White
- collar crime is pervasive in almost all the professions and occupations in
our society. The problem is quite acute, both in terms of variety and the
extent of white - collar criminality. The Santhanam Committee Report in its
fmdings gave a vivid picture of white - collar crimes committed by persons of
respectability such as businessmen, industrialists, contractors, and suppliers
as also the corrupt public officials.
The report of Vivin Bose Commission of
Inquiry into the affairs of Dalmia-Jain group of companies in 1963 highlights
how these industrialists indulge in white - collar crimes such as fraud,
falsification of accounts, tax- evasion, etc. Similar observations were made by
Mr. Justice M.C Chagla about the big business magnate Mundhra who wanted to
"build up an industrial empire of dubious means". There were as many
as 124 prosecutions against this business tycoon and companies owned or
controlled by him and most of them resulted into conviction.
(1) Hoarding Black Marketing and
Adulteration
The
white - collar crimes which are common to Indian trade and business world are
hoarding, profiteering and black marketing. Violation of foreign exchange
regulations (i.e. FERA) and import and export laws are frequently resorted to
for the, sake of huge profits. Further, adulteration of foodstuffs, edibles and
drugs which causes irreparable damage to public health is yet another white -
collar crime common in India [viz. the recent instance (1998) of 'dropsy'
deaths caused in Delhi due to Mustard Oil Adulteration].
(2) Tax - Evasion
The
complexity of tax-laws in India has provided sufficient scope for the
tax-payers to evade taxes, The evasion is more common with influential categories
of persons such as adulterators, businessmen, lawyers, doctors, engineers,
contractors, etc. It is to be noted that tax-evasion is illegal, but tax-avoidance
not. Tax-evasion implies non-payment of tax due to be paid, the tax-avoidance
signifies arranginf the spread over of one's income in such a way that it does
not incur tax-liability legally and lawfully.
(3) White - Collar crime in
Professions
In
the profession of medicine, most common instances of white - collar criminality
are illegal abortions, false medical certificates and mnecessary prolonged
treatment in many cases. The usual legal and professional violations committed
by lawyers are: advising organized criminals, aiding in preferring false
claims, engaging professional witness, fabricating false evidence, etc. In the
engineering profession, underhand dealings with contractors and suppliers, passing
of sub-standard works and materials and maintenance of bogus records of
work-charged labour are some of the common examples of white - collar crime.
(4) White - Collar crime in
Business deals
Conspiracies
in restraint of trade, misrepresentation in advertising, infringements against
copyrights and trade marks, unfair labour practices, bribing public officials,
etc. are some of the common examples of 'illegal' business deals.
(5) Corruption
It
is not limited to the concept of bribes of illegal gratification taken by
public servants. In its wider sense, corruption includes all forms of dishonest
gains in cash, kind or position by persons in government and those associated
with public and political affairs. The Santhanam Committee observed that
corruption can exist only if there is someone willing to corrupt and capable of
corrupting; both this willingness and capacity to corrupt is found in a large
measure in the industrial and commercial classes. To these, corruption is not
only an easy method to secure large unearned profits, but also the necessary
means to enable them to be in a position to pursue their vocations or retain
their position among their own competitors.
Impact of socio-economic offences
on National economy
'Socio-economic offences' are the
manifestation of criminal acts done either solely or in an organized manner with
or without associates/gangs with an intent to earn wealth through illegal
means, and carry out illicit activities violating the laws of land, other regulatory,
statutory provisions governing the economic activities of the Government and
its administration. In such crimes, individual person is not the victim,
instead it is the State or society as a whole which suffers economic loss due to
such activity.
Such offences cause significant
damage to the general economy of the country adversely affecting the growth and
development of the nation. Some of the major impacts that may be caused by the
socio-economic offences illustratively are :
(i)
Increase in inflationary pressure.
(ii)
Uneven distribution of resources and creation of elitism.
(iii)
Marginalisation of tax base.
(iv)
Generation of abundant black money.
(v)
Creation of a 'parallel' economy.
(vi)
Development works/efforts are undermined.
(vii)
Country's economic equilibrium is at stake.
(viii)
Breeding ground of corruption.
(ix)
Illicit business and public office corruption thrive and affect normal business
activities.
(x)
Resources of financial institutions and commercial institutions are diverted
and distorted.
(xi)
Weakens morale and commitment of the citizens and promote social disorganization.
(xii)
The poor/weakest continue to be poorer and are at risk.
Courtesy:-
Legal Point Foundation
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