The Uttar Pradesh Legislative Assembly recently passed a resolution calling for the division of Uttar Pradesh [U.P] into four States. But the procedure for formation of new States laid down in Article 3 of the Constitution provides that a State has no say over the formation of new States beyond communicating its views to Parliament. Article 3 assigns to Parliament the power to enact legislation for the formation of new States. Parliament may create new States in a number of ways, namely by (i) separating territory from any State, (ii) uniting two or more States, (iii) uniting parts of States and (iv) uniting any territory to a part of any State. Parliament’s power under Article 3 extends to increasing or diminishing the area of any State and altering the boundaries or name of any State. Two checks constrain Parliament’s power to enact legislation for the formation of new States. Firstly, a bill calling for formation of new States may be introduced in either House of Parliament only on the recommendation of the President. Secondly, such a bill must be referred by the President to the concerned State Legislature for expressing its views to Parliament if it contains provisions which affect the areas, boundaries or name of that State. As can be seen, the only role that the U.P. State Legislature [the Legislative Assembly and Legislative Council] will play in any future formation of new States is when the President calls for its views to be placed before Parliament. Parliament will not be bound by these views in the process of enacting legislation for the formation of new States.

 The last few months saw a number of allegations of corruption in issues such as contracts for the Commonwealth Games, allocation of  2G Spectrum, and the building of the Adarsh housing society.  Professor Kaushik Basu, the Chief Economic Adviser to the Ministry of Finance, has proposed a modification in order to make the anti-corruption law in the country more effective.  The Prevention of Corruption Act, 1988 penalizes both bribe giving and taking.  Bribe giving is punishable under the Act with imprisonment ranging between six months to five years.  He argues that bribe giving should be legalized. Professor Basu distinguishes “harassment bribes”, which he defines as “bribes that people often have to give to get what they are legally entitled to” from the remaining, “Non-Harassment Bribes” which would involve illegal benefits accruing to the bribe giver at a potential cost to the public interest.  He argues that legalization of harassment bribes would reduce the nexus between the giver (victim) and the taker of a bribe. Giving complete immunity to the bribe-giver would ensure higher reporting and co-operation of the giver in bringing to justice the bribe taker. The present law acts as a deterrent to reporting of bribery. Courts have also highlighted this issue. The High Court of Delhi in the Bharadwaaj Media Case (2007) observed that a “bribe giver is normally on the mercy of the officials and babus who compel him to pay bribe even for lawful work.The Court further observed that “Instead of expressing gratefulness to the persons who expose corruption, if the institutions start taking action against those who expose corruption, corruption is bound to progress day and night.”  It can be inferred from the judgement that steps ought to be taken to provide protection to those exposing bribery. The proposed legalization of bribe-giving may result in increased reporting of bribery and co-operation of the victim during prosecution. The fear that a bribe giver may report the public official could reduce corruption, at least in terms of harassment bribes. However, this proposal may reduce the stigma attached to bribe-giving and result in corrosion of morality. Much of the recent debate around corruption and the Lok Pal Bill revolve around effective prosecution. This paper looks at the incentive structure for reporting bribe-giving, and merits public debate.