WCC IN DIFFERENT

SECTORS
PROFESSIONAL OR OCCUPATIONAL WCC

WCC committed by:

 Doctors
 Engineers
 Legal professionals
 Chartered Accountants
 Journalists
 Architects etc.
 INSTITUTIONAL WCC

WCC committed by:

Hospitals
Educational institutions
Religious institutions
Trust
NGOs
Corporate Companies, etc,.
 WCC IN INDIA
 Hoarding, black-marketing and Adulteration
 Tax evasion
 WCC in Medical Profession
 WCC in Engineering
 WCC in Legal Profession
 WCC in Educational institutions
 WCC among Police
 WCC in Judiciary
 WCC in Business deals
 WCC IN MEDICAL PROFESSION

Medical industry - Among the white-collar crimes carried out by medical practitioners in
this industry consist of the granting of false medical certifications, involvement in
unlawful abortions, and provision of drugs for clients or pharmacists.

 Bribing doctors- In many cases, medical representatives were found bribing doctors
with foreign trips, expensive smartphones, purchase of cars, international conferences,
online shopping vouchers, etc. Even in certain accident cases by accepting bribes they
change the post-mortem report of the deceased and make the criminals escape.
 Organ Trading- In India, the illegal purchase and sale of organs are rapidly growing.
Mostly the poor sections of the society fall prey to it in return for money.
 Issue of false medical certificates - In many cases, doctors were found to issue false
medical certificates. Such actions if caught, the medical council may cancel the
registration certificates and suspend the doctors.
 Illegal abortion: Abortions are performed under the least safe conditions, i.e., by untrained persons
using dangerous and invasive methods.
 Selling unsafe drugs – There are many in the medical sector involved in selling unsafe drugs at low
prices even those which are harmful.
 Huge fees charged by private hospital.
 Patients are forced to purchase medicines, clothes, medical equipments from the hospital and even
the food also.
 Delay in releasing the insurance of patients.
 Having invested a great deal of money in getting admitted to medical school, some doctors want to
recover their investment by charging substantial amounts to patients or ordering unnecessary
diagnostic tests.
 Blackmarketing- During covid 19 there was high demand for necessities like sanitisers, masks, etc.
It has paved way for moneymaking minds by way of Black marketing. There was bulk marketing of
low-quality or duplicate hand sanitisers, masks, oxygen cylinders, Remdesivir injections, etc, which
has affected lakhs of patients.
 MCI Bribery Scandal

 Indian Medical Council Act, 1956 - The Medical Council of India (MCI) was a statutory body
for establishing uniform and high standards of medical education in India till 25 September
2020. On 25 September 2020 it was replaced by National Medical Commission.
 The Council grants recognition of medical qualifications, gives accreditation to medical schools,
grants registration to medical practitioners, and monitors medical practice in India.
 The Medical Council of India's (MCI) past record for approving medical colleges was under
scanner . Things came to a head in 2010 when the then President of MCI, Dr Ketan Desai, was
arrested and jailed on charges of receiving a bribe of Rs. 2 crore for granting permission to a
particular medical college. In accordance with reports, the CBI uncovered during its earlier
investigations that the previous MCI Chairman and his family had enormous assets a total of
Rupees 24 crore.
 A writ petition was filed last year by Harish Bhalla, a private practitioner challenging the
appointment of Dr Desai, providing evidence of his corrupt practices, his subversion of the
council by usurping all key decision making roles and appointment powers, and seeking his
removal.
 The petition accused Dr Desai of large scale bungling in medical admissions. Evidence was also
presented on manipulation of inspection records of two medical colleges for granting them
recognition.
 Minutes of the council meetings showed that all critical decisions were concentrated in Dr
Desai's hands. Dr Bhalla presented details from an income tax raid at Dr Desai's house last year,
which showed unexplained receipt of 6.5 million rupees via bank drafts in the names of his
wife, daughters, and himself from several people in Delhi.
 The Supreme Court of India labelled the MCI a “den of corruption” was just another nail in its
coffin. While inspections of MCI had become a dreaded experience for private medical
colleges, government medical colleges wallowed in mediocrity. With the curriculum unchanged
for decades and no focus on outcomes, the large number of MBBS graduates that the system
churned out lacked basic competency.
 The President of India announced the dissolution of the MCI and substituted it with a six-
member Council of governors.
 Beginning from 2010, through various Bills and Ordinances, the government of the day toyed
with reviving and refreshing the MCI, including by setting up a Board of Governors to oversee
the working of the MCI until a new regulator emerged.
 Dr. Ketan Desai vs State Through CBI
 The case involves the Shri Ram Murti Smarak Institute of Medical Sciences, Bareilly (referred to as 'Medical College'), a
private medical college run by Shri Ram Murti Smarak Trust since 2005-06. During 2009-10, key individuals included Sri Dev
Murti (Chairman), Sri Aditya Murti (Director, Admn.), and Dr. Ved Prakash Shrotriya (Dean). The Medical Council of India
(MCI), a statutory body governed by the Indian Medical Council Act, is responsible for recommending permissions for new
medical colleges.
 The MCI granted initial approval in 2005, followed by yearly renewals. The MCI conducted inspections, pointing out
deficiencies in infrastructural facilities and teaching faculty. After deficiencies in the 2009 inspection, the Executive
Committee recommended against renewing permission. However, subsequent inspections reported improvements, leading to a
favorable recommendation and Central Government approval.
 The Central Bureau of Investigation (CBI) alleged a criminal conspiracy involving Dr. Ketan Desai (then MCI President), Dr.
Suresh C. Shah (Additional Inspector, MCI), Shri Dev Murti, Sri Aditya Murti, and Dr. Ved Prakash Shrotriya. The charges
include presenting fake documents, appointing non-full-time faculty, and obtaining approval through undue influence. The
accused faced charges under Section 120-B, 420, 468, and 471 of the Indian Penal Code and Section 13(2) of the Prevention of
Corruption Act.
 Specific allegations include manufacturing fake documents, forging signatures, appointing non-full-time faculty, and
misleading MCI during inspections. The accused allegedly manipulated inspections by influencing Dr. Suresh C. Shah to
report deficiencies leniently in the final inspection, leading to Central Government approval. The case highlights corruption
and malpractice in obtaining approvals for the medical college.
 https://indiankanoon.org/doc/183439353/
 https://indiankanoon.org/doc/167551417/ - Bail petition
 MCI to NMC

 After the Ranjit Roy Chaudhury committee of 2014 suggested reforms of medical education, one
of the first things that the new National Democratic Alliance (NDA) government, which took
charge in May 2014, did, was to examine overhauling of the MCI.
 In September 2015, the Parliamentary Standing Committee on Health and Family Welfare while
endorsing the Ranjit Roy Chaudhury committee’s recommendations gave a damning report on
the failure of the MCI in all its mandates. Later, in May 2016, the Supreme Court of India
ordered the establishment of an Oversight Committee, which officiated MCI activities.
 The NITI Aayog’s role in shaping the replacement of MCI was crucial. In a report submitted in
August 2016, the planning body, taking into account mainly the reports of the Parliamentary
Standing Committee and the Ranjit Roy Chaudhury committee, proposed for the first time, the
establishment of a new regulator, the NMC.
 National Medical Commission (NMC)
 Corruption Charges Against Previous Regulator:
 The Medical Council of India (MCI), the body in charge of regulating the medical profession (before NMC Act)
has faced corruption scandals.
 Further, MCI was alleged of promoting Inspector Raj (that is, inspections carried out by the MCI to ensure the
maintenance of required standards by medical colleges) and the malpractices linked with it.
 In this context, the NMC Act replaced MCI with the National Medical Commission (NMC).
 The NMC Act has outlined the composition of the NMC with ex officio members, nominees of states and union
territories, and from amongst persons of ability, integrity and standing.
 The National Medical Commission (NMC) Bill, 2019, was incorporated in August 2019 with the goal of
'curbing outlets of malpractice and boosting visibility, accountability and quality in the governance of medical
education.’
 Came into action on 25 September 2020
 The commission intends to improve the number of medical seats available and lower the cost of medical
education to encourage more students to pursue careers in healthcare. Restructuring medical licensing systems,
ranking medical colleges, and standardizing entry requirements at medical schools across the country are all
essential reforms under the NMC.
• Audit by Third Party:

• The NMC Act proposed to set up a “Medical Assessment and Rating Board” to hire and authorise any other
third-party agency or persons for carrying out inspections of medical institutions for assessing and rating such
institutions.
• The authenticity of quality audits by private bodies can be questioned.

• Autonomous or puppet?

• The Act provides NMC as a complete subsidiary of the government. From the selection of its office-bearers
and members to its finances, its functioning and powers, all being comprehensively controlled by the
government.
• This absolute control of the government of the NMC, threatens its autonomy.

• Power to Central Government - Issue of Federalism:

• Though health is primarily a state subject, the Act empowers the central government to give such directions
and the state government shall comply with such directions.
 WCC IN ENGINEERING

Using non appropriate and cheap supplies of low quality to create structures such as highways,
waterways, dams, and other public infrastructure is one type of white-collar crime in the sector
of engineering that places the security of the public at risk on a huge scale.
• Passing of sub-standard works and materials
• Maintenance of bogus records of work-charged labors
• Violation of Safety Norms
• Charging high fees
• Illegal Tenders
• Low standard education
• Resorting to illegal method to pressure tenders
• Delay in completion of projects by making excuses
• Appointment of unfitted labour and engineers .
• In Dilbagh Rai v. Housing Board Haryana the builders used sub-standard
material in the construction of a house. It resulted in cracks in the roof. As a result
of it, there was water leakage. The National Commission held that there was a
breach of contract.
• In S.P. Dhavaskar v. The Housing Commissioner, Karnataka Housing Board
the builders constructed houses which were not up to the expected level due to the
use of low-cost technology. Houses were constructed using soil stabilized mud
blocks. But the soil stabilized mud blocks used for superstructure could not
withstand heavy rains
• The National Commission held that there was a gross deficiency as the architects
failed to exercise reasonable care in not foreseeing in the risk involved in the use
of soil stabilized mud blocks. The architects were held liable.
 WCC IN LEGAL PROFESSION

In the legal profession, WCC are fairly common. Representatives of the legal field have to
abide by strict legal ethics and laws. However, among the most common legal offences carried
out by legal professionals and advocates are participating in fake litigation, and creating a fake
proof.

• Fabrication of false evidences.

• Engaging professional witnesses and false security.
• Violating professional ethics and using dilatory tactics in collusion with Court Staff.
• Chamber practice – settlement of case in consideration of huge sum of money by lawyers.
• There are criminal lawyers who arrange professional alibies, cooked witnesses for the
gangsters.
• Even the lawyers have their own trusted police officers who help them personally by
taking heavy bribe.
 CASES OF WCC IN LEGAL PROFESSION

• In Sambhu Ram v. Hanuman Das Khatry a complaint was filed by the appellant
against an advocate to the Bar Council of Rajasthan, that while appearing in a suit as a
counsel, he wrote a letter stating that the concerned judge, before whom the suit is
pending accepts bribes and asked for Rs.10, 000 to bribe and influence the judge to
obtain a favorable order.
• The Disciplinary Committee stated that advocate was guilty for his misconduct and
stated that he is totally unfit to be a lawyer. The Supreme Court confirmed the finding of
the Rajasthan Bar Council held that the legal profession is not a trade or business;
members belonging to the profession have a duty to secure the society and provide the
justice to society instead of getting indulge in illegal activities.
 CASES OF WCC IN LEGAL PROFESSION

• In N.G. Dastane v. Shrikant S. Shind where the advocate of one of the parties was asking
the continuous adjournments to the immense inconvenience of the opposite party.
• The Supreme Court held that seeking adjournments for postponing the examination of
witnesses who were present without making other arrangements for examining such
witnesses is a dereliction of the duty that an advocate owed to the Court, amounting to
misconduct.
WCC in Education

 Committed by the governing bodies through incorrect recruitment, partiality and

inaccurate evaluation, service termination and promotions.
 Majority in commercial educational institutions because there is the institution's founder
has complete control and can manage it in any way, they think fits.
 WCC IN EDUCATION SECTOR
 Charging huge amount of donation or capitation fees from the students.
 Low standard of education- Insufficient educational quality.
 Appointment of unfitted teachers and other staff- According to numerous professionals,
private institutions and universities have difficulty hiring qualified teachers because they
offer poor pay and unreliable job possibilities. – Unqualified staff
 Fake placement rackets.
 Fake and deceptive advertising to entice students to procure the admission of the students.
 Sending students to rallies or for political workers in order to secure political favors.
 Obtaining large sum by way of grants or financial aid from the government by submitting
false and fake details about the institution.
 Incorrect and fraudulent registration of students who live abroad.
 Raising significant charity or capitation charges on the students.
 Untrue placement promises.
 Rackets regarding procuring students to appear in different examination on the basis of manipulated
eligibility certificates working as commercial shops.
 Huge donations, especially in medical colleges
 These kinds of associations operate a variety of fraudulent activities, including fake degree schemes
and fraudulent placement schemes.
 Unjust practices such as forcing students to private coaching.
 Operating without any legal authorization
 Unfair transfers at government institutions, donations or unnecessary admission fees
 Another frequent allegation levelled against the private education industry or specific institutions is
that they work without the required permits or permissions and are therefore at risk of legal
proceedings.
 Education loan scam - This was one of the shocking educational scams. The Inquiry of a
multimillion fictitious school loan operation has shown that the accused opened a bank account
in nationalised financial institutions in order to take the huge amount in a fraudulent manner.
Further, the investigators were surprised when they discovered a substantial amount of bank
accounts at nationalised institutions like the State Bank of India, Punjab National Bank, and
Bank of India, in which it can be hard to register an account and take loans.
 Also, during investigations, it was discovered that employees at several bank branches had
opened accounts with banks in the name of fakes and their false companies without breaking
all norms and regulations. At last, the investigating branch arrested two persons. As it was
revealed that Abhishek Hasija and his brother were found guilty of opening accounts at
different nationalised banks.
 WCC IN EDUCATION SECTOR

HARYANA JUNIOR BASIC TEACHERS SCAM

• Former Haryana Chief Minister Om Prakash Chautala, his MLA son
Ajay, and 53 other officials were convicted by a special CBI court on
charges of illegally recruiting over 3,000 teachers in the state by using
forged documents. The scam was widely known as the JBT scam
since it involved the recruitment of junior basic teachers.
• They illegally recruited over 3,000 teachers in the year 1999-2000.
The probe agency concluded that each recruited candidate had paid Rs
three to four lakh illegally to the Chautala government.
 WCC IN EDUCATION SECTOR

MCI BRIBE SCANDAL

• The MCI Chairman has been imprisoned for taking a two-crore bribe.
The CBI probe has revealed that the chairperson of MCI has taken
bribe from medical colleges to grant permission to college students to
admit students during 2010-11 academic session, despite the fact that
institution suffered from various irregularities.
 IMPORTANT CAUSES OF WCC

Stronger criminal motivation

(Greed is stronger than fear)

Great criminal opportunity

Weaker social control

(Law enforcement)
 CONTRIBUTING FACTORS
 Economic and industrial growth
 Modern scientific and technological development
 Monopolistic trends in business
 Competition in business or profession and rivalry
 Desire to have luxurious life
 Lack of stringent laws
 Lack of public support
 Inability of all sections of society to appreciate the need of high standard of ethical behavior.
 Support from politicians
 Client satisfaction by hook and crook
 Continued…
 Accumulation of wealth by illegal means to meet for future uncertain
needs for their children.
 Criminal law administrators and Judges are sympathetic to White collar
criminals
 Abundance of ambiguous laws
 Complex nature of Government, lack of information and responsibility
 General public attitude
 Acquisitive nature of man (Money mindedness)
 Avarice (Selfish nature and greed)
 Capitalistic economy
 Lack of adequate punishment
 Social status of the offender
 Doctrine of caveat emptor
 CYBER SPACE AS A MODE

Anonymity

No Jurisdictional limit

Lack of mens rea- Difficult to collect

evidence
 WCC IN CYBER SPACE

 Hacking
 Salami attacks
 Cyber/Internet fraud
 Theft of identity
 Phishing
 Copyright piracy
 Cybersquatting
 Denial of service attack, etc,.
 CII-Kroll India Fraud Survey