A white-collar criminal is a member of the Upper Class who breaks the law while carrying out his job duties in order to make money. White-collar crimes are committed with a cool head, meticulous planning, and calculated strategy. Read this blog to know more about the legislations against such crimes.
White Collar Crimes in India , defined as state-designated criminal acts or omissions, pose significant risks to the State, society, and individuals. In recent times, crimes have been categorized into “blue-collar crimes” and “white-collar crimes” based on various factors such as their nature, objectives, methods of operation, and consequences. While blue-collar crimes typically involve direct physical harm and violence, white-collar crimes, the focus of this article, are non-violent offenses often committed by individuals in positions of power for financial gain, and legislations against White Collar Crimes.
This comprehensive exploration delves into the realm of white-collar crimes, their legal dimensions, and their profound impact on society.
White-collar crime refers to financial crimes that organisations and governments commit, such as fraud, bribery, embezzlement, and money laundering.
Understanding White Collar Crimes in India
White-collar crime, a term coined to describe financial crimes committed by organizations and governments, encompasses a range of illicit activities such as fraud, bribery, embezzlement, and money laundering. Unlike blue-collar crimes, which are often straightforward and personal, white-collar crimes are characterized by their non-violent nature and intricate planning.
White-collar crime law involves a specialized field of legal practice where attorneys find themselves representing clients entangled in investigations and facing civil and criminal litigation. Typically, these clients belong to powerful spheres such as business, politics, large corporations, and banks. To navigate this complex landscape, lawyers need not only a broad understanding of their clients’ business operations but also a profound knowledge of the regulations governing these entities.
These legal professionals provide invaluable counsel on complying with intricate government regulations and navigating inquiries from enforcement agencies. The primary objective is to develop strategies that prevent charges from being filed, often involving the delicate balance of disclosing potentially damaging information or waiving privileges.
White Collar Crimes in India
In India, white-collar crimes differ from their blue-collar counterparts as they are non-violent offenses committed by individuals leveraging their positions of power for personal gain. The spectrum of these crimes includes fraud, bribery, Ponzi schemes, insider trading, cybercrime, copyright infringement, money laundering, forgery, and corruption.
Several contributing factors, including the opportunity to commit a crime and environmental pressure, drive individuals to engage in white-collar crimes. Some perpetrators may not even perceive their actions as criminal due to the non-violent nature of these offenses. This lack of awareness among the general public about white-collar crimes, coupled with the rationalization of greed by offenders, adds complexity to tackling these issues.
The Evolution and Causes of White Collar Crimes in India
The concept of white-collar crimes has significantly evolved since the eighteenth century, coinciding with industrialization and colonization. With the rapid growth of commerce and technology, white collar crimes in India have become global in scope. The economic boom of the last two decades has further facilitated their proliferation.
White-collar crimes pose a substantial risk to society as they directly impact the nation’s finances, leading to widespread financial hardships. Offenses such as tax evasion, circulation of black money, and money laundering disrupt the economy, resulting in poverty, unemployment, economic slowdown, and inflation. The negative repercussions extend to an imbalanced economy and an artificial economic crisis, ultimately impacting the cost of goods for consumers.
Legislation on White collar Crimes in India
Indian lawmakers have introduced legislation to address white-collar crimes and mitigate their impact on society. Some notable legislations include:
- The Criminal Law (Amendment) Ordinance, 1944 (XXXVIII of 1944):
- Intended to curb the sale and concealment of property obtained through dishonesty, fraud, and corruption. However, it does not cover all crimes in the Indian Penal Code.
- The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976:
- Addresses the forfeiture of illegally acquired property by smugglers and manipulators.
- The Narcotic Drugs and Psychotropic Substances Act, 1985:
- Punishes the possession of property derived from or used in the illegal traffic of narcotic drugs.
- The Lokpal and Lokayuktas Act, 2013, and The Prevention of Corruption Act, 1988:
- Target specific groups of people to reduce white-collar crime in India.
- The Fugitive Economic Offenders Act, 2018:
- Covers properties with a Benami nature and addresses both domestic and international transactions related to Benami properties.
- The Prevention of Money Laundering Act, 2002 (PMLA):
- Established to prevent white-collar crime in India and combat money laundering. It includes provisions for property attachment , confiscation, and criminal prosecution.
| It is necessary to combat the evolving threats of white-collar crime and money laundering supported by new technologies with equally sophisticated anti-money laundering mechanisms and laws. |
Conclusion
Enforcing economic laws and combatting economic crimes fall under the purview of the Enforcement Directorate (ED) in India. The ED investigates money laundering offenses, takes actions such as property attachments, and prosecutes individuals responsible for white-collar crimes.
To effectively combat the evolving threats posed by white-collar crimes and money laundering, India needs sophisticated anti-money laundering mechanisms and laws. Adhering to the principles of the Financial Action Task Force, India must continuously adapt to emerging technologies that criminals may exploit.
Vakilsearch stands as a valuable resource, providing precise knowledge regarding legislation against white-collar crimes in India, contributing to a more informed and vigilant society. To know more reach out to our experts right away!
