CHAPTER-I

INTRODUCTION
It is common knowledge that certain professions and public officers
offer lucrative opportunities for criminal acts and unethical practices to the
professional & persons occupying the public offices which hardly, attracted
public attention as well as of the legislature. In the year 1941 E.H. Sutherland
propounded the concept of white collar crime. Sutherland pointed out that
besides the traditional crimes such as assault, robbery, dacoity, murder, rape;
kidnapping and other acts involving violence, there are certain anti-social
activities which the person of upper strata carries on in course of their
occupation or business. These activities for long time were accepted as a part of
usual business tactics necessary for shrewd professional man for his success in
profession or business.
The term is widely used by both criminologists and sociologists alike,
incorporating a mass of non-violent behaviours related to economic fraud.
Beyond that rudimentary description there is widespread disagreement and
interdisciplinary criticism of the definition and application of white collar
crime. Criminologists, with a focus on the law, contend that many of the
behaviours society believes to be white collar crimes are in fact not crimes at
all. Without a statute to define behaviour as a criminal violation of law,
behaviours could be labeled by individual standards rather than in the context of
community value. An individual evaluation of what is or is not deviant allows
for a subjective approach that softens the scientific objectivity of criminology.
Additionally, the American system of criminal justice was built upon the premise
of individual culpability. This presents difficulties when criminal acts involve a
collective. The penalty phase of a criminal action was never meant to impose
sanctions against groups or organizations. Sociologists contend the term itself
is fundamentally flawed. Studies have shown the vast majority of white collar
crimes are carried out by individuals comprising the middle and lower classes
of society, without regard to the colour of their collar. Sociology views white
collar crime not from a statutory or legal definition, but rather as a class
distinction emphasizing the disparity between the treatment of the rich and the
poor. In many cases the motivation leading to the commission of a white collar
crime is directly related to socio-economic status. The definitional
1
conflict between sociology and criminology has led to what has been termed
sterile definitional disputes.
The current definition of white collar crime has come about due to a
commingling of behaviours, variables, systems and theories. Unlike
conventional crimes, white collar crime can be committed by an individual, a
corporation, an occupation, or an organization. The criminal element of intent
has become less important as product liability and other corporate malfeasance
have come to be identified as white collar crime. A questionable clustering of
behaviours has resulted in an intermixing of simple deviations from societal
norms, breaches of civil law, and criminal violations, thus blurring the line
between civil and criminal law. For the purpose of this paper, it is necessary to
limit the scope of the term white collar crime. The genesis of the term is
credited to Sociologist Edwin Sutherland in 1939 and simply states that white
collar crime is the abuse of power by an individual, situated in a high place,
whereby virtue of that position they are provided with opportunities for such
abuse. This research has refer to crimes of professional occupations as a
behaviour having been statutorily defined as criminal, committed by an
individual who has obtained a professional occupational position where the
trust inherent to that position facilitates the commission of such crime.
Professional will refer to occupational prestige rather than career criminality.
This research has attempted to offer an explanation as to why a professional
practitioner may commit a criminal act
facilitated by occupation after living a life of relative conformity to societal
norms. Means,
motive, and opportunity will be analyzed. Structural perspectives and learning
theories of deviance will be applied to distinguish conventional and white
collar crime.
In a 1939 meeting of the American Sociological Society, Edwin
Sutherland proffered the term white collar criminal1. He defined the white
collar criminal as any person of high socio-economic status who commits a
legal violation in the course of their business activities.
Sutherland’s definition emphasized the offender over the crime, and the
role of trust and power in providing the means and opportunity to commit
deviant acts. For half a century since, Sutherland’s definition of the white
collar criminal has been the subject of much debate and controversy. Specific
2
criticisms point

3
out his use of arbitrary terms that cannot be quantified, such as high socio-
economic status, respectable and business activities. It is widely considered
throughout the sociological community, that Sutherland’s 1939 definition of
white collar crime was intended to draw attention to the idea of there being no
difference between elite crime and street crime; as well as highlight the
discrepancies in the application of law and justice between the rich and the poor.
In subsequent writings, Sutherland clarified his use of high socio-economic
status to include persons of the middle and upper class. Sutherland’s
elucidation had little to no effect in quelling the arguments related to his
original work. A study based on the interviews of federal prisoners convicted of
embezzlement concluded that although none of the subjects were poor, only a
scant few could be considered as being of a high socio-economic status. Cressey’s
findings led to other criminologists questioning whether an offense such as
embezzlement could even be considered white collar crime under the
Sutherland definition2. Even the term business activity was the subject of
debate with Quinney theorizing the term should apply to all persons, in all
occupations, without regard to socio-economic status. Quinney questioned
whether a person cheating welfare would be
committing a white collar crime because the welfare system is the source of
their livelihood.
Despite fifty years of debate and study, no consensus has been reached.
Defining white collar crime is an enigma. A common misconception of white
collar crime is that, like pornography, it is difficult to define, yet most people
would recognize it when they saw it.
The only fact regarding white collar crime is that no occupation is
exempt or untouched by it. One need only pick up the paper, watch the news,
or surf the Internet to accept the statement as an axiom. However, an
occupation which society views as a profession may offer those individuals
with the motivation to commit crime, as well as greater means and opportunity
to accomplish complex schemes that are nearly undetectable to those operating
outside the profession.
Sutherland’s focus on the elements of trust and power are germane when
identifying the characteristics that allow an occupation acceptance in society as
a profession3. For an occupation to receive professional consideration, its
membership may have numerous characteristics in combinations not generally
4
found within the occupations of the general public. Secondary education is the

5
hallmark of the professional world, generally at a graduate level or higher.
Education is sometimes accompanied by specialized skills or certifications.
Those certifications are issued by governmental or organizational bodies
tasked with the oversight to uphold the practitioner’s oath or ethical code of
conduct. The combination of characteristics and the requisite trust given based
upon an occupation being accepted as a profession automatically has an
inherent benefit of some degree of occupational prestige. The Duncan Socio-
economic Index,(Hence forth referred as SEI) or SEI, is a linear scale that ranks
occupational titles by perceived prestige. Prestige is defined as a characteristic
individuals or social positions that form a linear hierarchy. A quick look at the
SEI shows professional occupations (e.g. doctors and engineers etc) reflected
near the top of the SEI.
Blue collar and labour positions typify the lower end of the scale. It is a
logical conclusion that the amalgamation of trust, power, and prestige inherent
in most professions can result in the practitioners being subjected to less
scrutiny and surveillance, which in turn may provide an increase in opportunities
to commit crime4. When crime is discovered in a profession charged with the
restraint of deviance, or the institution of social control, the fact that a crime
has been committed by an individual becomes secondary to the violation of trust
and power given to the profession by society. An offense by an individual is
perceived as an offense by the profession. For example, if a convenience store
clerk is caught stealing money from a till, or a garbage worker is arrested for
submitting falsified timecards, there is generally little interest or reaction
beyond those parties immediately affected by the incident. By way of
comparison, if the scenarios were changed to a police officer caught stealing
evidence or a doctor discovered billing for services not rendered, invariably a
reaction would come not only from those directly involved, but from society as
a whole. The first scenario is not likely to result in a judgment statement that all
convenience store clerks are corruption or that all garbage men are greedy.
Because a police officer is entrusted with power to take freedom and a doctor is
entrusted with the power to take a life, society assumes great risk when trust
and power are given. In the context of professionals, society has provided those
individuals with the motive and the means to offend.

6
 White collar criminality has become a global phenomenon with the
advance of commerce and technology. The reason for enormous increase in
white collar crime in recent decades is to be found in the fast development
economy and industrial growth of this developing country.
1.1 White collar crime in India:-
In India White Collar crime means and includes manipulation of funds
or in stock exchanges or misrepresentation in advertising or in financial
statements of a corporation or violations of labour laws, copyright, patent laws
etc. which is mainly ‘job oriented’ i.e. which occurs during the course of one’s
occupation but assaulting a personal secretary by her boss will not constitute as
White Collar crime.
While resorting to Sutherland it was very much advent that crimes
committed by the people of ‘High Social Status’ will amount to White Collar
crime. But in India the situation is totally different. In India mostly White
Collar crimes are committed by the people of lower social strata in their
occupational capacity as adulteration of milk by the milk man, selling
adulterated food by the shopkeeper, selling expired medicine, taking out few
kilos of gas from the cylinder and so on.
Gradually White Collar crimes acquired an established place within the
society and with the introduction of famous license-quota-permit Raj in the
earlier seventies it took a long strive forward to the increasing trend of White
Collar criminality by giving tremendous power to the Trio as — the
politicians, the bureaucrats and the businessmen. These unholy three put
their jaws in our administrative system in such a manner that it nurtured the
total system of quasi corrupt Indian society to a
complete corrupted one.
While resorting to White Collar crime in India Businessmen as a part of
that unholy trio normally used to engage themselves in Tax Evasion and Tax
avoidance or violation of the Foreign Exchange regulations by under invoicing
of exports or by over invoicing of imports5.
Traders in India were not so far behind in creating an irreparable
damage to the society at large. They have mainly engaged themselves in
hoarding, profiteering and black marketing of the essential commodities.
Moreover sometimes for monetary gains they used to engage themselves in

7
adulteration of foods which may turn dangerous to a person’slife.

8
 While resorting to White Collar crime in India Businessmen as a part of
that unholy trio normally used to engage themselves in Tax Evasion and Tax
avoidance or violation of the Foreign Exchange regulations by under invoicing
of exports or by over invoicing of imports.
Traders in India were not so far behind in creating an irreparable
damage to the society at large. They have mainly engaged themselves in
hoarding, profiteering and black marketing of the essential commodities.
Moreover sometimes for monetary gains they used to engage themselves in
adulteration of foods which may turn dangerous to a person’s life.
To comment specifically on Indian traders for Black Marketing of the
essential commodities, profiteering and Hoarding, Monopolies Inquiry
Commission gave a graphic account of that in the following words as— “
There is hardly anybody in India who has not been a victim of the practice of
hoarding, cornering and profiteering. Whenever there is a slight shortage —
even temporary
— in any consumer goods for which the demand is urgent and inelastic, almost
every trader — it is perhaps unnecessary to use the qualification ‘almost’ —
conceals his stock and blindly tells the customers that he has not got the
commodity in stock...”
In the course of their research Prof. Hugh Barlow and Sutherland
repeatedly pointed out that White Collar crime was more dangerous than any
ordinary street crime because the financial loss to the society from White Collar
crimes is probably greater than the financial loss from ordinary burglary, theft
or robberies. It was very much advent from their opinion that they were
more concerned on the economic welfare of a
country. While computing the quantum of loss in
India it was estimated that the average loss per theft or burglary is less than
Rs. 5000/- or so is rare and the same
amounted to lakh is unknown.
But on the other hand embezzlement and frauds of lakhs and millions of
rupees are very much advent. Indian scholars took the after effect of loss
happened from White Collar crimes very seriously as according to them
without economic stability a country cannot stand up and for proper
functioning of a state economic prosperity is very much necessary.

9
 According to V. R. Krishna Iyer, J. “economic offences often are subtle
murders practised on the community or sabotage of the national economy.” So
it may be termed as the “White Collar Economic Offences” 6.
These economic offences can devastate an entire community rather than
robbing a lone victim. Their impact can last for years, stealing crucial services
or a lifetime’s savings through crimes invisible to their victims.
Subsequently thereafter Santhanam committee was asked to report on
the misdeeds of the elites to that corruption can be traced. Santhanam
committee gave a graphic account of the misdeeds of businessmen and
industrialists in the following words ”Corruption can exist only if there is some
one willing to corrupt and capable of corrupting.
We regret to say that both these willingness and capacity to corrupt is found in
a large measure in the industrial and the commercial classes.” 7 were obtained or
wrongfully utilized by nearly 700 firms through misrepresentation, forgery or
other branches of the Export/Import control regulation.
Similarly, illegal accumulation of foreign exchange through just one
type of fraud or through under invoicing of exports and over invoicing of
imports, — is calculated to be estimated between Rs. 40-50 crores every year.
Two instances of embezzlement and fraud as provided by a report made
by Vivian Bose Commission are — Notorious Dalmia-Jain and Mundhra case
in which loss amounted were estimated at Rs. 3.5 crore8.
While dealing with the investigation of Mundhra case, Mr. M. C. Chagla
made following observations as”Mundhra is a flamboyant personality and a
financial adventurer whose only ambition is to build up an industrial empire by
dubious means.”
In spite of the fact that a large number of economic offences have been
unearthed in our country in the last five years as Securities Scam, Hawala
Scam, Urea Scam, Sugar Scam, Banking Scam, Tele-Communication Scam,
Fodder Scam, Stamp scam etc. and an effort from the government of appointing
numerious Commissions as Vivian Bose Commission, Bakshi Tek Chand
Committee, parliamentary committee on the jeep scandal, Railway corruption
Inquiry Commission, Sadasivam committee of enquiry, S. R. Ray Commission of
Inquiry,
S. R. Das Commission, M.C. Chagla Committee and many more in which

10
thousands of crores of rupees were involved, surprisingly no offenders have
been convicted so far.
1.1.1 HOARDING, BLACK MARKETING AND ADULTERATION:-
The white collar crimes which are common to Indian trade and business
world are hoarding, profiteering and black marketing violation of foreign
exchange regulations and import and export laws are frequently resorted to for
the sake of huge profits. That apart from adulteration of foodstuffs, edibles and
drugs which causes irreparable danger to public health is yet another white collar
crime common in India9.
1.1.2 TAX EVASION:-
The complexity of tax laws in India has provided sufficient scope for the
tax-payers to evade taxes. The evasion is more common with influential
categories of persons such as traders, businessmen, lawyers, doctors, Engineers,
contractors, politicians etc. The main difficulty posed before the Income tax
Department is to know the real and exact income of these professionals. It is
often alleged that the actual tax paid by these persons is only a fraction of their
income and rest of the money goes into circulation as black money. Despite
frequent modifications in the tax laws of the country the menace of tax-evasion
continues unabated and it is causing considerable loss to government revenue10.

1.1.3 WHITE COLLAR CRIME IN CERTAIN PROFESSIONS:-

Crimes committed by medical practitioners, lawyers in course of their
Occupation. If there is an industry in which India has surpassed the developed
west then it is the field of White Collar crimes. White collar crimes in India is
not in total based on the theory propounded by Prof. Sutherland but partially
on the concept by Prof. Hugh Barlow as “Crimes committed by the people of
lower strata in their occupational status”.
In India White Collar crime means and includes manipulation of funds
or in stock exchanges or misrepresentation in advertising or in financial
statements of a corporation or violations of labour laws, copyright, patent laws
etc. which is mainly ‘job oriented’ i.e. which occurs during the course of one’s
occupation but assaulting a personal secretary by her boss will not constitute as
White Collar crime.

11
1.1.4 MEDICAL PROFESSION:-
White Collar Crimes which are commonly committed by persons
belonging to medical profession include issuance of false medical certificates
helping illegal abortions, secret services to dacoits by giving expert opinion
leading to their acquittal and selling sample-drugs and medicines to patients or
chemists. Dilatory tactics adopted by members of this profession in treatment
of their patients with a view to extracting huge sums from them has become an
accepted norm, particularly with those medical men who do not have a good
practice or have only a marginal earning11.
Fake and misleading advertising is yet another area in which the white
collar criminals operate. They make illegal and misleading claims of medical
cure through advertisements in news papers, magazines, radio and television
thus adding to human misery. Many patent medicines are not only worthless
but harmful. Similar advertisements for cosmetic and adulteration food are also
widespread in practices which are injurious to public health. These persons are
not only breaking the letter of the law but, by violating its sprit, they commit
crimes which are not only anti-social, but also injurious to public health.
1.1.5 ENGINEERING:-
In the engineering profession underhand dealings with contractors and
suppliers, passing of sub-standard works and material and maintenance of
bogus records of work-charged labours are some of the common examples of
white collar crime. Scandals of this kind are reported in newspapers and
magazines almost every day Construction of buildings, roads, canals, dams and
bridges with sub-standard materials not only endangers public safety but also
results into huge loss to public exchequers.
1.1.6 LEGAL PROFESSION:-
In India the Lawyer’s profession is not looked with much respect these
days. There are two obvious reasons for this. The deteriorating standards of
legal education and unethical practices resorted to by the members of legal
profession to procure client age are mainly responsible for the degradation of
this profession which was once considered to be one of the noblest vocations.
The instances of fabricating false evidence, engaging professional witnesses,
violating ethical standards of legal profession and dilatory tactics in collusion
with the ministerial staff of the courts are some of the common practices which
of the courts are some
12
of the common practices which are, truly speaking, the white collar crimes
quite often practiced by the legal practitioners.
Generally, the professional crooks and criminal gangs have their own
trusted lawyer who can be dependent upon to arrange things and keep him self
ready with bail bond or anticipatory bail to avoid arrest of the gangster. If the
members of the gang are arrested, the lawyer has to find out ways and means to
arrange or ‘fix’ their release. There are criminal lawyers who arrange
professional alibis, cooked up witnesses in close liaison with the police for
defending the gangsters.
1.1.7 EDUCATIONAL INSTITUTIONS:-
Yet another field where white collar criminals operate with impunity are
the privately run educational institutions in this country. The governing bodies
of these institutions manage to secure large sums by way of government grants
teachers and others staff working in those institutions receive a mare salary for
less than what they actually sign for, thus allowing a big margin for the
management to grab huge amount in this illegal manner12.
More often these privately managed educational institutions also those
importing same professional educational, enjoy the patronage of some
influential politicians and many of them are even owned by them. Many such
institutions are actually non-existent and are functioning as commercial shops,
enabling the students to get degrees on payments of huge sums in blatant
violation of the government rules, regulations and norms.
White Collar crime in business deals with fake employment placement
rackets now Cyber crime is becoming yet another new breach of white collar
crime.
1.2 OBJECT OF THE STUDY:-
Researcher has concentrated to trace out the causes of the white collar
crimes; these crimes are harmful for the economy of the country. The object of
the study the present laws are to find out the lacunae, to compare our laws with
developed countries and to remove the deficiency in our laws.
Growing indiscipline prevailing at the business and industry adversely
affects the entire society and set pace to all our present social problems.
Engaged in commercial or industrial activities and dealing with vast resources,
business units as part of their industrial,commercial or other activities build wide
interactions with the government and public authorities. Prompted by greed and
13
the desire for

14
making quick or easy money, and possessed with vast resources garnered
through black money hoarding, there is adequate scope for businessmen and
industrialist in this environment to use wrong ways of getting their things
achieved. White collar crime is fueled by greed. It is an attempt to look for
short cut means for getting quick money. Business and industry promote white
collar crimes and public service thrives as the beneficiary of this evil source of
earnings. Gradually White Collar crimes acquired an established place within
the society and with the introduction of famous license-quota-permit Raj in the
earlier seventies it took a long strive forward to the increasing trend of White
Collar criminality by giving tremendous power to the Traitor- jaws in our
administrative system in such a manner that it nurtured the total system of quasi
corrupt Indian society to a complete corrupted one.
While resorting to White Collar crime in India Businessmen as a part of
that unholy trio normally used to engage themselves in Tax Evasion and Tax
avoidance or violation of the Foreign Exchange regulations by under invoicing
of exports or by over invoicingof imports.
Traders in India were not so far behind in creating an irreparable
damage to the society at large. They have mainly engaged themselves in
hoarding, profiteering and black marketing of the essential commodities.
Moreover sometimes for monetary gains they used to engage themselves in
adulteration of foods which may turn dangerous to a person’s life.
Researcher has focused her study to point out the causes of the White
Collar Crime and to suggest the mechanism to control the menace of the White
Collar Crimes. White Collar Crimes are harmful for the economy of the
country. Present laws are insufficient to control the white collar crime which
directly attack on the economy of the nation as well as provides the facility of
corruption in each and every place of business and profession. Even politics
and politicians are fully involved in White collar crimes.
The object of the study is always the present laws, to find out the lacuna,
to compare our laws relating to white collar crimes with the laws of developed
countries and to suggest the steps towards the improvement of the laws so as to
enable it to combat with the menace of the white collar crimes, which is
becoming rampant in the society and collapsing the economy of our country.
At this present juncture what we need is the strengthening of our
enforcement agencies such as Central Bureau of Investigation, the Enforcement
15
Directorate, The Directorate of Revenue Intelligence, The Income-tax Department
and the Customs Department. Concentration and distribution of national wealth
must be done in a proper manner. Speedy trial should be arranged by
appointing more Judges. Central Vigilance Commission must keep a constant
vigil on the workings of the top ranking officers. General public must not avoid
being engaged themselves in the prosecution of the White-collar criminals as the
offence in general is directed towards them. Lastly if they are traced and proved
guilty then Deterrent Theory of punishment is an apt one.
1.3 Hypothesis:-
1) The white collar crimes are prevailing everywhere not only in business
but also in professions and politics, and it is difficult to identify and
punish such criminals under present laws.
2) The white collar crimes to be directly attack on national economy
affecting development of country which is necessary to be curbed and
removed by adopting proper legal system.
3) Existing laws on white collar crimes are failing to control its menace, as
well as insufficient to fight with it and there is a need of new
comprehensive law to control and punish the white collar criminals.
1.4 Research Methodology:-
Researcher adopted the doctrinal method of research methodology, it is
very much difficult rather impossible to carry out the surveys and to apply the
sampling techniques. However the researcher has taken help from the
Constitutional law and other existing laws and also visited various web-sites
and gone through different magazines, journals and news papers for collecting
requisite information.
1.5 Tools of Research:-
1.5.1 Primary Tools:-
a) Indian constitutional Law.
b) Laws relating to white collar crimes.
c) Criminology of Sutherland.
d) Other Laws
1.5.2 Secondary Tools:-
a) Case law
b) Websites

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 c) Magazines and journals
d) News papers
1.6 Chapterisation:-
Researcher has divided entire Research thesis in six chapters.
1.6.1 chapter –I Chapter first is devoted to introduction, Which contains the
introductory part of research problem and its importance, justification of study
(objective), scope of research (various laws) research methodology and
research tools.
i) Introduction:-
It is common knowledge that certain professions and public officers
offer lucrative opportunities for criminal acts and unethical practices to the
professional & persons occupying the public offices which hardly, attracted
public attention as well as of the legislature.
ii) White collar crime in India:-
White collar criminality has become a global phenomenon with the
advance of commerce & technology.
a) Hoarding, black Marketing & Adulteration.
b) Tax evasion, India’s biggest tax evasion done by Hasan Ali.
c) White collar crime in certain professions, Medical Profession,
Engineering, Legal Profession, educational institutions, even in
private sector.
iii) Object of the study:-
Researcher has concentrated to trace out the causes of the white collar
crimes; these crimes are harmful for the economy of the country. The object of
the study the present laws, to find out the lacuna, to compare our laws with
developed countries, to remove the deficiency in our laws.
iv) Research Methodology:-
Researcher adopted the doctrinal method of research methodology, as
well as concluded research by applying primary & secondary tools. In primary
tools constitutional law and other Indian legislative laws and in secondary tools
case laws different Websites, Magazines, Journals and News Papers.
iv) Hypothesis:-
1. The white collar crimes are prevailing everywhere not only in business
but also in professions and politics, and it is difficult to identify and
punish such criminals under present laws.
17
2. The white collar crimes to be directly attack on national economy
affecting development of country which is necessary to be curbed and
removed by adopting proper legal system.
3. Existing laws on white collar crimes are failing to control its menace, as
well as insufficient to fight with it and there is a need of new
comprehensive law to control and punish the white collar criminals.
1.6.2 Chapter –II
Chapter second is devoted with the concept of white collar crimes,
Sutherland’s study of white collar crime committed by persons of super strata,
operating through large & powerful organizations. These crimes are done by
crooks and unethical persons in business, various other professions, who tend
to become unscrupulous because of no reason apart from the thirst of gaining
more and more for themselves. These deviants have least regard for ethical &
moral human values. Therefore they carry on their illegal activities with impunity
without the fear of loss of respect and prestige.
i) Meaning & Definition of white collar crime :-
The term white collar crime describes non-violent criminal activity in
the commercial or business realm usually committed for financial gain.
Sutherland defined white collar crime as “Crime committed by a person
of respectability & High Social status in the course of his occupation”. Herbert
Edlehertz described white collar crime as an illegal act or series of illegal acts
committed by non physical money or property or to obtain business advantage.
ii) White collar crime in various Domains in India:-
a) Legal system in India
b) In trade & Industry
c) Financial Institutional fraud
d) Corruption in Government & politics
e) Forgery
f) Violation of foreign exchange regulations & Import-Export Act.
g) Violation of tax Laws. Etc.
Are the areas which are highly affected with these crimes?
iii) White collar crimes in various profession in India :-
a) Legal profession
b) Engineering

18
 c) Educational Institutions
d) Money laundering Techniques etc are the professions which are
the honourable professions but decreasing their respect in
society.
iv) Distinction between white collar crimes & Blue collar crimes.
These is no such great difference between white collar crimes & blue
collar crime is a highly visible crime committed by the average working class
or poor individuals from violent crimes to thievery and even drug-related
crimes. White collar refers to the dress shirts worn by these types of office
workers with white of collars & ties.
v) Definition of Blue collar crimes :-
Blue collar crimes committed due a lack of hope, environmental
pressures, peer pressure, or a simple feeling that there are no other options.
vi) Causes of white collar crimes:-
There are various causes some of traditional causes & some of modern
causes but every cause have same intention that is greed & gainful intention.
vii) Victims of white collar crimes :-
Victims of white collar crimes basically large in number and the affect
of white collar crime have long consequences and National as well as
individual’s wealth. Technical & methodological problems deriving from the
nature of offences.
1.6.3 Chapter-III
Third Chapter devoted to constitutional and legal provisions to control
white collar crimes. There are various provisions in our constitution, the law
makers of India have always been conscious of this problem. The British
enacted the first codified law. The Indian penal code, in 1860. It had a chapter
dealing with offences committed by public servants involving corrupt practices.
Later a Special piece of legislation was enacted i-e The prevention of
corruption Act, 1947 to deal specifically with problem of corruption in public
life. Later on in 1988, it was replaced by a more comprehensive & broad piece
of legislation i-e The prevention of corruption Act, 1988.
i) Provisions in constitution of India to control white collar Crimes :-
U/Art. 32 & 226 there are 5 writs which are great tools in the hand of
public by these writs any one can approach to the supreme court & High court,

19
after that the provision of comptroller and Auditor General of Indian. (CAG),
appointed U/Art 77 of Indian constitution, he is having great power to National

20
audit & account services, due to that many white collar cases are being open
i.e. common wealth corruption, Hasan Ali’s tax-evasion, 2G spectrum etc are
the recent cases caught by CAG.
ii) Committee on Public Accounts :-
The rules of procedure and conduct of Business in Lok Sabha provides
for the constitution of Public Account committee. An important function of the
committee is to ascertain that money granted by Parliament has been spent by
Government “within the scope of the demand”.
iii) Provisions in Indian Penal code :-
The laws to prevent corruption in India were first enacted in the Indian
Penal Code (Sec-161 – 171) in 1860.
iv) Criminal Procedure Code :-
The criminal procedure code 1973 together with mutual legal Assistance
Treaties (MLAT) in Criminal Matters & Extradition Treaties provides for the
empowerment of the investigation agencies U/Sec-166 A and 166-B of the Act.
v) The Prevention of Corruption Act, 1988 :-
According to Shri. N. Vittal former chief vigilance commissioner, the
first stage in the dynamics of the rule of law is the framing of effective rules
and laws, which are equipped to hinder the eve rising escalation of the
corruption graph. It is in this context that the prevention of corruption Act,
1988 becomes highly significant.
vi) The Prevention of food Adulteration Act 1954:-
The objective envisaged in this legislation was to ensure pure & whole
some food to the consumers also to prevent fraud or deception.
vii) The Essential Commodities Act, 1955 :-
Under Essential commodities Act white collar crime is hoarding & black
marketing of the commodities through which hoarders & black marketers are
earning huge amount by such earning is blood of poor masses. To control this
menace the Essential commodities Act was enacted in the year 1955.
viii) The Customs Act 1962 :-
The central Board of Direct Taxes & the Central Board of Excise &
customs are its revenue eyes governments require resources to discharge their
multifarious obligations. The problem of arresting evasion & avoidance of
Taxes as well as growth of black money is as old as the rocks.

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 If through the process of restructuring the Central Board of excise &
customs, additional resources could be raised, concurrently arresting evasion &
avoidance, it is certainly a whole some goal.
ix) The Provisions Relating to Income Tax Act. 1961 :-
Direct Tax legislation are one of the significant modes which enables the
state to release the objectives of both social & economic justice as also
defraying the cost of rendering public services on the part of the state economic
order as enunciated in part iv (i-e Directive principles of state policy) of the
constitution of India. The emphasis is shifting progressively to voluntary
compliance of tax laws; but it will be an exercise in futility, in cases it is not
backed by strong deters once it against tax evaders so that they do not go with
impunity.
x) The Foreign Exchange Management Act, 1999:-
This Act empowers the Directorate of enforcement, India to investigate
& prosecute middlemen or touts under this Act.
xi) White collar crimes committed through computer, punished under the IT
Act 2000.
Computer helps to commit modern types of white collar crimes.
Damage to computer, computer system, etc with intention to commit fraud is
provided in this Act.
xii) The Prevention of money laundering Act. 2002:-
This Act empowers the Directorate of Enforcement, India and Financial
Intelligence unit, India both agencies of the Government of India, to investigate
& prosecute person who have ill-gotten wealth in foreign countries, which they
subsequently transfer to their homeland through money laundering under this
Act.
xiii) The right to Information Act-2005:-
This Act has been made to empower citizens to make government &
government officials responsible, make transparency in government Administrative
work & to reduce corruption.
xiv) The Anti-corruption Bureau of State:-
These police agencies of the states are meant mainly for investigating
corruption cases within the state under the corruption Act.
xv) The central Bureau of Investigation (CBI)

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 This Agency is set-up by Government of India, especially to investigate
corruption cases, in union Territories.

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xvi) Provisions under Administrative Law :-
Ombudsman, who is also known as Lokayukta, or Lokpal, recently the
agitation of Anna Hajare to create the supreme authority for corruption Jan-
Lok- Pal.
1.6.4 Chapter- IV
The Forth Chapter is devoted to International perspective.
In this chapter the measure concentration of the united National
organization to control white collar crimes. There is great contribution of united
Nation organization to control white collar crime,
This organisation has formed many committees to control the white
collar crimes as well as till now conducted 5 conventions against corruption
which are known as “United Nation convention against corruption”. These
conventions are the most promising anti-corruption instrument at International
level, comprehensive in their coverage & detailed in their measures.
The United Nations convention against corruption is the first legally
binding International Anti-corruption instrument; it’s entered into force on 14th
Dec.2005 opened for signature. (Hence forth referred as UNCAC).
The UNCAC has divided in 8 chapters and 71 Articles. The UNCAC
obliges its state parties to implement a wide & detailed range of Anti-
corruption measures affecting their laws, institutions & practices.
These measures aim to include the prevention, criminalization & law
enforcement, international co-operation, asset recovery, technical assistance &
information exchange & mechanisms for implementation.
1) Chapterisation of UNCAC Articles.
a) Discussion on general provisions covered in chapter I Arti.1-4.
b) Chapter II is preventive measures Art. 5 to 14
c) Chapter III deals with criminalisation & law enforcement Art. 13-
44
d) Chapter IV deals with international co-operation Art. 43-49
e) Chapter V consist the provision of Asset Recovery Art. 51-59
f) Chapter VI have the Technical Assistance & information
exchange Art 60-62
g) Chapter vii deals with mechanism for Implementation Art 63-64

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 h) Chapter viii consist the final provisions Art. 65-71. The Final
provisions are similar to those found in other United Nation
treaties, which states parties are free to exceed with measures
‘More strict or severe’ than those set out in specific provisions.
1.6.5 Chapter - V
Chapter fifth is devoted to present scenario in our country which consist
the land mark corruption cases of our country & how the accused of these cases
are moving free either by acquittal or by lack of proper, strong legal provisions.
As nation grows, the corruption also grows to invent new methods of cheating
the Government and public. In this chapter Researcher tried to trace out the
gravity of white collar crimes with the study of some leading corruption cases
is also necessary to measure the dangerous effects and menace on the National
economy. Researcher covered land Mark cases from Bofors scandal to 2G
spectrum & ISRO- Devas S. band scams.
In this chapter Researcher has also concentrated on different committee
report which are constituted on the corruption, such as “Santhanam Committee
Report” and Vivian Bose Commission of Inquiry which highlighted how the
industries indulge into white collar crimes like frauds, falsification of accounts,
tampering of records for personal gains, tax evasion, so on and so forth.
Researcher has also referred the list of most corrupted employees &
persons in India, which is drawn from one National Survey. Under this chapter
Researcher discussed some causes of white collar crimes like Modern
technologies and fast communication media which helps to commit white collar
crimes & in dissolution of evidences.
1.6.6 Chapter-VI
Chapter sixth is devoted for the conclusion and suggestions. After
discerning the entire gamete of the white collar crimes and its menace,
conclusion and suggestions as per the opinion of the researcher are being dealt
with.
At the end of the thesis bibliography is submitted along with declaration
of basic principles of white collar crimes and abuse of laws. At the last
annexure 1is enclosed.

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 References
1. Sutherland, E. H. (1940). The white collar criminal. American Sociological Review 5, 1-15.

2. Sutherland, E. H. (1949). White collar crime. New York: Dryden Press.

3. Sykes, G. M. and Matza, D. (1957) Techniques of neutralization: A theory of delinquency. American

Sociological Review 22, 667-670.

4. Tappan, P. (1977). Who is the criminal? In G. Geis and R.F. Maier (Eds.), White collar crime: Offenses in

business, politics, and the professions — classic and contemporary views. New York: Collier and Macmillan.

The Free Dictionary: Definition of criminogenic. Retrieved 04/01/2006, from The Free Dictionary. com

Web site:http://www.thefreedictionary.com/criminogenic

5. Blum, R. H. (1972). Deceivers and deceived. Springfield, Ill: Charles Thomas; Bromberg, W. (1965).

Crime and the mind: A psychiatric analysis of crime and punishment. New York: Macmillan; Selling, L.

S. (1944). Specific war crimes. Journal of Criminal Law, Criminology and Police Science, 34, 303-310;

Spencer, J. C. (1965). White collar crime. In E. Glover, H. Mannheim, and Emmanuel Miller (Eds.),

Criminology in transition. (pp 233-366).

6. Hasan Ali’s Tax Evasion 2010

7. The Lawyers, White collar economic offence, Oct 2010, pg.no.21.

8. Santhanam Committee Report, pg.no.08

9. Vivian Bose Commission Report, Dalmia Jain Mundra scam.

10. Gaur A. N. The Essential Commodities Act. 1982, pg.no. 275

11. Dr. Singhania, Direct Taxes, 2011, pg.no.573

12. Paranjape N.V Criminology&penology,1994.pg.no.195

13. Siddiqui Ahmad, Criminology problems& perspectives 1993, pg.no.203

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