Kautilya's Arthashastra 2.8: Chapter 8 (Section 26): Misappropriation of Revenue by Officers and Its Recovery

2.8.1

kośapūrvāḥ sarvārambhāḥ //

ALL undertakings depend upon finance. Hence foremost attention shall be paid to the treasury.

2.8.2

tasmāt pūrvaṃ kośam avekṣeta //

2.8.3

pracārasamṛddhiś caritrānugrahaś coranigraho yuktapratiṣedhaḥ sasyasampat paṇyabāhulyam upasargapramokṣaḥ parihārakṣayo hiraṇyopāyanam iti kośavṛddhiḥ //

Public prosperity (prachárasamriddhih), rewards for good conduct (charitránugrahah), capture of thieves, dispensing with (the service of too many) government servants, abundance of harvest, prosperity of commerce, absence of troubles and calamities (upasargapramokshah), diminution of remission of taxes, and income in gold (hiranyópáyanam) are all conducive to financial prosperity.

2.8.4

pratibandhaḥ prayogo vyavahāro 'vastāraḥ parihāpaṇam upabhogaḥ parivartanam apahāraś ceti kośakṣayaḥ //

Obstruction (pratibandha), loan (prayóga), trading (vyavahára), fabrication of accounts (avastára), causing the loss of revenue (parihápana), self-enjoyment (upabhóga), barter (parivartana), and defalcation (apahára) are the causes that tend to deplete the treasury.

2.8.5

siddhīnām asādhanam anavatāraṇam apraveśanaṃ vā pratibandhaḥ //

Failure to start an undertaking or to realise its results, or to credit its profits (to the treasury) is known as obstruction. Herein a fine of ten times the amount in question shall be imposed.

2.8.6

tatra daśabandho daṇḍaḥ //

2.8.7

kośadravyāṇāṃ vṛddhiprayogāḥ prayogaḥ //

Lending the money of the treasury on periodical interest is a loan.

2.8.8

paṇyavyavahāro vyavahāraḥ //

Carrying on trade by making use of government money is trading.

2.8.9

tatra phaladviguṇo daṇḍaḥ //

These two acts shall be punished with a fine of twice the profit earned.

2.8.10

siddhaṃ kālam aprāptaṃ karoti aprāptaṃ prāptaṃ vety avastāraḥ //

Whoever makes as unripe the ripe time or as ripe the unripe time (of revenue collection) is guilty of fabrication. Herein a fine of ten times the amount (panchabandha) shall be imposed.

2.8.11

tatra pañcabandho daṇḍaḥ //

2.8.12

klṛptam(kḷptam) āyaṃ parihāpayati vyayaṃ vā vivardhayatīti parihāpaṇam //

Whoever lessens a fixed amount of income or enhances the expenditure is guilty of causing the loss of revenue. Herein a fine of four times the loss shall be imposed.

2.8.13

tatra hīnacaturguṇo daṇḍaḥ //

2.8.14

svayam anyair vā rājadravyāṇām upabhojanam upabhogaḥ //

Whoever enjoys himself or causes others to enjoy whatever belongs to the king is guilty of self-enjoyment. Herein death-sentence shall be passed for enjoying gems, middlemost amercement for enjoying valuable articles, and restoration of the articles together with a fine equal to their value shall be the punishment for enjoying articles of inferior value.

2.8.15

tatra ratnopabhoge ghātaḥ, sāropabhoge madhyamaḥ sāhasadaṇḍaḥ, phalgukupyopabhoge tac ca tāvat ca daṇḍaḥ //

2.8.16

rājadravyāṇām anyadravyenādānaṃ parivartanam //

The act of exchanging government articles for (similar) articles of others is barter. This offence is explained by self-enjoyment.

2.8.17

tad upabhogena vyākhyātam //

2.8.18

siddham āyaṃ na praveśayati, nibaddhaṃ vyayaṃ na prayacchati, prāptāṃ nīvīṃ vipratijānīta ity apahāraḥ //

Whoever does not take into the treasury the fixed amount of revenue collected, or does not spend what is ordered to be spent, or misrepresents the net revenue collected is guilty of defalcation of government money. Herein a fine of twelve times the amount shall be imposed.

2.8.19

tatra dvādaśaguṇo daṇḍaḥ //

2.8.20

teṣāṃ haraṇopāyāś catvāriṃśat //

There are about forty ways of embezzlement: what is realised earlier is entered later on; what is realised later is entered earlier; what ought to be realised is not realised; what is hard to realise is shown as realised; what is collected is shown as not collected; what has not been collected is shown as collected; what is collected in part is entered as collected in full; what is collected in full is entered as collected in part; what is collected is of one sort, while what is entered is of another sort; what is realised from one source is shown as realised from another; what is payable is not paid; what is not payable is paid; not paid in time; paid untimely; small gifts made large gifts; large gifts made small gifts; what is gifted is of one sort while what is entered is of another; the real donee is one while the person entered (in the register) as donee is another; what has been taken into (the treasury) is removed while what has not been credited to it is shown as credited; raw materials that are not paid for are entered, while those that are paid for are not entered; an aggregate is scattered in pieces; scattered items are converted into an aggregate; commodities of greater value are bartered for those of small value; what is of smaller value is bartered for one of greater value; price of commodities enhanced; price of commodities lowered; number of nights increased; number of nights decreased; the year not in harmony with its months; the month not in harmony with its days; inconsistency in the transactions carried on with personal supervision (samágamavishánah); misrepresentation of the source of income; inconsistency in giving charities; incongruity in representing the work turned out; inconsistency in dealing with fixed items; misrepresentation of test marks or the standard of fineness (of gold and silver); misrepresentation of prices of commodities; making use of false weight and measures; deception in counting articles; and making use of false cubic measures such as bhájan— these are the several ways of embezzlement.

2.8.21

pūrvaṃ siddhaṃ paścād avatāritam, paścāt siddhaṃ pūrvam avatāritam, sādhyaṃ na siddham, asādhyaṃ siddham, siddham asiddhaṃ kṛtam, asiddhaṃ siddhaṃ kṛtam, alpasiddhaṃ bahu kṛtam, bahusiddham alpaṃ kṛtam, anyat siddham anyat kṛtam, anyataḥ siddham anyataḥ kṛtam,-
deyaṃ na dattam, adeyaṃ dattam, kāle na dattam, akāle dattam, alpaṃ dattaṃ bahu kṛtam, bahu dattam alpaṃ kṛtam, anyad dattam anyat kṛtam, anyato dattam anyataḥ kṛtam,-
praviṣṭam apraviṣṭaṃ kṛtam, apraviṣṭaṃ praviṣṭaṃ kṛtam, kupyam adattamūlyaṃ praviṣṭam, dattamūlyaṃ na praviṣṭaṃ -
saṃkṣepo vikṣepaḥ kṛtaḥ, vikṣepaḥ saṃkṣepo vā, mahārgham alpārgheṇa parivartitam, alpārghaṃ mahārgheṇa vā -
samāropito 'rghaḥ, pratyavaropito vā, saṃvatsaro māsaviṣamaḥ kṛtaḥ, māso divasaviṣamo vā, samāgamaviṣamaḥ, mukhaviṣamaḥ, kārmikaviṣamaḥ -
nirvartanaviṣamaḥ, piṇḍaviṣamaḥ, varṇaviṣamaḥ, arghaviṣamaḥ, mānaviṣamaḥ, māpanaviṣamaḥ, bhājanaviṣamaḥ - iti haraṇopāyāḥ // -

2.8.22

tatropayuktanidhāyakanibandhakapratigrāhakadāyakadāpakamantri.vaiyāvṛtyakarān ekaikaśo 'nuyuñjīta //

Under the above circumstances, the persons concerned such as the treasurer (nidháyaka), the prescriber (nibandhaka), the receiver (pratigráhaka), the payer (dáyaka), the person who caused the payment (dápaka), the ministerial servants of the officer (mantri-vaiyávrityakara) shall each be separately examined. If any one of these tells a lie, he shall receive the same punishment as the chief-officer, (yukta) who committed the offence.

2.8.23

mithyāvāde caiṣāṃ yuktasamo daṇḍaḥ //

2.8.24

pracāre cāvaghoṣayet "amunā prakṛtenopahatāḥ prajñāpayantu" iti //

A proclamation in public (prachára) shall be made to the effect "whoever has suffered at the hands of this offender may make their grievances known to the king."

2.8.25

prajñāpayato yathopaghātaṃ dāpayet //

Those who respond to the call shall receive such compensation as is equal to the loss they have sustained.

2.8.26

anekeṣu cābhiyogeṣv apavyayamānaḥ sakṛd eva paroktaḥ sarvaṃ bhajeta //

When there are a number of offences in which a single officer is involved, and when his being guilty of parókta in any one of those charges has been established, he shall be answerable for all those offences. Otherwise (i.e., when it is not established), he shall be tried for each of the charges.

2.8.27

vaiṣamye sarvatrānuyogaṃ dadyāt //

2.8.28

mahaty arthāpahāre cālpenāpi siddhaḥ sarvaṃ bhajeta //

When a government servant has been proved to be guilty of having misappropriated part of a large sum in question, he shall be answerable for the whole.

2.8.29

kṛtapratighātāvasthaḥ sūcako niṣpannārthaḥ ṣaṣṭham aṃśaṃ labheta, dvādaśam aṃśaṃ bhṛtakaḥ //

Any informant (súchaka) who supplies information about embezzlement just under perpetration shall, if he succeeds in proving it, get as reward one-sixth of the amount in question; if he happens to be a government servant (bhritaka), he shall get for the same act one-twelfth of the amount.

2.8.30

prabhūtābhiyogād alpaniṣpattau niṣpannasyāṃśaṃ labheta //

If an informant succeeds in proving only a part of a big embezzlement, he shall, nevertheless, get the prescribed share of the part of the embezzled amount proved.

2.8.31

aniṣpanne śārīraṃ hairaṇyaṃ vā daṇḍaṃ labheta, na cānugrāhyaḥ //

An informant who fails to prove (his assertion) shall be liable to monetary or corporal punishment, and shall never be acquitted.

2.8.32

niṣpattau nikṣiped vādam ātmānaṃ vāpavāhayet /[ś]
abhiyuktopajāpāt tu sūcako vadham āpnuyāt //[ś] E

When the charge is proved, the informant may impute the tale-bearing to someone else or clear himself in any other way from the blame. Any informant who withdraws his assertion prevailed upon by the insinuations of the accused shall be condemned to death.