Former Chief Justice of India Sanjiv Khanna remarked on Saturday that not every instance of inaction in financially significant matters should be labeled as white-collar crime. He made these comments during the “National Conference on White Collar Crime,” organized by the Terapanth Professional Forum.
Justice Khanna elaborated that the term “white-collar crime,” coined in 1939, describes non-violent offenses committed by individuals in positions of responsibility, typically for personal or organizational gain. He noted that these crimes are usually economic in nature and non-violent, though they can escalate to violence and be classified as “red-collar crimes.”
He proposed a three-part categorization for financial wrongs:
- First, crimes driven by greed or for advantage, such as fraud, embezzlement, insider trading, cybercrime, money laundering, intentional tax evasion, bribery, and corruption.
- Second, unintentional wrongdoings stemming from a lack of awareness or knowledge, without malicious intent.
- Third, technical or procedural errors, like failing to obtain prior permission, filing mistakes, or compliance oversights due to misunderstanding the law.
Justice Khanna highlighted a challenge when legislation equates all these categories, leading to disproportionate punishments for unintentional lapses. He observed the ongoing discussions about reducing offenses under the Income Tax Act while noting the simultaneous rise in white-collar crimes, especially cybercrimes, emphasizing the need for public awareness.
He encouraged individuals to report white-collar crimes to the police, acknowledging that people often fear approaching law enforcement due to potential harassment. He also expressed a hope for a future where taxpayers proactively seek correct tax information rather than ways to evade it.
Justice Khanna concluded by stressing the importance of courageously reporting victimization by white-collar crimes, urging a shift in mindset to overcome the fear of dealing with law-enforcement agencies.