India tackles white-collar crime through a mesh of sector-specific statutes—PMLA, Companies Act 2013, SEBI Act & PIT Regulations, Prevention of Corruption Act, Benami Act, FOEA, DPDP Act, Competition Act, IT Act, Black Money Act—enforced by agencies such as the ED, CBI, SFIO, FIU-IND and the CCI. Penalties now reach ₹2,500 crore (DPDP Act) plus jail terms up to 10 years, and amendments in 2023-25 have tightened compliance thresholds across the board.
What Counts as “White-Collar Crime” in India?
Financial, corporate or cyber misconduct committed without physical violence—fraud, bribery, money-laundering, insider trading, cartelisation, data-theft, tax evasion and benami holdings. The Indian Penal Code still applies (cheating, forgery, criminal breach of trust), but specialised statutes up the ante with higher fines, reverse-onus clauses and asset confiscation.
Why the Spotlight Is Brighter in 2025
- Growing ticket size of frauds (₹500 cr insurance scam probed by ED this week).
- India’s imminent FATF on-site evaluation triggered 2023 PMLA rule-tightening (beneficial-owner threshold slashed to 10%).
- SEBI’s 2025 crackdown on IndusInd Bank officials shows insider-trading probes are no longer ceremonial.
- Benami attachments crossed ₹452 cr in one region alone this fiscal.
Core Statutes & Their Bite
| Law | Key Offence(s) | Max Punishment |
| Prevention of Money Laundering Act 2002 (as repeatedly amended) | Laundering “proceeds of crime”; failure to maintain KYC; aiding transactions in Schedule offences | 3–7 yrs RI + fine; attachment & confiscation of property; reverse burden of proof. |
| Companies Act 2013 – § 447 | Fraud by officers, auditors, advisors | 6 mo – 10 yrs jail + fine ≥ amount involved (×3 if public interest). |
| Prevention of Corruption Act 1988 (amended 2018) | Bribery of public servants & commercial orgs | Up to 10 yrs + fine; corporate strict liability for “adequate procedure” failures. |
| Fugitive Economic Offenders Act 2018 | Economic offence > ₹100 cr + absconding | Confiscation of all assets in India & abroad; bar on civil claims until return. |
| Benami Transactions (Prohibition) Amendment Act 2016 | Holding assets in another’s name to hide ownership | 1–7 yrs jail + fine up to 25 % of FMV; property can be confiscated. |
| SEBI Act 1992 + PIT Regs 2015 (amend. 2025) | Insider trading, market manipulation | Penalty up to 3× profit; market ban; criminal jail up to 10 yrs in egregious cases. |
| Competition Act 2002 (amend. 2023-24) | Cartels, abuse of dominance | Up to 3× profit or 10 % global turnover per year; individuals up to 10 % of income. |
| Digital Personal Data Protection Act 2023 | Breach of processing duties, data leaks | Civil penalties ₹50 cr – ₹2,500 cr per contravention. |
| Information Technology Act 2000 – § 66 & 66C/66D | Hacking, identity-theft, cyber-fraud | Up to 3 yrs jail + ₹1 lakh fine (financial fraud often tagged with IPC § 420).(iclg.com) |
| Black Money (Undisclosed Foreign Income & Assets) Act 2015 | Wilful nondisclosure of foreign assets | 3–10 yrs jail + tax 30 % + penalty 90 %. |
Enforcement Ecosystem
- Enforcement Directorate (ED) – money-laundering, forex & FEMA. Recent action: ₹1.29 cr attachment from ex-Punjab AIG under PMLA.
- Serious Fraud Investigation Office (SFIO) – probes complex corporate frauds under § 212 Companies Act; can arrest executives.
- Central Bureau of Investigation (CBI) – PCA & IPC economic offences.
- Financial Intelligence Unit-IND (FIU) – analyses STRs, flags laundering typologies.
- Competition Commission of India (CCI) – cartel & dominance fines; revamped leniency regime (Feb 2024).
- Securities and Exchange Board of India (SEBI) – insider trading, market fraud; May 2025 amendments auto-extend trading-window blackout to relatives.
- Economic Offences Wings (state police) – ground-level fraud & cybercrime cases.
Sentencing & Asset-Recovery Trends
| Trend | 2025 Snapshot |
| Higher Monetary Fines | DPDP Act tops the chart (₹2.5k cr per breach). PMLA assets worth ₹1.3 cr seized from a single cop. |
| Asset Confiscation Before Conviction | FOEA lets courts seize global assets on mere declaration of “fugitive” status. |
| Reverse Burden of Proof | PMLA, Benami Act & Income-Tax anti-black-money provisions. |
| Corporate Liability | PCA now punishes companies that “failed to prevent” bribery unless they prove “adequate procedures.” |
| Fast-Track Digital Evidence | Courts accept blockchain timestamping; ED uses AI pattern-matching (internal circular Feb 2025). |
Landmark Cases That Redrew the Lines
- State v Govindarajan (2024) – Madras HC upheld ED’s provisional attachment under PMLA even before trial; set precedent for early seizure of crypto wallets.
- IndusInd Bank Insider-Trading Probe (2025) – first time SEBI investigates ESOP sales tied to undisclosed accounting lapses; spotlight on C-suite liability.
- SFIO v Amrapali Group (2024-25) – SFIO+CBI joint prosecution led to conviction of auditors for suppression of material facts, rare jail term for Big-4 partner.
- CCI v Maritime Cartel (2024) – CCI used “global turnover” yardstick post-amendment, inflating penalty to 9.8 % of worldwide sales; signals tougher stance.
2025 Regulatory Updates to Watch
- SEBI PIT Regulations (effective 10 Jun 2025) – automated closure of trading window now extends to “immediate relatives,” shrinking the leaks.
- PMLA Maintenance-of-Records Rules 2023 – beneficial-owner threshold cut to 10 %, crypto KYC mandatory.
- Competition Act Penalty Guidelines 2024 – CCI must consider “global turnover” when levying fines.
- Draft DPDP Rules 2025 – will operationalise ₹2,500 cr fines; internal investigations obligation on every “significant” data fiduciary.
Compliance Playbook for Businesses
- Map Applicable Statutes – e.g., fintechs must layer PMLA, DPDP and IT Act; manufacturers add Competition Act; listed entities add SEBI.
- Risk-Rank Functions – finance & procurement top corruption risk; sales desks top insider-trading risk; IT/infosec top data-breach risk.
- Build “Adequate Procedures” – mirror UK Bribery Act’s six principles to defend PCA charges.
- Continuous KYC & BO Monitoring – new 10 % BO rule means quarterly refresh, not annual.
- Insider-Trading Guard-Rails – auto-scrape board calendars to lock trading windows; archive chats.
- Cartel Red-Flags – sudden parallel price moves, trade-association WhatsApp groups; launch an amnesty self-report if unsure (CCI leniency 2.0 is generous).
- Data-Breach Drills – 72-hour notification under draft DPDP rules—rehearse like fire drills.
- Whistle-Blower Programs – still your cheapest defence; align with SEBI & Companies Act vigil mechanism rules.
Frequently Asked Questions
Is insider trading actually jail-worthy in India?
Yes; while criminal convictions are rare, PIT Regulations allow SEBI to seek up to 10 yrs imprisonment. The ongoing IndusInd probe could be the test case.
Can directors be jailed for company fraud even if they didn’t “do” it?
Under § 447 (fraud) and § 212 (8) of the Companies Act, “officers who are in default” face the same punishment unless they prove lack of knowledge + due-diligence.
Does PMLA apply to crypto exchanges?
Yes—March 2023 amendment classifies VDA service-providers as “reporting entities,” triggering KYC & STR obligations.
Key Takeaways
- The penalty ceiling has skyrocketed—from ₹10 lakh (old Benami Act) to ₹2,500 cr (DPDP).
- Reverse-onus statutes (PMLA, Benami, Black Money) mean “innocent until proven guilty” is no longer universal in economic crimes.
- Enforcement agencies now collaborate—ED + CBI + SFIO joint probes are the norm.
- Compliance isn’t optional: cheaper to invest in controls than fight multi-agency litigation for a decade.
