<b>The Status of Corruption in Chennai District</b> Corruption is a multifaceted phenomenon which makes it difficult to have a single definition. There are several schools of thought on the degree of impact of corruption, but there is a consensus that corruption stifles growth, hampers development, worsens income inequality, and affects poor people the most. The development of a country depends on four aspects, namely, growth in agricultural production, development in the industrial activities, maintaining a huge amount of foreign exchange reserves and possessing adequate gold reserves to strengthen the financial activities in the country. These four aspects play an important part in the progress of a country. In fact, almost all the developmental activities are marred by corruption. Most of the funds allotted for various programmes and policies are siphoned in the name of implementation and the desired results are not achieved within the stipulated time. The well known reason is corruption. It is prevalent everywhere and Tamil Nadu State is not an exception to this one. Generally, Bureaucrats are supposed to play a pivotal role, but in the words of Nobel Laureate Economist Amartya Sen “bureaucrats exercise discretionary powers in the absence of rules due to an incomplete contract situation which often leads to corruption,” says Nobel Laureate economist Amartya Sen. Further to say that India’s anti corruption institutions have been facing a growing shortage of resources of varied nature from funds to personnel. To reduce corruption citizens trust is a must and more importantly simplified government procedures are the need of the hour in reducing corruption in essential services,” said B.K. Chaturvedi, a former cabinet secretary who headed several committees on governance reforms. There are three pillars considered essential for the country’s growth, namely, the legislative, the executive and judiciary. These pillars when they are deviating from the established righteous path, corruption erupts to an unimaginable level. The present study focusses on Tamil Nadu State primarily and the outcome of the study shown by way of using simple percentage analysis. Corruption, Policies, Procedures, Pillars and inequality of income 86-94 Issue-2 Volume-3 Dr. M. Govardhana Singh