If you wonder what is White collar crime in India? Then it is defined as a crime done by the people of a higher social class. These people are generally looked upon and are very well respected people in society.
The causes of white-collar crimes are many. Few of them are listed below:
- Greed- greed one of the deadly sins in humans is considered to be the major reason for white-collar crimes. The rich want to get richer and will stoop low for the same.
- Competition- the competition between the richest, makes them feel that they have to win the race and if they do win the race then they get utmost respect.
- Lack of stringent laws- since it is not a very big law in India people think that they can get away with committing fraud and this has seen an increase in white-collar crimes in India.
Types of White-Collar Crimes
There are many different kinds of white-collar crimes but the prominent ones are:
- Bank fraud- In this crime, a person illegally withdraws money or assets from a bank or when a person falsely represents him or herself in front of the bank. Bank frauds are punishable under the Indian Penal Code 1860, under various sections like 403,405, 415 and many more. Some use fake credentials, some fraud by acting as a financial institution and some use the internet to carry out scams.
- Tax evasion- is a crime where one person on purpose changes their states of affairs so that they can show the authorities that they can pay very little tax. It can be done by a company, individual or trusts. It is punishable by the 22nd chapter of the Income Tax Act, 1961.
- Embezzlement- this is an act where a person is entrusted with money and uses it for their use or for doing something other than the objective of that money. It is punishable under the Indian Penal Code 1860 section 403.
- Fraud with an insurance company- people use false documents to obtain insurance or may use illegal means to obtain insurance money, like burning down their property or causing harm to themselves on purpose, etc.
- Bribery- is a crime in which one person gives money or kind to get a certain job done for them. It is illegal for one to give or take bribery. It is punishable under the Indian Penal Code 1860 section 171E.
- Money Laundering- in this crime, a person converts his or her illegal money into legal money and therefore hiding his or her illegally obtained money in plain sight. It is defined under section 3 of Money laundering act 2002.
Increase in White Collar Crimes
India has seen a huge increase in white-collar crimes in recent times. It is believed that these crimes hurt the nation way more than regular crimes due to the amounts involved in these crimes. They are generally for crores of rupees and for a developing country like India this is not healthy.
The society starts to question the role of authority, there is distrust among the public and it may lead to instability of governments. With the increase in these crimes safety even in the virtual world is questioned. The digital thefts have started posing a lot of questions on the safety of one person over virtual means. With the government’s failure to act towards the victims of this crime, society is left vulnerable to more such attacks.
There are provisions or laws that help to cut down the impact or stop from anyone escaping the law. The goal is to give punishment to anyone who has broken these laws.
- The Companies Act 1960
- The Income Tax Act 1961
- Indian Penal Code 1860
- The Prevention of Corruption Act 1988
- The Prevention of Money Laundering Act 2002
- The Special Court Act 1992
The aforementioned laws generally are used while trying to punish a convict. There are different sections under these acts but there is nothing specific at times. The IPC is the main basis for most punishments. It remains uncertain if India will have a very specific set of laws for white-collar crimes in India.
With the development of the world of information and technology, everything has become so much easier. Yes, even crime though the internet has become that easy. Cybercrime is a very serious issue in India and is considered a white collar crime. Cybercrime can not only help steal one’s money but also their privacy. The victim is definitely going to be in more trouble as his privacy too is stolen and it could mean that their families too are at a risk.
Cybercrimes can be very advanced and may not be tracked but to the criminal and thus is the most dangerous form of crime. The victim feels the pain whereas the criminal gets to live a happy life. Cybercrime is not restricted to the money sphere, it is endangering the lives of women and children too. It is very common for women to be sexually harassed online and it is a shame that people are taking advantage of a beautiful innovation that is technology.
White Collar crimes are done by the well-respected people of society and are a sad fact that it is rising in India. There are many different crimes that come under White Collar crimes but more than the kind of crime it is about who is doing the crime. In a country like India, it is important to cut down the crime rates as it hampers with the development of the nation. These crimes need to be stopped as soon as possible as these are spread evenly in the infrastructure system of the country. It remains to be seen if India will have stricter laws for this matter.