New Delhi: Former Chief Justice of India (CJI) Sanjiv Khanna on Saturday said that not every instance of inaction in matters involving financial implications amounts to white-collar crime.
Speaking at the National Conference on White Collar Crime organised by the Terapanth Professional Forum, Justice Khanna said, “White-collar crime is a phrase we often hear but seldom understand. The term was coined in 1939 by a sociologist who described it as a non-violent offence committed by individuals of position and responsibility.”
He explained that such crimes are typically committed by people in positions of trust or authority for personal or organisational gain, and are generally economic and non-violent in nature. “Yes, white-collar crimes can sometimes lead to violence—those are then called red-collar crimes,” he added.
Justice Khanna emphasised that it would be wrong to label every financial lapse as a white-collar crime. He classified financial wrongs into three categories:
Crimes driven by greed or advantage—such as fraud, embezzlement, insider trading, cybercrime, money laundering, deliberate tax evasion, bribery, and corruption.
Unintentional wrongs arising from ignorance or lack of awareness, without any malicious intent.
Technical or procedural lapses, including filing errors, compliance oversights, or failure to obtain prior permissions, often resulting from misunderstanding or lack of legal knowledge.
He cautioned against treating all categories alike, saying problems arise when legislatures equate unintentional or technical lapses with serious economic crimes and impose disproportionate punishments, including imprisonment, despite the absence of intent to defraud or gain financially.
Referring to ongoing discussions about decriminalising certain offences under the Income Tax Act, Justice Khanna said such reforms were welcome. However, he noted that cybercrimes are rising sharply, and the best way to combat them is through public awareness. “People must know that they can be victims of white-collar crimes—and that they have the right to approach the police,” he said.
Posing a question to the legal community, he asked, “How many of you have ever reported a client for money laundering? None, perhaps, because of professional privilege.”
He expressed hope for a change in attitude among taxpayers. “I look forward to the day when a taxpayer asks, ‘What is the right amount of tax I should pay?’ instead of, ‘How can I reduce or evade taxes?’ That day, a lot will change,” he said.
Justice Khanna also pointed out that victims of white-collar crimes often hesitate to approach law-enforcement agencies due to fear of harassment. “That fear is what cybercriminals exploit—to digitally arrest or swindle victims. There must be a change in mindset. People should have the courage to approach law enforcement without fear,” he said.
