LAW OF CRIMES III : WHITE COLLAR CRIMES (LB -3034) DELHI UNIVERSITY SEMESTER 3

Topic 1: Introduction
A. Concept of White Collar Crime- Definition, Scope, Evolution, and Consequences.
B. Mens Rea, Nature of Liability, Burden of Proof and Sentencing Policy.
C. Distinction among White Collar Crimes, Socio-Economic Offences, Traditional Crimes, Organised Crimes, and Occupational Crimes.
D. Reports: The Santhanam Committee Report, 1964, and the 47th Report of the Law Commission of India, 1972

Topic 2: White Collar Criminality and Related Theories
A. Edwin H. Sutherland‟s Concept of „White Collar Criminality‟
B. The Theory of Differential Association by Edwin H. Sutherland
C. Rationalization of White Collar Crimes- Fraud Triangle by Donald Cressey

Readings:

1. Edwin H. Sutherland, “White Collar Criminality” Vol. 5 No.1 American Sociological
   Review (1940)
2. Edwin H Sutherland, “The Theory of Differential Association,” in David Dressler,
   Readings in Criminology and Penology, 365-370 (Columbia University Press, 2nd Ed.,1972)
3. Dr. Joseph T. Wells, Corporate Fraud Handbook- Prevention and Detection,(John Wiley & Sons, 5th Edition, 2017)

Topic 3: White Collar Crimes in Different Professions
A. Tax Evasion
B. Corporate Fraud
C. Health Care Fraud
D. Misbranding and Adulteration
E. Education Fraud

1. Doreen McBarnet, “Whiter than White Collar Crime: Tax, Fraud Insurance and the
   Management of Stigma,” The British Journal of Sociology, Vol. 42(2) (1991).
2. M/S Nestle India Limited v. The Food Safety and Standards Authority of India, W. P
   (L) No. 1688 of 2015
   [Note: Discuss the relevant provisions of the Food Safety and Standards Act 2006.]
3. I) William G. Tierney and Nidhi S. Sabharwal, “Analyzing the Culture of Corruption
   in Indian Higher Education”, International Higher Education, Vol. 87 (2016)

II) Jacques Hallak and Muriel Poisson, Corrupt Schools, “Corrupt Universities: What
Can Be Done?, International Institute for Educational Planning, UNESCO Publishing
(2007)
Suggested Readings and Cases:

1. P. K. Gupta Sanjeev Gupta , (2015),”Corporate Frauds in India – Perceptions and
   Emerging Issues”, Journal of Financial Crime, Vol. 22 (1)
2. Serious Fraud Investigation Office vs. Rahul Modi, Criminal Appeal Nos. 538-539 of
   2019.
3. Sarah Hodges, “The case of the „Spurious Drugs Kingpin‟: Shifting Pills in Chennai,
   India,” Critical Public Health, 29(4), (2019)
4. U.S. v. Ranbaxy USA, Inc., JFM-13-CR-0238 (D. Md.). [Fraudulent Representation to
   FDA] https://www.justice.gov/opa/pr/generic-drug-manufacturer-ranbaxy-pleadsguilty-and-agrees-pay-500-million-resolve-false
5. Glenn Paul vs. The State of Madhya Pradesh, MPHC, WP No.12196 of 2014
   (Vyapam Scam PIL)

Topic 4: The Prevention of Corruption Act, 1988

A. Need of the Act (read with Santhanam Committee Report)
B. Role of Anti-Corruption Bureau, Central Vigilance Commission, and Central Bureau of Investigation
C. The Prevention of Corruption Act, 1988 and 2018 Amendments
D. Definitions of „Public Servant,‟, „Public Duty,‟ and „Undue Advantage‟
E. Offence committed by Public Servant and Bribe Giver, and their Penalties (Sec 7 to 14)
F. Punishment for Attempts (Section 15)
G. Section 17- Persons Authorised to Investigate, and Section 17A- Previous Approval before Enquiry, Inquiry or Investigation.
H. Sanction for Prosecution (Section 19 r/w Section 197 of the Code of Criminal Procedure, 1973)
I. Presumption where Public Servant accepts Undue Advantage (Section 20)

Readings and Case:

1. Doreen McBarnet, “Whiter than White Collar Crime: Tax, Fraud Insurance and the Management of Stigma,” The British Journal of Sociology, Vol. 42(2) (1991).
2. M/S Nestle India Limited v. The Food Safety and Standards Authority of India, W. P(L) No. 1688 of 2015 26-44
   [Note: Discuss the relevant provisions of the Food Safety and Standards Act 2006.]
3. I) William G. Tierney and Nidhi S. Sabharwal, “Analyzing the Culture of Corruption in Indian Higher Education”, International Higher Education, Vol. 87 (2016)

II) Jacques Hallak and Muriel Poisson, Corrupt Schools, “Corrupt Universities: What Can Be Done?, International Institute for Educational Planning, UNESCO Publishing (2007) pp.57-58 45-50

Suggested Readings and Cases:

1. P. K. Gupta Sanjeev Gupta , (2015),”Corporate Frauds in India – Perceptions and Emerging Issues”, Journal of Financial Crime, Vol. 22 (1) pp. 79 – 103.
2. Serious Fraud Investigation Office vs. Rahul Modi, Criminal Appeal Nos. 538-539 of2019.
3. Sarah Hodges, “The case of the „Spurious Drugs Kingpin‟: Shifting Pills in Chennai, India,” Critical Public Health, 29(4), (2019) pp. 473-483.
4. U.S. v. Ranbaxy USA, Inc., JFM-13-CR-0238 (D. Md.). [Fraudulent Representation to FDA https://www.justice.gov/opa/pr/generic-drug-manufacturer-ranbaxy-pleadsguilty-and-agrees-pay-500-million-resolve-false
5. Glenn Paul vs. The State of Madhya Pradesh, MPHC, WP No.12196 of 2014 (Vyapam Scam PIL)
   Topic 4: The Prevention of Corruption Act, 1988
   A. Need of the Act (read with Santhanam Committee Report)
   B. Role of Anti-Corruption Bureau, Central Vigilance Commission, and Central Bureau of Investigation
   C. The Prevention of Corruption Act, 1988 and 2018 Amendments
   D. Definitions of „Public Servant,‟, „Public Duty,‟ and „Undue Advantage‟
   E. Offence committed by Public Servant and Bribe Giver, and their Penalties (Sec 7 to 14)
   F. Punishment for Attempts (Section 15)
   G. Section 17- Persons Authorised to Investigate, and Section 17A- Previous Approval before Enquiry, Inquiry or Investigation.
   H. Sanction for Prosecution (Section 19 r/w Section 197 of the Code of Criminal Procedure, 1973)
   I. Presumption where Public Servant accepts Undue Advantage (Section 20)
   
   Cases:
6. Kalicharan Mahapatra v. State of Orissa, AIR 1998 SC 2595 51-54
7. K. Shanthamma v. State of Telangana, SLP (Criminal) No. 7182 of 2019 55-61
8. Kanwarjit Singh Kakkar v. State Of Punjab, (2011) 6 S.C.R. 895 62-67
9. Abhay Singh Chautala v. C.B.I, (2011) 7 SCC 141 68-77
10. CBI, Bank Securities & Fraud Cell v. Ramesh Gelli, (2016) 3 SCC 788

Topic 5: The Prevention of Money-Laundering Act, 2002
A. Need for combating Money-Laundering
B. Magnitude of Money-Laundering, its steps and various methods
C. The Prevention of Money-Laundering Act, 2002:
Definitions- attachment, money laundering, proceeds of crime, reporting entity, and scheduled offence.
Offence of Money Laundering (Section 3)
Punishment for Money Laundering (Section 4)

Enforcement:
Attachment (Section 5)
Survey, Search, & Seizure (Sections 16, 17 & 18)
Power to Arrest (Section 19)
Adjudication under the Act:
Adjudication by Adjudicating Authorities (Section 8)
Special Courts (Sections 43 to 47)
Vesting of Property in Central Government (Section 9)

Preventive Mechanisms under the Act:
Obligation of Banking Companies, Financial Institutions and Intermediaries (Section 12 & 12A)
Reciprocal Arrangements with other countries (Overview of Chapter IX i.e. Sections 55 to 61)
Cases:

6. Ram Jethmalani v. Union of India, (2011) 9 SCC 761 78-96
7. Binod Kumar v. State of Jharkhand & Ors, (2011) 11 SCC 463 97-104
8. B. Ramaraju v. Union of India, W.P. No. 10765 of High Court of A.P. 2011 (164)
   Company Case 149 105-149
9. Vijay Madanlal & Ors v. Union of India & Ors, Special Leave Petition (Cr) No.4634
   of 2014 150-197
10. Parvathi Kollur & Anr v. State by Directorate of Enforcement, S.L.P (Cal.) No. 4258
    of 2021 198-199