Speaking on a summit on corporate frauds here, Garg blamed erosion of values and high ambitions among corporates to join the "billion-dollar club" by taking short cuts for corruption in the country and stressed on the need to strengthen the regulatory mechanism. "Three Cs--CAG, CBI and CVC--are representative together.
People don't invite us together. They are taken in the absolutely negative sense and people say that perhaps they are the ones causing policy paralysis in this country. Let me tell you this that it is not so," he said.
Many central ministers have on a number of occasions spoken against the role of CAG, CBI and CVC in auditing and investigating government's decisions for alleged corruption saying that it was leading to policy paralysis.
Garg said the problem of corporate frauds which is taking place in almost all spheres including education, sports and financial sectors is very huge and there was a need for strengthening regulatory mechanism to check it.
"When we look at the reasons, the first and foremost we find is that over a period of time say in last 50 years, the value system in the society has been eroded. And it is getting reflected in our individual behaviour and corporate behaviour," he said, addressing 8th annual summit on corporate frauds organised by industries body Assocham.
Referring to corruption, he said erosion of value has become an accepted norm of the society. "A corporate which sets up a company or industrial unit ten years ago, now they want to join the billion-dollar club within a short span. Now this is the kind of ambition our people are having in the private sector.
"If we give a good bye to the value system and badly short circuit the system by bribing the people to get maximum advantage and benefits, I think that is one of the reasons today why we find scams which are being unearthed," he said.
The Vigilance Commissioner also said that Enforcement Directorate (ED) was effecting only meagre recovery of stolen assets. "If somebody tries to look at the way fraud is being committed, ultimately the money is not recovered. Nobody knows where the money has gone.
"And even ED under Prevention of Money Laundering Act (PMLA), the recovery which they are doing in stolen assets is very meagre as compared to the money which is going out of the country, which is nothing but the illegal money," Garg said suggesting the need to speed up the recovery of stolen assets by such bodies.