Corruption in India has grown to alarming proportions; because of policies which have created enormous incentives for its proliferation, coupled with the lack of an effective institution which can investigate and prosecute the corrupt. Under the garb of liberalization and privatisation, we have adopted policies by which natural resources and public assets (such as mineral resources, oil & gas, land, spectrum, etc) have been allowed to be privatised without any transparency or public auction. Hundreds of MoUs have been signed overnight, by governments with private corporations, leasing out large tracts of land rich in mineral resources, forests and water, which allow those corporations to take away and sell these resources by paying the government a royalty which is usually less than 1% of the value of resources. The Karnataka Lokayukta Justice Santosh Hegde, has pointed out in a report on mining in Karnataka, that the profit margins in such ventures, is often more than 90%; thus leaving a huge scope for bribe giving and creating huge incentives for corruption. The same thing happened when Mr A. Raja gave away spectrum without a public auction to companies at less than 10% of its market price. Private monopolies in water/electricity distribution, airports, etc; have been allowed to be created where huge and unconscionable profits can be made by corrupting the regulator and allowing the private monopoly to charge predatory prices. Tens of thousands of hectares of land have been given away to corporations for commercialisation in the guise of airport development, construction of highways, SEZs etc. at prices which are less than 10% of the value of the those tracts of land.