White Collar Crimes in India
Introduction
White collar crimes refer to non-violent financial crimes typically committed by business professionals. India, these crimes have become increasingly prevalent due to globalization and technological advancements.
Legal Framework
The Indian Penal Code (IPC)
The IPC provides the primary framework for addressing white collar crimes in India. Some key sections include:
- Section 420: Cheating and dishonestly inducing delivery of property
- Section 463: Criminal breach of trust
- Section 471: Using as genuine a false document or electronic record knowing it to be forged
The Prevention of Money Laundering Act (PMLA), 2002
This act specifically targets money laundering activities, which often accompany white collar crimes.
The Companies Act, 2013
This act regulates corporate governance and provides provisions for investigating corporate frauds.
Case Studies
- Satyam Scam
In 2008, Satyam Computer Services Ltd., one of India's largest IT companies, was embroiled in a massive accounting scandal. The company's founder, B. Ramalinga Rju, admitted to inflating profits by over $1 billion.
Legal Sections Involved:
- Section 409 of the IPC (criminal breach of trust)
- Section 120B of the IPC (conspiracy)
- Coal Allocation Scam
In 2012, the CBI filed cases against several top government officials and businessmen alleging irregularities in coal block allocations between 1993 and 2011.
Legal Sections Involved:
- Section 120B of the IPC (conspiracy)
- Section 420 of the IPC (cheating)
- Vijay Mallya Bnk Loan Fraud
In 2016, businessman Vijay Mallya defulted on loans worth over ₹9000 crore from various banks.
Legal Sections Involved:
- Section 447 of the IPC (punishment for cheating)
- Section 409 of the IPC (criminal breach of trust)
Conclusion
White collar crimes pose significant challenges to India's economy and legal system. It is crucial for law students and practitioners to understand the complexities of these crimes and the legal frameworks designed to combat them.