What are the six Features of White-Collar Crime in India?

6 Features of White-Collar Crime in India

The white-collar/occupational-economic crimes/criminals in our country have some important features (see, K. Madhavan, Frontline, July 30, 1993: 124):

1. The crimes result in social injuries far greater than conventional crimes where only individuals are affected. However, these crimes/criminals have generally been regarded by criminologists as a class apart because the administrative, investigative and judicial procedures for many of them have been different from the procedures for other violations of criminal laws.

2. A large number of these offenders are recidivists, though repetition is not necessarily of the same type of crime.

3. The illegal activities (or white-collar crimes) follow more or less the same modus operandi.

4. A white-collar criminal does not lose his status among associates because it is not considered a violation of the ‘business code’. In fact, many successful criminals of this category are hailed as dynamic and innovative leaders of industry/society.

5. White-collar criminals feel and express contempt for law, for government, and! for government officials. In this respect, they are similar to many professional criminals.

6. While ordinary criminals are afraid of enforcement agencies, white-collar criminals are rarely so, because they think that on being detected, they may only be transferred or fined or given a short-term simple imprisonment.

In spite of the fact that a large number of occupational scams/economic offences have been unearthed in our country in the last few years-like securities scam, hawala scam, sugar scam, banking scam, telecommunication scam, fodder scam, urea scam, etc.-in which thousands of crores of rupees were involved, surprisingly no offenders have been convicted so far.

The accused persons against whom the cases are pending in the courts are yet to be prosecuted and punished. We read in the newspapers of the systematic raids conducted by the Income Tax Department and the Enforcement Directorate against business tycoons but we never read anything about their prosecution. Politicians support them for the funds they receive from them for elections and for filling up their personal coffers.

Policemen do not take them into custody for the fear that they (businessmen) might retaliate with court actions or might get them transferred by seeking help from the politicians. The courts also do not impose serious punishment on these economic offenders. In case of big capitalists (like Kirloskar), the judges grant bail by hearing the case in their houses even at night.

In a majority of economic crimes, sentences imposed by the courts are ridiculously mild. Generally, some ground for the benefit of the doubt is brought into play and the accused is acquitted. Many white-collar offenders bribe the enforcement personnel and thus get out of the clutches of the law.

With such attitudes of politicians, the police and the courts, the recent enactments and amendments in statutes prescribing deterrent punishment to economic offenders have come as a pleasant surprise.

The amendment in the Consumer Protection Act is a step in the right direction. People are becoming increasingly conscious of the fact that economic progress is possible only if business is made to behave. The recent liberalisation of the economy aims to rid business and industry of the permit license raj.

What is urgently required is the strengthening of enforcement agencies such as the Central Bureau of Investigation, the Enforcement Investigation, the Enforcement Directorate, the Directorate of Revenue Intelligence, the Income Tax Department, the Customs Department, and all other agencies concerned with the enforcement of fiscal laws.

K. Madhavan (Frontline, July 30, 1993: 129) is of the opinion that what further needs to be stopped are selective prosecution and the malafides of the government. Suppose there are twenty industries in a particular line, out of which ten are known to be committing a certain type of fraud, such as showing non-existing stocks to banks in their cash credit accounts.

Of these, two industries are found having contributed funds to opposition political parties. Only these two cases will be registered. This is selective victimisation by the government which needs to be stopped with the help of the media.

One change that is being observed in India against occupational (white-collar) crime is that while earlier victims suffered losses silently, many consumer councils have now come into existence to fight for consumers. The victims of occupational crime are scattered, unorganised and lack adequate information.

Most important of all, no single victim suffers a loss in a particular transaction which would justify his taking recourse to legal action. The trouble and the expense involved in legal action would be far too large in relation to the injury suffered.

This aspect is now gradually undergoing a change. The National Consumer Redressal Commission and similar organisations at the state and district levels are rendering yeoman service to the consumers.