WHITE COLLAR CRIME IN INDIA: EMERGING TRENDS AND LEGAL DEVELOPMENTS

ABSTRACT

White collar crimes constitute a serious threat to the economic and moral fabric of society. Though non-violent in nature, these crimes inflict extensive financial loss and undermine public confidence in institutions. With rapid digitalisation, corporate growth, and complex financial transactions, white collar crimes in India have become more sophisticated and transnational. This article examines the concept, nature, and types of white collar crimes, the applicable legal framework in India, and recent legislative developments, particularly under the Bharatiya Nyaya Sanhita, 2023. The article also highlights enforcement challenges and suggests measures to combat such crimes effectively.

TABLE OF CONTENTS

1. Introduction
2. Meaning of White Collar Crime
3. Nature and Characteristics
4. Common White Collar Crimes and Relevant Legal Provisions
5. Laws Against White Collar Crimes in India
6. Legal Framework and Recent Developments
7. Conclusion

1. INTRODUCTION

White collar crimes refer to non-violent, financially motivated offences committed by educated and influential individuals during the course of their occupation. In India, the rise of the digital economy, corporate expansion, and technological innovation has significantly increased the incidence of such crimes.

The term “white collar crime” was coined by American criminologist Edwin H. Sutherland in 1939, who defined it as crimes committed by persons of high social status and respectability in the course of their occupation. These crimes are particularly dangerous as they involve breach of trust, manipulation of systems, and abuse of power, often remaining undetected for long periods.

2. MEANING OF WHITE COLLAR CRIME

White collar crimes are offences committed by persons belonging to higher socio-economic strata, such as businessmen, corporate executives, public servants, professionals, and financial intermediaries. Unlike traditional crimes, these offences do not involve physical violence but rely on fraud, deception, misrepresentation, and concealment.

The concept is rooted in E.A. Ross’s “criminaloid” theory (1907), which highlighted how respectable members of society commit harmful acts under the guise of legality and morality. Sutherland further emphasized that the offender’s social position itself provides the opportunity to commit such crimes.

3. NATURE AND CHARACTERISTICS OF WHITE COLLAR CRIMES

White collar crimes possess the following distinguishing features:

• Non-violent but highly injurious to society
• Breach of trust and fiduciary responsibility
• Committed by educated and influential individuals
• Difficult to detect and prove, due to technical complexity
• Wide-ranging impact, affecting the economy, institutions, and public confidence
• Often transnational, especially in cases of money laundering and cyber fraud

4. COMMON WHITE COLLAR CRIMES AND LEGAL PROVISIONS

1. Cheating and Fraud

• IPC: Sections 415, 417, 420
• Bharatiya Nyaya Sanhita, 2023 (BNS):
  • Section 318(1) – Cheating
  • Section 318(2) – Punishment
  • Section 318(4) – Cheating and dishonestly inducing delivery of property

2. Forgery

• IPC: Sections 463, 465, 468, 471
• BNS: Sections 336, 340

3. Criminal Breach of Trust

• IPC: Sections 405, 406, 409
• BNS: Sections 316(1), 316(2), 316(5)

4. Corruption and Bribery

• Prevention of Corruption Act, 1988
  • Section 7 – Public servant taking bribe
  • Section 8 – Bribery by private persons
  • Section 13 – Criminal misconduct

5. Money Laundering

• Prevention of Money Laundering Act, 2002 (PMLA)

6. Corporate Fraud

• Companies Act, 2013 (Sections 447–453)

7. Cyber Financial Fraud

• Information Technology Act, 2000
  • Section 43 – Unauthorised access
  • Section 66C – Identity theft
  • Section 66D – Cheating by personation

8. Benami Transactions

• Benami Transactions (Prohibition) Act, 1988

9. Insider Trading

• SEBI Act, 1992
• SEBI (Prohibition of Insider Trading) Regulations, 2015

10. Tax Evasion

• Income Tax Act, 1961
  • Section 276C – Wilful attempt to evade tax
  • Section 277 – False statements

5. LAWS AGAINST WHITE COLLAR CRIMES IN INDIA

India has enacted multiple statutes to curb white collar crimes, including:

• Companies Act, 2013
• Income Tax Act, 1961
• Prevention of Corruption Act, 1988
• Prevention of Money Laundering Act, 2002
• Customs Act, 1962
• Essential Commodities Act, 1955
• NDPS Act, 1985
• FEMA, 1999
• Central Vigilance Commission Act, 2003
• Information Technology Act, 2000

6. LEGAL FRAMEWORK AND RECENT DEVELOPMENTS

India does not have a single consolidated law for white collar crimes. Instead, multiple statutes govern different offences. A significant recent development is the replacement of the Indian Penal Code, 1860 with the Bharatiya Nyaya Sanhita, 2023, which modernises provisions related to fraud, forgery, and breach of trust.

Investigative agencies such as the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO), and Income Tax Department play a crucial role. However, challenges such as procedural delays, low conviction rates, and technological complexity continue to hinder effective enforcement.

7. CONCLUSION

White collar crimes pose a grave threat to India’s economic stability, governance, and public trust. Offences such as corporate fraud, money laundering, tax evasion, and cyber scams adversely affect national development. Despite the existence of stringent laws and recent legislative reforms, the incidence of white collar crimes continues to rise.

To combat this menace effectively, India must strengthen investigative mechanisms, ensure swift trials, enhance digital surveillance, and promote public awareness. A robust and transparent legal framework is essential to deter white collar criminals and safeguard the nation’s economic integrity.