ECONOMIC AND SOCIAL IMPACT OF WHITE-COLLAR CRIMES IN INDIA

AUTHOR – MALAY TANNA, STUDENT AT UNITEDWORLD SCHOOL OF LAW, KARNAVATI UNIVERSITY

BEST CITATION – MALAY TANNA, ECONOMIC AND SOCIAL IMPACT OF WHITE-COLLAR CRIMES IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (7) OF 2026, PG. 530-534, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

White collar crimes are so disruptive to the national economy that they have repercussions that go past localized harm that is normally linked to the conventional crimes. In contrast to conventional crimes that tend to create damages within a particular community, white collar crimes have a way of causing massive financial losses that have an overall economic impact. Such crimes impact economic efficiency, stability of finances, and long-term growth opportunities of a country, shaking the very basis on which a booming economy is founded.

In India, there have been notorious financial scandals such as the Harshad Mehta scam and the Punjab National Bank scam which have caused astonishing losses of thousands of crores of rupees. This type of fraud is not only depleting public and privately owned resources, but is also proving a heavy burden on the government, forcing them to put in place measures to correct the affected financial institutions. This government reaction may shift attention and resources out of productive investments in infrastructure, health, and education, which are essential elements needed to build a healthy national economy.

Additionally, white collar crimes pervert the distribution of resources by diverting essential financial resources off productive areas towards criminal activities. The problem of misallocation leads to high levels of inefficiency in the economy that may not support sustainable development initiatives. The combined effects of these crimes cannot be described as less than a grossly debilitated economic fabric that can barely keep pace in the competitive global economy.