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Analysis Of White-Collar Crimes In The Indian Legal Framework

What is white-collar crime?

White-collar crime is a type of crime committed by persons from upper-class backgrounds who are members of a recognized social group. These crimes are perpetrated as a result of their employment.

People that perpetrate this crime often have a superior awareness of the people they are working with, technology, their area, disciplines, and so on.

White-collar crime has developed dramatically over time. These crimes are committed in massive organizations that engage in a variety of activities. These crimes are typically committed in industries such as trade, business, health, education, and a variety of other huge organizations.

How white-collar crimes are different from ordinary crimes?

White-collar crime is difficult to detect since the perpetrators are usually sophisticated and knowledgeable about their surroundings. Ordinary crimes, on the other hand, are straightforward and easy to identify since they utilise aggressive means such as force.

Ordinary crimes are conducted out of fury, revenge, and other emotions, and are very well planned and executed with the aid of specialists. White-collar crimes are committed out of greed and are very well planned and executed with the help of professionals. White-collar crimes cause reputational or financial injury, and if caught, result in significant financial loss, whereas conventional crimes cause bodily and emotional trauma. However, these crimes have an impact on the person and society as a whole.

Social-economic Crimes are another term for white-collar crimes

It's social because it has a direct influence on society as a whole, not just on criminals.

Financial, because these crimes result in significant financial loss. Various frauds and scams occur in a nation; as a result of these frauds and scams, the country's economy becomes unstable, and the country suffers significant losses.

White collar crime has a major influence on society since it causes losses in every industry, from commodity prices to securities and insurance. Economic losses result in increased prices for consumers due to greater taxes, costs, government income, and so on. A single scam can damage a businessman, an investment, the government, and the general population. People conduct white collar crimes for financial gain, resulting in the degradation of an organization's reputation, a lack of earnings, and a gain of losses.

Brief Historical Background
Since sociologist Sir Edwin Sutherland first characterised white-collar crime in 1939, it has been associated with clever, educated, and rich individuals. He characterised them as "a crime done in the course of one's employment by a person of respectability and high social rank." He stated that a wrongdoer is someone who has been entrusted with a great deal of faith and trust, and that perpetrators of this crime are those who have been entrusted with a great deal of faith and trust.

Apart from the usual ones like bribery, perjury, anti-trust actions, tax violations, and breach of trust, they now encompass cybercrime and healthcare fraud.

It is stated that crimes have existed since human beings first began to live together. There are a variety of crimes that have evolved over time, including some that have taken on new aspects as society has become more contemporary. According to an ancient Vedic book, the notion of white collar crime has been in civilization from the dawn of time.

Growth in The Modern Era:
After the First World War (1914-1919), India's fast industrialisation created a class division. There were two kinds of people: the capitalists, or those who owned the principal means of production, or the bourgeoisie, and the proletariats, or those who worked in the factories. The proletarian class was socially excluded as a result of the severe business conditions that accompanied the fast-growing economy.

The high degree of competition and the desire to enjoy monopoly led to an increase in illegal behaviour. By this time, the germ of white-collar crime had been sowed. While the country was preoccupied with the liberation struggle and waging wars, these criminal actions gained in prominence, posing a danger to the Indian economy's progress.

Kinds Of White-Collar Crimes

White collar crimes are so diverse that they cannot be generalized, necessitating a thorough knowledge in order to identify and discourage them.

"One prevalent misperception regarding corporate crime is that its impacts are primarily financial," Sir Edwin Sutherland correctly stated. However, in order to properly codify and assess such offences, it is necessary to understand that any act or omission committed with the intent to defraud and in order to avoid financial loss or gain a subsequent financial advantage are all crimes, and when committed by sophisticated members of society, they become white-collar crimes.

In a case involving Hooker Chemical Company, it was discovered that the alleged company, which was involved in the manufacture of chemical products, disposed of them without proper treatment into the abandoned Love falls at Niagara and sold the adjoining land to a family for residential purposes without disclosing material facts about the land being polluted by chemical effluent discharge, which eventually led to miscarriages, birth defects, and other major health issues to the family[1].

The chemical company's failure to clean chemical effluents and properly dispose of hazardous chemicals, which caused such major difficulties and put other people's lives in danger, is nothing short of white-collar criminality.

Negligence on the firm's side, refusal to complete assessment reports, and the desire to mislead the school board first and then the family are all punishable by substantial fines and punitive damages.

Classification Of White - Collar Crimes

Individual and corporate white-collar crimes are the two types of white collar crimes. The type of the perpetrator is used to classify the offender. Individual white-collar crime refers to crimes committed for personal gain or enrichment, whereas corporate crime refers to crimes committed as part of a collective and coordinated attempt to promote the economic objectives of a corporation or a company.
  • Causes For White - Collar Crimes:

    Greed, financial gain, or economic instability are the primary motivations for such activities. The following are some of the causes behind the rise in white-collar crime:
    • Lack of Awareness:
      Because white-collar crimes differ from typical crimes in their method, victims frequently misunderstand them and are readily duped by offenders.
    • Greed:
      Because white-collar crimes differ in strategy from traditional crimes, victims usually misunderstand them and are easily fooled by perpetrators.
    • Not a really a crime:
      Because these activities lack the violent characteristics that define typical crimes, the perpetrators or offenders frequently convince themselves that they are not crimes.
    • Necessity:
      Not generally, but occasionally, such crimes are committed as a last alternative to overcome financial difficulties in sustaining their families.
    • The satisfaction of one's ego:
      The offenders often commit such acts to satisfy their ego and impulse.
    • The lack of proper implementation of laws in this regard:
      The inability to enforce existing rules in a stringent manner frequently leads to the emergence of such activities.
  • White - collar crimes - A detailed study:

    White-collar crimes are carried out in a variety of methods, ranging from minor sums to large sums. The following is a full overview of these methods:
    • Bank Fraud:
      Acts performed or neglected with the intent to deceive a financial institution.
    • Bribery:
      Conduct performed with the goal of exerting undue influence over a party in a position of power or in order to hasten and hide specific acts with the intent of defrauding others.
    • Black Marketing:
      Acts involving the sale of unlawful goods or the sale of legal goods in an illegal manner for the purpose of making money.
    • Corporate Fraud:
      Corporate acts that entail accounting systems designed to deceive investors, auditors, and analysts about a corporation's or business entity's genuine financial status.
    • Insider Trading:
      Trading in a public company's stock by someone who has non-public, significant knowledge about the stock for whatever reason.
    • Wire Fraud:
      A crime in which a person plots a scheme to defraud or obtain money based on false representation or promises. This criminal act is achieved using analogy or digital electronic communications techniques. Also, known as cybercrime by some people.
This category also includes a number of additional offences. The most frequent sorts of white-collar crimes, such as insider trading and wire fraud, have been thoroughly examined in this article.
  1. Insider Trading:
    Insider trading is the activity of exchanging securities by someone with substantial non-public information about a company's security or critical operations. Insider trading can be either unlawful or legal, depending on when the incident or transaction occurred.

    It is impolite to engage in such actions when the relevant information is still unavailable to the public. Insider trading occurs when individuals with access to strategic and sensitive information about a firm, such as key employees, executives, or top-level management, use that knowledge to trade in the company's stocks or securities. Insider trading is strongly discouraged by the SEBI {Securities and Exchange Board of India}.

    The sensitive information discussed in the definition of insider trading is knowledge relating to the company's private and confidential affairs that has been kept a secret for whatever reason, unknown to lower-level management.

    To encourage fair trading in the market for the benefit of the average investor, the SEBI devises ways to combat corruption and promote fairness in the securities market. Insiders could include:
    • Persons who are related to the company,
    • Persons who were in some mater were related to the company and have access to such information,
    • Persons who are deemed to be a part of the company.
  2. Role of SEBI in Curbing the Insider Trading:
    The SEBI (Securities Exchange Board of India) is the regulatory agency in charge of enacting and amending regulations governing unfair activities in the financial markets. The SEBI ensures that all essential information is available to participants while also ensuring that no sensitive information is disclosed in the process.
    Under Chapter IV-A of the SEBI Act, the penalties for doing corrupt activities such as insider trading have been outlined. The SEBI (Amendment) Act, 2002, talks about the punishments.

Case Laws
Insider trading has existed from the beginning of time, even before the foundation of SEBI in 1992. The TISCO Case, from 1992, is a well-known case law. In this scenario, the TISCO's net profit for the first half of the financial year 1992-93 was Rest. 50.22 crore, compared to a profit of Rest. 278.16 crore the previous financial year, 1991-92. From October 22, 1992, to October 29, 1992, there was a lot of activity in the stock market leading up to the publication of the company's half-yearly earnings figures.

During the same time span, the Sensex, on the other hand, fell by 8.3 percent. Insiders with knowledge of the situation had manipulated the market to make some marginal sales. Small investors were particularly hard hit. The matter could not be investigated at the time due to the lack of any legal framework pertaining to insider trading in India.
  1. Wire Fraud:
    Wire fraud is a type of fraud in which a person devises a strategy to deceive or acquire an unfair financial benefit through false representations or promises. These crimes are committed through electronic means such as phone calls, text messages, and e-mails. To be prosecuted with wire fraud, a person does not have to intentionally mislead someone or transmit a bogus message.

    Knowing about a wire fraud scheme and not acting in violation of it is more than enough to prove intent. Wooing the prey with claims of love or wealth, or persuading the potential victim with phoney phone calls, texts, or links, are frequent methods of committing such crimes. The IT Act of 2000 addresses similar offences. However, there have been no specific legislation enacted in this regard.
  2. Money Laundering:
    The crime of money laundering is done when a person, the launderer, turns his unlawful money into legitimate money and so succeeds in disguising his illegally gained money. The crime of money laundering is known in India as a "Hauula transaction." Section 3 of the Money Laundering Act of 2002 establishes a definition for money laundering.
Money launderers work in such a way that even investigative authorities are unable to track down the true source of the funds. This is how those who invest their illicit money in the stock market are able to turn it into legal wealth.[2]

The Three Major Steps Involving Money Laundering Are As Follows:

Investment: Launderers invest their unlawful funds in the black market via agents or banks in the form of cash as the first stage. Formal or informal agreements are used to accomplish this.
Manipulating the Details: The launderer's genuine revenue is then concealed in the second phase.

To do so, the launderers frequently deposit their funds in a foreign bank in the form of bonds, stocks, and other securities. They prefer to invest in banks that do not divulge the account holder's identify or personal information. This aids in changing the information of the money's owner as well as the specifics of the money's origin.

Marking what is illegal, legal: The final phase is to transform the black money that has been brought into the market into legal tender and reintroduce it into the financial system.

Cases of Money Laundering in INDIA:

  1. Anosh Ekka v. Central Bureau of Investigation [3]:
    Anosh Ekka was accused of money laundering after acquiring a large amount of movable and immovable properties in his name and that of his family within a three-year period after becoming the minister. The defendants were found guilty of plundering and laundering a large quantity of public funds by the Supreme Court. He postponed the verdict and tampered with the evidence against him. He was also accused of misusing the legal system and attempting to defraud the court system.
  2. Arun Kumar Mishra v. Directorate of Enforcement [4]:
    Five persons opened a fictitious account with the Punjab National Bank (PNB) and made personal gains while causing PNB to lose a significant amount of money. Because the offence did not come under any section of the Prevention of Corruption Act, the money laundering case was dismissed. Ex-post facto laws, according to Article 20(1) of the Indian Constitution, have no legal force. It is a basic right under the stated Article not to be tried under a legislation that did not exist at the time the offence was committed. The court did say, however, that if money laundering has been proven against the petitioner, the Enforcement Directorate can bring a new case against him under the statute in effect at the time.

White - Collar Crime in Legal Profession

In exchange for money or other services from their clients, lawyers frequently offer fraudulent evidence and false witnesses in court. For a fee, legal practitioners with ministerial support engage in unethical actions and break all of their ethical norms. Manipulation of evidence and fabricating witnesses by bringing in skilled witnesses gives the case a new twist, and the genuine guilty is often set free while the innocent is imprisoned.

D.K. Gandhi, a Delhi resident, filed a lawsuit in 2006 over his lawyer's unethical behaviour. Gandhi had hired a lawyer for a specific sum of money. The lawyer was expected to finish the case as soon as possible. Gandhi was to get the compensation money when the matter was decided at the first hearing. However, the lawyer refused to provide the money to his client, Mr. Gandhi, until he was given an additional 5,000 rupees.

So, in D.K. Gandhi v. M. Mathias, the Supreme Court upheld the appeal and allowed the subject to be handled by the State Commission based on the law, citing what the Supreme Court had said in Jacob Mathew v. State of Punjab[5].

In the case of Jacob Mathews, the Supreme Court stated that in the law of negligence, professionals from various professions such as legal, medical, or architecture, or any other, would be held liable for negligence in practising their profession if either of the following two conditions are met: a. He lacked the required skill to be professed, and b. Even if he possessed the required skill, he did not exercise it[6].

laws regulating white - collar crimes

Several laws have been passed in India to address this issue. The Essential Commodities Act of 1955, the Industrial Development and Regulation Act of 1951, the Import and Exports (Control) Act of 1947, the Foreign Exchange (Regulation) Act of 1973, the Companies Act of 2013, the Prevention of Money Laundering Act of 2002, the Indian Penal Code of 1860, and the Information and Technology Act of 2000 are just a few examples. Not only the government, but also the Reserve Bank of India, has been working hard to remove white-collar crime (banking and insurance scams) from Indian society. The RBI's KYC (Know Your Customer) effort has been a game-changing breakthrough in the fight against white-collar crime[7].

The SEBI (Securities Exchange Board of India) has also played a significant role in reducing such violations. It has enacted strong laws and regulations in the area of white-collar crime, as well as imposing severe and harsh punishments on those who violate them.

The Securities Contract and Regulation Act (SCRA) has also made significant contributions to making markets safer and preserving investors' rights.

Courts and White - Collar Crimes in India

White collar crimes are not specifically specified in the law, although they are implied by a number of statutes. These crimes have increased dramatically in recent years as a result of the advent of new technology and advancements in many sectors, such as the industrial sector, commercial sector, and so on.

We are all aware that the Indian judiciary is now dealing with over 3 crore cases. In this circumstance, it would be extremely difficult to resolve white collar crime cases as quickly as feasible.

It is critical to establish fast track courts and tribunals in the country in order to expedite the resolution of white collar crime cases. Also, once the tribunal or the fast track court has made a final ruling in the matter, the parties are bound by that decision. The parties would not be permitted to argue the identical concerns before a different court in the same case.

White - Collar Crime Investigation Process:
In India, there has been a substantial increase in the number of white-collar crime investigations. Companies are facing an increase in time-to-time investigations as the number of anti-corruption marches grows. Internal investigations serve as a deterrent to any unwelcome action. This also protects the firm against humiliating raids. In India, there is no specific method that must be followed while conducting internal investigations into white-collar offences.

Companies now have an incentive to expedite their investigations into sexual harassment complaints as a result of the #MeToo movement's emergence.[8]

For Example:
  1. When ICICI Bank's CEO, Chanda Kochhar, was charged with fraud, the bank enlisted the help of the Reserve Bank of India, the Securities and Exchange Board of India, and the Central Bureau of Investigation to conduct an internal investigation. An impartial commission led by former Supreme Court Judge Justice B.N. Srikrishna was formed to investigate the situation.
  2. When Binny Bansal, Flipkart's co-founder and group chief executive, was accused of significant misbehaviour, the bank decided to commission an independent inquiry on behalf of Flipkart and Walmart.

White - Collar Crime Investigation Techniques:

  1. An informant should be part of the team who can provide firsthand knowledge about a white-collar crime that is occurring or has occurred at a firm and keeps the investigating officers up to speed on everything that was, is, or will be happening there. There can be no inquiry unless and until someone reports the offence to the police. As a result, the function of informants becomes crucial.
  2. Undercover agents are involved. The existence of undercover operatives is critical since they aid in the tracking of evidence that isn't prima facie evidence. They also assist in the disclosure of information about those who go underground and subsequently conduct significant crimes. Because police officials are unable to trace such individuals, they assign undercover operatives who get all information about the accused without informing him.
  3. The introduction of laboratory analysis of physical evidence is critical for deciding a case. Medical evidence is crucial in determining a case's course. Medical tests, if not tampered with, are particularly effective in detecting who the accused is in circumstances of heinous crimes such as rape.
  4. Police personnel are frequently observed using dogs to perform physical surveillance and using CCTVs to conduct technological surveillance, such as tracking phone records. Surveillance aids in the discovery of even the tiniest piece of evidence against the suspect.
  5. Interrogation is a tool in the hands of the police that allows them to get information from suspects that they would not have provided otherwise.
  6. Wiretapping, while legal, aids in demonstrating guilt by allowing for the production of call records in court. In certain circumstances, phone records are enough evidence to convict someone of a crime.
The Indian penal code of 1860 is often regarded as the country's most comprehensive criminal legislation. It does not, however, expressly address white collar crimes, although it does address some of the offences that are connected to white collar crimes. Bribery, corruption, forgery, counterfeiting, and so forth.

In India, There Are A Variety Of Laws That Are Utilised To Identify White Collar Crimes:

Indian Case Laws:
Harshad Mehta Case[9]:
The tale of white-collar crime in India began in 1988, and it has been steadily increasing since then. The case of Harshad Mehta is an excellent illustration of the "pump-and-dump" plan in white-collar crime. He was known as the 'Sultan of Dalal Street,' and he made money by manipulating and misappropriating the stock prices of several companies.

As a result, money was pumped into the stock markets in an artificial manner, generating a sharp and rapid surge in the price of these shares or assets. The stock market dropped by 0.1 million every day after the hoax was disclosed. The stock market has never seen anything like this before. The Securities and Exchange Board of India (SEBI) issued recommendations to govern similar behavior in the future.

Punjab National Bank Fraud or Nirav Modi Case[10]:

Nirav Modi, the accused, is a diamond merchant and a high-end jewelry designer. It is alleged that Nirav Modi and corporate organizations related to him collaborated with government authorities to get Guarantees or Letters of Undertaking (LOU) to assist fund buyer's credit from other foreign or international banks/financial institutions.

Following the requisite inquiry into the situation, it was discovered that two bank personnel illegally issued LOUs to the aforementioned entities without following the proper procedure. These Lou's were then passed to the SWIFT messaging system, which was used to extend credit to the aforementioned organizations. PNB had previously reported the fraud to the stock exchange and had gone through a $1.8 billion scam, one of the largest of its kind to be discovered in the Indian banking sector to date.

SEBI v. Burman Plantation and Others[11]:

The learned counsel for SEBI contended before the Allahabad High Court that the business is being falsely charged since it was unable to fulfil its debts, including payments to its investors. When the firm's advertisement was questioned, the council stated that the advertisement was issued in 2003 and the order was issued in 2004, when the company was unable to repay its obligations.

Furthermore, the amount of money claimed by the investors was never mentioned. By modifying the provisions under section 24(1) of the SEBI Act, the counsel's principal argument compelled legislators to enhance the penalty from one year to ten years, as well as the fine, which may now reach 25 crores. Finally, the accused, Ravi Arora, was found guilty.

Abhay Singh Chautala v. C.B.I.[12]:

In the instant case, a charge sheet was brought against two appellants in separate trials for committing an offence under Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act, 1988, read with Section 109 of the Indian Penal Code, 1860. Both defendants were charged of amassing excessive fortune in relation to their salary while serving in the Legislative Assembly.

When the Central Bureau of Inquiry (CBI) began its investigation, it was discovered that the appellant's father had acquired large holdings, as had the appellants. The appellant had given a completely different office(s) for the accused than they were really holding at the time, according to the High Court. As a result, the punishment imposed under Section 19 of the Prevention of Corruption Act of 1988 was found to be invalid.

Binod Kumar v. State of Jharkhand and Others[13]:
This complaint was brought against various ministers in the state of Jharkhand, as well as the Chief Minister, for having unaccounted for funds. The High Court had asked the Central Government to transfer the matter from the Enforcement Directorate to the CBI under Section 45 of the Constitution (1A).

The ministers were suspected to be in possession of large sums of money, and despite the lack of proof to prosecute them with money laundering, a thorough inquiry was recommended.
The ministers were believed to hold property not just in India but also in other countries. As a result, the court requested an inquiry to discover if this money was obtained via the use of a government position. It had to be determined if a white crime was committed under the Prevention of Corruption Act of 1988 and the Indian Penal Code of 1860.

The CBI began its investigation under the Prevention of Corruption Act, 1988, and the Indian Penal Code, 1860, because the Enforcement Directorate had sole authority to conduct investigations under the Prevention of Money Laundering Act, which is subject to the power granted to the Central Government under Section 45 (1-A) of the Prevention of Money Laundering Act.

There may be some of the measures that could be taken into account or adopted in order to prevent the commission of white - collar crimes described as follows:
  • It is critical to put stringent restrictions in the system to eliminate the presence of such crimes. Because of the lower fines and shorter jail terms, criminals are more likely to perpetrate such crimes.
  • As the methods for committing such white-collar crimes evolve, so should the training of those who investigate them. It is common for senior officers to have enough expertise to comprehend the nature and tactics of the job, yet they are unable to use technology to hunt down the suspect. This occurs as a result of a lack of training. As a result, every investigating officer must be taught in such a way that they can simply handle any case, no matter how hard it is.
  • Fast track courts and tribunals should be established around the country to expedite the resolution of these matters. The tribunal should have the authority to penalise or jail those who have been found guilty. White collar crime rates would be reduced as a result of such actions.
  • The country's key investigative agencies, such as the Central Bureau of Investigation, the Enforcement Directorate, the Income-tax Department, the Directorate of Revenue Intelligence, and the Customs Department, all need to be strengthened by enacting robust regulatory laws. To maintain system transparency, the Central Vigilance Commission should monitor and cross-check the activities of officials in key positions.
  • Offenders should face strict regulations, large fines, and long jail sentences if they commit such crimes. And, in order for this to happen, the Indian Penal Code, 1860, needs be changed to contain white-collar crime provisions. White collar crimes, for example, may have their own chapter in the IPC.
  • The government may create a separate agency to investigate the issue of crime and criminality in the country. The National Crime Commission might be the name of the autonomous authority. Because their whole job would be focused on crimes and they would be an independent organisation, they would be able to work more effectively to reduce criminality in the country.
  • To raise awareness of white collar crimes, the electronic and print media should be used effectively. The general public has to be aware of these crimes and understand that they may occur anywhere, from a little caf´┐Ż to large multinational corporations. They should also be informed of the legal options available to them if they are a victim of such crimes.

The phrase "white-collar crime" is not defined in any statute, yet it encompasses a wide range of criminal violations. These crimes have escalated beyond recognition as a result of technology advancement. In light of the current situation, more stricter and strict rules are required to eradicate such crimes from society and to restore fairness, equity, and justice.

To accept such crimes, sanction them, and prohibit their occurrence, existing laws must be drastically altered. It is necessary to improve on the Indian Penal Code of 1860, as well as special legislation enacted to address such offences. Additionally, increased openness, responsibility, and awareness may contribute to this progress. White-collar crimes may be addressed by fostering constructive cooperation among current laws and enacting new ones that are only focused on them. The establishment of special courts will result in swift justice and a smooth-running society.

Online fraud instances are also on the rise at an alarming rate. Because of these crimes in general and corruption in particular, India has struggled to drive its economy toward progress as a developing country.

Investigating officers must training in order to learn how to hunt down these offenders; otherwise, tracking them down is a tough, time-consuming, and exhausting task. Because white collar crimes are perpetrated by persons with greater social status in their employment, the work of the investigating officials should be reviewed to maintain openness.

The government must enact rules that are stringent enough to prevent such crimes from being committed. And the system should be set up such that not only are there laws that penalise the accused harshly, but that the majority of cases are resolved quickly. Those will lose trust in the system if something is not done, because these crimes are perpetrated by people who should be role models for society.

White collar crimes are the country's main source of international concern since they are non-violent crimes that undermine the country's economy. Various studies have shown that white collar crimes do far more financial harm to the country than conventional crimes. While it is true that completely eliminating white collar crime is unachievable, the government and relevant authorities should make every effort to reduce these crimes by taking the necessary steps.

Strict regulations should be enacted, and specific courts should be formed, to put an end to these behaviours for the good of society, as they impede the country's progress. As our civilization progresses toward innovation and technological advancements, crime rates have risen dramatically. Crime is perpetrated in every industry, obstructing our country's development.

White collar crimes are frequently unreported, and the media may play an essential role in this area by becoming more active in publicizing and exposing scams and frauds, as well as making efforts to educate the public about white collar crimes and the fines and penalties associated with them. As a result, the government should not be tolerant when it comes to social-economic offences. To reduce the rate of white collar crime in India, appropriate legislation and strong restrictions should be enacted.

White collar crimes have two startling characteristics: first, they are nonviolent crimes, despite the perpetrators' drive to obtain power or a sense of entitlement, and second, they are perpetrated by persons in positions of higher authority.

However, similar crimes are also perpetrated by low-paid underlings, even if the mastermind behind the crime is a wealthy individual with a higher social rank in his profession. White collar crimes are frequently perpetrated as a result of peer pressure or as a result of the company's culture.

As our civilization progresses toward modernity and the globe gains new technical advancements, the rate of crime rises at a quicker pace. The increase in white collar crime, in particular, has been significant. These crimes are done everywhere, from the medical profession to educational institutions.

The media has a critical role to play in slowing the rise of white-collar crime. The majority of white collar crimes go undetected, according to reports. So, if the media becomes more active in publishing frauds and scams at higher levels and revealing how people in higher positions in a company use their power arbitrarily, as well as making efforts to raise public awareness about white collar crimes and encourage people to avoid corrupt practices, this will undoubtedly help to reduce the rate at which white collar crimes are committed.

  1. United States v. Hooker Chemicals & Plastics Corp., 850 F. Supp. 993 (W.D.N.Y. 1994
  2. Sneha Gupta, White Collar Crimes: A Detailed Study of its Types and its Detrimental Effects, I National Social And Legal Research Journal III, 6 (2021).
  3. 2011 SCC OnLine Jhar 1184.
  4. (2015) 2 DLT (Cri) 731.
  5. (111 (2007) CPJ 337 NC, The Bench consisted of M.B.Shah (a former Judge of Supreme Court) and R. Rao).
  6. (2005) 6 SCC 1 (para 18).
  7. KYC initiative by the R.B.I.
  8. Aayushi Swaroop & Saif Ahmed, White Collar Crimes in India, iPleaders (July 31, 2019),
  9. Harshad s. Mehta & Ors. vs the state of Maharashtra; appeal (Crl.) 319-320 of 1996.
  10. Punjab National Bank v. M/s Stellar Diamonds (OA no.119/2018).
  11. (2010) SSC 69.
  12. Abhay Singh Chautala v. C.B.I. (2011) SSC 1257.
  13. (2011) CA 2689.

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