Inside the corporate world, where companies thrive and earnings skyrocket, there is a more complicated aspect of the narrative that is at times hidden from the public point of view: white-collar crimes. India is nonetheless susceptible to such misconduct, given its quickly expanding corporate sector and rapidly growing economy. Corporate misconduct continues in spite of stringent regulations and legal processes, destroying companies’ reputations and diminishing the trust of the public.
about white collar crime
- White-collar crimes were first described by criminologist Edward Sutherland in 1939. Crimes classified as “white-collar” primarily involve betrayals of assumed trust. Two main strategies can be used to do this: first, duplication to exert control, and second, misrepresenting asset valuations.
- Both of these techniques involve betraying the victim’s confidence in order to benefit oneself, resulting in both bodily and psychological harm for the victim.
white collar crime examples
- Money laundering, bribery, insider trading, fraud, embezzlement, and cybercrime are examples of white collar crime in india.
- These white collar offense may not be violent, but their effects are far from insignificant.
White Collar Crime in India: Major Types
- Fraud: By definition, fraud is an intentional act of deception carried out for the perpetrator’s own unfair benefit. Bank frauds are among the most prevalent types of fraud in India. These include checks that are stolen, loans that are approved fraudulently, and phoney or online impersonations of financial institutions. Fraudulent activities include things like identity theft and pyramid or Ponzi scams.
- Embezzlement: Under the guise of trust, embezzlement takes place. A person commits a criminal breach of trust under section 405 of the IPC when he begins to use funds or property entrusted to him in an unauthorized or undesignated way.
- Money Laundering: A money laundering crime is performed when an individual successfully passes off funds obtained through illicit means as coming from legitimate sources. It is defined in Section 3 of the Money Laundering Act of 2002.
- Insider Trading: Insider trading is the criminal practice of purchasing or selling stocks, manipulating other financial instruments, or making use of privileged access to confidential company information that is not available to the public in order to benefit.
- Cybercrimes: As India moves toward digitization across the board, cybercrimes are becoming increasingly prevalent. Cybercrimes are defined as any crime committed with the use of a computer and the internet. These include cyberterrorism, child pornography, and cyberstalking and harassment.
white collar criminal defense
Thecommon white collar crime defense is as follows:
- Absence of Intent: In general terms, the prosecution must demonstrate that the defendant intended to deceive or receive benefits or money illegally. The defense may contend that the case ought to be dropped if they are unable to demonstrate intent.
- Insufficient Evidence: The defense may attempt to demonstrate that the prosecution’s case is weak and that there is insufficient evidence to support the element of the offense. Establishing a lack of evidence is a strong defense strategy, regardless of whether there is inadequate evidence to establish the defendant’s identity, prove motive, or establish that a crime was committed.
- Unlawful Seizure or Search: The defense has the right to look into and raise concerns about the validity of both the search and seizure procedure and the inquiry itself. Evidence that was obtained unlawfully may be excluded.
- Intoxication: The claim that a person was drugged or drunk when the offense was committed and that their inebriation was unintentional is another affirmative defense. For example, if someone is given drugs against their will and shares exclusive corporate information, they may claim they are not guilty of insider trading since someone else forced the information out of them while they were unconscious.
- Insanity: Legally, someone can argue that a mental disease or other flaw they have (or had at the time of the incident) absolves them of responsibility for their illegal conduct. The defense must demonstrate that the accused has a serious, medically diagnosed mood, cognitive, or behavioural illness.
cases of white collar crime
Some of the biggest white collar crimes case laws are as follows:
- In the case of the Harshad Mehta Securities Fraud, In 1990, security firm Grow More Research & Asset Management Limited was established by stockbroker Harshad Mehta. Because Mehta was a well-known figure in the stock market and was referred to as the “Sultan of Dalal Street,” investors followed his example without question.
He bought the scrips at outrageous prices, borrowing large amounts of money from the bank to create a phony market. He took advantage of his position to manipulate the stock prices of particular scrips. The result was an abnormal surge in the price of these shares due to an artificial inflow of funds into the stock markets. Despite being unethical, Harshad Mehta’s conduct was legal.
- In the case of the Ketan Parekh Security Scam, Parekh participated in stock manipulation and circular trading between 1999 and 2001. He used loans from banks such as Madhavpura Mercantile Co-operative Bank and Global Trust Bank to manipulate a number of K-10 stocks. Roughly ₹ 1,250 crore was spent on the scandal. Even though he just spent a year in prison, he won’t be able to trade stocks in India until 2017.
Despite claims that he works behind the scenes, people still hear his name on the street. According to an Intelligence Bureau assessment, Parekh and his associates used front companies to engage in both insider trading and circular trading.
White Collar Crime in India FAQs
- What are the factors responsible for the growth of white collar crime in India?
The main factors of the rise in white-collar crime in India include competition, greed, and a lack of appropriate legislation to deter these kinds of crimes.
- Who is most likely to commit white-collar crime?
The majority are middle-class white men with at least some college degree. They range from late 30s to early 40s. They frequently work, are married, and are involved in their communities and religion.
- What harm is caused by white-collar crime?
White collar crimes result in monetary losses, higher consumer expenses, job losses, and a decline in institutional confidence.
- What are the characteristics of white collar crime?
First, they entail the unlawful acquisition of funds, property, or services by the use of deceit and concealment as opposed to the use of force or violence. For example, a person convicted of fabricating information to secure a government contract would be classified as a white-collar criminal.
- What is the most common punishment for white collar crime?
Fines, home detention, community confinement, prosecution costs, forfeitures, restitution, supervised release, and incarceration are some of the punishments for white-collar crimes.
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