1. Critical Study of White Collar Crime

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1 Vol I Issue 1 Oct. 2012

A CRITICAL STUDY OF WHITE COLLER CRIMES IN INDIA Sanjay S. Bang

Assissant Professor Narayanrao Chavan Law College

Nanded.

“The practitioners of evil, the hoarders, the profiteers, the blackmarketeers and speculators are the worst enemies of our society. They have to be dealt with sternly, however well placed important and influential they may be; if we acquiesce in wrongdoing, people will lose faith in us”- Dr Radhakrishnan

Introduction:-

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. White collar crime in India is flourishing every day in new forms. The Problem if white collar crime is very serious in India. Business communities of this country of large and small merchants are basically dishonest in most. No where in the world businessmen get rich so quickly as they do in India. Harding, profiteering and black marketing of essential commodities by traders has become a chronic problem for the Government. The Santhanam committee Report in its findings gave a vivid picture of white collar crimes committed by persons of respectability such as businessman, industrialist’s contractors and suppliers as also the corrupt public officials. The white collar criminality in the form of violation of foreign exchange rules export act and import Act and the frequent tax violation in the evasion of income tax, wealth tax etc. Such practice is causing a tremendous loss to state exchequer.

Methodology

The research methodology used for the present research article is traditional Doctrinal research method. As most of the information can be sought form the available literature. So the researcher has chosen doctrinal method as method of research for the present article and has used books, journals, research articles for preparation of the same.

Objectives of the study

The main objectives of the research work is

I) To study the concept of white collar crime in detail. II) To study the impact of white collar crime from Indian perspectives. III) To study the impact of white collar crime on Indian economy and its

its affect on development activities.



Meaning of white collar crime

No doubt it is also crime against society but it is different than ordinary crimes. It is different in the sense that victim is not any individual in white collar crime as society is victim there. Some of the criminologist and penologist have given following definitions of white collar crime.

I) Sutherland- “ White collar crime is a crime committed by a person of upper socio-economic class, who violates criminal law in the course of his occupation and professional activities”. II) Paul Tappan-“White collar crime is a special type of solitary professional criminality. It involves real violation of criminal law systematically or repeated by business, professional and clerical workers in addition to their occupation.” III) Sir Walter Reckless-“White collar crime represents the offences of businessmen who are in position to determine the policies and activities of business”.

Causes of white collar crime in India

Following are the important reasons of white collar crime in India.

I) After independence various five years plans were implemented and a huge expenditure was incurred by the Government for the various ‘Nation building activities.’ Since the implementation of those plans was not done no proper and systematic form, it encourages the corrupt officers, businessman and contractors to earn enormous money out of such plan expenditures. The country could not get requisite progress out of such development plans but bit chunk of money earmarked for such development projects was pocketed by those white collar criminals. II) Being a welfare state, the object of Government of India was to control vast number of means of production of goods and materials for equal distribution to all, but due to shortage of goods, corruption and endemic inefficiency in the administration of state act, it provided fertile sources for white collar criminality. III) White collar criminals in India belong to very rich or high family. They are more powerful than traditional criminals. Therefore criminal law is hardly made applicable on them due to their high social status. IV) The rapid pace of social changes and the technical complications of business attacks are aggravating social disorganization in India. Such changes are encouraging unethical practice in the country. V) A majority of trade and business in India are running on capitalistic pattern. Such pattern basis on the acquisition of maximum material resources by particular individual or individuals. It is regarded not only as legitimate but also essential. Such practice results in the large scale exploitation of public by such businessmen and in the course of their occupational activities.



VI) White collar criminals are rarely punished. One of the reason of the same is that in the field of laws for the regulation of business crimes are relatively new and specialized part of the statues.

Types of White collar crimes

White collar crime in India is flourishing every day in new form. Some of the white collar crimes common in India are

Food and drug adulteration

I) Adulteration in food and drugs causes irreparable damages to the health of innocent people. This evil practice is rapidly increasing in India. Accordingly to one survey report of Ministry of health, Government of India about 25% to 70% of the food stuffs consumed in this country are adult erected or contaminated. This tendency is due to the greed of the manufacturers the existing laws are defective and inadequate to prevent food and drug adulteration. The precaution under prevention of food adulteration Act have failed due to

II) The defective reports of the public analysis’s. III) Delay in the examination of collected samples. IV) Non-implementation of proper procedure for collection of samples.

I) Tax evasion

For smooth running of the country, it requires fund. Tax is a strong revenue for the Governments. But unfortunately people try to avoid taxes. Even the big companies are also not far away from avoiding taxes. Thus it has challenged the basic definition of white collar crime as not only the people of high social status in the society, but even the companies are also trying to avoid it.

II) Illegal and corrupt practices of public servant

The corrupt and illegal practices of Government employees to earn money by illegal means are rapidly increasing in India. Two world Wars gave vast powers to the Government servants in the matter relating to the grant of licenses permit and quotas. They sometimes misuse their powers and earning illegal money by such. Unfortunately Government has failed to enforce any effective measure to prevent such illegal tendency.



III) Illegal practice to earn black money

Most of the persons belonging to business class of the persons possess a large amount of uncounted money. Such money is kept by them in the form of black money is earned by various methods such as, tax evasion and tax-avoidance, obtaining licenses in the name of bogus firms and individuals, supply of inferior quality of goods and materials by contractors or suppliers, Hoarding of essential goods or commodities and selling them on high prices, trafficking in licenses suppressing profit by manipulation of accounts.

IV) Hoarding and black marketing of essential goods

Hoarding and black marketing of essential good and commodities is one of the main forms of white collar crime. It is frequently done by the traders and business communities in India. According to Sutherland the main cause is ‘the rapid pace of social change and in technical complications of business affairs to unethical business practices. Whenever there is a slight shortage even in temporary form for goods, almost every trader conceals his stock and blindly teals the customers about non-availability of commodity in stock. Such black marketers and hoarders are wicked, anti-social and criminal.

V) Political Corruption

Corruption in every form is found in almost all political persons. The corruption and indecency has become a part of political life. The frequent violation of laws is committed by those political leaders who are responsible for the maintenance of law and order. Some of main forms of political assumption in India are violation of election laws, abuse of official and political machinery etc. It is a well known fact that many political leaders who and their relatives have good harvest in terms of big-money as well as high position through the abuse of government machinery which remains at their disposal.

Effects of white collar crime

Some important effects of white collar crime may be described below:

I) Its economic effect or the financial loss to society is more serious than ordinary economic crimes committed by persons of the lower socio-economic class. The average loss per theft or burglary is less than Rs. 5,000 while theft/burglary which yields as much as Rs. 50,000 or so is rare, and one which yields a lake rupees or more is millions of rupees committed by business organizations, corporations, trusts, and companies are reported in a single year.



II) While ordinary crimes cause some inconvenience to the victims and serious crimes cause general community disturbance, white-collar crimes spread feelings of distress, lower public morale, and produce social disorganization. III) Though a very large number of white-collar crimes are committed in society yet only a few white-collar offenders are prosecuted and punished. A large number go Scott free because of their economic and social influence. Even the criminal courts are lenient towards persons accused of white-collar crimes. IV) Protection to society against white-collar crime is too meager because efforts to make the criminal law more effective in dealing with white-collar crime are often blocked by vested interests. V) Absence of adequate knowledge regarding white-collar crime contributes to a distortion of the criminological theories of causation since criminologists to a great extent have restricted their data to cases dealt within criminal courts and prisons.

Findings of the research

I) White collar crime is present in the society in one form or another since long but systematically studied by Prof Sutherland in 1941. II) The punishment to white collar criminal is less in comparison with traditional criminals. It should be enhanced. III) Numbers of special laws are available in India to tackle this social evil but its practical implication must be checked. IV) At last the moral values and ethics should be taught to everybody. As in case of our country the qualified or educated people give less value to law and dare to break it easily than uneducated people. V) In this competitive era money has become very important part of everybody’s life but what about mental peace.Everbody should think at least once by what way he is earning.

Conclusion

White collar crime is a crucial problem because of the distrust it creates which lowers the moral and results in social disorganization, serious retrocession in denuding the national economy and even the social solidarity. With the growing materialism all round the world, acquisition of more and more wealth has become the final end of human activity. Moral values have either changed or thrown to wind. Perhaps the reason for white collar crimes being carried on unabated is that these crimes are committed generally by influential persons who are shrewd enough to resist the efforts of law enforcement against them. White collar crimes drain out the progress made in large proportion thereby injecting crucial and incurable problems for the criminal justice administration of a country.



References:

Ahuja Ram,Criminology,2005,Rawat Publications Jaipur and New Delhi.

Malik Krishna pal,Penology,2006First Edition, Delhi.

Prof.Dr.Paranjape N.V.,Criminology and Penology,2003Eleventh Edition,Central Law Publications Allhabad.

Siddique Ahmad,Criminology,2005Fifth Edition, Eastern book Company Lucknow.

Documents

1. Critical Study of White Collar Crime