned, given advances in communication technology now widely available. They have been quick to capitalize on estranged or hostile diplomatic relations between countries to their advantage to escape the search of law.

Pattern of Organized crime in India:

  • Petty crimes are becoming organized crimes in Indian cities.
  • Organized crimes are much more efficient in port cities because of the facility of smuggling.
  • Organized crimes are developed in metros because of the real-estate growth.
  • Organized crimes strengthened because of the economic development as a complex system, through different economic reforms.

Example: Foreign Direct Investment (FDI) and money laundering, particularly in financial and capitalist markets.

  • Organized crimes entered rural areas centering two things. Rural women for prostitution and real-estate link in rural-urban areas.