Socio-economic Crimes

LL. B. IV Sem.

(Criminology)

Dr H. S. Rai
 Introduction
 The offences that affect the social and economic health of the society are
termed as socio-economic offences. These are a type of non-conven onal
crimes i.e., they do not consist of Mens rea. These crimes affect the
society at large. It does not target one person but a number of persons
who are most likely consumers of such goods or services.
 Socio-economic offences are new form of criminality. In which people of
upper and middle class background are involved and are commi ed by
them in the course of their occupa ons.
 Sutherland has named it as white collar crimes, while others have
described it with different names i.e. Public Welfare Offences, Statutory
Offences, Strict liability offences etc.
 This form of criminality has spread all over the world in different degrees.
The magnitude of such offences are very higher
 Socio Economic Crimes have started receiving a en ons quite recently
only. In India, though a number of legisla ons have been enacted that
can come under the label of Socio Economic Legisla on
 Definition & Nature
 The concept of socio economic offences given by the 47th Law Commission
Report in India is very important.The report defines socio Economic crimes as
• Social offences are the offences which affect the health, morality, social u lity
or the general well being of the community as a whole and not merely
individual vic m.
• Economic offences are those offences which are injurious to socie es' economy
and which causes danger not only to individual money but to whole economic
system of a country.
 White collar crimes are the crimes commi ed by people belongs to reputed
class and rich backgrounds. Whereas a socio- economic offence can be
commi ed by anybody. Socio-economic offences does not only extend the
scope of the subject ma er of white-collar crime, as conceived by Sutherland
and as appreciated by others, but is also of wider import.
 Socio-economic crimes differ from tradi onal crimes because they do not, to a
common mind, involve or carry with them any s gma, while tradi onal crimes,
unlike the socio-economic crimes have a symbolic meaning for the public and
carry s gma involving a disgrace, a deprivity and an immorality and are thought
of as decidely the behaviour of the lower class of people.
 Continue...
 Usualy in these types of offences the vic m is mainly public at large, especially the
consuming public and even though if there is no harm to any par cular person, but the
harm is caused to the society which have a very large impact upon the society.
 In case of tradi onl offences,generally speaking, liability is not absolute and is rather
related to the inten on of the wrongdoer. However, with respect to socio-economic
offences, the tendency of the legislature is to curtail the requirement of mens rea for
criminal liability.
 The harm done by these offences are greater than that of tradi onl crimes.They affect
the morality,health and welfare of the people as a whole and have a tendency to
undermine the economic fabric. Therefore, the policy of the legislature in such cases is
not to be lenient in the ma er of their preven on,control and punishment and the
wrongdoer is not allowed to escape unpunished.
 Tradi onal crimes was considered to be the product of certain physical, environmental
or Sociological maladjustments of the wrongdoer. Therefore, in such cases reforma ve
effort must also be made on the contrary socio economic criminality is not the outcome
of any maladjustment bu t is product of greed for money.And therefore stringent and
fearful punishment is considered appropriate in these cases and reformist measures
are not applied to them.
 Continue..
 The Santhanam Commi ee, 1964 on an corrup onतु, earned considera on
because of its thorough inves ga ve work and recommendareport. The commi ee.
In his code of conduct for persons in power, authority or posi ons of trust in our
country, explicitly included ministers and members of Parliament and state
legislatures. There should be no use of posi on for personal or family advantage, No
ac ons mo vated by considera ons of party, religion, cast or community no
unofficial dealings with businessman or hospitality or gi s acccepted from them or
other private persons.
 In India, the 29th Law Commission Report suggested to take into considera on the
Santhanam Commi ee Report of 1964.. The commi ee report observed that,the
Penal Code does not deal with any sa sfactory manner with acts which maybe
described as social offences having regard to the special circumstances in which they
are commi ed and which have now become a dominant feature of certain powerful
sec ons of modern society. In most of the offences that were iden fied,two
features could be witnessed, economic benefit and unjust enrichment. Itsuggested
that a separate chapter should be included in IPC to deal with socio-economic crimes.
 Later the 47th Law Commission Report laid down a new composite category of
socio-economic crimes. The three basic forms include illegal economic ac vi es,
illegal way of performing commercial and allied transac ons and evasion of public
taxes or monetary liabili es. The concept of socio economic offences given in the
Report is very important and the salient features of these offences are discussed in a
detailed manner.
 Features of Socio-Economic Offences
Mo ve: Unlike tradi onal offences here the mo ve of commi ng the crime is
excessive greed or desire for wealth.
Emo on: Where tradi onal crimes are done due emo onal reasons, on the
contrary these types of offences contain no emo onal background or rela on
between the vic m and the criminal.
Target Vic m: Mostly the vic m in such offenses is the state or a sector of people
most likely those who are consumer of certain goods or services, a shareholder or
having any other securi es etc.
Mode of opera on: The main element for commencement of such crime is fraud
and not force
Mental Element: such offences are usually done deliberately and wilfully
Protected Interest: I) Social interest in the preserva on of the property
or wealth or health of individual members and na onal resources, and the general
economic system as a whole from exploita on or waste by individuals or groups.
ii) Social interest in the augmenta on of the wealth of the country by enforcing the
laws rela ng to taxes and du es, foreign exchanges, foreign commerce and the like.
 Categories of Socio- Economic Offence

a) Ac ons calculated and executed in order to obstruct or

prevent the economic development of the country and also
its economic health.
b) Evasion of taxes
c) Misuse of posi on and power by the public servants which
is most likely to up as corrup on.
d) All the offences that include breach of contract and delivery
of good not up to the specifica ons as promised.
e) All ac vi es related to black marke ng and hoarding.
f) The ac vi es involving adultera on of foods and drugs.
g) Misappropria on and stealing of public property and funds.
h) The ac vi es rela ng to trafficking of licenses, permits etc.
 Causes of Socio-economic offences
1.Industrial Revolu on: The evolu on from agricultural based country to
industrialisa on bought changes in the country which led to offences changing its paces
from tradi onal to these new ones.
2. World War II: Post war condi ons of the countries were pathe c which led to changes
in the normal working of the society. Hence new prac ces gave birth to new offences as
well.
3. Business: when new businesses started to emerged in the country it created to the
sense of extreme compe veness among them. Every one desired to one- up each other
by any means necessary.
4. Technology: One of the aspects which changed our country for be er is also
responsible for causing such offences. The emergence of technology and scien fic
developments led to the decrease in belief of the almighty.
5. Lack of Morals: As the fear for the ul mate judgment or the world beyond all humanly
things started to disappear, people’s morals and ethics started to decline. This resulted in
the increase in frauds and also greed and lust for materialis c happiness.
6. Laissez- Faire: the state decided to leave things as they were and lack of public
resentment resulted in grave consequences which is now no ceable in our country. But
with proper study and a en on these crimes can be controlled in the country.
7.Lack of any intensive and organized public resentment.
 Legal Control Mechanism to Combat Socio
Economic offences
Laws dealing with socio-economic offences for punishing the criminals
rela ng to socio-economic offences a number of Acts ere framed. Also
these Acts are established for keeping the regular ac vi es of trade,
contracts etc., could take place without or with least number of
malprac ces. Some of these Acts are:
1. The Drugs And Cosme c Act, 1940
2. The Preven on of Food Adultera on Act, 1954
3. The Foreign Exchange Regula on Act, 1947
4. The Wealth Tax Act, 1957
5. The Income- Tax Act, 1961
6. The Essen al Commodi es Act, 1955
7. The Customs Act, 1962
8. Dowry Prohibi on Act, 1961
9. The Preven on of Corrup on Act, 1988 etc.
 Judicial Response
• M. H. Hoskot v. State Of Maharashtra, 1978 SCC(Cri) 468.
• Murlidhar Meghraj Loyav. State Of Maharashtra, 1976SCC(Cri) 493
• State Of Maharashtra v. Mohd. Yakub, 1980 SCC(Cri) 513.
• State Of Maharashtra v. M. H. George, AIR 1965 SC 722.
• P.K.Tejani v. M. R. Dange,1974 SCC(Cri) 87.
• State Of Orissa v. K. R. Rao, SCALE(2)988.
• Safia v. Govt. of Kerla AIR 2003 SC 3562
• Kesar Devi v. Union of India, AIR 2003 SC
• See following links for more judicial responses if interested....
① h ps://www.google.com/url?sa=t&source=web&rct=j&url=h ps://www.academia.
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