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A CRITICAL STUDY OF WHITE COLLER CRIMES IN INDIA

Sanjay S. Bang
Assissant Professor
Narayanrao Chavan Law College
Nanded.

“The practitioners of evil, the hoarders, the profiteers, the blackmarketeers

and speculators are the worst enemies of our society. They have to be dealt with
sternly, however well placed important and influential they may be; if we acquiesce
in wrongdoing, people will lose faith in us”- Dr Radhakrishnan

Introduction:-

White collar criminality has become a global phenomenon with the advance of
commerce and technology like any other country; India is equally in the grip of white collar
criminality. White collar crime in India is flourishing every day in new forms. The Problem
if white collar crime is very serious in India. Business communities of this country of large
and small merchants are basically dishonest in most. No where in the world businessmen get
rich so quickly as they do in India. Harding, profiteering and black marketing of essential
commodities by traders has become a chronic problem for the Government. The Santhanam
committee Report in its findings gave a vivid picture of white collar crimes committed by
persons of respectability such as businessman, industrialist’s contractors and suppliers as also
the corrupt public officials. The white collar criminality in the form of violation of foreign
exchange rules export act and import Act and the frequent tax violation in the evasion of
income tax, wealth tax etc. Such practice is causing a tremendous loss to state exchequer.

Methodology

The research methodology used for the present research article is traditional Doctrinal
research method. As most of the information can be sought form the available literature. So
the researcher has chosen doctrinal method as method of research for the present article and
has used books, journals, research articles for preparation of the same.

Objectives of the study

The main objectives of the research work is

I) To study the concept of white collar crime in detail.

II) To study the impact of white collar crime from Indian perspectives.
III) To study the impact of white collar crime on Indian economy and its
its affect on development activities.

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Meaning of white collar crime

No doubt it is also crime against society but it is different than ordinary

crimes. It is different in the sense that victim is not any individual in white collar
crime as society is victim there. Some of the criminologist and penologist have given
following definitions of white collar crime.

I) Sutherland- “ White collar crime is a crime committed by a person of upper socio-

economic class, who violates criminal law in the course of his occupation and
professional activities”.
II) Paul Tappan-“White collar crime is a special type of solitary professional
criminality. It involves real violation of criminal law systematically or repeated by
business, professional and clerical workers in addition to their occupation.”
III) Sir Walter Reckless-“White collar crime represents the offences of businessmen
who are in position to determine the policies and activities of business”.

Causes of white collar crime in India

Following are the important reasons of white collar crime in India.

I) After independence various five years plans were implemented and a huge
expenditure was incurred by the Government for the various ‘Nation building
activities.’ Since the implementation of those plans was not done no proper and
systematic form, it encourages the corrupt officers, businessman and contractors to
earn enormous money out of such plan expenditures. The country could not get
requisite progress out of such development plans but bit chunk of money earmarked
for such development projects was pocketed by those white collar criminals.
II) Being a welfare state, the object of Government of India was to control vast
number of means of production of goods and materials for equal distribution to all,
but due to shortage of goods, corruption and endemic inefficiency in the
administration of state act, it provided fertile sources for white collar criminality.
III) White collar criminals in India belong to very rich or high family. They are more
powerful than traditional criminals. Therefore criminal law is hardly made applicable
on them due to their high social status.
IV) The rapid pace of social changes and the technical complications of business
attacks are aggravating social disorganization in India. Such changes are encouraging
unethical practice in the country.
V) A majority of trade and business in India are running on capitalistic pattern. Such
pattern basis on the acquisition of maximum material resources by particular
individual or individuals. It is regarded not only as legitimate but also essential. Such
practice results in the large scale exploitation of public by such businessmen and in
the course of their occupational activities.

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VI) White collar criminals are rarely punished. One of the reason of the same is that
in the field of laws for the regulation of business crimes are relatively new and
specialized part of the statues.

Types of White collar crimes

White collar crime in India is flourishing every day in new form. Some of the
white collar crimes common in India are

Food and drug adulteration

I) Adulteration in food and drugs causes irreparable damages to the health of

innocent people. This evil practice is rapidly increasing in India. Accordingly to one
survey report of Ministry of health, Government of India about 25% to 70% of the
food stuffs consumed in this country are adult erected or contaminated. This tendency
is due to the greed of the manufacturers the existing laws are defective and inadequate
to prevent food and drug adulteration. The precaution under prevention of food
adulteration Act have failed due to
II) The defective reports of the public analysis’s.
III) Delay in the examination of collected samples.
IV) Non-implementation of proper procedure for collection of samples.

I) Tax evasion

For smooth running of the country, it requires fund. Tax is a strong

revenue for the Governments. But unfortunately people try to avoid taxes. Even the
big companies are also not far away from avoiding taxes. Thus it has challenged the
basic definition of white collar crime as not only the people of high social status in the
society, but even the companies are also trying to avoid it.

II) Illegal and corrupt practices of public servant

The corrupt and illegal practices of Government employees to earn money by

illegal means are rapidly increasing in India. Two world Wars gave vast powers to
the Government servants in the matter relating to the grant of licenses permit and
quotas. They sometimes misuse their powers and earning illegal money by such.
Unfortunately Government has failed to enforce any effective measure to prevent
such illegal tendency.

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III) Illegal practice to earn black money

Most of the persons belonging to business class of the persons possess a large
amount of uncounted money. Such money is kept by them in the form of black money
is earned by various methods such as, tax evasion and tax-avoidance, obtaining
licenses in the name of bogus firms and individuals, supply of inferior quality of
goods and materials by contractors or suppliers, Hoarding of essential goods or
commodities and selling them on high prices, trafficking in licenses suppressing profit
by manipulation of accounts.

IV) Hoarding and black marketing of essential goods

Hoarding and black marketing of essential good and commodities is one of the
main forms of white collar crime. It is frequently done by the traders and business
communities in India. According to Sutherland the main cause is ‘the rapid pace of
social change and in technical complications of business affairs to unethical business
practices. Whenever there is a slight shortage even in temporary form for goods,
almost every trader conceals his stock and blindly teals the customers about non-
availability of commodity in stock. Such black marketers and hoarders are wicked,
anti-social and criminal.

V) Political Corruption

Corruption in every form is found in almost all political persons. The

corruption and indecency has become a part of political life. The frequent violation of
laws is committed by those political leaders who are responsible for the maintenance
of law and order. Some of main forms of political assumption in India are violation
of election laws, abuse of official and political machinery etc. It is a well known fact
that many political leaders who and their relatives have good harvest in terms of big-
money as well as high position through the abuse of government machinery which
remains at their disposal.

Effects of white collar crime

Some important effects of white collar crime may be described below:

I) Its economic effect or the financial loss to society is more serious than
ordinary economic crimes committed by persons of the lower socio-economic class.
The average loss per theft or burglary is less than Rs. 5,000 while theft/burglary
which yields as much as Rs. 50,000 or so is rare, and one which yields a lake rupees
or more is millions of rupees committed by business organizations, corporations,
trusts, and companies are reported in a single year.

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II) While ordinary crimes cause some inconvenience to the victims and serious
crimes cause general community disturbance, white-collar crimes spread feelings of
distress, lower public morale, and produce social disorganization.
III) Though a very large number of white-collar crimes are committed in society
yet only a few white-collar offenders are prosecuted and punished. A large number
go Scott free because of their economic and social influence. Even the criminal
courts are lenient towards persons accused of white-collar crimes.
IV) Protection to society against white-collar crime is too meager because efforts
to make the criminal law more effective in dealing with white-collar crime are often
blocked by vested interests.
V) Absence of adequate knowledge regarding white-collar crime contributes to a
distortion of the criminological theories of causation since criminologists to a great
extent have restricted their data to cases dealt within criminal courts and prisons.

Findings of the research

I) White collar crime is present in the society in one form or another since long
but systematically studied by Prof Sutherland in 1941.
II) The punishment to white collar criminal is less in comparison with traditional
criminals. It should be enhanced.
III) Numbers of special laws are available in India to tackle this social evil but its
practical implication must be checked.
IV) At last the moral values and ethics should be taught to everybody. As in case
of our country the qualified or educated people give less value to law and dare to
break it easily than uneducated people.
V) In this competitive era money has become very important part of everybody’s
life but what about mental peace.Everbody should think at least once by what way he
is earning.

Conclusion

White collar crime is a crucial problem because of the distrust it

creates which lowers the moral and results in social disorganization, serious
retrocession in denuding the national economy and even the social solidarity. With
the growing materialism all round the world, acquisition of more and more wealth has
become the final end of human activity. Moral values have either changed or thrown
to wind. Perhaps the reason for white collar crimes being carried on unabated is that
these crimes are committed generally by influential persons who are shrewd enough
to resist the efforts of law enforcement against them. White collar crimes drain out
the progress made in large proportion thereby injecting crucial and incurable
problems for the criminal justice administration of a country.

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References:

Ahuja Ram,Criminology,2005,Rawat Publications Jaipur and New Delhi.

Malik Krishna pal,Penology,2006First Edition, Delhi.

Prof.Dr.Paranjape N.V.,Criminology and Penology,2003Eleventh Edition,Central

Law Publications Allhabad.

Siddique Ahmad,Criminology,2005Fifth Edition, Eastern book Company Lucknow.

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