Author: Manvi Khanduri,
A student at Delhi Metropolitan Education, GGSIPU
Abstract:
This paper provides a useful insight on status of white collar crimes in India throughout the years. White collar crimes are becoming increasingly prevalent in India, affecting many aspects of society. These crimes are generally non-violent in nature and are totally motivated towards some sort of financial benefit. In 1939, criminologist Edward Sutherland created the phrase “white collar crimes.” White-collar crimes are ones that primarily breach the implied trust. This may be accomplished primarily through two methods: duplication to influence power and misrepresentation of asset values. Both of these strategies include breaking the victim’s confidence for personal advantage, leading the victim to suffer both physical and psychological losses. Frequent political, social and technological advancements as well as varied legislations of different countries have led to the increase in these type of crimes and allowed the criminal groups involved in them to become progressively active on international grounds too. These perpetrators generally hold powerful and prestigious professional positions like CEOs, directors of companies, etc. and they use these influential positions to conceal, deceive and violate the trusts of the investors as well as clients. One of the reasons for the increase in these crimes can be the non-implementation or poor implementation of the Anti-Graft laws in the country. White collar criminals engage in felonious acts such as false employment, black marketing, medical deviant activities, tax evasion, cybercrime, and credit card fraud, resulting in significant profits. Money laundering is often used to “legitimise” illegal earnings.
What are white collar crimes?
White-collar crime is a nonviolent crime often characterized by deceit or concealment to obtain or avoid losing money or property, or to gain a personal or business advantage.
Various types of White collar crimes
- Fraud: it is defined as an intentional deceitful conduct committed by the offender for unfair advantage. Bank fraud is one of the most prevalent types of fraud in India, and it includes falsely obtaining loans, stealing checks, and impersonating financial organisations over the phone or the internet. Pyramid or Ponzi schemes, as well as identity theft, are examples of fraudulent activity.
- Embezzlement: this act is also a breach of trust. When a person is entrusted with money or property by someone and he starts using it in a manner which is illegal or not designated to, it becomes criminal breach of trust and is punishable under sec. 316 of the BNS which was previously sec. 405 of IPC.
- Insider trading: Insider trading is the illegal use of privileged access to a company’s inside information that is not available in the public domain in order to benefit by buying or selling stocks or manipulating other financial instruments.
- Cybercrimes: with the technological advancements in the society, the use of internet and computers has increased simultaneously. That also gave birth to cybercrimes. Any type of crime which uses computer and internet as means comes under the category of cybercrimes.
- Money laundering: it is said to be committed when a person successfully disguises the money or financial assets obtained from illegal sources, popularly known as black money, as money obtained from legal sources.
- Tax Evasion: The Income Tax Act of 1961 makes tax evasion a penal violation. It might be done by a single person or a complete organisation. It is the act of evading or avoiding paying taxes by unlawfully altering the status of affairs in order to reduce the amount of tax due. Tax evasion is essentially depriving a country of funds that the government uses to help pay for its costs and growth. It is fined for failing to file income tax returns, giving misleading information, and hiding owned assets.
Why white collar crimes are increasing in India?
There can be a few reasons for the subsequent rise in white collar crimes in India. Those are listed below:
- Implementation of Anti-Graft laws: India is ranked at 93 out of 180 countries in the Corruption Perceptions Index for 2023, according to the Transparency International report. One of reasons mentioned in that report for the rise in corruption and related crimes is the poor or no application of Anti-graft laws in India. This gives the perpetrators committing white collar offences a free ticket to commit more such crimes.
- Greed: These offences are often committed by the upper class professionals with prestigious positions in the society. They earn a large amount of money and are financially stable, however they still commit such crimes in order to satisfy their need to earn more through illegal means.
- No Stringent Punishment: The main issue is that no stringent punishment is given to the offenders. They often leave the country before the action is taken against them. This allowed many wrongdoers to get away with their crimes over the years.
- Competition in the market: Darwin in his theory of evolution, coined the term “survival of the fittest” is necessary and thus for that to happen there will always be competition among people in order to survive in the market. Due to this reason, many people choose illegal means to get ahead of their peers.
- Lack of awareness in the society: People who are victims of white-collar crimes frequently fail to understand the nature of the crime and are uninformed of the processes that must be followed in order to file a complaint. Offenders might sometimes hold extremely powerful positions at remote institutions, forcing victims to choose silence over standing up to them.
Role of Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) in handling white collar crimes
The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are two major law enforcement organisations in India that handle a variety of white-collar offences.
Enforcement Directorate (ED):
The ED primarily deals with economic offences, mainly money laundering and foreign exchange violations. It operates under two main legislations- first is Prevention of Money Laundering act (PMLA), 2002. This statute grants the ED the ability to investigate cases of money laundering. The agency has the authority to seize property, conduct searches, and arrest anyone implicated in money laundering from criminal activity. The second one is the Foreign Exchange Management act (FEMA), 1999. This legislation gives ED the power to investigate cases regarding foreign exchange violations, including illegal forex held by individuals or entities.
ED has the authority to conduct detailed investigations against anyone who is involved in money laundering or forex violations and if sufficient evidence is found, the ED prosecutes these criminals in the special PMLA court. The ED has the authority to temporarily attach property considered to be the proceeds of crime, prohibiting the accused from disposing of these assets. The ED works closely with other national and international law enforcement agencies to tackle complex money laundering cases with cross-border elements.
Central Bureau of Investigation (CBI):
The CBI is India’s principal investigative agency, responsible for a wide range of investigations, including white-collar crimes. The Ministry of Personnel, Public Grievances, and Pensions oversees its operations. The CBI plays a pivotal role in white-collar crime investigations. There are mainly two divisions in the CBI- Anti-corruption division (ACD) and Economic offences wing (EOW). ACD investigates cases generally filed against public servants including offences like bribery, embezzlement, etc. On the other hand, EOW’s role is to investigate complicated financial frauds, including bank, corporate, financial scams, and cybercrime.
The CBI records cases based on complaints obtained from numerous sources, including government departments, courts, and the general public. They undertake extensive investigations to collect evidence. They also takes preventative actions by educating government agencies and public-sector organisations on how to avoid potential financial irregularities. The CBI works with various national and international authorities to investigate situations having far-reaching repercussions and to guarantee that laws are effectively enforced. It works under the Delhi Special Police Establishment Act and other relevant criminal laws.
Both authorities have critical roles in combatting white-collar crime in India, frequently collaborating to ensure that criminals are brought to justice and unlawful profits are recovered.
Leniency of Indian Courts (Judiciary) in these matters
Indian courts are frequently considered as tolerant in dealing with white-collar crimes due to a mix of structural, procedural, and cultural issues. Here are several major reasons behind this perception:
- The complexity and intricacy of cases:
White-collar crimes are frequently sophisticated, involving extensive financial transactions, making them difficult to detect and prosecute. The technical nature of many situations necessitates specialised expertise, which the judges may not always possess.
- Prolonged Judicial Process:
The Indian court system is notorious for its lengthy litigation proceedings. Delays in court proceedings, numerous adjournments, and a backlog of cases can all contribute to a delayed judicial procedure. This can lead to extended trials and delayed justice, which may be interpreted as mercy.
- The burden of proof:
The standard of proof in criminal proceedings is high, with the prosecution required to show the accused’s guilt beyond a reasonable doubt. Gathering tangible evidence that fits this criterion in white-collar crimes may be very difficult, often resulting in acquittals or reduced punishments.
- Legal ambiguities and technicalities:
White-collar criminals frequently have access to excellent legal representation, allowing them to exploit legal loopholes and procedural complexities. This can lead to reduced charges, lesser sentences, or even acquittals.
- Power and Corruption:
Influential people implicated in white-collar crimes may utilise their authority, connections, or financial resources to influence investigations and legal results. Corruption in the system can potentially jeopardise the proper prosecution of these offences.
- Lack of precedents:
White-collar crimes may be handled without clear legal precedents, resulting in varying sentences and court decisions. Judges may be more hesitant to impose harsh fines in the absence of established precedents to guide their decisions.
Measures which can be taken to address this issue
Efforts which can be taken to resolve the issue of leniency by courts in these matters are mentioned below:
- Specialised Courts and Judges: Creating specialised courts and training judges on financial and economic crimes can help to enhance how these matters are handled.
- Legal Reforms: Changes to legislation and sentencing standards can give a more solid framework for dealing with white-collar crimes.
- Capacity Building: Increasing investigative agencies’ resources, training, and competence can result in more successful investigations and prosecutions.
- Anti-Corruption Measures: Strengthening anti-corruption measures in the judicial and law enforcement institutions can minimise the influence of powerful persons while ensuring fair justice.
White-collar crimes frequently result in a chain of linked cases because of various interrelated factors:
- Complex networks and interconnections:
White-collar crimes sometimes entail intricate networks of people, organisations, and transactions. When an inquiry begins, it frequently reveals linkages to other crimes and people in the network.
- Multiple hidden transactions:
White-collar criminals often disguise financial activities using shell firms, offshore accounts, and complicated financial instruments. Unravelling these transactions can reveal new crimes and participants.
- Conspiracy/Collusion:
White-collar crimes generally include coordination and conspiracy among numerous parties, including business officials, workers, middlemen, and external groups such as auditors or financial consultants. Investigating one crime can uncover the involvement of these collaborating parties, perhaps leading to more cases.
- Documentary evidence and leads:
Documents, emails, bank data, and other evidence discovered during an inquiry may give clues to further crimes. An audit trail, for example, may uncover fraudulent operations that span many departments or even corporations.
- Informants and whistle-blowers:
Investigations into white-collar crimes frequently produce whistle-blowers or informants who offer information about further crimes. These people may disclose new criminal acts in return for immunity or lower fines. Rights and identities of these people are protected under Whistle-blowers Protection Act, 2011. This act prohibits the disclosure of identities of the informants or whistle blowers.
Some prominent White Collar crimes cases that took place in India
Sukesh Chandrasekhar fraud:
Sukesh Chandrasekhar, a conman, acquired renown for his extravagant lifestyle due to several frauds. Sukesh, a dropout, defrauded naïve parties of millions of dollars by using many government personalities, including the present home minister, Amit Shah. His name was linked to Bollywood stars Nora Fatehi and Jacqueline Fernandes, who he showered with expensive racehorses, fancy purses, and automobiles.
Harshad Mehta Scam:
The Harshad Mehta Scam is the most well-known case of white-collar crime presented. The life and times of Harshad Mehta, Bombay’s most well-known businessman and stockbroker, are memorialised in the film “Scam 1992.” Mehta was well-known in Mumbai’s trading scene and was accused of manipulating stock prices, resulting in a significant spike in share prices. According to Lego Desk, Mehta reportedly gained just over 5000 crore rupees through deceit.
The scam was eventually revealed by prominent financial journalist Sucheta Dalal, owing to her thorough study. Mehta’s actions, on the other hand, were more immoral than illegal because he took advantage of system weaknesses that existed beforehand.
PNB fraud- Nirav Modi scam:
The Punjab National Bank (PNB) scam, one of India’s most catastrophic financial scams, was exposed in early 2018. PNB fraudulently issued Letters of Undertaking (LoUs) worth roughly $1.8 billion (over ₹13,000 crore) to benefit diamond merchants Nirav Modi and Mehul Choksi. These Letters of Understanding allowed the accused to receive abroad loans from other Indian institutions, which was never returned. The swindle highlighted major flaws in banking operations and regulatory monitoring, prompting broad investigations, arrests, and efforts to recover the monies. The incident had a significant influence on the Indian banking system, pushing changes to prevent such scams in the future.
Conclusion
White-collar crime has become a major issue in India, with a negative influence on the country’s economy and growth. The government and regulatory agencies must take aggressive efforts to prevent such crimes and penalise those who perpetrate them. To reduce white-collar crime in India and establish a more transparent and responsible corporate environment, some initiatives that may be done include strengthening the legal system, enhancing the regulatory framework, raising awareness, and providing whistle-blower protection. It is vital to remember that combating white-collar crimes necessitates a collaborative effort by all stakeholders, including the government, regulatory organisations, enterprises, and the general public.
FAQ (Frequently Asked Questions):
- What are white collar crimes?
White collar crimes are financial frauds or non-violent crimes done by deceitful conduct of businessmen or people holding prestigious position in the society.
- What are different kinds of white collar crimes?
These include:
- Money laundering
- Embezzlement
- Cyber frauds
- Tax evasion
- Insider training
- Window dressing, etc.
- What measures can be taken to stop these people from attempting such crimes?
Measures like proper implementation of anti-graft provisions and stringent punishment can contribute in reduction of these crimes in the society.
- How white collar crimes are investigated?
The FBI, SEC, IRS, CBI, ED and specialized sections within local police departments all investigate white-collar offences. Forensic accounting, audits, surveillance, and analysis of financial and electronic data are frequently used in investigations.
- How can businesses prevent white collar crimes?
Businesses may avoid white-collar crimes by adopting strong internal controls, performing frequent audits, fostering ethical behaviour, giving fraud prevention training to employees, and establishing clear rules and processes. Promoting a culture of transparency and accountability is equally critical.
Page 1 of 2
pay for its costs and growth. It is fined for failing to file income tax returns, giving misleading information, and hiding
to reduce the amount of tax due. Tax evasion is essentially depriving a country of funds that the government uses to help
complete organisation. It is the act of evading or avoiding paying taxes by unlawfully altering the status of affairs in order
• Tax Evasion: The Income Tax Act of 1961 makes tax evasion a penal violation. It might be done by a single person or a
from illegal sources, popularly known as black money, as money obtained from legal sources.
• Money laundering: it is said to be committed when a person successfully disguises the money or financial assets obtained
under the category of cybercrimes.
simultaneously. That also gave birth to cybercrimes. Any type of crime which uses computer and internet as means comes
• Cybercrimes: with the technological advancements in the society, the use of internet and computers has increased
available in the public domain in order to benefit by buying or selling stocks or manipulating other financial instruments.
• Insider trading: Insider trading is the illegal use of privileged access to a company’s inside information that is not
sec. 316 of the BNS which was previously sec. 405 of IPC.
starts using it in a manner which is illegal or not designated to, it becomes criminal breach of trust and is punishable under
• Embezzlement: this act is also a breach of trust. When a person is entrusted with money or property by someone and he
fraudulent activity.
financial organisations over the phone or the internet. Pyramid or Ponzi schemes, as well as identity theft, are examples of
of the most prevalent types of fraud in India, and it includes falsely obtaining loans, stealing checks, and impersonating
• Fraud: it is defined as an intentional deceitful conduct committed by the offender for unfair advantage. Bank fraud is one
Various types of White collar crimes
or property, or to gain a personal or business advantage.
White-collar crime is a nonviolent crime often characterized by deceit or concealment to obtain or avoid losing money
What are white collar crimes?
resulting in significant profits. Money laundering is often used to “legitimise” illegal earnings.
acts such as false employment, black marketing, medical deviant activities, tax evasion, cybercrime, and credit card fraud,
implementation or poor implementation of the Anti-Graft laws in the country. White collar criminals engage in felonious
and violate the trusts of the investors as well as clients. One of the reasons for the increase in these crimes can be the non-
professional positions like CEOs, directors of companies, etc. and they use these influential positions to conceal, deceive
become progressively active on international grounds too. These perpetrators generally hold powerful and prestigious
different countries have led to the increase in these type of crimes and allowed the criminal groups involved in them to
physical and psychological losses. Frequent political, social and technological advancements as well as varied legislations of
of these strategies include breaking the victim’s confidence for personal advantage, leading the victim to suffer both
accomplished primarily through two methods: duplication to influence power and misrepresentation of asset values. Both
the phrase “white collar crimes.” White-collar crimes are ones that primarily breach the implied trust. This may be
nature and are totally motivated towards some sort of financial benefit. In 1939, criminologist Edward Sutherland created
becoming increasingly prevalent in India, affecting many aspects of society. These crimes are generally non-violent in
This paper provides a useful insight on status of white collar crimes in India throughout the years. White collar crimes are
Abstract:
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landlord in writing of the …
violation there is a procedure that must be followed in order to file a complaint. To file a complaint you must first inform the
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and it is illegal.
public domain by buying or selling stocks or manipulating other financial instruments to make profit is called Insider trading
Insider Trading: Taking advantage of privileged access to inside information of a company that is unavailable in the
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losing money or property, or to gain a personal or business advantage. Examples of…
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organisations in India that handle a variety of white-collar offences.
The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are two major law enforcement
Role of Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) in handling white collar crimes
them.
sometimes hold extremely powerful positions at remote institutions, forcing victims to choose silence over standing up to
the crime and are uninformed of the processes that must be followed in order to file a complaint. Offenders might
• Lack of awareness in the society: People who are victims of white-collar crimes frequently fail to understand the nature of
many people choose illegal means to get ahead of their peers.
for that to happen there will always be competition among people in order to survive in the market. Due to this reason,
• Competition in the market: Darwin in his theory of evolution, coined the term “survival of the fittest” is necessary and thus
years.
country before the action is taken against them. This allowed many wrongdoers to get away with their crimes over the
• No Stringent Punishment: The main issue is that no stringent punishment is given to the offenders. They often leave the
their need to earn more through illegal means.
They earn a large amount of money and are financially stable, however they still commit such crimes in order to satisfy
• Greed: These offences are often committed by the upper class professionals with prestigious positions in the society.
collar offences a free ticket to commit more such crimes.
and related crimes is the poor or no application of Anti-graft laws in India. This gives the perpetrators committing white
2023, according to the Transparency International report. One of reasons mentioned in that report for the rise in corruption
• Implementation of Anti-Graft laws: India is ranked at 93 out of 180 countries in the Corruption Perceptions Index for
There can be a few reasons for the subsequent rise in white collar crimes in India. Those are listed below:
Why white collar crimes are increasing in India?
owned assets.
Page 1 of 2
adjournments, and a backlog of cases can all contribute to a delayed judicial procedure. This can lead to extended trials
The Indian court system is notorious for its lengthy litigation proceedings. Delays in court proceedings, numerous
2. Prolonged Judicial Process:
possess.
and prosecute. The technical nature of many situations necessitates specialised expertise, which the judges may not always
White-collar crimes are frequently sophisticated, involving extensive financial transactions, making them difficult to detect
1. The complexity and intricacy of cases:
procedural, and cultural issues. Here are several major reasons behind this perception:
Indian courts are frequently considered as tolerant in dealing with white-collar crimes due to a mix of structural,
Leniency of Indian Courts (Judiciary) in these matters
criminals are brought to justice and unlawful profits are recovered.
Both authorities have critical roles in combatting white-collar crime in India, frequently collaborating to ensure that
criminal laws.
guarantee that laws are effectively enforced. It works under the Delhi Special Police Establishment Act and other relevant
works with various national and international authorities to investigate situations having far-reaching repercussions and to
educating government agencies and public-sector organisations on how to avoid potential financial irregularities. The CBI
and the general public. They undertake extensive investigations to collect evidence. They also takes preventative actions by
The CBI records cases based on complaints obtained from numerous sources, including government departments, courts,
financial scams, and cybercrime.
embezzlement, etc. On the other hand, EOW’s role is to investigate complicated financial frauds, including bank, corporate,
offences wing (EOW). ACD investigates cases generally filed against public servants including offences like bribery,
white-collar crime investigations. There are mainly two divisions in the CBI- Anti-corruption division (ACD) and Economic
crimes. The Ministry of Personnel, Public Grievances, and Pensions oversees its operations. The CBI plays a pivotal role in
The CBI is India’s principal investigative agency, responsible for a wide range of investigations, including white-collar
Central Bureau of Investigation (CBI):
money laundering cases with cross-border elements.
these assets. The ED works closely with other national and international law enforcement agencies to tackle complex
authority to temporarily attach property considered to be the proceeds of crime, prohibiting the accused from disposing of
violations and if sufficient evidence is found, the ED prosecutes these criminals in the special PMLA court. The ED has the
ED has the authority to conduct detailed investigations against anyone who is involved in money laundering or forex
illegal forex held by individuals or entities.
act (FEMA), 1999. This legislation gives ED the power to investigate cases regarding foreign exchange violations, including
arrest anyone implicated in money laundering from criminal activity. The second one is the Foreign Exchange Management
ability to investigate cases of money laundering. The agency has the authority to seize property, conduct searches, and
under two main legislations- first is Prevention of Money Laundering act (PMLA), 2002. This statute grants the ED the
The ED primarily deals with economic offences, mainly money laundering and foreign exchange violations. It operates
Enforcement Directorate (ED):
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informants.
these people are protected under Whistle-blowers Protection Act, 2011. This act prohibits the disclosure of identities of the
further crimes. These people may disclose new criminal acts in return for immunity or lower fines. Rights and identities of
Investigations into white-collar crimes frequently produce whistle-blowers or informants who offer information about
e) Informants and whistle-blowers:
trail, for example, may uncover fraudulent operations that span many departments or even corporations.
Documents, emails, bank data, and other evidence discovered during an inquiry may give clues to further crimes. An audit
d) Documentary evidence and leads:
involvement of these collaborating parties, perhaps leading to more cases.
workers, middlemen, and external groups such as auditors or financial consultants. Investigating one crime can uncover the
White-collar crimes generally include coordination and conspiracy among numerous parties, including business officials,
c)
Conspiracy/Collusion:
instruments. Unravelling these transactions can reveal new crimes and participants.
White-collar criminals often disguise financial activities using shell firms, offshore accounts, and complicated financial
b) Multiple hidden transactions:
it frequently reveals linkages to other crimes and people in the network.
White-collar crimes sometimes entail intricate networks of people, organisations, and transactions. When an inquiry begins,
a) Complex networks and interconnections:
White-collar crimes frequently result in a chain of linked cases because of various interrelated factors:
Why one case of white collar leads to a chain of cases?
can minimise the influence of powerful persons while ensuring fair justice.
•
Anti-Corruption Measures: Strengthening anti-corruption measures in the judicial and law enforcement institutions
investigations and prosecutions.
•
Capacity Building: Increasing investigative agencies’ resources, training, and competence can result in more successful
white-collar crimes.
•
Legal Reforms: Changes to legislation and sentencing standards can give a more solid framework for dealing with
help to enhance how these matters are handled.
•
Specialised Courts and Judges: Creating specialised courts and training judges on financial and economic crimes can
Efforts which can be taken to resolve the issue of leniency by courts in these matters are mentioned below:
Measures which can be taken to address this issue
Judges may be more hesitant to impose harsh fines in the absence of established precedents to guide their decisions.
White-collar crimes may be handled without clear legal precedents, resulting in varying sentences and court decisions.
6. Lack of precedents:
these offences.
influence investigations and legal results. Corruption in the system can potentially jeopardise the proper prosecution of
Influential people implicated in white-collar crimes may utilise their authority, connections, or financial resources to
5. Power and Corruption:
and procedural complexities. This can lead to reduced charges, lesser sentences, or even acquittals.
White-collar criminals frequently have access to excellent legal representation, allowing them to exploit legal loopholes
4. Legal ambiguities and technicalities:
resulting in acquittals or reduced punishments.
reasonable doubt. Gathering tangible evidence that fits this criterion in white-collar crimes may be very difficult, often
The standard of proof in criminal proceedings is high, with the prosecution required to show the accused’s guilt beyond a
3. The burden of proof:
and delayed justice, which may be interpreted as mercy.
Page 1 of 2
•
Embezzlement
•
Money laundering
These include:
2) What are different kinds of white collar crimes?
prestigious position in the society.
White collar crimes are financial frauds or non-violent crimes done by deceitful conduct of businessmen or people holding
1) What are white collar crimes?
FAQ (Frequently Asked Questions):
enterprises, and the general public.
crimes necessitates a collaborative effort by all stakeholders, including the government, regulatory organisations,
framework, raising awareness, and providing whistle-blower protection. It is vital to remember that combating white-collar
environment, some initiatives that may be done include strengthening the legal system, enhancing the regulatory
perpetrate them. To reduce white-collar crime in India and establish a more transparent and responsible corporate
government and regulatory agencies must take aggressive efforts to prevent such crimes and penalise those who
White-collar crime has become a major issue in India, with a negative influence on the country’s economy and growth. The
Conclusion
significant influence on the Indian banking system, pushing changes to prevent such scams in the future.
regulatory monitoring, prompting broad investigations, arrests, and efforts to recover the monies. The incident had a
from other Indian institutions, which was never returned. The swindle highlighted major flaws in banking operations and
merchants Nirav Modi and Mehul Choksi. These Letters of Understanding allowed the accused to receive abroad loans
fraudulently issued Letters of Undertaking (LoUs) worth roughly $1.8 billion (over ₹13,000 crore) to benefit diamond
The Punjab National Bank (PNB) scam, one of India’s most catastrophic financial scams, was exposed in early 2018. PNB
PNB fraud- Nirav Modi scam:
beforehand.
actions, on the other hand, were more immoral than illegal because he took advantage of system weaknesses that existed
The scam was eventually revealed by prominent financial journalist Sucheta Dalal, owing to her thorough study. Mehta’s
share prices. According to Lego Desk, Mehta reportedly gained just over 5000 crore rupees through deceit.
well-known in Mumbai’s trading scene and was accused of manipulating stock prices, resulting in a significant spike in
Mehta, Bombay’s most well-known businessman and stockbroker, are memorialised in the film “Scam 1992.” Mehta was
The Harshad Mehta Scam is the most well-known case of white-collar crime presented. The life and times of Harshad
Harshad Mehta Scam:
expensive racehorses, fancy purses, and automobiles.
minister, Amit Shah. His name was linked to Bollywood stars Nora Fatehi and Jacqueline Fernandes, who he showered with
defrauded naïve parties of millions of dollars by using many government personalities, including the present home
Sukesh Chandrasekhar, a conman, acquired renown for his extravagant lifestyle due to several frauds. Sukesh, a dropout,
Sukesh Chandrasekhar fraud:
Some prominent White Collar crimes cases that took place in India
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Matched Source
culture of transparency and accountability is equally critical.
ethical behaviour, giving fraud prevention training to employees, and establishing clear rules and processes. Promoting a
Businesses may avoid white-collar crimes by adopting strong internal controls, performing frequent audits, fostering
5) How can businesses prevent white collar crimes?
Forensic accounting, audits, surveillance, and analysis of financial and electronic data are frequently used in investigations.
The FBI, SEC, IRS, CBI, ED and specialized sections within local police departments all investigate white-collar offences.
4) How white collar crimes are investigated?
these crimes in the society.
Measures like proper implementation of anti-graft provisions and stringent punishment can contribute in reduction of
3) What measures can be taken to stop these people from attempting such crimes?
•
Window dressing, etc.
•
Insider training
•
Tax evasion
•
Cyber frauds
