Scrutiny at White Collar Crimes in India

Author: Divya Kalra

College: Lloyd Law College


India is a developing country and white collar crimes are becoming a major cause for it’s under development. Corruption, fraud, and bribery are some of the most common white collar crimes in India as well as all over the world. White collar crimes are harmful to the society for those people who should be cited as a moral example and who must behave responsibly are one committing such crimes. The society thus becomes polluted. Related to the corporate sector, white collar crimes are non-violent crimes, generally committed by businessmen and government professionals. Greed, competition and lack of proper laws to prevent such crimes are the major reasons behind the growth of white collar crimes in India.


Offences which causes injury to public health, public morals and public economy so these types of crimes has different names given by different writers such as White Collar crimes, public welfare offences socio-economic crimes and regulatory offence, crimes of strict liability.

According to sociologist Edwin Sutherland, it as a crime committed by a person of respectability and high social status in the course of his occupation.

Basically social crime that impact a society where as economic crime that affect the economy of a country, not any individual. Socio-economic crime which is also named as White Collar crime is that crime which affect the country in mass level economically as well as socially affecting the health of its community

Elements of White Collar Crimes.

1. The motive behind it will be non- emotional generally in general crimes there is a motive behind it, it can be lust, Revenge , hate ,anger or can be anything general crimes are caused by these attributes but the main motive in White Collar crimes is avarice and rapaciousness , there is a greed for money.

2. White Collar Crimes caused due to crime fraud, not by any force and the Act is deliberate and wilful considered conspiracy is done and only then the crimes are conducted.

It affects the health or Welfare of the community as a whole or country's economy.

In simple terms, White Collar Crimes are non-violent crimes committed by government and business professionals for financial gains.

Similarly we have some popular cases of White Collar Crime, one of which is –

1. CBI vs. Jagjit Singh (2013)

Socio economic offences are great social wrongs which impacts the society and victim is the society. Such offences not only creates a hazard in the financial interest of society but also creates a deep dent in the economic spine of nature.

2. CBI vs. Maninder Singh

Court held that as science and technology in developing so too economic crimes are increasing, such as Phishings, ATM frauds etc, involve huge amount of public and government money.

Types of White Collar Crimes

1. Bank Fraud - It can be one person operations at one local bank to Criminal Conspiracies defrauding large banking institutes.

2. Blackmail - The person initiating the illegal action usually include someone in a position of power usually involves businessmen which could cause injury to the victim

3. Bribery- Offering money (or other valuable consideration) for desired goods or information usually not belonging to the person being bribed.

4. Counterfeit - To make an imitation or duplicate copy of something , with an intent to defraud

5. Credit Card - It is a form of theft which involves taking of another credit card information for the purpose of purchase or removing funds.

6. Extortion- Gaining of Property or money by using violence or threats, or by force.

7. Forgery- It means false documents signature using them with wrong intentions.

8. Money Laundering- Basically it means to convert black money into white it is an illegal process of making money generated bu criminal activity such as drug trafficking.

Causes of White collar crime

· Greediness

· Financial duress

· Inadequate facility

· Economic growth

· Lack of evidence

Laws for White Collar Crimes.

For prevention of White Collar Crime Government of India passed several acts such as

- Companies act, 1960

- Prevention of Money Laundering Act

- Import and Export (Control) Act, 1947

- Foreign exchange (regulation) Act, 1974

- Industrial (Development Regulation) Act, 1951.

RBI (Reserve Bank Of India) also issued directions to banks which needs to be followed, whereas IPC (Indian Penal Code) contains provisions to check crimes such as Bank frauds, insurance fraud etc.

Position of White Collar Crime In India

In the case of State of Gujarat v. Mohan Lal Jitamalji Porwal and Anr. (AIR 1987 SC (1321), it was states that in India there is a rise in White Collar Crimes which affects its economy and lead to economic disaster. Embezzlement (theft or using funds for another purpose rather than intended to be used), Tax Evasion (illegal payment of Tax), Cyber Crime (Criminal activities done digitally by internet) are some of White Collar Crime in India.

In every profession White Collar Crime is being practiced but very procession have its Code of Conduct under which they need to work in a systematic manner

Whereas some of the most commonly committed White Collar Crimes is issuance of false medical certificates unnecessary treatments /operations in many cases for sake of money, unfortunately in medical profession is not free from White Collar Crimes.


White Collar Crimes are now synonymous with the full range of frauds committed by business and government professionals. These crimes are characterized by deceit, concealment, or violation of trust and are not dependent on the application or threat of physical force or violence. These are a kinds of non-violent crimes. White-collar criminal has more to lose by going to jail; reputation in community, business as well as social community, decent living conditions, just the whole business of being put in a prison with a number on his back demeans this tremendous ego that is always involved in people who are high achievers. White collar crimes are the crimes which cause a harm to the economy of the country as a whole. It threatens the country’s economy by bank frauds, economic thefts, evasion of tax etc. It not only affects the financial status of a country or a person but it has also a negative impact on the society. The various crimes such as bribery, corruption, money laundering has affected society in a negative way.

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