White Collar Crime – Definition, its extent and forms in India

ASHOK KUMAR (ROLL NO. 02 ) (LLM - I Criminal Group 2016-

17)

White Collar Crime

Known as crime of the powerful.Committed by a person of high social status

and respectability.Act of white Collar crimes are not treated as

criminal.White collar crimes are not treated like the

crimes of ‘ordinary’ people.White collar crimes are under reported.

Father of White Collar CrimeEdwin Sutherland- “crime committed by a

person of respectability and high social status in the course of his occupation”.

He wanted it to be recognized as crimes.Sutherland wanted a comparison of the

affluent that committed crimes.“professionals” were not considered

criminals Wanted to develop more theories of criminal

behaviour.

Other terms for white Collar CrimesElite Deviance Respectable CrimeUpperworld CrimeOccupational CrimeCorporate Crime

White Collar Vs. Blue Collar CrimeBasis Of

ComparisonWhite Collar

CrimeBlue Collar Crime

Meaning A job that requires clerical work

A job that require physical labor

Place of work Office Field or industry Job performed by Employees WorkersRemuneration Salary WagesBasis of payment Performance Hours workedRequirement of Job Brain Muscle powerPayment Cycle Monthly DailySocial Status High LowEffect on society Indirect but

GrievousDirect but less than white Collar Crime

Extent of White Collar CrimesCorruption in Government:- Corruption in

government offices and in which public servants are involved.

Political Corruption:- Corruption and indecency in political life informs all the sections of society.

Corporate sector Corruption:- Usually occurs when a strongly competitive business environment fosters corporate irregularities.

White Collar Crimes in professions:- Among the many professions where opportunities for committing white-collar crimes are abundant the professions which come readily to one's mind are those of medicine and law.

Types of White Collar CrimesBank Fraud:- Acts to defraud a bank of funds.Blackmail:- A demand for money or other

consideration under threat.Bribery:- Any thing offered with intent to

influence the other party.Embezzlement:- Use of property or fund

entrusted, for self benefit.Hoarding:- holding scarce resources, to sold it a

higher price.Black Marketing:- Selling of illegal thing or

selling legal thing in illegal way.

Types of White Collar CrimesFood and Drug Adulteration:- Mixing of inferior

or harmful thing to any substance.Computer Fraud:- Fraud involving hacking or

stealing information.Extortion:- obtaining someone’s property by

actual or threatened force.Insider trading:- Use of confidential or advance

information to trade in Public shares.Money-Laundering:- concealment of origin of

illegally obtained money.Tax Fraud:- Evading tax by providing wrong

information.

Causes of White Collar CrimesNot really a crime:- Some offenders convince

themselves that the actions performed by them are not.

Not realizable :- Some people feel that the government regulations do not understand the practical problems.

Lack of awareness:- People are not aware about white collar crimes.

Greed:- Greed is another motivation of the commission of crime.

Necessity:- People commit white collar crimes in order to support their family.

Dangers of White Collar Crime

Billions of dollars lost at the expense of tax payers

Ignored safety regulations for employersUnsafe products on marketPolluted air and watersAbove the law attitudeExcessive greed

White Collar Crime in IndiaIndia is equally in the grip like any other country.Fast developing economy and industrial growth

is reason The Santhanam Committee report gave a vivid

picture of white collar crimes committed by respected persons.

The report of Vivin Bose Commission highlighted how these industrialist indulges in white collar crimes.

Similar observation are made by Mr. Justice M.C. Changal about the big business magnate Mundhra.

Laws relating to White Collar CrimesEssential Commodity Act, 1955.The Industrial (Development and Regulation)

Act, 1951The Import and Export (Control) Act, 1947The Foreign Exchange (Regulation) Act, 1974Prevention of Money Laundering Act, 2002Indian Penal Code, 1860Information Technology Act, 2000

If everyone at a particular business keep an eye, it would detour potential thieves.

Solution is to be come from peoples affected.Peoples are to be made aware about this.If not, white collar crime will be out of

control, and will gulp our economy.

Conclusion