Professional Documents
Culture Documents
L 7 (A)
L 7 (A)
OFFENCES
WHAT IS ECONOMIC
OFFENSES????
•Economic and financial
offences cover fraud, forgery
and counterfeiting, offences
against the legislation
governing cheques (in
particular forgery or use of
stolen cheques), forgery or
use of credit cards,
undeclared employment,
offences against companies
(such as misuse of company
assets).
TYPES OF ECONOMIC OFFENCES:
PRIMARY IMPORT/EXPORT
MARKET FRAUD FRAUD
SECONDARY INTELLECTUAL
MARKET FRAUD PROPERTY FRAUD
INSURANCE FAKE
FRAUD CURRENCY
BANK FRAUD
Bank fraud is the use of potentially illegal means to obtain money, assets, or
other property owned or held by a financial institution, or to obtain money
from depositors by fraudulently posing as a bank or other financial institution.
Money laundering is the process of cleaning dirty money with the objective of
hiding its source and enabling it to be used later in a legal form.
This process creates a web to hide the origin/true nature of these funds.
Prior this crime was covered (FERA) & (FEMA).
The Prevention of Money Laundering Act (PML), 2002 was passed to combat
money laundering in India .
The Reserve Bank of India, which is the Central Bank for the country, has
issued directions to be strictly followed by the Banks regarding the standard
practices under the ‘Know Your Customer’ (KYC) guidelines.
The banks are required to obtain all information necessary to establish the
identity/legal existence of each new customer.
The PMLA makes it mandatory for every banking company, financial
institution and intermediary to maintain records of transactions for a period
of ten years.
In case of any violation of this legal obligation, these institutions have to
face penal consequences.
BANK & STOCK MARKET SCAM:
Harshad Shantilal Mehta(1992)
An Indian stockbroker, well known for his wealth and for having been
charged with numerous financial crimes that took place in 1992.
Mehta was convicted by the Bombay High Court and Supreme Court of
India for his part in a financial scandal valued at 50 billion
(US$860 million) which took place on the Bombay Stock Exchange (BSE).
For example, one Assistant Police Investigator was found to have a net
worth of over 1 billion (US$17 million), despite making a salary of
only 9,000 (US$150) per month.
Oommen Chandy
2G SPECTRUM SCAM
It is about selling the Communication Bandwidth for lower than the market
value.
This has created a great damage to country’s economy.
This scam amounted to Rs.1,76,000 crores
The key players involved in this scam are:
A.Raja, M.K.Kanimozhi,Nira Radia and many telecommunication
companies.
This scam is also responsible for present economic and financial crisis in
India
Acts / Enforcement
Sl. Economic Crimes Legislation Authorities
No.
1. Tax Evasion Income Tax Act Central Board of Direct
Taxes
2. Bank Frauds , Credit card IPC Police/State
frauds, Insurance frauds Vigilance/CB-CID/CBI
SEBI has also filed a contempt petition against Sahara, accusing them of not
following court directions, while it has also sought orders for arrest of group
chief Subrata Roy and his debarment from leaving the country. These matters
are also likely to be heard by the court on July 17.
Administrative costs and expenses relating to the case would also be incurred
by Sahara and Besides, another contract of Rs. 29.88 crore was given to UTI
Infrastructure Technology and Services for the work relating to redemption
related activities in this case.