White Collar Crimes: CUET LLM Preparation

White Collar Crimes Introduction

• Overview provided for students preparing for the CUET LLM exam
• Covers concept, socio-economic approaches, forms of privilege, official deviance, and relevant acts.
• Includes Prevention of Corruption Act, SC/ST Act, and Lokpal and Lokayukta Act.
• Discussion extends to political, police, and professional deviance, gender-based offenses, and case laws.

Definition of White Collar Crime

• Committed during employment by high-status individuals, usually for financial gain.
• Concept introduced in 1941 by Edwin Sutherland.
• Examples: misrepresentation via ads, patent/copyright infringement, trademark violations, and manipulation of financial statements.

Blue Collar vs. White Collar

• Blue Collar Crimes involve physical strength and manual labor.
• White Collar Crimes involve intellectual knowledge and strategic thinking.

Types of White Collar Crimes

• Include bank fraud, blackmail, bribery, counterfeiting, credit card fraud, embezzlement, theft, extortion, forgery, insider trading, and money laundering.

Socio-Economic Approach to White Collar Crime

• Affects both society and the economy.
• White-collar crimes are a subset of socio-economic offenses.
• Perpetrated by individuals from upper-class society, business professionals, or privileged occupations.

Examples of Socio-Economic Offenses in India

• Essential Commodities Act
• Prevention of Corruption Act
• Prevention of Food Adulteration Act
• Prevention of Immoral Traffic Act
• Dowry Prohibition Act (1961)
• NDPS Act (1985)
• Customs Act
• Drug Control Act
• Income Tax Act
• Indian Penal Code (IPC; now replaced)
• Anti-corruption laws.

Essentials of White Collar Crime

• Sutherland defined white-collar crimes as misbehavior by high-status individuals.
• Often committed on behalf of organizations.
• Crimes against organizations can be carried out by insiders or outsiders.

Deviance and its Significance

• Recognized violation of cultural norms.
• Encompasses a broad range of activities, crimes that violate societal criminal law.
• Always involves deviation from accepted norms.
• Can emerge in everyday life through behaviors differing from what is considered normal.

Types of Deviance

• Official Deviance
• Professional Deviance (Lawyers, Doctors, Teachers, Journalists, Engineers)
• Police Deviance
• Political Deviance
• Gender Deviance

Official Deviance

• State or administrative authorities and bureaucrats engage in activities that deviate from their mandated duties.
• Examples includes corruption or money laundering linked to state or administrative authorities and bureaucrats.

Professional Deviance by Lawyers

• Governed by the Legal Practitioners Act of 1857, the Indian Bar Council Act of 1926, and the Advocates Act of 1961.

Professional Deviance by Doctors

• Governed by the Indian Medical Council Act of 1956 (amended in 2019).
• The Indian Medical Council prescribes a code of ethics regulating the medical profession.
• Includes the Indian Medical Degrees Act of 1916.

Police Deviance

• Law enforcement officers behave inconsistently with legal authority, organizational standards, and ethical conduct.
• Includes third-degree torture and creating fear among the public.
• Case: Niranjan Singh vs. Prakhar Raj Ram: Police should protect the law, not instill fear.
• Case: Saheli vs. Commissioner of Police: Compensation granted for the death of a nine-year-old boy caused by the police.
• Includes rape, gender-based aggression, and fake encounters.

Political Deviance

• Involves criminal gangs, police, customs officials, and political individuals.

Committee Reports

• Vohra Committee: Linked to political deviance after a bomb blast in Bombay, involved criminal gangs, police, customs officials, and political people.
• Santhanam Committee: Formed in 1963, parliamentary, linked to eradicating corruption and vigilance.
• Padmanabhaiah Committee: Set up by the Home Affairs for police reforms.

Lokpal Institution

• Originates from Sweden to address corruption among government officials.
• Lokpal: from संस्कृत लोका (people) and "पाला" (protector).

Lokpal and Lokayuktas Act 2013

• Establishes Lokpal for the Union and Lokayukta for the States.
• Investigates corruption allegations against public functionaries.
• Extends to all of India, including Jammu and Kashmir after 2019.
• Bill introduced in Lok Sabha in 2011, passed, but faced delays in Rajya Sabha.
• Passed in Rajya Sabha on December 17, 2013.
• President Pranab Mukherjee gave assent on January 1, 2014.
• Came into force on January 16, 2014.

Deviance in Medical Profession

• Addressed by the Layton Commission Report.
• Pertains to the Medical Council of India.
• Laws include PC-PNDT Act (Preconception and Prenatal Diagnostic Techniques Act) of 1994, which aims to prevent female feticide.
• The Medical Termination of Pregnancy Act of 1971 allows for abortion in specified conditions.
• The NDPS Act (Narcotic Drugs and Psychotropic Substances Act) covers prescription and administration of drugs.

Legal Profession and Deviance

• Governed by the Legal Practitioners Act, Indian Bar Council Act, and Advocates Act, 1961.
• The Bar Council of India (BCI) is a statutory body created under the Advocates Act, 1961.
• BCI regulates advocates and can suspend licenses for misconduct via Disciplinary Committees.

Gender-Based Deviance

• Addressed through the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).
• Based on the Vishakha case, which led to the creation of internal complaints committees.
  • Key Cases:
    • Apparel Export Promotion Council vs. A.K. Chopra
    • Medha Kotwal Lele and others vs. Union of India

Offenses Against Scheduled Castes and Scheduled Tribes (SC/ST)

• Constitutional articles address offenses against SC/ST members.
• Major Enactment: Protection of Civil Rights Act, 1955.
• SC/ST Act of 1989 aims to prevent atrocities against members of SC and ST communities.
• Judicial attitude reflected in cases like Subramanian Swamy vs. Dr. Manmohan Singh.
• J. Jayalalitha vs. Union of India relates to Prevention of Corruption Act.
• Ali Musthafa Abdul Rahman Moosa vs. State of Kerala: Relates to NDPS.
• State of Punjab vs. Balbir Singh: Relates to NDPS.

IT Law Cases

• Rediff Communication Limited vs. Cyberbooth and Yahoo Inc. vs. Akash Arora

White Collar Crime definition cases

• Include State of Gujarat vs. Mohanlal Jethalalji Popatwala and another
• Mohammed Giasuddin vs. State of Andhra Pradesh
• Rajendra Prasad vs. State of UP.

Important principles - Jail not Bail

• ITO vs. Gopal D. Mukati: Serious economic and antisocial white-collar criminals should be jailed, not bailed

Importance of offences severity

• GBS Omprakash vs. Sri Venkateswara University: Crimes are so serious, so are the criminals

Economic Offences are Increasing

• Smuggling. High Court Economic offenses are increasing
• Sunil Kumar vs State of Haryana

Prevention of Corruption Act, 1988

• Aims to combat corruption through punitive measures and oversight of public officials.

Key Definitions

• Section 2c (public servant definition): same as other Acts.
• Section 2b (undue advantage).

Appointment of Special Judges

• Section 3: Central or State Government can appoint Special Judges (sessions or assistant judges).
• Section 4: Procedure and powers.

Section 7: Punishments for Bribes

• Section 7: Punishments

Amendments to punishment provisions

• Amendment passed in 2018.

Habitual Offenders and Punishment

• Section 14 specifies habitual offenders could face a minimum of five years and extend to ten years.

Punishment for attempts

• Minimum 2 years, can extend to 5 years

Investigation Authority

• Section 17 outlines those authorized to investigate, including Delhi Special Police, DSP, or police officers.

Anti corruption bureaux

• Section 17A State amendment for Jammu and Kashmir; relates to special anti-corruption bureaux.

Important Appendices

• Chapter 4: attachment and forfeiture of property.
• Chapter 5: special measures regarding trial.
• Chapter 6: Miscellaneous: removed act of 1947.

Lokpal and Lokayuktas Act Key Points

• Enacted on January 1, 2014.
• Applies to public servants in India, whether inside or outside the country.

Structure of Lokpal

• Section 3 prescribes that the Lokpal consists of a chairperson (former CJI, Supreme Court judge, or eminent person) and up to eight members.

Membership

• 50% should be judicial members, with a quota for SC/ST/OBC/minorities/women.
• Requires 25 years of experience.

Functionality

• Establishes an inquiry wing (headed by a Director) for investigations.
• A prosecution wing is also constituted to aid in legal proceedings, headed by the Directorate of Prosecution.
• All expenses come from expenditure from consolidated funds of India.

Lokpal Jurisdiction

• Covers Prime Ministers, Group A, B, C, and D officers, and Central Government.

Central power

• Central Government appoints the special court.
• Speedy trial must happen within a year.

Scheduled ammendments

• Amends a number of acts, including Comission of Inquiry act

Amendment Notes

• Amendment number: 4

SC/ST Act Key Points

• Aims to prevent atrocities against members of Scheduled Castes and Scheduled Tribes.

Punishment

• Punishments under Section 3 vary with the crime, from 6 months to 5 years in prison.
• Includes extenment and special courts
• It is possible to establish exclusive special courts

Appeals information

• High Court hears appeals and must dispose of them within 90 days.

Personnel

• Requires 7 years experience as special prosecutor, but needs 30 days notice

Amendment Information

• In 2016, amendments were made with relation to specific acts. These are under section # 15A