When to Fire
Removing the Incompetent
Sometimes people must go. Kautilya's guidance on when and how to remove officials who fail or betray.
The Treasurer Who Couldn't Stop
For three years, Devadatta served as treasury superintendent for the eastern provinces. On paper, his numbers looked excellent. Collections were high, expenses were controlled, and provincial reports glowed with praise for his efficiency.
Then Kautilya sent an auditor.
The auditor, an unremarkable man named Vishnu, spent six months examining records, interviewing merchants, and tracing gold coins that should have reached Pataliputra but hadn't. What he found was systematic: Devadatta had created a parallel accounting system. Official records showed one amount; actual collections were higher. The difference - substantial - had been flowing to Devadatta's private accounts.
When confronted with the evidence, Devadatta offered explanations, then excuses, then bribes. Finally, he threatened: "I have powerful friends. Remove me, and you make enemies."

Kautilya received the report while eating his simple evening meal. He read it twice, then wrote a single line to Chandragupta: "The treasurer must be removed. Tomorrow."
By sunset the next day, Devadatta was in custody, his assets seized, and a new superintendent was traveling east.
The Four Types of Failure
Kautilya's decision to act immediately came from clear thinking about what he was dealing with. In his framework, official failures fall into four categories, each requiring different responses.
Honest incompetence is the mildest. Someone tries their best but simply lacks capacity for the role. They're not lazy or corrupt - they're mismatched. The response should be quiet reassignment with dignity preserved.
Negligence is more serious. Someone capable of doing the work simply doesn't. They have ability but not discipline. The response involves clear warnings, explicit standards, and removal if improvement doesn't come.
Corruption - Devadatta's category - represents a fundamental breach of trust. The official isn't merely failing; they're stealing. The response must be swift, public enough to deter others, and proportional to the theft.