WHITE COLLAR CRIMES

L.Q : Define The White Collar Crimes? Briefly Discuss WCC in India

1. Introduction

White-collar crime is a non-violent crime where the primary motive is typically financial in nature. White-collar
criminals usually occupy a professional position of power and/or prestige, and one that commands well above
average compensation.

The term “white-collar crime” was coined in the 1930s by sociologist and criminologist Edwin Sutherland. He
used the phrase to describe the types of crimes commonly committed by “persons of respectability” – people
who are recognized as possessing a high social status. Sutherland eventually founded the Bloomington School
of Criminology at the State University of Indiana

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.

2. Meaning

The term "white-collar crime" refers to financially motivated, nonviolent or non-directly violent crime committed
by individuals, businesses and government professionals, The crimes are believed to be committed by middle-
or upper-class individuals for financial gains.

3. Definition

It was first defined by the sociologist Edwin Sutherland in 1939 as "a crime committed by a person of
respectability and high social status in the course of their occupation".

Typical white-collar crimes could include wage theft, fraud, bribery, Ponzi schemes, insider trading, labor
racketeering, embezzlement, cybercrime, copyright infringement, money laundering, identity theft, and forgery.
White-collar crime overlaps with corporate crime.

3. Common Types of White-Collar Crime in India

1. Bank Fraud: Fraudulent activities aimed at misleading and obtaining unfair advantages, often involving
forged checks, securities, and bank deposits.
2. Bribery: Offering money or goods to individuals in positions of power in exchange for favors, creating a
culture of corruption.
3. Cybercrime: The use of technology for criminal activities, with cybercrime emerging as a significant
concern in India’s online landscape.
4. Tax Evasion: Deliberate concealment of true taxable income and status to reduce tax liabilities in the
eyes of tax authorities.
5. Identity Theft: The unauthorized access and misuse of personal information, facilitated by technological
advancements.
6. Money Laundering: Concealing the origin of illegally acquired money to disguise ownership and
acquisition locations.

4. Reason for WCC in India / Causes For White - Collar Crimes:

1. Lack of Awareness: Because white-collar crimes differ from typical crimes in their method, victims
frequently misunderstand them and are readily duped by offenders.
2. Greed: Because white-collar crimes differ in strategy from traditional crimes, victims usually
misunderstand them and are easily fooled by perpetrators.
3. Not 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.
 4. Necessity: Not generally, but occasionally, such crimes are committed as a last alternative to overcome
financial difficulties in sustaining their families.
5. The satisfaction of one's ego: The offenders often commit such acts to satisfy their ego and impulse.
6. The lack of proper implementation of laws in this regard:
7. The inability to enforce existing rules stringently frequently leads to the emergence of such activities.
8. Competition, Technology, Rationalisation , Work environment, Access to Information

5. Examples of White-Collar Crime in Different Professions

1. Medical and Health : Fabricating false medical records, Intentional treatment prolongation to raise
costs, Discrimination against patients for financial gain, Delaying treatment for higher medical bills,
Unauthorized sale of medications,
2. Legal Profession: Creation of fake documents, Threatening witnesses for financial gain, Violation of
ethical rules for monetary benefits.
3. Education: Collecting significant sums under the guise of donations for admissions, Preferential
admission based on donations.
4. Government : Misappropriation of government grants.
5. Public & Private Companies

6. Cases Law of Money Laundering in INDIA:

Punjab National Bank Fraud or Nirav Modi Case:

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 buyers' credit from other foreign or international banks/financial
institutions.

Harshad Mehta Case :

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.

7. Conclusion

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.
S.Q: Lokpal Institution

1. Introduction

The Lokpal is the first institution of its kind in independent India,established under the Lokpal and
Lokayuktas Act 2013 to inquire and investigate into allegations of corruption against public functionaries who
fall within the scope and ambit of the above Act. the independent institution of Lokpal and Lokayukta has been
a landmark move in the history of Indian polity which offered a solution to the never-ending menace of
corruption. It provides a powerful and effective measure to counter corruption at all levels of the government.

2. Meaning : The Lokpal and Lokayukta Act, 2013 mandated for the establishment of Lokpal at the Union level
and Lokayukta at the State level. Lokpal and Lokayuktas are statutory bodies and these do not have any
constitutional status. These institutions perform the function and role of an “Ombudsman” (an official appointed
to investigate individuals’ complaints against a company or organization, especially a public authority). They
inquire into allegations of corruption against certain public bodies/organizations and for other related matters.

3. Organisation Structure of the Lokpal

The structure of the Lokpal is a multi-member body consisting of

• The Chairperson and the Members are appointed by the President of India
• one chairperson and a maximum of 8 members.
The person to be appointed as the chairperson / members of the Lokpal must be either The former Chief
Justice of India; or The former Judge of the Supreme Court or who must possess special knowledge and
a minimum experience of 25 years in matters relating to: Anti-corruption policy; Public administration;
Vigilance; Finance including insurance and banking; Law and management.
• The maximum number of members must not exceed eight.
• Half members to be judicial members
• Minimum 50% of the Members should be from SC/ ST/ OBC/ minorities and women

5. Term and appointment to the office of Lokpal

Lokpal Chairman and the Members can hold the office for a term of 5 years or till they attain the age of 70 years,
whichever is earlier.

6. Jurisdiction

The Lokpal has authority over various categories of public servants, including Prime Minister, Union
government ministers, Members of Parliament, and all other public officials (Group A, B, C, and D).

It can investigate complaints related to unfair administrative actions.

7. Powers and Functions of Lokpal

Lokpal Power and Funtion The Lokpal and Lokayukta have a variety of duties,

1. reducing corruption
2. Keep a watch over all public officials and take suitable action against them if they do not function in
accordance with the law.
3. Act either on the basis of any complaint made by a private person or suo moto (i.e. on his own initiative).
4. Recommend his findings to be enforced into action.
5. Investigate complaints made by a single person.
6. Take decisions against public servants.
7. Prosecute public officials who have been accused of corruption in court.
8. Investigate the Prime Minister and all government officials including Members of Parliament, who are
suspected of corruption.
9. Conclusion