Page 1 of 5

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 1519

White Collar Crime in the Medical Field: A Study in Indian

and International Perspective

Author: Nitinveer Singh

Abstract: Public outcry can be seen these days, specially, against the socio-economic

offences (likes- food adulteration, wide spread corruption, huge scams of billions of

rupees and unaccounted black money of the few people stashed in foreign banks etc).

India has become a fertile land for the corruption. New scam is coming to light every day.

News papers and news channels are full of the stories related to the corruption in high

ranked officials. The representatives of the people and the ministers in the state and the

central Governments are involved in the huge scams. The reasons for the failure of the

governments to check corruption is, therefore, not far to seek. Whatever attempts are

made of the investigation, it appears, they are made half-heartedly and to cover up the

scams. In the recent past, the entire session of the parliament has been wasted by the

government and the opposition only in confrontation over the refusal of the ruling party

to appoint Joint Parliamentary Committee (JPC) on 2G scam which later on it agreed to

set up but having caused colossal loss to the nation by way of depriving it of a full debate

on burning issues in the Parliament. Sincere attempts are not being made to deal

effectively with massive corruption. Doubts have been raised without much basis by the

government functionaries on the correctness of the CAG report on the 2G scam and the

intention behind this seems to be to nullify the scathing observations made against the

Page 2 of 5

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 1520

government in the CAG report. People are expressing serious doubts as to whether finally

anyone will be held guilty for the economic offences which have been committed1

.

WHITE COLLAR CRIMES IN INDIA

The reason for the recent enormous increase in white collar crime in India is the

fast developing economy and industrial growth of the country. The post- independence period in India led to an era of welfare activities which needed

regulatory measures on the part of government. It is the contravention of such

regulatory measures which generally gives rise to a white collar crime.

The Santhanam Committee Report showed a picture of white collar crimes

committed by persons belonging to high status. The report of the committee stated

that the big industrialists, businessmen, government officers are responsible for

white collar crime in India.2

After the independence, the first case of white collar crime was Mundhra’s case.

India’s first Prime Minister Jawaharlal Nehru set up a commission headed by

Justice M.C. Chagla to investigate the matter. After the rise of the Indian

economy, many companies from the private sector and the public enterprise have

been included in the corporate fraud sand scandals. It is because of all these scams

the commonmanis scared to invest in the equity market. Corruption is one of the

worst form of crimes in India. It has been in to existence for many centuries. Even

Chanakya has mentioned the various forms of corruption during his time. Many

political parties have promised to eradicate corruption; however, the offenders in

these types of crimes are usually the government officials or the politicians itself.

1Planning Commission, Annual report 2013-2014.

2http://iasexamportal.com.

Page 3 of 5

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 04

April 2019

Available online: https://ejbss.org/ P a g e | 1521

The chart enunciated herein below shows India’s rank amongst the other

175countries in terms of corruption from 2012 to 2016.

 According to Sutherland’s classic, “White-collar crime is committed by a

person of respectability and high social status in the course of his occupation.”

 According to McCarthy and Cohen, “Economic crimes are illegal acts in

which offenders’ principal motivation is economic gain. Individuals, groups of

people or corporations purposively act in an illegal manner to secure financial

returns that cannot be collected by legal means”.

While regulations have proliferated globally, in some countries laws are rarely

observed and the legislature and the judiciary are deeply corrupt themselves. It is

difficult to judge the behaviour of corporations and managers who have to operate

within kleptocratic and dictatorial systems. Dictatorships often create perverse

incentives and encourage behaviour and rent seeking at the expense of others – or

even the majority of citizens. Some of the worst economic crimes have been

committed in compliance with the formalities of law such as the Aryanisation of

Jewish businesses under the Nazi regime.

THE TYPES OF WHITE COLLAR CRIMES

White-collar crime generally involves financially motivated offenses perpetrated by

business and government employees or officials. The crimes are not violent, and are

usually committed by persons in whom some level of trust or autonomy is place. They

frequently cause significant losses for companies, investors and employees.