To analyse the criminology of white collar crimes

To analyse the criminology of white collar crimes

INTRODUCTION

What is white collar crime?

The famous Criminology professor Edwin H. Sutherland coined the term “white collar crime” as “the crime committed by a person of respectability and high social status in the course of their occupation”. Sutherland through this definition include in it big corporate and legal entities, which was considered to be only committed by the lower class.

With the improvement of era, white collar crime has end up the worldwide phenomenon and in India it’s far growing at a exceptional tempo due to the growth within side the within your budget and the economic increase. There has been uncommon and surprising growth within side the increase of laptop unique white collar crime which brings a high-quality project for the regulation enforcement groups as those crimes may be devoted from everywhere within side the international via way of means of any nameless man or woman. There are many professions in which crook and unethical practices are frequently going unnoticed. In order to advantage greater for them a few unethical experts indulge into unlawful sports without worry of lack of admire and prestige.

Common Types of White Collar Crime in India:

1) Bank Fraud: Fraud is a criminal offense devoted with an aim to misinform and advantage undue benefit. Bank Fraud is a fraud devoted at the banks. It is devoted via way of means of the fraudulent organizations via way of means of making faux representations. It is likewise associated with the manipulation of the negotiable contraptions like cheque bouncing, securities, financial institution deposits and so forth. Bank fraud is involved to the general public at huge due to the fact there may be a relation of agree with among the banks and the general public. It is the maximum not unusualplace kind of white collar crime and additionally a company crime. It harms public in addition to the authorities of the country.

2) Bribery: Bribery is likewise a totally not unusual place kind of white collar crime. By bribery we suggest giving cash or a few items to the man or woman at a excessive role in go back of a favor. In easy phrases bribery is whilst one guy offers cash to the opposite that is in authority. It is carried out for the motive of insisting him to do some thing or to save you him from doing some thing. It is the maximum not unusual place earnings of maximum of the general public officers.

3) Cybercrime: Cybercrime is the largest reason main to this kind of crime in India. It is the modern-day hassle triumphing within side the cyber international. Cybercrime is the crime that is associated with laptop networks. With the fast growth of development of era there may be additionally a fast growth within side the crime associated with the era. Cybercrime includes the individuals who’re professional in laptop associated era. And it’s far devoted towards the sufferer at once or in a roundabout way to reason damage to his popularity or to damage in bodily or intellectual manner the usage of net, networks and different technological sources. Cybercrime threatens the countries in addition to the man or woman protection and economic fame. Cybercrime can reason large economic loss to the country. Not handiest the economic loss however it is able to additionally threaten the privateness of someone. Disclosure of exclusive facts can create problems. Also cybercrime towards girls is likewise rising. By using telecommunication networks, cellular telephones cyber stalking, sending obscene messages and photographs via way of means of criminals to girls is likewise growing. 1. Hacking, 2.Child pornography, 3. Copyright infringement, 4. Cyber terrorism, 5. Cyber stalking are a number of not unusualplace examples of cybercrime.

4) Money Laundering: Money laundering is a criminal offense wherein the criminals hide the identification of the cash. In this crime, criminals attempt to cover the unique possession of the cash and the location in which they acquired that cash via way of means of unlawful manner. Laundering is carried out with the aim of creating that cash got here from prison sources. In easy phrases cash laundering manner to expose the illegitimate cash as prison cash.

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For example if someone reap cash from black marketing, trafficking of unlawful items the cash can be taken into consideration  and he can’t deposit into the banks as it is able to appear suspicious if he at once deposit cash into the economic establishments due to the fact he needed to create statements and facts pointing out that in which the cash got here from. Money laundering includes 3 steps: Firstly, the proprietor of the cash obtains the cash from a few unlawful manner and deposit into the financial institution via way of means of a few manner. Then thru a couple of transactions the switch of cash is being carried out. Lastly, they go back the cash into banks to make it legitimate.

5) Tax Evasion: Tax evasion is devoted with an aim to hide ones real taxable earnings and ones unique role to the authorities. This concealment of earnings is carried out to lessen the tax legal responsibility within side the eyes of presidency. In easy phrases it manner to cover the cash acquired from the unlawful manner in an effort to lessen ones legal responsibility to pay tax and to expose low earnings to the tax authorities. Tax evasion has a terrible effect at the social values because it demoralized sincere tax payers and they could additionally need to do tax evasion additionally it offers financial system strength withinside the hand of few not worthy human beings.

6) Identity Theft: Identity robbery is one of the simplest styles of crime those days. Due to development of era it’s far very clean to get right of entry to non-public facts of anyone. Identity robbery is the crime wherein the crook  get right of entry to unauthorized facts including call, address, telecellsmartphone quantity and so forth. And use this facts to advantage cash. In easy phrases identification robbery is devoted via way of means of the usage of a few different man or woman identification to devote fraud or to advantage cash via way of means of unlawful manner.

White Collar Crime in Different Professions:

1) In Medical And Health:

  1. Making of fake scientific certificate via way of means of the medical doctors.
  2. Fake and supposed lengthen the remedy in an effort to will increase the bills.
  3. Sex discrimination of the kid via way of means of the medical doctors at the compulsion of the affected person to advantage cash.
  4. Delaying of time via way of means of medical doctors to growth the quantity of cash withinside the bills.
  5. Sale of pattern drug treatments which aren’t allowed to the chemists.

2) In Legal Profession:

  1. Fabrication of cast documents.
  2. Threatening the witnesses of the opposite party.
  3. Violation of moral widespread of prison career to advantage cash.

3) In Education:

  1. Collecting large sums of cash withinside the call of donations via way of means of college students in an effort to deliver them admission.
  2. Merit primarily based totally admission is changed via way of means of donations.
  3. Collect large sum of money withinside the call of presidency grants.

Causes of White Collar Crime 

  • Not truely a criminal offense:- a few offenders persuade themselves that the movements achieved via way of means of them aren’t truely a criminal offense.
  • Not realizable: – a few human beings sense that the authorities policies do now no longer apprehend the sensible problems.
  • Lack of awareness:- People aren’t privy to the white collar crimes
  • Greed: – Greed is some other motivation of the fee of crime. High elegance human beings are financially stable, but they nonetheless devote crime due to their greed to earn greater. And for this motive, they even pick unlawful methods to have an financial advantage.
  • Necessity: – People devote white collar crimes in an effort to guide their family.
  • No constant legal guidelines or punishment:- after committing the crimes maximum of the offenders break out with out getting any punishment due to the fact there aren’t sufficient legal guidelines to address such sort of crimes. In many instances, due to the preferrred political connections maximum of the offenders break out with none punishment. Moreover, in lots of instances there aren’t any witnesses for the stated offences as such offences are devoted in personal. Reasons for Growth of White Collar Crimes in India White collar crimes are devoted out of greed.

The individuals who normally devote those crimes are financially steady. 1. Financial dues 2. White collar crimes are envisioned to price society typically greater than crimes including theft and burglary. The quantity of dying as a result of company mishap, including insufficient pharmaceutical testing, a ways outnumbers the ones as a result of murder. 3. The emergence of reducing area era, developing businesses, and political pressures has unfolded new avenues for those crook agencies to prosper. This growth is because of a booming financial system and technological development including the Internet and speedy cash switch systems. Law enforcement is every now and then reluctant to pursue those instances due to the fact they’re so tough to tune and investigate. 4. It may be very tough to hit upon as white collar crimes continually devoted in privateness of a workplace or domestic and normally there may be no eyewitness. But clearly a query arises that if we’ve got unique law to hint out White Collar Criminality then why those offenders move unpunished.

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Main motives for which those white Collar criminals or occupational criminals move unpunished are

  • Legislators and the regulation implementers belong to the identical institution or elegance to which those occupational criminals belong;
  • Less police effort;
  • Favorable legal guidelines;
  • Less effect on people. The judiciary is similarly, if now no longer greater, responsible of delaying justice. With white-collar crimes at the rise, it’s far vital for the judiciary and police to differentiate among white-collar crimes, petty crimes and acts of murder and violence. Sending anyone to the identical prison is likewise unfair. India wishes one of a kind detention facilities for one of a kind styles of crook misconduct. At this gift juncture what we want is the strengthening of our enforcement groups including Central Bureau of Investigation, the Enforcement Directorate, The Directorate of Revenue Intelligence, The Income-tax Department and the Customs Department. Concentration and distribution of country wide wealth should be carried out in a right manner. Speedy trial need to be organized via way of means of appointing greater Judges. Central Vigilance Commission should maintain a steady vigil at the workings of the pinnacle rating officers. General public should now no longer keep away from being engaged themselves withinside the prosecution of the White-collar criminals because the offence in fashionable is directed toward them. Lastly if they’re traced and proved responsible then Deterrent Theory of punishment is an alternative one. Impact of White collar crimes in India White collar illegal activity has end up a international phenomenon with the development of trade and era.

India is similarly withinside the grip of white collar illegal activity. The current traits in facts era, especially in the course of the ultimate years of the 20 th century, have introduced new dimensions to white collar illegal activity. There has been unheard of increase of a brand new form of laptop ruled white collar crimes which might be usually referred to as as cyber crimes. These crimes have end up a rely of worldwide situation and a project for the regulation enforcement groups withinside the new millennium. Because of the unique nature of those crimes, they may be devoted anonymously and a ways farfar from the sufferers without bodily presence. Further, cyber-criminals have a main benefit: they could use laptop era to inflict harm with out the chance of being apprehended or caught. It has been expected that there might be simultaneous growth in cyber crimes with the growth in new net internet sites. The regions suffering from cyber crimes are banking and economic establishments, strength and telecommunication offerings, transportation, business, industries and so forth. in India. The effect of white-collar crime on company India is significant. Today, fraudsters are prompted via way of means of greed and economic advantage greater than ever earlier than, showing deviant and exploitative behavior. Some of the brand new developments visible encompass: • Average age of fraudsters is getting decrease • Increasing instances of fraud or different wrongdoings being detected via way of means of whistle-blowers • Proliferation of era to avoid detection, e.g., the usage of immediate messengers and social media networks as opposed to emails • Innovative modes of kickbacks and favors acquired It has been visible that the everyday perpetrators of white-collar crime do now no longer have a previous crook document and consider that their act will move undetected due to the fact they’re now no longer being observed. They additionally do now no longer take into account themselves culprits; generally tend to preserve the misdemeanors till detected. Typology additionally cautioned that those are commonly devoted via way of means of people in positions of agree with. The hard obstacles of todays dynamic panorama have persuaded organizations to adopt numerous measures to fight white-collar crimes.

Some key developments on this regard are as follows:

  1. The E-trade boom
  2. Stepping up anti-laundering efforts

Talking on cyber project Laws and Acts stopping White Collar Crime

  1. Prevention of Money Laundering Act, 2002.
  2. Prevention of Corruption Act, 1988.
  3. Companies Act, 2013.
  4. Essential commodities Act, 1955.
  5. Insolvency and Bankruptcy code, 2016.
  6. Fugitive Economic Offenders Bill, 2017.
  7. Industrial (Development and Regulation) Act, 1951.
  8. Information Technology Act, 2002.
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Famous Cases on White Collar Crime

Sahara v. SEBI

It become a case of issuing deceptive facts and clause in prospectus of organisation. The query of personal placement of stocks may be handled as provide become raised? In this situation, Securities Exchange Board of India (SEBI) failed to test fraudulent practices of the plantation organisation. In this situation, Sahara Offers the choice of completely convertible debentures to the greater than million buyers and termed their issued debentures as personal placement, with a protection that the organisation did now no longer intend to get their OFCD,s indexed due to the fact the safety which which have issued is a hybrid protection. The case become noted Supreme Court of India as a number of the buyers made a criticism to SEBI that the organisation is issuing bonds with out following policies of SEBI. Supreme Court decided that Sahara has to refund the quantity of Rs.5120 Crore to its buyers. Court additionally dominated that SEBI has myriad powers to make investments indexed and unlisted organizations functioning concerning the problem of securities in an effort to steady the hobby of buyers. This become a landmark judgment in area Indian Corporate Law.

Harshad Mehta Scam Case

The scandal carried out via way of means of Harshad Mehta taken aback the Indian financial system. He fooled many buyers via way of means of taking the benefit of loop holes of the system. Harshad Mehta together along with his buddies had initiated a securities rip-off of Rs 5000 Crore via way of means of diverting price range from banks to stockholders. When the rip-off become exposed, the inventory marketplace of the India crashed and he become arrested. The courtroom docket banned him from buying and selling withinside the inventory marketplace. This rip-off may be referred to as as white collar crime. The case become specially concerning the manipulation of the bills and imparting deceptive facts.

Bihar Fodder Scam

It become a political scandal held withinside the State of Bihar. In this situation malpractice worried in fabrication of “ good sized herds of livestock” for which fodder for animals husbandry become approximately to be produced to assist farmers or others human beings related to the career of agriculture or animal husbandry.

Satyam Scam, 2009

Satyam become the largest rip-off withinside the records of India. The Satyam Scam of 2009 has shatter the peace and calmness of buyers in the percentage marketplace. The Chairman Ramalinga Raju has manipulated the books of bills and economic statements of organisation for a decade and attempted to lie to the buyers of the organisation. He has additionally inflated with sales and internet earnings figures of organisation; with he become charged with heavy penalty.

2G Spectrum Scam Case

2G Scam become essentially a telecommunication and a political scandal. In this scandal many politicians and authorities have been worried .The rip-off become approximately the allocation of unified get right of entry to offerings license. The former telecom minister A Raja has avoided norms at each degree and executed the doubtful 2G rip-off within side the yr of 2008.

Coal Scam

It become essentially a political rip-off which is likewise referred to as as Colgate Scam. The rip-off become regarding across the allocation of the nations coal deposits to the general public area entities and a few personal organizations. The rip-off become approximately dishing out the wrongful allocation of coal deposits amongst authorities personnel with none sort of retaining any aggressive bidding.

Conclusion: –

In my concluding phrases, I would really like to mention that white collar crimes are the crime that reason damage to the financial system as a whole. White collar crime isn’t described in any statute. They are taken into consideration as socio-financial difficulty which need to now no longer be taken leniently via way of means of the authorities. Punishment concerning identical need to be made harsher and need to be prolonged to existence imprisonment. Due to white collar crimes Indian financial system suffers a lot, it now no longer handiest impacts the economic fame. however additionally has terrible effect at the society. The unique acts handling those crimes like prevention of corruption act, facts era act, vital commodities act, fugitive financial offenders bill, and so forth and the provisions of IPC need to be well interpreted to lower the quantity of crime. If those crimes preserve with the growing gift rate, they’ll be out of manage earlier than we recognize it.

References: –

  1. http://www.legalserviceindia.com/legal/article-530-white-collar-crime-detail-study.html
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  7. http://vips.edu/wp-content/uploads/2019/04/The-Criminology-of-White-Collar-Crimes-in-India.pdf
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Author: mukti mistry,
Navrachana University

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