Chanderprabhu Jain College of Higher Studies

&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

E-NOTES

CLASS & SECTION: LLM-1 Semester

SUBJECT CODE: CJS- 121
SUBJECT NAME: Law & Organized Crime

UNIT- 1I
Concept of organized crime
Organized crime means the commission of a crime at regular intervals in order to make money or
profits. Some examples could include human trafficking, money laundering, smuggling, etc.
Certain characteristics of organized crimes have been discussed hereafter to get a better
understanding of the concept.
Nature and characteristics of organized crime

 Presence of mens rea and actus reus

The very first step in any crime is the intention. The presence of mens rea and actus reus are the
two imperative essentials to prove that a certain crime has been committed. The former implies a
guilty mind i.e. a person being mindful of his/her actions and knowing that a successful attempt
would result in a crime and the latter implies a physical activity or omission by the person which
gives effect to the crime.

 Commission of crime
To commit a crime (including organized crime), there are four stages that needs to be fulfilled.
First, there should be an intention to commit a crime. Secondly, there must be some preparation
to give effect to the crime. Third, there should be an attempt, i.e., presence of some action in
pursuance of the crime being committed. Lastly, the attempt should be accomplished for the
commission of that crime.

Objective of earning profits

It is important to understand that the purpose of committing an organized crime is not to take
revenge or harm someone, rather it is a kind of illegal business or a way for people to earn
profits. However, the crime which is committed is incidental to such activity and ultimately,
there is some kind of physical and/or mental injury.

1
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Regularity
Another important characteristic of an organized crime is that it is not a one-time event, but
rather on a regular basis, just as a business. It is because of this aspect of continuity that the term
is referred to as ‘organised’, since a structure has been created wherein similar activities (crimes)
are being conducted regularly to earn profits.

Types of organized crimes

There are various activities that may be termed as organized crimes. Though there cannot be a
definite list, some of the most common types of organized crimes in India have been discussed
below.

 Money laundering
Money laundering is one of the most serious crimes which can severely affect any economy in
several aspects. This crime is specifically governed by the Prevention of Money Laundering Act,
2002. It is a way by which illegal money earned from sources such as drug trafficking, human
trafficking, etc. are diverted to create an impression that such money comes from a legitimate
source. Many criminals are engaged in this profession where they help people with an illegal
income to convert it into a legitimate income.

 Smuggling
Smuggling is another major economic offence in a form of organized crime. This is mostly
governed by the Customs Act, 1962. It is natural that the goods which are illegal in the territory
of India or heavily taxed are smuggled to continue their trade or maintain profits. With a change
in fiscal policy, the definition of smuggled goods vary but it is mostly items such as contraband
substances, valuable jewels, electronics, certain fabrics, etc. which are smuggled in India. Due to
the vast coastline, it becomes easy for people to smuggle goods.

 Drug trafficking
Drug trafficking is another major crime that poses a threat to the younger population of India,
considering its drastic effects on physical and mental health. It is usually considered that the
most important reason for the high rate of drug trafficking is the geographical condition of India.
It is located between the Golden Triangle (Myanmar, Thailand, and Laos) on the northeast and
Golden Crescent (Pakistan, Afghanistan, and Iran) on the northwest- both of which are the two
largest sources of illicit drugs in Asia. Resultantly, this form of organized crime has become
more prevalent and significant in the country.

 Human trafficking
Article 23 of the Indian Constitution explicitly prohibits human trafficking. Further, there are
various trafficking prohibition laws discussed in the latter part of the article. Human trafficking
is one of the most significant and heinous organized crimes. This involves women trafficking,

2
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

child trafficking, trading in sex workers, etc. A book titled “Indian Mafia” by S.K. Ghosh has
revealed that there are more than twenty-five lakh prostitutes in the country and roughly, three
lakh prostitutes get into the profession every year. Prostitution per se is not a crime but forcefully
dragging young girls or running a brothel imposes criminal liability. Moreover, human
trafficking is undoubtedly a crime.

Contract killings and kidnapping

These are governed by the Indian Penal Code. Contract killings means murdering someone for
money on a contractual basis. This is usually prevalent among the highly influential and public
personalities who are being murdered by their enemies/competitors through some other criminal
for a ransom. Similarly, kidnapping incidents are also prevalent wherein people pay a certain
sum of money to get someone kidnapped or these criminals ask someone for a ransom. Such
crimes are performed by organised criminals who do such tasks on a regular basis.

Laws governing organized crimes in India

 Criminal conspiracy

Section 120A of the Indian Penal Code, 1860 (IPC) deals with criminal conspiracy. Where two
or more persons agree to commit a crime, then they can be punished for criminal conspiracy. The
exception clearly provides that it is immaterial whether the object of such crime committed is the
main intention or incidental. Hence, organised crimes shall definitely be governed by this
provision. Further, Section 120B of the IPC imposes criminal liability which can extend up to
death punishment and even heavy fines.

 Specific crime under the IPC

Additionally, these organized criminals shall also be charged for the specific crime which they
have committed. For instance, criminals engaged in contract killings shall be liable under Section
300 and Section 302 of the IPC which deals with murder. Similarly, an organised criminal
engaged in kidnapping shall be dealt with under Section 360, Section 363 and Section 364A of
the IPC. A person engaged in human trafficking shall be charged under Section 370 and Section
370A of the IPC.

Organized crime-specific law

There is no central legislation on organised crime. However, owing to the high rates of organised
crimes in Mumbai, Maharashtra came up with the Maharashtra Control of Organised Crime Act,
1999. It provides for different provisions dealing with the evidence to be admitted, protection of
witnesses, presumption of the court to consider the accused as criminals on fulfilment of certain
conditions, etc.

3
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Preventive laws

 National Security Act, 1980

There are various preventive laws existent in India which are applicable to organised crimes,
explicitly and implicitly. One of them is the National Security Act, which provides for the
detention of individuals “acting in any manner prejudicial to the defence of India, the relations of India with foreign powers,
or the security of India”. The scope of the term ‘defence’ is very wide and it includes operations carried
out by gangsters and since the preventive detention is carried out by the executive, there is very
little role of courts to play.

 Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic

Substances Act, 1988

Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act is another
preventive law enacted with the aim of controlling the actions of people engaged in the illicit
trafficking of drugs and other narcotic substances. Under this law, a person can be detained for
upto one year if found to be engaged in drug trafficking. In certain cases, this period can be
further extended to one more year depending on the severity of the case.

Miscellaneous laws

Apart from these laws, there are various other laws that govern certain specific organised crimes.
To exemplify, the Narcotics Drugs and Psychotropic Substances Act, 1884 govern the cases
relating to trafficking of different narcotic substances; Customs Act, 1962 governs and imposes
liability for cases related to smuggling; Prevention of Money Laundering Act, 2002 governs the
cases relating to money laundering. Apart from these, there are many other laws such as
the Immoral Traffic (Prevention) Act, 1956; the Foreign Exchange Regulation Act, 1973,
the Public Gambling Act, 1867 etc.

Legal problems associated with organised crimes

 Law-making and enforcement

There is no central legislation specifically governing organised crime in India. It is important that
specialised steps are taken to curb this menace. Specific laws are required and the executive
needs to be empowered to take steps accordingly. Moreover, the enforcement should also be
stringent failing which, the whole object of enacting such a law would defeat.

4
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

 Slow trials

Though these organised criminals are tried under different laws, the whole process of trials is
very slow and there is a very low conviction rate because in most of the cases, in such a long
period of time, the witnesses deny to come out of fear and in some cases, the pieces of evidence
are lost.

 Obtaining proof

As mentioned earlier, most of the witnesses deny coming out of fear, so even if they are arrested,
they are later acquitted because of insufficient evidence and longevity of time. These players are
really strong and influential in their area of operations and naturally, people would not wish to
risk their lives by providing statements against them.

 Lack of resources

A major part of the country is still unorganised and lack of proper resources and technology
become an obstacle in way of curbing organised crime. The lower-ranked police officers are not
given sufficient powers and a statement before them is not an admissible evidence. Further, these
officers do not have sufficient equipment to tap these criminals.

 Lack of coordination

Since there is no central agency controlling these activities, every state has its own way of
functioning. These criminals do not stay for long at one place and keep migrating every now and
then. In such cases, due to lack of coordination, it becomes difficult and sometimes, impossible
to catch them.

Conclusion

The aforesaid discussion reveals the concept of organised crime where the ultimate intention of
the criminals is not to harm someone but rather make profits, however, some form of injury is
caused. Some common features of these crimes have also been mentioned above. Such crimes
occur in various forms including drug trafficking, human trafficking, money laundering, contract
killings, etc. There are various central and state laws such as the Indian Penal Code, PMLA,
NDPS Act, preventive laws, etc. to govern and curb organised crimes. Despite the existence of
various legislation, the State has not been successful in curbing these crimes to a considerable
extent. This is because of various challenges faced by the State such as lack of proper
enforcement, lack of resources, slow trials, difficulty in obtaining proof, etc. In light of these
circumstances, it is imperative that the Parliament bring in some laws specifically governing
organised crimes and form diplomatic relations with other nations since many of these crimes are
transnational in nature.

5
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Drug addiction
Addiction is defined as a chronic, relapsing disorder characterized by compulsive drug seeking
and use despite adverse consequences.† It is considered a brain disorder, because it involves
functional changes to brain circuits involved in reward, stress, and self-control. Those changes
may last a long time after a person has stopped taking drugs.11
Addiction is a lot like other diseases, such as heart disease. Both disrupt the normal, healthy
functioning of an organ in the body, both have serious harmful effects, and both are, in many
cases, preventable and treatable. If left untreated, they can last a lifetime and may lead to death.
Reason behind drug consumption
In general, people take drugs for a few reasons:
 To feel good. Drugs can produce intense feelings of pleasure. This initial euphoria is
followed by other effects, which differ with the type of drug used. For example, with
stimulants such as cocaine, the high is followed by feelings of power, self-confidence,
and increased energy. In contrast, the euphoria caused by opioids such as heroin is
followed by feelings of relaxation and satisfaction.
 To feel better. Some people who suffer from social anxiety, stress, and depression start
using drugs to try to feel less anxious. Stress can play a major role in starting and
continuing drug use as well as relapse (return to drug use) in patients recovering from
addiction.
 To do better. Some people feel pressure to improve their focus in school or at work or
their abilities in sports. This can play a role in trying or continuing to use drugs, such as
prescription stimulants or cocaine.
 Curiosity and social pressure. In this respect, teens are particularly at risk because peer
pressure can be very strong. Adolescence is a developmental period during which the
presence of risk factors, such as peers who use drugs, may lead to substance use.

Risk Factors Protective Factors

Aggressive behavior in childhood Self-efficacy (belief in self-control)

Lack of parental supervision Parental monitoring and support

Low peer refusal skills Positive relationships

Drug experimentation Good grades

Availability of drugs at school School anti-drug policies

Community poverty Neighborhood resources

What environmental factors increase the risk of addiction?

Environmental factors are those related to the family, school, and neighborhood. Factors that can
increase a person's risk include the following:

6
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

 Home and Family. The home environment, especially during childhood, is a very
important factor. Parents or older family members who use drugs or misuse alcohol, or
who break the law, can increase children's risk of future drug problems.
 Peer and School. Friends and other peers can have an increasingly strong influence
during the teen years. Teens who use drugs can sway even those without risk factors to
try drugs for the first time. Struggling in school or having poor social skills can put a
child at further risk for using or becoming addicted to drugs.

What other factors increase the risk of addiction?

Early use. Although taking drugs at any age can lead to addiction, research shows that the earlier
people begin to use drugs, the more likely they are to develop serious problems. This may be due
to the harmful effect that drugs can have on the developing brain. It also may result from a mix
of early social and biological risk factors, including lack of a stable home or family, exposure to
physical or sexual abuse, genes, or mental illness. Still, the fact remains that early use is a strong
indicator of problems ahead, including addiction.

How the drug is taken

Smoking a drug or injecting it into a vein increases its addictive potential. Both smoked and
injected drugs enter the brain within seconds, producing a powerful rush of pleasure. However,
this intense high can fade within a few minutes. Scientists believe this powerful contrast drives
some people to repeatedly use drugs to recapture the fleeting pleasurable state.

Human Trafficking
According to the UN Office on Drugs and Crime (UNODC)- “human trafficking is the
recruitment, transfer, transport, receipt or harboring of people through fraud, force or deception
with the primary aim of exploiting them for profit.”
Men, women, and children irrespective of their age and background can become victims of
traffic occurring in every part of the world.
The most common means used by traffickers to trick and coerce the victims are- fraud
employment agencies, fake job opportunities, promises for a better life, and education promises.
Human trafficking constitutes modern slavery and is a multi-billion-dollar organized
International crime. The victims of trafficking are considered as just commodities that can be
sold for financial gains.
The victims are mostly women and children who are targeted for their vulnerability and after
trafficking they are stripped of their freedom and autonomy and are forced to work in unhealthy
and precarious conditions.
Trafficking victims face mental and physical abuse. Trafficking in humans is linked to other
crimes such as illicit money flow, using Fake travel documents, and cybercrime.

7
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Types of Trafficking in Humans

Following are the four broad categories of human trafficking:

 Child Trafficking

Child trafficking in simple terms is meant taking children out of their native environment and
praying on their vulnerability for the purpose of exploitation.
Interestingly trafficking in children on national and international levels is found closely linked
with the demand for cheap and docile labor in sectors where the treatment of children and
working conditions grossly violates the child’s rights.
Such environments are chiefly characterized by unacceptable and dangerous working
environments for children which are detrimental to their health and overall development.
Child trafficking includes- bonded labor, child domestic labor, prostitution, sexual exploitation
for commercial purposes, camel jockeying, child soldiering, and slavery-like practices in the
informal industrial sector.

 Women Trafficking

This form of trafficking particularly target girls and women in the most disadvantaged and
vulnerable positions.
Women in particular are the most vulnerable group to human trafficking in the entire human
society.
Primarily women and girls are trafficked for the purpose of commercial and sexual exploitation.
Prostitution is one of the most common reasons for women trafficking today.
Traffickers often recruit women or buy them from backward areas on the pretext of either
finding them work or other false promises.
While in reality these women are abused and raped by their recruiters after which they are sent to
brothels or underground prostitution rings.
Women sold into prostitution are often forbidden from using contraception and consequently
become high-risk individuals for the spread of many sexually transmitted diseases (STDs).

 Organ Trafficking

Organ trafficking is a very less discussed form of human trafficking due to its stealth and
intricate nature. Organ trafficking is a lucrative Global trade and holds a very critical spot in
international organized crime due to high demand and lesser vigil of law enforcement agencies.
Organ trafficking leaves the donors and recipients open to exploitation and lifelong chronic
health consequences.
The illicit business of organ trafficking works in the shadow world and the financial trail is the
only evidence that can potentially unmask the organ traders.
According to Global Financial Integrity (GFI) estimates 10% of all organ transplants are done
using trafficked organs.

8
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Kidneys are the most prominent organs that are traded illicitly, while corneas, lungs, heart, and
liver are the other traffic organs.
The organ trafficking nexus is so stealthy in nature that it can hide in the plane site behind
reputed Hospital Chains in major cities but the makeshift operation rooms in houses are the
primary locations for such illicit transplants.
These organs are sourced from donors often belonging to a vulnerable backward and poor
society or in need of money.
Organ traffickers could also be sourcing the organs from victims of other forms of human
trafficking including sex or labor trafficking victims.

 Debt Bondage

It is a form of Human Labor Trafficking and is the most widely used method to force people into
slavery.
People generally borrow money from traffickers in order to secure a falsely promised job abroad.
After reaching the destination their passports are taken either by duping them or forcefully and
are not given back until they pay back an unreal, ever-increasing debt.
This ultimately results in debt bondage which generally lasts for a lifetime.

Causes of Trafficking
Human trafficking is an opportunistic crime that feeds on the vulnerabilities of the victim. These
vulnerabilities rises from a number of causes and situations. The most prominent causes of
human trafficking are discussed below:

 Poverty

Poverty is the most compelling factor for human trafficking. Although human trafficking
occurs in every country its incidence is very high in countries affected by extreme poverty.
Even in India the extremely poor regions are automatically prone to human trafficking.
Potential victims of trafficking are the ones having the desire to move out of poverty to a better
place. This desire of victims is exploited by traffickers.
Family aspirations and personal desires are the vulnerability of victims in poor regions.
As a result the victims are coerced by the traffickers on the pretext of false promises and are
trafficked to places where they are forced into activities like prostitution, sex slavery, and hard
labor.
Consequently, the victims of trafficking ironically end up in places much worse than the poor
locality they were already living at.

 Social Factors

Other than poverty there are a number of social factors responsible for human trafficking.
In societies where females are less valued they automatically become potential victims of
human trafficking.

9
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Lack of anti-human trafficking law enforcement also plays a major role.

Moreover, lack of education is also a big contributor as less educated or uneducated people
completely fail to understand the hidden intention of traffickers and become easy targets.
Sometimes women are also duped by the traffickers who pose as their saviors and promise to
save them from domestic violence and migrate them to a new and better home with employment
opportunities and better life.

 Migration

Altho migration and trafficking seem separate phenomena but they are very closely linked to
each other. Migration is an ancient phenomenon and is going on since time immemorial but
modern immigration laws make it difficult to enter any country legally, therefore,
providing scope for illegal migration.
Mostly poor and backward people try to migrate illegally to any country and in this process, they
might rely on smugglers and traffickers and in the process become vulnerable to trafficking.
Migrant workers are three times more likely (as compared to local workers) to end up in forced
labor exploitation.
The 2022 World Migration Report states that out of all the identified trafficking victims
worldwide 45% had been trafficked across international borders.
Even after such a grim situation most international migration agendas do not explore the link
between human trafficking and migration.

 Other Issues
1. Lack of protection of basic Human Rights.
2. Cultural factors.
3. Wars and conflict situations.
4. Natural disasters.
5. Climate change and global warming.
6. Profit motive.
7. Highly stratified society.
8. Intimidation and deception.
9. Demand for cheap labor and sex.
10. Lack of employment opportunities/unemployment.

The Extent of Human Trafficking

 Human trafficking is the second-largest and one of the fastest-growing crime industries in
the world.
 According to an estimate by the International Labour Organisation (ILO), International
Organization for Migration, and Walk Free, around 27 million people were living in
modern slavery in the year 2021.
 What is even more concerning is the fact that over the last 10 years, almost 80% of
human trafficking happened through official border control points which also include
airports.

10
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

 24.9 million people are working as forced labor worldwide at any given time.
 Around 34% of all human trafficking cases involve children.
 A staggering 150 billion dollars is generated annually by forced labor globally.
 Only a meager 0.04% of cases related to human trafficking are reported to proper
authorities.
 According to the United Nation Office for Drugs and Crime Report- sexual exploitation
at 79% is the most common form of human trafficking, of which girls and women are the
most common victims. Ironically, the largest proportion of all traffickers linked
especially to women trafficking are women themselves.
 Forced labor is the second most common form of human trafficking with 18% of the total
share.
 Children make up 21% of all victims of sexual exploitation.
 Women and girls constitute 71% of all human trafficking victims.
 International trafficking is generally thought to be the most common form of trafficking
but in reality, domestic and intra-regional human trafficking is a major form.

The Indian Context

 As far as India is concerned according to the National Crime Record Bureau (NCRB)
data-
 Police filed charge sheets in 84.7% of all the human trafficking cases registered in 2021
under the Anti-human Trafficking Units (AHTUs) out of which the conviction rate is just
16%.
 In 2020 1714 human trafficking cases were reported under the IPC. In these cases, the
acquittal rate was a surprising 89%.
 According to the United States trafficking in persons report 2022 India still remains on
the Tier 2 watch list of human trafficking as it still does not fully meet the minimum
standards required for the elimination of trafficking but significant progress is made over
the past few years.
 In India cross border trafficking mostly takes place from neighboring countries including
Nepal, Bangladesh, Myanmar, and Sri Lanka. Trafficking victims are smuggled to India
from these countries while the Middle East remains the biggest receiving hub of
human trafficking victims. India also functions as a crucial transit point for human
trafficking.
 In India an estimated 5 lakh children are working in the prostitution industry.
 India has the largest number of child laborers in the world with around 13 million
children involved in hazardous employment.

Consequences of Human Trafficking

Human trafficking has deep and far-reaching consequences for the victims. It changes their life
upside down and gives a great deal of trauma to the victims. Additionally, human trafficking also
impacts society, the economy, and the country as a whole. Broadly the consequences of human
trafficking can be understood under the following categories

11
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

1. Psychological Consequences

 Retardation in the life of victims.

 Human trafficking brings anxiety and depression to victims along with mental trauma.
 Victims become self-conscious and are ashamed of themselves and their past.
 In many cases the victims isolate themselves from society.

2. Physical Consequences

 While transporting trafficking victims especially children and women suffer physical
injuries, dehydration, exhaustion and some might even die en route.
 Sexual assault of human trafficking victims leaves a deep scar on their minds and
damages the body of the victim as well.
 Children suffer extreme physical hardship while working as child laborers.

3. Social Consequences

 Social life of women and girls victims of human trafficking is completely destroyed and
they lose all the respect in society.
 Society looks upon the victims of human trafficking as criminals rather than taking a
compassionate approach.
 Children victimized by trafficking may never go to school again.
 Victims who try to come out in the open may face slang or taunts within the family
outside spaces and at workplaces as well.
 Families of such victims are at the receiving end and face many social hardships.

Frameworks to Counter Human Trafficking in India

India has a strong and resilient legal and constitutional framework for the prevention of and
protection against human trafficking.

Constitutional Protection

The constitution of India under Article 23 provides protection against traffic persons and forced
labor. Along with this the constitutional provisions of the Right to Equality, right to life and
personal liberty also provides certain protections against human trafficking.
IPC Indian Penal Code 1860
 The punishment for human trafficking is elaborated under sections 370 and 370A of the
IPC
 Section 370, IPC
 It deals with crimes including any act of-
1. Physical or sexual exploitation of any form.
2. Slavery or practices similar to it.

12
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

3. Servitude (slavery).
4. Forced removal of organs.

Punishment- There is a severe punishment for this crime which ranges from rigorous
imprisonment for 7 years to imprisonment for the rest of the natural life of that person along with
a liability to fine.
More strict punishments are prescribed for the Public Servants and Police officers involved in
Human Trafficking.
Section 370A, IPC
 It deals with the crime of exploitation of trafficked children and persons i.e. exploitation
of the victims of trafficking.

Punishment- Person found guilty of engaging a child in sexual exploitation shall be punished
with rigorous imprisonment ranging from 5-7 years along with a fine.
Person found guilty of engaging in sexual or other kinds of exploitation of a trafficked person
shall be punished with rigorous imprisonment ranging from 3-5 years and is also liable to a fine.

Immoral Trafficking Prevention Act, 1986

 The International Convention for the Suppression of Immoral Traffic in Persons and the
Exploitation of the Prostitution of Others Act was ratified by India in 1950.
 In order to implement the provisions of this act the Government of India enacted the
Suppression of Immoral Traffic in Women and Girls Act in 1950.
 The Act was further amended in 1986 and was renamed The Immoral Trafficking
Prevention Act.
 The Act primarily deals with various offenses like exploiting persons in prostitution and
pushing them into brothels.

The Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Act, 1989

 This act provides additional safeguards against human trafficking to women and girls
belonging to SC/ST communities.
 Section 3 of the act deals with the punishment for the atrocities committed against the
people of SC/ST communities and covers offenses including forced labor, bonded labor,
and sexual exploitation of women and girls.

Juvenile Justice (Care and Protection of Children) Act

 This act implements the provisions of the United Nations Convention on the Rights of
Child (1990)
 It mainly aims to strengthen and amend the laws concerned with children in conflict with
the law and those in need of care and protection.

13
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

Trafficking of Persons (Prevention Protection and Rehabilitation) Bill, 2018

 The provisions of the bill mainly deals with the issue of Trafficking from the prevention,
protection, and rehabilitation point of view.
 The bill seeks the completion of the trial and repatriation of victims in a time-bound
manner (within a period of 1 year).
 Establishment of special trial courts in all the districts.

Creation of an exclusive Rehabilitation fund

 The National Investigation Agency (NIA) will be designated the task of the Anti-
trafficking Bureau at the National level.

International Framework / Institutions for Countering Human Trafficking

The international framework against human trafficking is a robust one and is working tirelessly
to prevent this inhumane crime. Following are the notable interventions at the international level:
 International Agreement for Suppression of White Slave Traffic (1904)
 International Convention for the Suppression of Traffic in Women and Children (1921)
 The Slavery Convention (1926)
 Forced Labor Convention of ILO (1930)
 International Convention for Suppression of Traffic in Women of Full Age.
 The Universal Declaration of Human Rights (1848)
 The Convention for Suppression of Traffic in Persons and of Exploitation of Prostitution
of Others (1949)
 The Convention on Protection of the Rights of Migrant Workers (1990)
 The United Nations Protocol to Prevent Suppress and Punish Trafficking in Persons,
especially Women, and Children (2000)
 Along with the above interventions the United Nations Office on Drugs and Crime
(UNODC) established in 1997 is the specialized agency of the United Nations to fight
against Trafficking in Human.

Illicit trafficking of women & children

Trafficking in Women and Children is the gravest form of abuse and exploitation of human
beings. Thousands of Indians are trafficked everyday to some destination or the other and are
forced to lead lives of slavery. They survive in brothels, factories, guesthouses, dance bars, farms
and even in the homes of well-off Indians, with no control over their bodies and lives.

The Indian Constitution specifically bans the traffic in persons. Article 23, in the Fundamental
Rights section of the constitution, prohibits "traffic in human beings and other similar forms of
forced labor". Though there is no concrete definition of trafficking, it could be said that
trafficking necessarily involves movement /transportation, of a person by means of coercion or
deceit, and consequent exploitation leading to commercialization. The abusers, including the

14
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

traffickers, the recruiters, the transporters, the sellers, the buyers, the end-users etc., exploit the
vulnerability of the trafficked person. Trafficking shows phenomenal increase with globalization.
Increasing profit with little or no risk, organized activities, low priority in law enforcement etc.,
aggravate the situation. The income generated by trafficking is comparable to the money
generated through trafficking in arms and drugs.

Trafficking in human beings take place for the purpose of exploitation which in general could be
categorized as (a) Sex -based and (b) Non-Sex-based. The former category includes trafficking
for prostitution, Commercial sexual abuse, Pedophilia, Pornography, Cyber sex, and different
types of disguised sexual exploitation that take place in some of the massage parlors, beauty
parlors, bars, and other manifestations like call girl racket, friends clubs, etc. Non sex based
trafficking could be for different types of servitude, like domestic labor, industrial labor,
adoption, organ transplant, camel racing marriage related rackets etc. But the growing traffic in
women is principally for the purpose of prostitution. Prostitution is an international problem
which can be found in both developing and industrialized nations. Unfortunately, society remains
tolerant of this abominable crime against women. There are ways of getting women into
prostitution that are common to many countries; then there are particular methods unique to a
country. Probably the three most common methods are false employment promises, false
marriages and kidnapping. But what makes women and girls vulnerable are economic distress,
desertion by their spouses, sexually exploitative social customs and family traditions.

The Suppression of Immoral Traffic in Women and Girls Act of 1956 (SITA) and the
Immoral Traffic (Prevention) Act of 1986 (ITPA), colloquially called PITA, an amendment
to SITA.
Neither law prohibits prostitution per se, but both forbid commercialized vice and soliciting.
Aside from lack of enforcement, SITA is problematic in several ways. One of its drawbacks is
that the prescribed penalties discriminate on the basis of sex: a prostitute, defined under SITA as
always a woman, who is arrested for soliciting under SITA could be imprisoned for up to a year,
but a pimp faces only three months. SITA allowed prosecution of persons other than the
prostitutes only if the persons involved "knowingly" or "willingly" made women engage in
prostitution. Accordingly, pimps, brothel owners, madams, and procurers could feign ignorance
of prostitution and escape punishment. The client, moreover, was not viewed as an offender and
could not be sanctioned under SITA. Finally, SITA only addressed street prostitution;
prostitution behind closed doors was left alone a loophole that actually promoted the
establishment of brothels.

SITA, a penal law, was passed in 1956 and enforced in 1958 as a consequence of India's signing
the Trafficking Convention, rather than as a result of any mass social welfare movement. SITA
did not seek the "abolition of prostitutes and prostitution as such and to make it per se a criminal
offence or punish a person one prostitutes oneself." Its stated goal was "to inhibit or abolish
commercialized vice, namely the traffic in persons for the purpose of prostitution as an organized
means of living." Prostitution was defined as the act of a female who offers her body for
promiscuous sexual intercourse for hire. Accordingly, the engagement by a woman in individual,
voluntary, and independent prostitution was not an offense.

15
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

The law permitted penalization of a woman found to be engaged in prostitution under certain
conditions. For example, Section 7(1) penalized a woman found engaged in prostitution in or
near a public place. Section 8(b) did the same for a woman found seducing or soliciting for
purposes of prostitution. The law also permitted a magistrate to order the removal of a person
engaged in prostitution from any place and to punish the person upon refusal. Offenses under
SITA were bailable, but a woman picked up from the street by the police usually did not have
either the money or the influence to keep her out of custody or free.

Several studies across India have shown that this is the most abused section of the ITPA, used
more as a tool for harassment and extortion by the law enforcement. Women are apprehended
from known red-light areas whereas their brothel keepers and pimps are left untouched. In cases
of organized prostitution, this results in continual debt bondage for the amount paid by her
keepers as a fine or as a bail amount. In fact, sometimes the brothel keepers are alleged to
collude with policemen and arrange the arrests of "their" women so they can continue to serve in
bondage.

India is said to have adopted a tolerant approach to prostitution whereby an individual is free to
carry on prostitution provided it is not an organized and a commercialized vice. However, it
commits itself to opposing trafficking as enshrined in Article 23 of the Constitution which
prohibits trafficking in human beings. India is also a signatory to international conventions such
as the Convention on Rights of the Child (1989), Convention on Elimination of all forms of
Discrimination Against Women (1979), UN Protocol to Prevent, Suppress and Punish
Trafficking in Persons, especially Women and Children (2000) and the latest South Asian
Association for Regional Cooperation (SAARC) Convention on Preventing and Combating
Trafficking in Women and Children for Prostitution (2002).

The lack of understanding of trafficking by the legal system could arise from one or more of
these factors: first, there is no definition of "trafficking" or "trafficker" under the Act. Therefore,
the police and the judiciary do not have an understanding of the complexities involved when a
woman is trafficked, the different types of traffickers, and their strategies. Neither does the court
attempt to hear the trafficked woman and her experiences. Second, the Act also focuses on
establishing "the purposes of prostitution" for every offence which conveniently takes the
attention away from trafficking. For example, even to convict a trafficker for the act of keeping a
brothel, it becomes important to establish that prostitution was taking place. So, when a woman
who is trafficked is kept in captivity for a period of time, it cannot amount to an offence unless
the place satisfies the criteria of a "brothel." Similarly we find that in every case involving a raid
there is also an elaborate description of how the woman was clothed when the raiding party
found her in order to prove that she was getting ready for sexual intercourse with the decoy
witness and thus her existence for the "purpose of prostitution" could be established beyond
"reasonable doubt." That the clothing or actions of a woman at that point of time should not
negate the fact that she was trafficked seems to slip away from the adjudication process.

16
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

The Act thus misses out on what actually constitutes trafficking--the elements of force,
deception, and coercion, which go on overtly and covertly over a period of time. Thirdly, in spite
of the definition of prostitution having changed from "the act of a female offering her body for
promiscuous sexual intercourse for hire, whether in money or in kind, and whether offered
immediately or otherwise" to "sexual exploitation or abuse of persons for commercial purpose,"
there is no perceptible attitude shift in the lawmakers and enforcers from taking efforts to curb
prostitution to curbing trafficking. Moreover no powers are given to the Magistrate to order
eviction of traffickers.

Thus there exists a need for a specialized legislation in India to deal with trafficking even though
the existing Indian Penal Code (IPC), 1860, deals with the offences of kidnapping, abduction,
and buying and selling of minors (Sections 359-373 of IPC). The IPC is narrower in scope to
deal with the wide range of activities involved in trafficking which do not neatly fit into
"kidnapping" or "abduction." For example luring, coaxing individuals in vulnerable positions
with false promises of better jobs, contract work as domestic workers, mail order brides, and
situations where the women are sold in connivance with the parents or husband. The IPC is thus
less adept in dealing with the nuances involved in organized trafficking.

Economic Crime
Introduction
An economic crime, as the name indicates, is a crime that has an adverse impact on the economic
standing of an individual or group of persons, a company or many such institutions, or the
government (State or Central), thus affecting the economic condition of a certain nation.
These crimes differ from crimes against persons because they do not directly affect the physical
state of the person aggrieved. In simpler words, an economic offence, say fraud, is different from
assault because the former implies the illegal extraction of money from a person’s bank account,
whereas the latter implies creating actual fear of imminent physical injury in a person’s mind
and/or causing actual physical injury to said person.
Such crimes are also called white-collar crimes or blue-collar crimes. They are different from
crimes against persons as they lack the element of violence, happen after careful deliberation,
and are oftentimes committed by groups of individuals, especially those who have a say over
others, i. e., those with influence, such as directors of a company, general managers, politicians,
bureaucrats etc.
Economic offences are symbolic of an ailing government and give evidence of a corrupt
bureaucracy and executive, the market and institutions. The following definition may be handy
here:
“Corruption… has a wide range of corrosive effects on societies. It undermines democracy and
the rule of law… distorts markets, erodes the quality of life and allows organised crime,
terrorism and other threats to human security to flourish.”

Another definition of economic crime is as follows:

“Economic crimes are a manifestation of criminal acts done either solely or in an organised
manner with or without associates or groups with the intent to earn wealth through illegal means,

17
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

and carry out illicit activities violating the laws of the land, other regulatory statutory provisions
governing the economic activities of the Government and its administration.”
There are certain characteristics of economic crimes that make it different from other crimes, or
crimes against the individual. These are: The intention behind an economic crime is to gain some
material profit or escape material loss, or to cause the aggrieved person some material loss. Here,
material profit and loss also includes pecuniary (monetary) profit or loss. Such offences contain
elements of criminal breach of trust, deception, fraud or cheating. Economic offences do not
cause physical/bodily harm to a person, but adversely impact his/her financial health; companies
or other financial institutions too can be targeted.
Such crimes have a negative effect on a country’s financial standing. These offences are
committed by privileged or well-off sections of the population – people with influence in the
economic or political spheres of society, who have access to secure, sensitive information as well
as the reach to commit said offences.

Kinds of economic crimes

Economic offences can be broadly classified into three types, which are as follows (However,
this categorization is not exhaustive):
Traditional economic offences like corruption, smuggling, false imports, etc.
Emerging or modern economic offences such as credit card theft/fraud, counterfeiting of
currency, UPI fraud, cyber crimes, etc. Cross-border economic offences which consist of
offences such as money laundering. Now, we shall look at some of the aforesaid economic
offences in brief.
1. Blackmail – not entirely an economic offence, but has an economic aspect to it. It is a
threat to do bodily harm to a person, in order to coerce another person to give something
valuable – money, a precious object, sensitive information, property, etc.
1. Bribery – a very common kind of economic offence – this is an act in which money, or
any other valuable object is given or accepted, in expectation of or in return for favours
related to say, employment opportunities, promotions, bureaucratic circumvention, etc.
Government officials, politicians, members of the executive body of the states and nation
oftentimes give or accept bribes. It is a crime to both give and accept a bribe.
2. Credit card fraud – unauthorized access and use of a person’s credit card to purchase
something of value, or siphon money.
3. Forgery – Passing off a fake negotiable instrument as genuine, so as to defraud or cheat
the recipient.
4. Insider trading – When a person/employee, working at a company or institution has
sensitive, confidential information related to the business, and uses it to trade in shares of
publicly held corporations.
5. Insurance fraud – across kinds of insurance, when the insurer defrauds the insured of
his or her funds.
6. Money laundering – the investment or transfer of money from racketeering, drug
transactions or other embezzlement schemes so that it appears that its original source
either cannot be traced or is legitimate.
7. Embezzlement – a person entrusted with the safekeeping of money or property, seizing it
for his or her own benefit.

18
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

8. Racketeering – a broad term which covers any illegal business transaction done for
personal gain.
9. Tax evasion – different from tax avoidance, which is legal (tax avoidance is finding
nitpicks in the law to legally “escape” from payment of avoidable taxes). Tax evasion is
the illegal hiding of income, which in turn allows persons to file lower tax returns,
therefore enabling them to save money.

Money Laundering
Money laundering is concealing or disguising the identity of illegally obtained proceeds so
that they appear to have originated from legitimate sources. It is frequently a component of other,
much more serious, crimes such as drug trafficking, robbery or extortion.
According to the IMF, global Money Laundering is estimated between 2 to 5% of World GDP.

Money laundering working

It involves three steps: placement, layering and integration.

 Placement puts the "dirty money" into the legitimate financial system.
 Layering conceals the source of the money through a series of transactions and
bookkeeping tricks.
 In the case of integration, the now-laundered money is withdrawn from the legitimate
account to be used for criminal activities.
 Bulk Cash Smuggling
 Cash intensive Businesses
 Trade based Laundering
 Shell companies
 Round tripping
 Gambling
 Black salaries
 Tax amnesties
 Transaction laundering
 Impacts of Money Laundering

Economic Impacts:

 Undermines legitimacy of private sector

 Undermines integrity of financial markets
 Loss of control of economic policy
 Economic distortion and instability
 Loss of revenue
 Security threats to privatisation efforts
 Volatility in exchange rates and interest rates due to unanticipated transfers of funds
 Rise of economic prices

19
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

 Affects trade and international capital flows

Social Impacts:

 Increased criminality
 Decreases human development
 Misallocation of resources
 Affects trust of local citizens in their domestic financial institutions
 Declines the moral and social position of the society by exposing it to activities such as
drug trafficking, smuggling, corruption and other criminal activities

Political Impacts:

 Initiates political distrust and instability

 Criminalization of politics

Steps Taken by Government of India to Prevent Money Laundering

 Criminal Law Amendment Ordinance (XXXVIII of 1944): It covers proceeds of only

certain crimes such corruption, breach of trust and cheating and not all the crimes under
the Indian Penal Code.
 The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act,
1976: It covers penalty of illegally acquired properties of smugglers and foreign
exchange manipulators and for matters connected therewith and incidental thereto.
 Narcotic Drugs and Psychotropic Substances Act, 1985: It provides for the penalty of
property derived from, or used in illegal traffic in narcotic drugs.

Prevention of Money-Laundering Act, 2002 (PMLA)

 It forms the core of the legal framework put in place by India to combat Money
Laundering.
 The provisions of this act are applicable to all financial institutions, banks(Including
RBI), mutual funds, insurance companies, and their financial intermediaries.

PMLA (Amendment) Act, 2012

 Adds the concept of ‘reporting entity’ which would include a banking company,
financial institution, intermediary etc.
 PMLA, 2002 levied a fine up to Rs 5 lakh, but the amendment act has removed this upper
limit.
 It has provided for provisional attachment and confiscation of property of any person
involved in such activities.

20
 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi & Approved by Bar Council of India)

 Financial Intelligence Unit-IND: It is an independent body reporting directly to

the Economic Intelligence Council (EIC) headed by the Finance Minister.

Enforcement Directorate (ED)

 It is a law enforcement agency and economic intelligence agency responsible for

enforcing economic laws and fighting economic crime in India.
 One of the main functions of ED is to Investigate offences of money laundering under the
provisions of Prevention of Money Laundering Act, 2002(PMLA).
 It can take actions like confiscation of property if the same is determined to be proceeds
of crime derived from a Scheduled Offence under PMLA, and to prosecute the persons
involved in the offence of money laundering.

India is a full-fledged member of the FATF and follows the guidelines of the same.

Global efforts to combat Money Laundering

 The Vienna Convention: It creates an obligation for signatory states to criminalize the
laundering of money from drug trafficking.
 The 1990 Council of Europe Convention: It establishes a common criminal policy on
Money Laundering.
 G-10’s Basel Committee statement of principles: It issued a “statement of principles”
with which the international banks of member states are expected to comply.
 The International Organization of Securities Commissions (IOSCO): It encourages
its members to take necessary steps to combat Money Laundering in securities and
futures markets.
 IMF: It has pressed its 189 member countries to comply with international standards to
thwart terrorist financing.

21