Q. Subash is Secretary, PWD in the State Government. He is a senior officer, known for his competence, integrity and dedication to work.
He enjoys the trust and confidence of Minister Incharge of PWD and Programme Implementation. As a part of his job profile, he is responsible for policy formulation, execution of projects relating to infrastructure initiatives in the State. Besides, he oversees the technical and administrative aspects, relating to planning, designing and construction etc. Subash’s Minister is an important Minister in the state and significant growth in urban infrastructure development and road network has been registered during his tenure. He is very keen for launching of ambitious road construction project in the near future. Subash is in regular touch with the Minister and is working various modalities of road construction project. Regular meetings, interactions and presentations are made by him to the Minister before a formal public announcement of the project is made by the Minister. Subash’s only son Vikas is in real estate business. His son from his own sources is aware that a mega road project is on the anvil and announcement in this regard is expected anytime. He is very keen to know from his father the exact location of the upcoming project. He knows that there would be quantum jump in the prices of land in the vicinity. Buying land at this stage at cheaper prices would pay him rich dividends. He is pleading with him (his father) day in and day out to share him location of the proposed project. He assured him that he would handle the matter discretely as it would not attract any adverse notice as he in the normal course, keeps on buying land as a part of his business. He feels pressurised because of constant pleadings by his son. Another significant aspect of the matter pertained to the extra/undue interest in the above project by the Minister PWD. His nephew was also having big infrastructure project company. In fact, the Minister has also introduced his nephew to him and indicated to him to take care of his nephew’s business interest in the forthcoming project. The Minister encouraged him to act fast in the matter as early announcement and execution of mega road project would enhance his status in the party and public life. In the above backdrop, Subash is in a fix as to the future course of action.
(a) Discuss the ethical issues involved in the case.
(b) Critically examine the options available to Subash in the above situation.
(c) Which of the above would be most appropriate and why?
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1. Ethical Issues Involved
- Conflict of Interest: Son’s private real estate profiteering directly conflicts with Subash’s public duty.
- Breach of Confidentiality: Leaking project coordinates violates the Official Secrets Act, 1923 and fiduciary trust.
- Crony Capitalism & Nepotism: Minister pressuring Subash to favor his nephew undermines fair competition and public welfare.
- Compromise of Nolan Principles: Threats to Objectivity, Integrity, and Honesty in public service.
2. Critical Examination of Options
- Yield to both son and Minister:
- Merit: Ensures familial harmony and political patronage.
- Demerit: Illegal, destroys public trust, and invites severe vigilance/CBI probes.
- Reject son’s plea but oblige the Minister:
- Merit: Avoids personal financial gain; maintains the Minister’s trust.
- Demerit: Hypocritical, legally culpable for rigged tendering, and ethically bankrupt.
- Refuse both and execute the project transparently:
- Merit: Upholds Constitutional morality, legal frameworks, and personal conscience.
- Demerit: Alienates son and risks punitive transfers or political harassment.
3. Most Appropriate Action & Justification
Option 3 is the only ethically sound and legally viable course of action.- Handling the Son: Subash must firmly deny the information, warning his son of the legal and reputational repercussions of insider trading.
- Tackling Political Pressure: He must mandate an open, transparent, and competitive e-tendering process (e.g., EPC mode) to preclude the Minister’s nephew from gaining undue advantages.
- Institutional Safeguard: Subash should rigorously document all project files. If the Minister issues verbal directives to bypass rules, Subash must seek them in writing or apprise the Chief Secretary (reflecting Ashok Khemka’s uprightness).




