INTRODUCTION

What is crime ?
An action committed or omitted, which constitutes an offence and is
punishable by law, is a crime. Crime is an unlawful act that is
forbidden and punished by the State or the law. In other words,
anything which is injurious to public welfare is a crime.
Generally speaking, crime is a human conduct that society generally
disapproves of. But in the modern sense, crime is any act that is
prohibited by the penal law in force, and the result of this is
punishment.

Definition of Crime According to Renowned Jurists

 According to Bentham, “offences are whatever the legislature

has prohibited for good or for bad reasons.”

 According to Austin, “a wrong which is pursued at the discretion

of the injured party and his representatives is a civil injury; a
wrong which is pursued by the sovereign or his subordinates
is a crime.”

 According to Paul W. Tappen, “an intentional act or omission in

the violation of criminal law, without justification and
sanctioned by the law as felony or misdemeanour.”

 Blackstone has defined crime in his “Commentaries on The

Laws of England.” He defined it as “an act committed or
omitted in violation of a public law either forbidding or
 commanding it.” He also defined crime as “violation of the
public rights and duties due to the whole community,
considered as a community, in its social aggregate capacity.”
The editor of Blackstone, Stephen, has made slight changes in
the definition and presented it as “a crime is a violation of a
right, considered in reference to the evil tendency of such
violation as regards the community at large.”

FOOT NOTE : Subhashini Parihar/ Definition of Crime and Its

Essential Elements – Indian Penal Code/
https://www.writinglaw.com/crime-ipc-definition/

WHITE COLLAR CRIME

White Collar Crime is mainly non-violent crime committed for financial gains
and it leads to distress and loss to other people. It is a generic term and the
term includes corporate fraud, money laundering, insider trading,
embezzlement etc.

Definition:The most influential criminologist of the 20th century and also a

sociologist,
Edwin H. Sutherland, for the first time in 1939, defined white collar crimes as
“crimes committed by people who enjoy the high social status, great repute,
and respectability in their occupation”.
The five attributes of the given definition are:
1.It is a crime.
2.That is committed by an important person of the company.
3.Who enjoys a high social status in the company.
4.And has committed it in the course of his profession or occupation.
5.There may be a violation of trust.

Nature of White Collar Crimes/Socio Economic Offences

1.Motive: In WCC, the particular motive of criminal is not lust or hate rather
the motive is greediness or ravenousness.
2.Background: The background of WCC is non-emotional as there is no
existence of any emotional reaction between the offender and the victim.
3.Absence of Men’s Rea: The act which results in commission of WCC is
generally a deliberate and willful act. Under the traditional criminal
jurisprudence, the criminal liability is incorporated in the principle of Mens
Rea.Thus for imposing penal liability two conditions must be satisfied,
wrongful act and a guilty mind. However, with respect to socio–economic
offenses, the tendency of the legislature is to curtail the requirement of
Mens rea for criminal liability.
4.Victim: The victim of WCC is usually the state or a section of the public,
particularly the consuming public which consumes food or services buys
shares of securities or other intangibles.
5.Mode of Operation: The modes of operation of WCC is through fraud
6.Nature of Liability: The liability of offender of WCC is generally strict
orabsolute because such offenses cause more harm to society than ordinary
crimes because of greater financial losses and because of damage inflicted on
public morals.
7.Burden of Proof: In WCC the burden does not lie on the prosecution but it is
on the offender. In these offenses, there is Presumption against the offender
that he was involved in the commission of the offense
and he has to disprove it.
In State of Maharashtra v. M.H George, AIR 1956 SC 722,
S.C observed that Socio-economic offenses are dealt
under special enactments and social welfare legislation.
Due to the peculiar nature ,they are planned and
executed in secrecy by sophisticated means and their
detection is usually difficult.
FOOT NOTES (IN THE PAGE WHERE YOU WRITE THE CASE
ABOVE MENTIONED) : AIR 1956 SC 722
 Characteristics:
1. It involves violation of legal codes
2. It takes place directly or indirectly in connection with a
legitimate occupation. 3.It aims at gaining money
4. The crime is not against a specific individual or a firm but is against society
at large. There is therefore no specific victim.
5. Earlier only a person of high status committing this crime was considered
as WCC but now a person of any class violating law the course of
occupational duty is described as WCC.
6. The offender does not regard himself as a criminal but considers himself as
a respectable citizen.
7. It is a crime against which the victims are least likely to fight.
8. The effect of this crime is much more serious for society than an ordinary
crime.

Kinds Of WHITE COLLAR CRIMES IN INDIA

I- Bank Fraud:
Fraud is a crime that aims to mislead and gain inappropriate advantages.
Bank frauds are financial scams. It is made through false representations by
fraudulent companies. It also involves handling negotiable instruments such
as checkbouncing, securities, bank deposits etc. Bank fraud is concerned
with the general public as banks and the Governments have a relationship of
trust. It is the most prevalent type of white-collar crime as well as a
corporate crime. Various sections like Section 403 which deals with criminal
misappropriation of property, section 405 which deals with criminal breach
of trust, section 415 which deals with cheating,

1. Money Laundering:
2. TAX EVASION
3. Corporate Fraud
4. Ponzi scam
5. Forgery

6. Insider Trading
7. Hawala Trading
8. Bribery
 9. Counterfeiting
10. Extortion.

FOOT NOTE : ADAM HAYES/ What Is White-Collar Crime? Meaning,

Types, and Examples/ Investopedia/ May 16, 2024/
https://www.investopedia.com/terms/w/white-collar-crime.

Difference between white collar crime and blue-collar crime

The term ‘blue collar crime’ came into existence some time in
the 1920s. The term was then used to refer to Americans who
performed manual labor. They often preferred clothes of darker
shade so as to stains less visible. Some used to wear clothes
with a blue collar. These worked for a low wage on an hourly
basis. White collar crimes have been prevalent since centuries
and it is not new to all types of businesses, professions and
industries.

The difference between ‘blue collar crimes’, which are crime of

a general nature, and ‘white collar crimes’ was laid down by the
Supreme Court of India in the case of State of Gujarat v.
Mohanlal Jitamalji Porwal and Anr[2]. Justice Thakker
elucidated that one person can murder another person in the
heat of the moment, but causing financial loss or say
committing economic offences requires planning. It involves
calculations and strategy making in order to derive personal
profits.kk

Here are the characteristics of white collar crimes which

distinguish it from other crimes of general nature:

Meaning

Blue-collar crimes refer to people who work physically, using

their hands, whereas white collar crimes refer to
knowledgeable works, who use their knowledge to commit
crimes.
New v/s Traditional

Where blue-collar crimes refer to traditional crimes that have

been committed since ages, the concept of white collar crimes
has recently developed. It’s a new species of crime.

Mens rea

To constitute a crime element of mens rea and actus reus is

must. Where mens rea is an essential element of blue collar
crimes, its involvement in white collar crimes is not necessary.

Independent of social and personal conditions

White collar crimes have no relation with the social conditions,

like poverty, or personal conditions of the offender albeit it
matters in the conventional nature of crimes.

Direct access to the targets

Since the offenders who commit white collar crimes are people
at a higher position in a company they have easy, direct and
valid access to their targets. The case is different with blue-
collar crimes. For example, if Jhethalal decides to commit theft
in the house of Babitaji, he will first have to break the door or
make a passage of entrance to get inside Babitaji’s house and
thereafter commit theft.

So, before actually committing theft, Jhethalal will first have to

get access to Babitaji’s house. Whereas in white collar crimes,
one can have direct access to their target making use of one’s
higher position and power.

Veiled offenders

In the case of white collar crimes, one does not have to come
face to face with the victim and so their identity remains veiled.
Whereas in case of blue collar crimes, one has to come face to
face in order to inflict injury upon others.
Involvement of politicians

In many cases it has been found that the offenders have strong
connections with politicians and sometimes, politicians are also
involved in committing the crime thus making it difficult for the
victims to take action against such offenders.

Greater harm

The harm caused by white collar crimes are much more difficult
to bear than those inflicted by blue collar crimes. Also, the
harm caused by white collar crimes could cause great harm,
not only to the public, but to the other institutions and
organizations as well.

FOOT NOTE : Yashika Malhotra / White-Collar crimes in India and its

relationship/ https://www.legalserviceindia.com/legal/article-10970-white-
collar-crimes-in-india-and-its-relationship-with-other-crimes.html

Conclusion
white collar crimes have two surprising features, first, that they
are non-violent crimes, though the criminals have the tendency
to gain control or have a sense of entitlement, and, second,
that they are committed by people in the higher profession.

However, these crimes are also committed by poorly paid

underlings, although the mastermind behind the commission of
such crime could be a rich person enjoying a higher social
status in his occupation. white collar crimes are often
committed because of peer pressure or are dependent on the
culture of the company.

As our society is growing towards modernity and the world is

experiencing new technological advancement, the rate of crime
is also increasing at a faster rate. Particularly the growth in
white collar crimes has been enormous. From the medical
profession to educational institutions, these crimes are being
committed everywhere.

The cases of online fraud are also increasing at an alarming

rate. India, as a developing nation, has faced difficulties in
leading its economy towards growth because of these crimes in
general and corruption in particular.

The investigating officials are in need of training where they

could acquire the skill to trace these criminals, otherwise
tracking of whom is difficult, complicated and tiresome job.
The investigating officials’s work should be scrutinized to
ensure transparency in the work as the white collar crimes are
committed by people enjoying higher social status in their
occupation.

The government must make laws that are strict enough to

reduce the commission of such crimes. And the system should
be such that not only there exist laws giving strict punishment
to the accused but also dispose off maximum cases in a short
while. If not done so then people will soon lose complete faith
in the system, as these crimes are committed by people who
should act as a role model for the society.

BIBLIOGRAPHY (IN A FRESH PAGE)

1. www.writinglaw.com
2. www-aironline-in-rcldigitallibrary.knimbus.com
3. www.legalserviceindia.com
4. www.investopedia.com