White Collar Crimes
A crime committed by persons of respectability and high status in course of their occupation. A white collar crime belongs to upper socio-economic class who violates law while conducting their professional duties.
The most dismal aspect of white collar crimes is that there is no effective program for enforcement of criminal law against them and influential persons involved in these offences are able to resist enforcement of law against themselves.
The impact of white collar crime is so much diffused in community that many times members of community themselves contribute to its commission willingly or unwillingly.
Examples include: illegal gratification to public servants to get the work done quickly, black-marketing in times of scarcity, evasive price violations, rent ceiling violations etc.
Contributing Factors
The changing socio-economic scenario of society coupled with increase in wealth and prosperity has furnished opportunities for such crimes. According to the 29th report of Law Commission, modern scientific and technological developments and monopolistic trends in business world have led to enormous increase in white collar crimes.
Hoarding, Black-marketing & Adulteration
The white collar crimes which are common to Indian trade and business world are:
- Hoarding
- Profiteering
- Black-marketing
Violations of foreign exchange regulations and import & export laws are frequently resorted to for sake of huge profits. That apart, adulteration of food-stuffs, edibles and drugs which causes irreparable danger to public health is yet another white collar crime in India.
Tax Evasion
The complexity of tax laws in India has provided sufficient scope for tax payers to evade taxes. The evasion is more common with the influential categories of persons such as:
- Doctors
- Lawyers
- Traders
- Businessmen
- Engineers
- Contractors
The main difficulty posed before Income Tax Department is to know the real income of these persons. It is often alleged that actual tax paid by these persons is only a fraction of their income and rest of money goes into circulation as ‘black-money’.
White Collar Crimes in Certain Professions
Medical Profession
- Issuance of false medical certificates
- Helping illegal abortions
- Secret service to dacoits by giving expert opinion leading to their acquittal
- Selling sample-drugs & medicines to patients or chemists
Legal Profession
- Fabricating false evidence
- Engaging professional witness
- Violating ethical standards of legal profession
- Trusted lawyers aiding criminal gangs with bail-bonds or habeas corpus writs
Educational Institutions
- Submitting false details to secure large government grants or financial aid
- Fake & bogus enrolment of students residing far away
- Charging huge amounts by way of donations or capitation fees
Judicial Response
Jay Lalita vs. UOI
SC observed that corruption erodes moral fabric of society and is detrimental to national economy. Misuse and abuse of power by persons occupying high positions in govt. has reached alarming dimensions and it has tarnished image of country.
Ram Narayan Poply vs. C.B.I.
Apex court expressed concern for adverse effects of white collar crimes and held that economic offenders should not be allowed to ruin economy of country and they should be sternly dealt with.
Remedial Measures
- Creating public awareness through media of press, platforms and other audio-video visuals aids
- Special Tribunals should be constituted with power to award sentence of imprisonment for such crimes
- Stringent regulatory laws and drastic punishments for white collar criminals may help in reducing these crimes
- There is a need for a National Crime Commission which may squarely tackle problem of crime and criminality in all its facets
