Abstract

The prevalence of white collar crimes in India has spread like a flush food affecting every area of
society. These offences are a major cause of violations of the law.In contrast, white-collar crime
cases are more conventional and easy to execute compared to crimes like robbery, arson and
extortion. The damage caused by white collar crimes is much higher than that generated by
typical crimes.Collective security operations and strategies in various states have enabled groups
of white-collar criminals to be more active on the international stage. Such crime groups are
making full use of global market globalization, the removal of barriers to trade, liberalized
policies on migration, high-tech equipment and sophisticated electronic techniques in order to
enhance their nefarious operations . White collar offenders are engaging in illegal practices
namely, counterfeiting, illicit trafficking, drug fraud, money laundering, internet-crimes, theft of
credit cards, and the big profits, are creating incentives to ' legitimize ' illegal income by
laundering the money and much more.

Keywords: White collar crime, Government, Eradication, Education

Introduction

With technological advancement, White Collar Crime is becoming a global issue and it has
grown immensely in India due to the growth of the economy and industry. The spike in cyber-
specific white collar crime has indeed been unprecedented and unforeseen as well as being a
significant challenge to federal agencies since these offenses can be perpetrated by an
anonymous person anywhere on the planet.Some unethical professionals engage in illegal
activities without fear of the loss of respect and prestige. In order to achieve better results for
themselves, the criminal and ethical practice is often ignored ( Coleman & Moynihan, 1996).

This study assesses a crucial report on white collar incidents. As well as seeks to comprehend
India's conception of white collar crime. White collar crimes are theacts of knowledgeable
individals drawn from a higher class of society abusing their position.The writer explored in this
article what separates white collar crime from blue or common offenses. It has also been
regarded as a criminal act of trained skillfull plutocrats. The author discusses the common types
of white collar criminal acts that have developed in India in recent years. As well as how this has
developed into a cultural-economic issue. There are also crimes involving growing occupations,
such as health, academic and legal professionals.The study outlines different Indian statutes
concerned with the penalty of such offenses. The writer completes the paper with his own
recommendations.

White Collar Crimes in India

Cases of White Collar Crimes are growing rapidly in our nation as trade and innovation is
progressing. New technological advancement has brought cyberr-related crimes recognized as
digital fraud to new dimensions. With the emergence of new internet sites, the offences of white
collar increase. These crimes affect financial services, financial institutions, the business sector
and the manufacturing sector.
These crimes are perpetrated by highly skilled people, like medical professionals, legal
professionals, bookkeepers, civil servants and not by violent criminals. The forms of crime vary
from typical offences like fraud misconduct, forgery, negligence, irregularity, etc.Such crimes
have been committed with no thought and emotion by calculated and organized conspiracies. If
offenders undertake socio-economic offences, people are more likely to accept them since they
benefit and sometimes associate with the perpetrators.Initially white-collar offences were
intended to classify middle-class and high-class businessmen who broke the law during their
regular jobs. However it refers to a wide range of workplace abuses by citizens of any rank.
Usually the entire society, or the whole country are the targets of economic crime besides the
citizens. Such acts do not contain or carry any shame whereas typical offenses create an
impression of embarrassment and perversion. TSuch offences establish a new class since the
regulation over these offenses requires maintaining and sustaining the general economic and
environmental structure of civilization from corruption and misuse (Mahesh, 1979).

’2.Indian Scenario

Some big business criminal acts have been uncovered recently. OSome of the biggest mishaps
discussed today is the disappearance of shadowy companies. 2750 of the 5,651 Bombay Stock
Businesses have disapperaed mysteriously. It implies for every 2 firms that enter the bourse to
collect captial one runs away with money collected from the shareholders.. Also large brands
such as ' Home Trade ' had massive publicity but disappeared into the thin air after they raised
money.In these 2750 firms, nearly 11 million shareholders have spent Rs 10,000 crore.We have
the Indians ' Securities Exchange Board, the Indian Reserve Bank and the Department of
Companies to track the stock market trades, and none of these 2750 odd companies have been
banned for life. Several of the sponsors and commercial financiers culpable for these crimes are
still free to wander.Market authorities and banks are not in a position to prosecute or reclaim
their assets. So far only 229 of 2750 ghost businesses have been reported by authorities. It is
difficult to penalize or reclaim the assets of financial authorities and stock markets. Thus far,
only 229 of 2750 disappearing businesses were reported by authorities.

Historical Background:
# The American Sociologist Edwin Sutherland, who first described financial crimes
internationally. In comparison to those who undertake ordinary crime during everyday
employment, he described this crime as being a matter of wealth and status to the individual.

# In 1934, Morris again pointed out that the emphasis on crime needs to be changed. He
emphasized on the need to bring this crime category public and to make it punishable for any
anti-social activity commited by people of affluence in the course of their profession.

# E. H. Sutherland also, via his research as a pioneer, underlined that these ' High Echelon
crimes, committed by affluent individuals during their occupation , should be called ' white
collar crime ' to be differentiated from the ' Blue collar crimes

EMERGENCE OF WHITE COLLAR CRIME

White collar crime has been termed as a socio-economic crime, due to its direct influence on our
community and our financial systems. Developments in science, morals and social theories, have
now led to changes in society restructuring and this has materially affected criminal law, whether
due to new progressive thinking or economic and social imbalances.

Corporate Personality Analysis

Corporations are nothing more than collectives of individuals according to this theory. In this
case a person commits the offence; the corporation is then charged with the responsibility of that
individual.

4.1 Theory of the realist

This theory states that corporations have an existence that is in some degree independent of their
members ' existence. This is where corporate responsibility rests above all. In my view, realist
philosophy seems more compelling and more realistic. Some of the arguments supporting the
assumption that corporates can take responsibility for criminal matters is that it is often the
company itself that is wrong and that prosecutions and retribution are aimed directly to the true
perpetrator via its policies or practices. For most cases one has not committed a felony by
himself. The offense usually encompasses the work of many parties in conjunction with the
weak or non-existent policies of a business which causes damagein the end (Vikas Garg, 2007).
In several instances firms also have complicated frameworks buried in several layers of
corporate hierarchy, which make it difficult, if not impossible, to identify the real blame. There is
no dispute once just fines are levied in compliance with any statute. There is no deception when
the position of the judge allows the right to enforce a penalty or a sentence, because client
penalties are levied by jury in every situation.A legal enterprise can not obviously be
incarcerated, because it can not be put in jail. A legal controversy is there when the statute
provides for the punishment of the offense of obligatory incarceration with penalty of fine. The
Supreme Court Commisioner of Assessment-LL, Banglore & Ors. v. Velliappa Textiles
Ltd&Anr. was of the opinion that since the artificial human, such as a firm cannot be sentenced
to incarceration, such a clause, that demands that a certain incarceration period be enforced, can
not be implemented in the case of a fine. In 2005, however, the Supreme Court expressly
overruled the Velliapa Textiles case in Standard Charted Bank v. Directorate of Enforcement in a
3:2 majority decision. K.J Balcrishanan J. J. "We consider that perhaps the firms do not have
clemency simply because prosecution is an offense for which the penalty prescribed is mandated
incarceration. "Another category of serious white collar crime is government scams, an act which
is illegitimate and deliberately wipes the government out of funds through trickery." If the policy
is fiddled, the rates are paid by taxpayers. Procurement and vendor corruption are the most costly
forms of government bribery.In the case of deception, the perpetrator utilizes another's personal
data to defraud people. Grifters of this kind of crime must face heavy sanctions if they are
trapped. Insurance fraud is very popular wherein perpetrators falsify compensation claims,
injuries and other claims that are inflated so asr to obtain additional reimbursements. Postal theft
is perpetrated through the use of Postal Service or any personal or corporate national mail carrier,
including mailboxes.Laundering is an activity where the asset and motive of illegally obtained
assets is concealed by criminals.Government corruption undermines the obligation for civil
servants to also have faith in their community. Whoever is appointed, nominated, employed or a
staff member of a population electorate will be deemed to have broken the law at the state or
local level if they make a favorable decision in return for a favour. White collar crime, involving
companies, broker-sellers, consultants and foreign investors, become involved in deception on
shares when the trustee is deliberately misleading shareholders for economic benefit. Any
perpetrator who evades taxes knowingly and unlawfully prevents the government from collecting
valid taxe. A telemarketing scam is a form white collar crime where the guilty party plans to use
phone communication to unlawfully trick their victims from their funds or assets. Award prizes,
car purchases, and loan promotions are among the most common types of cold calling scams
.

The main reasons why such professional criminals remain unpunished are as follows
:i) lLawmakers and law enforcement agencies belong to the same group or class as these
criminals;
ii) very little effort by the authorities;
(iii) rules that are favorable the criminal;
iv) a reduced effect on victims

We need to strengthen our agencies such as the Enforcement Directorate, the Central
Investigation Bureau, , the Revenue Intelligence Department, the Customs Department and the
income-tax department at this stage. Quick trials ought to be organised through the appointment
of more magistrates. The Central Vigilance Commission should continue to investigate the
activities of the senior officers. The general public should not stop persecuting the white-collar
criminals because the offence is usually targeted at them. Ultimately, if they are tracked and
convicted of a crime, then this serves as part of the dissuasive punishment concept.
How White Collar Crimes Affects More Than Just The Criminals:

Tax evasion can have a huge effect on society and not only on offenders.It has also been named
as a socio-economic activity as it directly affects community. If a white collar crime occurs,
massive business losses are caused that negatively affect the end user and community. Diverse
amounts of scams and schemes in our nation have been uncovered in recent times including 2g
scandle, havala scandle, financial institition scandle, ammo scams and more. Because of these
scams and shysters, our country's economy is in shambles. To compensate for these
consequences of theft or schemes, companies and governments raise costs. That leads to higher
customers ' premiums for increased taxes, and increased insurance rates. The effects of financial
crime on social order are enormous. In all fields there are losses from commodity costs to bonds
and health coverageThe businesses, shareholders and the state may be influenced by white collar
crime (Godwin, 2006). You only need a lousy tipper who will plan to defraud the firm fout of
covetousness and harm the company's reputation

Common Types Of White Collar Crime In India:

1) Bank FraudFraud is a crime perpretated with the aim of deluding itself and receiving
unfair profit. Bank fraud is a criminal act perpetrated against the banks by the fake firms.
The abuse of legally binding items such as check bouncing, bonds, deposit accounts, etc..
Bank fraud impacts the general public because the banks and the government have a
connection in terms of confidence (Goerge, 1929 ).

2) Bribery:Through bribery which means providing the individual in the highest place
cash or a certain good to do a favor. Bribes are also a very popular type of white collar
crime. Simply put, corruption is when one person gives cash to the other person in power.

3) Cybercrime:The major source of fraud in India is cybercrime.This is the most recent

problem in the cyber world. The abuse related to computer networks is digital security.
There is also an accelerated spike in crimes linked to technology, as technology advances
rapidly. Cybercrime consists of people who are specialists in computing. It's dedicated to
harming the developer's credibility or physically affecting the technical aspects of the
technology directly or indirectly.

Cybercrime affects countries, the security and financial status of individuals. The country
may be affected by cybercrime as well since it may also violate a person's privacyin
addition to moentary loss. Classified disclosure can generate privacy issues. There is also
growing cybercrime against women. Cell phone -stalking, the sending obscene messages
and photos by criminals to women are also increased by the use of telecommunications
networks.

4) Money Laundering: Laundering is a fraud activity where the perpetrators mask the
money's origin. In this fraud, offenders attempt to conceal the actual ownership of cash
and the location where it was obtained illegally. In this fraud, offenders attempt to
conceal the actual ownership of cash and the location where it was obtained illegally.For
example, if an individual gets black market resources, the cash is deemed "illegal" and he
 is unable not deposit it into financial institutions, which may find it odd because if he
transfers the money directly into the institutions he has to provide reports and documents
showing where and how it was made

5) Tax Evasion: Tax avoidance is done to disguise the real taxable income and the initial
status of the proceeds. This concealment of income is done to reduce the tax liability in
the eyes of government. ISuch coverup of taxes are made in the glare of the government
to reduce tax responsibility. Simply put, such involves removing the earnings through
illegal means, so that the tax authorities may accept a reduction in their obligation and
display low income. Tax avoidance is negatively affected by the demoralization of honest
taxpayers, which also puts power and influence in the possession of few undeserving
citizens.

6) Identity Theft: Theft in personality is one of these days ' best offences. Thanks to
advances in technology, everyone's personal data can be accessed very easily. Identity
theft is a crime in which the criminal access unauthorized information such as name,
address, phone number etc. and use this information to gain money. Theft of
identification is a felony in which confidential data like name, email, telephone number,
etc. is obtained by the perpetrator and this knowledge is used to steal money.

Legislations Against The White Collar Crime In India:

In order to identify white collar crimes, the government has introduced various legislation.
This law contains penalties for these crimes.

# Act 1960 on Industries.

# Tax Law on Customs, 1961.
# Criminal code of India, 1860.
# Act 1955 on Commodities.
# Policy on Corruption Prevention, 1988.
# Law on Negotiable Goods, # Money Laundering Prevention Act, 2002.
# Act on IT, 2005.
# Act 1950, Regulation of Import and Export.

Laws relating to White Collar Crimes

In order to identify white collar crimes, the government has introduced various legislation. This
law contains penalties for these crimes.. These laws are, in fact, the Industry Act of 1951, the
Imports and Exports Act of 1947, the Essential Commodity Act of 1955,the Company Act
of1956, the Money Laundering Act of 2002 and the Foreign Exchange Act of 1974, .
The penal code in India includes rules for the prevention of crimes like banking fraud, credit card
fraud , insurance fraud, etc. The secruity department in India also initiated many measures to
handle this issue. India;s Reserve directed instructions that the banks strictly follow in
accordance with the guidelines of KYC (know your client). Financial institutions and banks are
obliged to keep the transaction records for a period of 10 years.
The information technology law of 2000 was introduced to provide legal acknowledgement of
the authentication of information exchanged in the context of commercial transactions to address
computer-related crimes (Mitesh, 1979).
The punishment for the following crimes is provided for in Sections 43 and 44 of the Information
Technology Act:

● Copying an extract from any data is unauthorized.

● Access and download of unauthorized files.
● Computer system or computer network damage.
● Denying access to a computer system for an authorized person.
● Support anybody to facilitate unauthorized computer access.

While cybercrime is not the focus of the Information Technology Act, there are some provisions
in this Act to deal with white collar crimes. The offense in cyber crime is covered in Section XI
and in Section IX the punishment and award of crime are addressed. In addition, because of the
lack of focus, many problems seem to be unresolved. Certain ones are:

● Ineffectiveness
● Appointment qualification as an Adjudicator not prescribed
● Definition of hacking
● Zero measures to combat piracy
● International cooperation deficiency
● Police authority to access and is check only applicable to public places

Tackling the white-collar crime menace

Few recommendations for India to become a technologically advanced country for white-
collar crime are as follows

1. Establishment of organizations specializing in investigative expertise

2. Establish investigative centres of excellence
3. Increase awareness and promote whistleblowing
4. Private public partnership.

CONCLUSION
The implicit effects of white-collar crime, turning it into survivors across India, should be
stressed to promote more political engagement to influence government discourse about these
less obvious, ' victimless ' forms of crime.The media, which plays a significant role in describing
and hence shaping the concern of this felony, may impact the opinion of the public on white-
collar criminality. Although some people think white-color criminals are usually not granted
much coverage in the papers, because the media belongs to big companies, the perceived
inability to focus on corporate fraud should instead be clarified by the intangible esence of the
criminal activity and the challenge of portraying it in human terms familiar to the mass press and
its viewers rather than by any political plot to repress it.

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