Whistleblowing by a Public Employee and Administrative Law

Abstract

"Let the cat out of the bag" is a phrase commonly used to describe the act of revealing secrets. In the legal context, whistleblowing refers to the disclosure of information regarding wrongful acts. A whistleblower is an individual who exposes such acts, and this process must align with constitutional principles. Whistleblowing is crucial for upholding the Rule of Law and preventing Rule by Law within organizations. It often involves reporting criminal offenses, dangers to individuals or the environment, and requires significant courage. This article explores the concept of whistleblowing, the associated threats and protections for whistleblowers, and the legal framework in India. Additionally, it identifies gaps in existing whistleblowing laws and suggests improvements.

Whistleblowing was first referenced in the case of Winters v. Houston Chronicle Pub. Co. by Dogget J. It involves alerting authorities to malicious, fraudulent, and unethical activities within an organization. While prominent in the corporate sector, it is also significant in public-sector employment. A whistleblower, who can be a current or former employee, exposes these activities to maintain transparency and counteract corruption, smuggling, tax evasion, and money laundering.

Categorization of Kinds of Whistleblowers

1. Internal Whistleblowers: Report wrongdoing to internal management to protect the company's reputation.
2. External Whistleblowers: Publicize fraudulent acts in the media or to the public.
3. Personal Whistleblowers: Report malicious practices that injure a particular person or their personal surroundings.
4. Impersonal Whistleblowers: Report acts that do not affect other persons directly.
5. Government Whistleblowers: Reveal illicit acts of government employees to maintain transparency.
6. Alumni Whistleblowers: Former employees who report wrongdoings within the organization.
7. Corporate Whistleblowers: Members of established business firms reporting internal frauds.

Laws in India

In 2001, the Law Commission of India suggested protecting whistleblowers. After the Satyendra Dubey case in 2003, the Supreme Court introduced safeguards for whistleblowers. The Right to Information Act (RTI) of 2005 increased public sector accountability but also led to severe consequences for whistleblowers. In 2014, the Whistleblowers Protection Act was enacted, providing a legal framework for protecting whistleblowers and establishing penalties for misconduct.

Sections 206 to 229 of the Companies Act 2013 detail the arrest, investigation, and inquiry of individuals involved in crimes. Section 211 establishes a statutory office for inspecting fraudulent activities. The Securities and Exchange Board of India (SEBI) regulations also play a role in protecting whistleblowers.