India’s White-Collar Crime Landscape: Legislative Developments and Key Statutes
India, with its vibrant economy and diverse business landscape, has long relied on extensive white-collar crime laws and regulatory frameworks to create a safe and reliable environment for businesses and individuals. The Indian government has taken significant strides to address financial crimes by introducing key statutes.
Investigating White-Collar Crimes
India’s Delhi Police, through the Economic Offenses Wing (EOW), and specialized units, such as the Central Bureau of Investigation (CBI) and the Serious Fraud Investigation Office (SFIO), are responsible for investigating white-collar crimes and enforcing stringent penalties under the law.
Understanding White-Collar Crime in India
- Non-violent crimes committed in the context of business or commerce
- Carried out by individuals in positions of trust and authority
- Examples: securities fraud, bribery, corruption, embezzlement, money laundering
Key Legislations against Financial Crimes
Prevention of Money-Laundering Act, 2002
- Defines money laundering as converting proceeds of crime into legitimate money
- Aimed at fighting financial crimes
- Recent amendments focused on confiscating proceeds of crime & strengthening investigative machinery
Companies Act, 2013
- Greater transparency and accountability in corporate management
- Prevents fraudulent activities through provisions for:
- Director disqualification
- Stricter penalties for non-compliance
- Corporate social responsibility
Securities and Exchange Board of India (SEBI)
- India’s primary securities regulator
- Investigates and prevents securities fraud
- Actions taken for infractions: insider trading, false statements in offers for sale
Insolvency and Bankruptcy Code, 2016
- Sets up a time-bound insolvency resolution process for distressed companies
- Rescues viable businesses and utilizes assets effectively to repay creditors
- Criminalizes submitting falsified financial reports
Conclusion
These legislative developments reflect India’s commitment to maintaining a robust business environment and addressing the challenges posed by white-collar crime. While investigative and regulatory agencies’ work continues, the progress made in recent years offers a strong foundation for continued advancements.
In the next article, we will delve into the role of investigative and forensic accounting in unraveling complex white-collar crime cases and shedding light on financial irregularities that can sometimes remain hidden. Stay tuned.