White collar crime
The blog “White collar crime” is written by Mr Samrat Bhattacharyya , Assistant Professor of MIES R.M. Law College affiliated to Vidyasagar University.
At MIES R M Law College, Sonarpur, South Kolkata—one of the leading law colleges in West Bengal—students gain in-depth knowledge of constitutional rights and social justice through its 3-year law program. As a Bar Council of India–approved institution affiliated with Vidyasagar University, the college offers quality legal education in India, supported by an active placement cell, regular internship opportunities, and a well-equipped campus with modern facilities that enhance both academic and professional growth.
WHITE COLLAR CRIME
It is said by many political philosopher and jurists that the practitioners of evil, the hoarders, the profiteers, the black marketers and speculators are the worst enemies of our societies. White Collar Crimes is basically done by affluent people of the society causing a greater economic hardship to the country and people at large. Prof. Sutherland presented his concept of white collar crime in his address to the American Sociological Society in 1949. He explained white collar crime as crimes committed by a person of respectability and high social status in the course of his occupation, business or endeavour. Basically these people belongs to the higher strata of the society, some of them enjoys immense economic and political power and some are very close to the corridor of political power exerts their all influence and power for profit making.
They have only one motto in life, if you are rich try to get richer by any means be it imposing and exerting physical, financial and social harms on the individuals, communities and society. White collar Crimes not only causing pecuniary loss to the individuals and society but also it is a great threat to the security and Government of the Country as some cases of White Collar Crimes deals with Drugs and narcotic substances, Coinage and Currency Counterfeiting, shares and capital markets, foods and dairy products, medicines and pharmaceuticals and some major schemes leading to financial scams which jeopardize the society to a great extent.
TYPES OF WHITE COLLAR CRIMES:
A. HOARDING: Hoarding of food and essential supplies causing price rise in retail market, the benefit of price rising generally not passed to the cultivators, cultivators sells different food grains and vegetables at a lower price but by hoarding those commodities the unscrupulous businessmen makes huge profits that cause price rise.
B. FAKE EMPLOYMENT RACKETS: Poverty, illiteracy and Unemployment is a great concern for a developing country like India, where politicians of every national and regional political party makes false promises to provide employment opportunities to the youth of the country but never fulfill their promises also corrupt Government officials of the bureaucracy shatters their long cherished dreams. There are many consultancies that collect huge amount ranging from 1 to 10 lakh by making false promises and by distributing fake appointment letters.
C. MONEY LAUNDERING: It is basically the process of hiding the source of black money and make them appear legitimate by placement, Layering or offshore corporate entities, structuring or by some cash intensive business, shell companies or dummy corporations or by purchasing luxury real estate properties or High value assets.
D. BRIBERY OR CORRUPTIONS: Offering or taking valuable or cash for influencing decision in relation to business, enterprise or Government legal compliance, official work etc that adversely impacts on Government revenue collection and practice of ethical work culture.
E. INSIDER TRADING: Insider trading is basically buying or selling the stock of a public limited company by reliance on some non public information and data which is confidential, not shared with stock holders, price sensitive and for making more profit than fellow members. Corporate officers and employees who traded the corporate securities and secret development inside the company. Insider trading basically undermining Confidence of investors and put a big questions on the fairness and ethical practice of corporate trading in capital market.
SOME MORE TYPES OF WHITE COLLAR CRIMES:
F. TAX EVASION: Generally people has a tendency to evade tax. Some super rich highly influential category of people, businessman, bureaucrat, politicians, contractors misuses the complex structure of Indian taxation laws with the aid of highly skilled and competent tax professionals who provide ample scope and opportunity for evasion of tax legally. Many a time we have seen that the actual tax payed by these people are only a small portion of their actual annual income, and rest of their wealth goes for the creation of black money.
G. UNETHICAL PRACTICES BY SKILLED QUALIFIED PEOPLE: Most of the skilled professionals, license holders in the fields of auditing, advocacy forgets their noble professional ethics that they should serve the people and society at large but they manipulates legal and compliance related loopholes for satisfying the interest of the wealthy clients and influential people for obtaining hefty fees for their work.
H. ADULTERATION OF FOOD STUFFS: Adulteration of food stuffs is a matter of great concerns in a country like us, where large number of consumers force the enterprises for mass production of foods and beverages at a very small competitive price and more profits requires adulteration in the components and sometimes using such material which are banned in developed nations brings about heath problems. For making homogenous profits corporate and some kind of unscrupulous traders indulge in such activities
I. MEDICAL PROFESSION: There are instances of Issuance of false medical certificates, causing illegal abortion in exchange of money, selling date expired drugs and making unreasonable exorbitant medical bills to collect huge amount from the patient party are few instances of white collar crimes in medical fields.
SOME IMPORTANT NOTABLE CASES OF WHITE COLLAR CRIME:
1. PUNJAB NATIONAL BANK FRAUD CASE: The Punjab National Bank fraud case relates to fraudulent letter of undertaking worth Rs. 11 thousand crore issued by Punjab National Bank at its Brady house branch in fort Mumbai making PNB liable for the amount. The fraud was allegedly organized by jeweler and designer Nirav Modi.
2. SARADHA GROUP FINANCIAL SCANDAL: The Saradha Group Financial scandal was a major financial scandal and alleged political scandal caused by the collapse of Ponzi Scheme run by Saradha Group, a consortium over 200 private companies that was believed to be running collective investment schemes referred to as Chit Funds in Eastern India.
Indian Legislatures has passed several enactments over the year to curb the menace of so called white collar crimes like Indian Penal Code,1860, The Prevention of Corruption Act,1988,The Negotiable Instrument Act,1881, Prevention of Money Laundering Act,2002, Prohibition of Benami Property Transactions Act,1988, The Income Tax Act,1961,The Companies Act,2013, The Central Vigilance Commission Act,2003, The Securities and Exchange Board of India Act,1992, The Foreign Exchange Management Act,1999, The Banking Regulation Act,1949, Anti Corruption Laws(Amendment) Act,1967
For bringing accountability and transparency we need stringent law and legislative measure to curb white collar crimes. We also need willingness of the Government, they need to allocate more funds for training of investigating personnel, they also need to increase the remuneration and emolument of the investigating officers so that they do not lured by the White Collar criminals.
Conclusion of the blog White collar crime
Top investigating agencies like Enforcement Directorate(ED), Income Tax Department, Customs Department need to strengthen and execute the regulation for curbing white collar crimes. Proper Cyber and other technical advance training of the personnel of the investigating agencies are necessary for tracking the White Collar criminals. The legislative measures becomes less operative sometimes because of efficient execution of law by implementation of proper strategies, otherwise curbing this menace is nearly impossible. We also need to spread awareness among people about white collar crimes because all people know that murder, theft, forgery (blue collar crimes) very well but many of them have actually no idea about white collar crimes. The Government need to spread
awareness campaign for spreading the idea. Fast Track Courts need to set up for smooth and speedy disposal of cases.
But we need to remember one thing besides stringent laws and hefty fine or stern sanctions that most of the white collar crimes affect large number of person of every age group, as a wise man has said we all have here for what a man could need but not what he could greed. A greed of a man is endless that can destroy or adversely affect our present and future, because only punitive action can’t cure every disease.
MIES R M Law College, Sonarpur, South Kolkata, contribute significantly to this mission by nurturing future legal professionals who are equipped to address issues of education, social justice, and public policy. As a Bar Council of India–approved law college affiliated with Vidyasagar University, the institution emphasizes both academic excellence and practical exposure, preparing students for careers in law, governance, and advocacy. By fostering awareness and critical understanding of fundamental rights like education, MIES R M Law College plays a vital role in shaping a more just, informed, and inclusive society.
