Overview: WHITE COLLAR CRIMES IN INDIA

INTRODUCTION

White collar crimes are those crimes which are motivated financially by various business and government officials. The concept of ‘White Collar Crime’ originated in 1941. Edwin Sutherland, an American sociologist, defined the term ‘White Collar Crime’ in his research paper. It was published in the American Sociological Review. He defined ‘White Collar Crime’ as the crime committed by a person of respectable and high social status during the course of their occupation. Thus, a white collar criminal is a person who violates the criminal law during the course of his profession. A white collar criminal generally belongs to the upper socio- economic strata of the society. A few examples of white collar crimes are- infringement of patents, copyrights and trademarks; misrepresentation through fraudulent advertisements; identity theft; mortgage broker fraud; tax evasion; embezzlement; bribery, corruption, etc. These are generally committed by industrialists, manufacturers, and other reputed persons during the course of their employment. Some of the characteristics of white collar crimes are deceit, concealment and violation of trust. The main motive behind committing white collar crime is earning huge gains.

ARE WHITE COLLAR CRIMES DANGEROUS?

Edwin Sutherland argued that a white collar crime is more dangerous than ordinary crime in society because the financial loss suffered by a society due to white collar crime is far more times greater than the financial losses suffered by society due to burglaries, larcenies and robberies.

WHITE COLLAR CRIME IN INDIA

India is witnessing an enormous rise in the white collar crime. Some of the reasons responsible for an increase in white collar crime in India are-

Ø Fast developing Indian Economy.

Ø High rate of industrial growth in India.

In India, the areas which are getting affected greatly by white collar crime are- industries, banks, various financial institutions and businesses. White Collar Crimes are harming India on a daily basis. White Collar Crime is peculiar in nature. The gravity of the damage caused to the society by them is wider than the gravity of the damage suffered by the individuals. This is one of the major reasons that this crime did not attract much attention. The Santhanam Committee, in its report, ‘Prevention of Corruption’, classified socio- economic and white collar crime into eight categories. The committee recommended the addition of a new chapter on white collar crime in the Indian Penal Code, 1860. The Government of India passed the matter to the Law Commission of India for consideration. The Law Commission of India rejected the recommendations of the Santhanam Committee. A few classic examples of white collar crime in India are- Satyam computer corporate scandal; Bofors scandal; FERA enquiries against Jyotsana Holdings Pvt. Ltd.; a multi- thousand crore security scam by Harshad Mehta; stock market shares scam by Ketan Parikh; City Bank scam; 2-G Spectrum Telecommunications scam, etc. Thus, we can conclude by saying that white collar crime in the form of corruption is increasing at an alarming rate in India.

LAWS RELATED TO WHITE COLLAR CRIME IN INDIA

With the advancement of commerce and technology, white collar crime is becoming a global phenomenon. To curb white collar crime in India, the Government has introduced various legislations. Some of these are as follows –

• Essential Commodities Act, 1955- It prohibits the black marketing and hoarding of essential commodities.
• Industrial (Development and Regulation) Act, 1951- It aims to develop and regulate industries in India by Central Government.
• Foreign Exchange and Regulation Act, 1974- The main objective of this Act is to regulate deals in foreign exchange, impose restrictions on certain kinds of payment and to monitor transactions.
• Companies Act, 1956- This Act enables companies to be formed by registration, frames their responsibilities, their secretaries, their directors and also lays down the procedure for winding.
• Prevention of Money Laundering Act, 2002- The main objective of this Act is to prohibit money laundering, to provide for confiscation of property obtained from money laundering.
• Information Technology Act, 2000- It came into effect to tackle cyber- related crimes.

Moreover, crimes such as bank fraud, insurance fraud, credit card fraud are dealt under the provisions mentioned in the Indian Penal Code. Despite these legislations, white collar crime is escalating in India.

CONCLUSION

Despite the various laws formulated by the Government of India, the rate of white collar crime is rising. The advancement in technology is worsening the situation. Therefore, it is important to make public aware against white collar crime through various platforms like media, print, television, etc. The legislation should make stringent laws and rigorous punishment should be given to those who commit white collar crime.

FREQUENTLY ASKED QUESTION-

1. What is the difference between white collar crime and street crimes?

Ans- The main distinction between white collar crime and street crime is that white collar crimes are committed by business and government officials and are non- violent in nature whereas street crimes can be committed in a public place. Street crimes may be violent or non- violent.

[The author, Arsha Sharma is a 2nd year Ba.LLB(Hons.) student at The Law School, University of Jammu]

REFERENCES

1. ‘Why people engage in white collar crime’ <https://complianceandethics.org/why-people-engage-in-white-collar-crime/ > accessed on 26 May 2020
2. ‘Santhanam Committee Report on Prevention of Corruption’ < https://cvc.gov.in/sites/default/files/scr_rpt_cvc.pdf> accessed 26 May 2020
3. ‘White Collar Crime’ < https://www.investopedia.com/terms/w/white-collar-crime.asp> accessed 26 May 2020
4. ‘White Collar and Investigations: India and Globally’ < https://www.mondaq.com/india/white-collar-crime-anti-corruption-fraud/780342/white-collar-and-investigations-india-and-globally> accessed 26 May 2020