What is a White-Collar Crime?

According to the definition of Sutherland, White collar crimes are “the crimes committed by the persons of respectability, high social status and in the course of their occupation“. White-collar crimes are committed by people who have a reputation in society. It is important that the crime takes place in the course of employment.

The definition given by Sutherland is criticized by Edelhertz. He defines White Collar Crimes as “illegal act or series of illegal acts committed by non-physical means and by concealment or guile, to obtain money or property, to avoid the payment or loss of money or property, or to obtain business or personal advantages“.According to him Sutherland’s definition of white-collar Crimes is restrictive as it is hard to determine as to how high the social status of a person should be, to commit white-collar crime.

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Justice R.S Sarkaria supported Edelhertz’s interpretation, stating it to be broad and dynamic in approach, Whereas Justice Venugopal Rao supported Sutherland’s definition. He said that it is very important to restrict ourselves only to the people employed in white-collar jobs, so that justice may prevail. Edelhertz definition is broad and includes room for non-occupational crimes.

What is the difference between white-collar and blue-collar jobs?

There is no exhaustive definition available for both the terms. The people employed in White Collar jobs are more educated and receive a higher salary as compared to those in Blue-collar jobs. White-collar workers usually work behind the desk and are not involved in physical labour. The table given below shows the difference between both the terms for a clear understanding.

Characteristics White Collar Jobs Blue Collar Jobs Definition It is the job that requires clerical work. It is the job that requires physical labour. Place of work The work is performed in offices. The work is performed in fields or industries. Job is Performed The job is performed by employees. The job is performed by workmen Remuneration The remuneration to the employees is given in the form of salary. The remuneration is given to the workmen in the form of wages. Job Requirement. The use of the brain is necessary. More emphasis is paid to muscle power. Payment Cycle The payment is made monthly. The payment is given daily. Social Status The Social status of people employed in a White Collar job is high. The Social status of people employed in blue-collar jobs is low. Effect on society The employees have an indirect effect on society. The workmen have a direct effect on society.

What are the elements of white-collar crimes?

It is committed by people having high social status in the society. For example an IAS officer. The modus operandi of the crime is Fraud and not force. The people involved in white-collar crimes use fraud, as a means to commit the crime. They do not use any kind of force to get their work done, instead, they use deceptive techniques to ensure a monetary gain. The acts are planned and conspired to be done without the involvement of any sentiments or feelings. The victims are sections of a community, society and the entire nation. The financial loss is greater than the blue-collar crimes. For example, The Nirav Modi Scam, The Sharda Chit Fund Scam, The Rose Valley Scam, etc had a huge impact on the common public as well the Indian economy.

What are the causes of White Collar Crimes?

People committing such crimes often convince themselves that their acts do not amount to crimes. This perception error occurs because white-collar crimes do not resemble street crimes like burglary, theft, etc. People commit White Collar Crimes because they feel that government regulations are such that they do not understand the problems of competing in a free enterprise system. People are not aware of such crimes so they fall prey to white-collar crimes. The nature of such crimes is different from traditional crimes. People commit white-collar crimes to fulfil their needs. Sometimes the circumstances force a person to commit such crimes. For example the sickness of a family member. People of high social status commit such crimes out of greed. To fulfil the desire of leading a sumptuous life, people resort to committing white-collar crimes. Due to the emergence of new technology, White Collar Crimes have gained momentum. Facilities such as internet banking, credit and debit cards, etc are major attractions for such offenders. People commit white-collar crimes to beat their competitors and get ahead of them. They resort to bribery, forgery, and fraud to be at the zenith of their career. Since these crimes are at the emerging stage, there is no proper legislation to control them. The existing legislations are either not strong enough or are not implemented efficiently.

What are the various categories of White Collar Crime?

Personal or ad-hoc Crime:- In this type of crime, the offender has personal motives to commit the crime. He has no direct relationship with the victim. The person commits the crime out of greed or sometimes by very serious real or perceived needs. Example: Tax fraud, Tax evasion, Credit Card Fraud.

Trust-based crimes: The offender exploits the information bestowed upon him by the employer or institution. He misuses the facts disclosed to him for economic gains. He has the power to cause harm to the other person, by use of his position and standing. Example: Use of employer’s property for personal purposes, Financial embezzlement by employees, creating ghosts on the payroll.

High-status crimes: The offender holds a high status within the society or the community. He is at a position where he can influence the working of an organization. Defrauding is not the sole purpose of the organization. The person committing the crime not only defeats the regulatory norms but also the trust of the people at large. Example: Offenders indulge in anti-trust violations, Collusive bidding, and corrupt practices to further personal or organizational interest.

White Collars Crimes committed as a part of the business. For example violation of Trade Mark, Copyright, Domain name and other parts of it.

There have been recent incidents of white-collar crimes in India that took to the nation with utter shock. The Punjab National Bank Scam involved a fraud of 11,000 crores. The Mastermind behind it is Nirav Modi, one of the richest men in the country. He is the owner of the company dealing with diamonds and pearls. There are many other scams such as the Sharda Chit Fund Scam in which many of the politicians were involved, The Rose Valley scam, The commonwealth games scam, The 2g scam etc. Various investigating agencies in India deal with such crimes. To name a few :

THE DIRECTORATE OF ENFORCEMENT: It is the law enforcement and economic intelligence agency responsible for enforcing economic laws and fighting economic crimes in India.

It is the law enforcement and economic intelligence agency responsible for enforcing economic laws and fighting economic crimes in India. CENTRAL BUREAU OF INVESTIGATION: It is the premier investigative agency in India for bribery and corruption

It is the premier investigative agency in India for bribery and corruption SPECIAL INVESTIGATIVE TEAM: It deals with special and sensitive matters related to bribery corruption and other economic offences.

It deals with special and sensitive matters related to bribery corruption and other economic offences. DELHI SPECIAL POLICE ESTABLISHMENT: It deals with the investigation of bribery and corruption by central government employees.

Various legislations for combatting economic offences in India are as follows :