While I commend the well-meaning intention behind your post, forgive me when I say that it is like the proverbial question, "who will bell the cat?". I do sincerely hope to see some interesting responses...
To start with, there are two important (interlinked) reasons I see behind the "rot" mentioned by you, not necessarily limited to Bangalore (of course, there may be more reasons):
Education is business (why are "private" schools including those run by "societies" thriving otherwise?)
Some businesses love to deal in cash (no receipts, thank you!) for well-known reasons, and business exploits when there is demand
Sachin, all the discussion on the thread is 3 years old. I wonder if this initiative still exists. I try contacting them.