A social media post alleging daily and monthly bribes demanded from a startup in Bengaluru has reignited concerns over corruption and bureaucratic hurdles in India’s startup ecosystem. Ahmed Shariff, a content creator, shared on X that a friend running a business in the city is forced to pay between ₹20,000 and ₹30,000 each month to a local police inspector, along with smaller daily bribes to constables.
The revelation comes shortly after Commerce and Industry Minister Piyush Goyal announced a grievance redressal helpline under the ‘Startup India’ initiative. The helpline aims to assist entrepreneurs facing systemic corruption and policy roadblocks. Goyal assured startups that they could report harassment or flag unreasonable demands through the new channel: “If you believe you’ve done nothing wrong and followed the law, you can raise a complaint.”
Shariff’s post opened a floodgate of similar stories from entrepreneurs across India.
“We’re treated like third-grade citizens”
Murtaza Amin, founder of a software firm in Burhanpur, Madhya Pradesh, detailed his struggles running a 100-employee company amid unreliable electricity and persistent bribe demands. “Bureaucratic harassment is rampant… Even after reaching out to the PMO, no real support came,” he wrote.
“Digital India, but only for babus?”
Amin further alleged that government officials ask him to travel 60 km to negotiate bribes in person. “Aren’t we building Digital India? Or is that a slogan meant only for bureaucrats, not startups like us?”
Other entrepreneurs echoed the same frustration:
- Mahima Jalan, who tried launching a job-creation platform, said her GST application was rejected due to “under-the-table” expectations.
- A semiconductor startup founder shared how a two-year delay in a tax break application ended with a call from a “facilitator” offering to fast-track the process—for a price.
- He also criticized outdated import laws, citing exorbitant costs for importing tech components due to red tape.
These voices reveal a growing frustration among India’s entrepreneurs who feel blocked not by market competition—but by the very system meant to support them.
