Discuss White Collar Crime Criminology in India and how to curb it?

OR
Explain White Collar Crime. How do they differ from Traditional Crimes?
Are present laws sufficient to curb them?
A: Introduction:
It is common knowledge that certain profession offer lucrative opportunities for
criminal acts and unethical practices which hardly attract public attention. There
have been crooks and unethical person in business, various profession and even
in public life. The crimes of this nature are called ‘White Collar Crimes’ and
they are essentially an outcome of the competitive economy of mid-twentieth
century.
Historical Background
The concept of ‘White Collar Crime’ found its place in criminology for the first
time in 1941 by Sutherland. Sutherland pointed out that besides the traditional
crimes, there are certain anti-social activities which the persons of upper-strata
carry on in course of their occupation or business. These activities for a long
time were accepted as a part of usual business tactics necessary for a shrewd
professional man for his success in profession or business. Thus, any complaint
against such tactics often went unheeded and unpunished. Sutherland through
his pioneering work emphasised that these ‘upper-world’ crimes which are
committed by the person of upper socio-economic groups in course of their
occupation violating the trust, should be termed ‘White Collar Crime’ so as to
distinguished from traditional crime which he called ‘Blue Collar Crime’.
White Collar Crime
A White-Collar Criminal belongs to upper socio-economic class who violates
the criminal law while conducting his professional qualities. For examples,
misrepresentation through fraudulent advertisement, infringement of patent,
copyrights, and trade-marks, etc. A White-Collar Crime is more harmful to
society than ordinary crimes because the financial loss to society from white
collar crime is far g reater than the financial loss from burglaries, robberies, etc.
White-Collar crimes by their very nature are such that the injury or damage
caused as a result of them in so widely diffused in the large body society that
their gravity in regards to individual victim is almost negligible.
Sir Walter Reckless, an element American Criminologist suggest that white-
collar crime represents the offences of businessmen who are in a position to
determine the policies and activities of business. Some authorities suggest that
white-collar crime is committed by persons of status not for need but for greed.
Classification of White-Collar crime
Theoretically, various white-collar crime may be broadly be classified into four
major categories as follows: -
1. Ad hoc crimes- They are also known as personal crimes because in this
category of white-collar crimes, the offender pursues his own individual
objective having no face-to-face contact with the victim. Hacking on
computer, credit-card crimes are common forms of ad hoc white-collar
crimes.
2. White collar crimes involving breach of trust of breach or trust of faith
bestowed by an individual or institution on the preparator. Insider trading,
financial embezzlement, etc are these types of white-collar crime.
3. Individuals occupying high positions or status who commit crime
incidental to, and in furtherance of their organisational operations
constitute this category of white-collar crime are 2G Spectrum Scam,
Bihar fodder Scam, etc. Fraudulent Medical bill claims, fake educational
institutions, etc are also covered under this category of white-collar
crime.
Contributing factors
Of all the factors, the economic and industrial grow throughout the world has
perhaps been the most potential cause of increase in white collar crimes in
recent years. The changing socio-economic scenario of the society coupled
with increase in wealth and prosperity has furnished opportunities for such
crimes. Commenting on the growing incidence of white-collar crime in
India.
Marshal B. Clinord asserted that the problem of white-collar criminality has
its root in competitive business community which tries to oust their rival
competitors in order to earn huge profits. One more reason for the
multiplicity of white-collar crime is relatively high socio-economic status of
white-collar criminals. They belong to an influential group which is powerful
enough to handle their occupation tactfully and persons affected thereby
hardly know that they are being victimised. There is general perception that
large number of acquittals in white-collar crimes is due to manipulative
tactics of these offenders who generally belong to an influential and upper
stratum of the society.
White Collar Crime in India
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. The reason for enormous increase in white-
collar crime in recent decades is to be found in the fast-developing economy
and industrialist growth of this developing country. The Santhanam
Committee report in its findings gave a vivid picture of white-collar crimes
committed by persons of respectability such as businessmen, industrialists,
contractors, and suppliers as also the corrupt public officials.
The commission broadly classified while white collars and socio-economic
crimes into eight categories and suggested insertion of a new chapter on
white collar crimes in Indian Penal Code.
1. Tax evasion
The complexity of tax laws in India has provided sufficient scope for the tax
payers to evade taxes. The evasion is more common with influential
categories of person such as traders, businessman, etc. It is often alleged that
the actual tax paid by these people is only a fraction of their income and rest
of the money goes into circulation as ‘black-money.’
2. Medical profession.
White collar crimes which are commonly committed by the persons
belonging to medical profession include issuance of false medical
certificates, helping illegal abortions, secret services to dacoits and selling
sample- drugs and medicine to patients or chemists. Fake and misleading
advertising is yet another area in which the white-collar criminals operate.
Many patent medicines are not only worthless but harmful also.
3. Educational Institutions
Yet another field where white collar criminals operate with impunity are
privately run educational institutions in this country. The governing bodies
of these institutions manage to secure large sums by way of government
grants or financial aids by submitting fictitious and fake details about their
institutions. More often than not, these privately managed educational
institutions as also those imparting some professional education, enjoy the
patronage of some influential politicians and many of them are even owned
by them.
Eg. NLU charging 37 Lakh for law degree.
4. Fake Employment Placement Rackets
A number of cheating case are reported in various parts of the country by the
so called manpower consultancies and employment placement agencies
which deceive the youth with false promises of providing the white collar
jobs on payment of huge amount ranging from 50 thousand to 2 lakhs of
rupees. Due to the acute unemployment problem, fake placements
consultancies have become money-spinning machines for several cheats who
are white collar criminals.
5. Business
White-collar crimes are also rampant in business world. There have been
instances of violation of trust. The public hardly knows the trickery of
business criminals as they treat it as not too important for their purpose.
Eg. A. Commonwealth games Scam (2010) involving large scale
misappropriation of money by politicians and bureaucrats estimated to be
70,000 Crore rupees.
B. Punjab National Bank Scandal (2018) dwindling over 1200 crore rupees
by jewellers Nirav Modi and Mehul Choksi who fled away to USA to avoid
arrest but the government and CBI are trying to bring them to India to face
criminal trail.
White Collar Crime distinguish from Conventional Crime
1. White collar criminality has a close affinity to the attitudes and value of
the culture in a particular society. While as conventional criminals are
popular for their mischievous and untamed character.
2. This is evident from the fact that white collar criminals are intelligent,
stable, successful and men of the high social status as compared with the
ordinary criminals they are poor and employed.
3. They are foresighted persons belonging to the prestigious group of
society. Ordinary criminals are often diverted from the right path and
walked into another until its too hard to return.
4. White collar crimes which are committed in commercial crimes which are
indirect, anonymous, impersonal, and difficult to detect. As against this,
ordinary criminals commit crimes which are direct and involve physical
action such as beating, removal of property or use of force, etc which can
be easily identified and detected.
5. It is often said that ordinary crimes which are otherwise called “Blue
Collar crimes” are more common with the under privileged class while the
white-collar crimes are committed by the members of privileged group
who belong to upper strata of society.
6. It must, however be noted that mens rea or guilty mind is an essential
ingredient of every blue-collar crime but many statutes dealing with white
collar crime do not require mens rea in strict sense of the term. The
doctrine of constructive mens rea applies in such case.
Judicial Response
The Supreme Court in Rohit Tondon Vs Derectorate of enforcement, held that
white collar crime and economic offences having deep-rooted conspiracies
and involving huge loss to public funds should be viewed seriously and
considered grave offences.
In the instant case, the accused (appellant) was booked under section 3 and 4
of preventive of Money Laundering Act,2002 (PMLA) by the enforcement
Directorate. The accused was the manager of kodak bank. He applied for
released on bail under sections 45 of PMLA, but bail was refused. The
supreme court held that bail had rightly been refused by the sessions court
and Hight Court keeping in view the gravity of the economic offences.
Remedial measures
Remedial measures for combating white collar criminality may be stated as
follows: -
1. Creating public awareness against these crimes through the media of
press, platform, and other audio-visual aids.
2. Spread tribunals should be constituted with the power to award sentence
of imprisonment up to ten years for white collar criminals.
3. Stringent regulatory laws and drastic punishment for white collar
criminals may help in reducing these crimes.
4. A separate chapter on white collar crimes and socio-economic crimes
should be incorporated in the IPC by amending the code so that white
collar criminals who are convicted by the court do escape punishment
because of their high social status.
5. White collar offenders should be dealt with sternly by prescribing stiffer
punishment keeping in view the gravity of injury caused to society
because of these crimes.
6. There is an urgent need for a national crime commission which may
squarely tackle the problem of crime and criminality in all its facets.
Enforcement Agencies
A number of special laws regulating customs, excise, taxes, foreign exchange,
narcotic drugs, banking, insurance, trade and commerce relating to exports
and import. These laws are enforced by the respective departmental
enforcement agencies created under the statutory provisions. Power of
investigation, adjudication, imposition of fines, penalties and arrest and
detention of persons under special circumstances are derived from the same
legislations. Some laws to regulated such economic offences are as follows:
 Economic Crimes Acts/Legislations Enforcement authorities
Central Board of Direct
Tax Evasion Income Tax Act,1961
Taxes
Foreign Exchange
Management Act,1999; Directorate of
Money Laundering Money Laundering Act, enforcement
2002 as amended in
2012
Illicit trafficking in
Customs Act 1962
contraband goods Collectors of Customs
COFEPOSA, 1974
(smuggling)

Conclusion
Economic offences constitutes a class apart and need to be visited with a
different approach in the matter. These offences have deep rooted conspiracies
and involving huge loss of public funds and therefore, need to be viewed
seriously and considered as grave offences affecting the national economy
thereby pose a serious threat to the financial health of the country.
White Collar Crime: Meaning & Cases (finology.in)

Top White Collar Crime Cases in India (vakilsearch.com)