INTRODUCTION
The term "white-collar crime" was first found in criminology in 1941 when Sutherland published research papers on white-collar crime. So far, the term has not been defined in any law but is commonly used as a general term to refer to any financially-motivated criminal act committed by individuals of a certain class or social status.
For example, the functions of government, ministers, CEOs of large cooperatives - people in decision-making and influential positions. In other words, white-collar crime is a non-violent act and involves a breach of trust or a violation of the faith given to the perpetrator by an individual or an organization. White-collar crime in India has seen a huge rise/rise in cases related to healthcare fraud, financial fraud, cyber fraud, bankruptcy fraud, government fraud, government fraud, land consolidation fraud, etc. Real estate fraud is another type of white-collar crime, two important in our time.
One may have come across many notice boards and advertisements from real estate developers that attract attention with slogans such as "Buy now, pay later!" or “Pay 15% Now and Rest After You Buy” to potential buyers. These are some examples of sub-plans offered by real estate developers with relationships with banks and financial institutions. These discounts act as a shiny coating to trap potential buyers, who clearly find these programs very attractive. An annexe plan is a tripartite contract signed between real estate developers, home buyers and banking institutions. The buyer pays a percentage of the total value of the property when placing the property. The banking institution pays the remaining amount of the real estate at various stages of construction to the investor in the form of a loan to the buyer. The developer pays interest on this mortgage until the buyer owns the property or as specified in the contract.
CONTRIBUTION PROGRAMS IMPACT HOME BUYERS AND THE GENERAL PUBLIC
I. Embezzlement of public funds.
A small quota program was introduced to reduce the monthly down payment burden on homebuyers until the property of the department is ceded. The real estate developer receives capital from the banking institution and tries to complete the construction of the project as quickly as possible so that the real estate developer incurs less interest and on the other hand the buyer owns the property yourself without a time limit. The reason why a funding scheme has become a fraud scheme and influence the public by embezzling their hard-earned money three times. First, the tripartite contract is not well drafted. Second, the presence of a transfer of liability clause - In the event that the property developer fails to pay interest on the mortgage, the responsibility is transferred to the buyer, which motivates the developers to collect the money to the public in the form of a home loan, and then to avoid any obligations related to that money. Third, the lack of appropriate terms and conditions may protect the interests of the buyer or involve the liability of the real estate developer. As a result, real estate developers walk away and buyers' money is trapped.
II. Shortcomings of the Credit Score Sub-program.
One of the main limitations of this program is the default of the real estate developer or the blocking of the project. In such cases, it is the buyer who suffers the most because the loan is in their name and the responsibility for repayment certainly rests with them. In such schemes, the buyer is considered the real borrower. Thus, the failure or delay of a real estate developer to pay equal monthly payments can become a double-edged sword that can easily hurt a buyer's credit rating, as they will have to bear the brunt of the rent and the equivalent rent monthly payment. Thus, damaging credit ratings can significantly limit a buyer's ability to borrow in the near future.
III. Public Trust and Financial Institution Reputation at Stake Under the subsidy program.
The three parties’ contract with homebuyers, real estate developers and financial institutions to ease the burden on buyers. In prepaid-to-own monthly instalments, to ensure a constant flow of capital to provide low-risk property developers to build, and by participating in such schemes, banks products attract a large number of customers. Thus, real estate developers act as a hub to tempt homebuyers and homebuyers to enter into tripartite contracts based on their trust in the financial institution's credibility. Currently, due to the increase in the number of Fraud in Subsidy Schemes, the sole purpose of this scheme has been frustrated and the general public tends to lose confidence in these financial institutions.
IV. Crime against the public.
It is well known that certain professions offer lucrative opportunities for crimes and unethical practices that receive little public attention. These deviants do not respect honesty and other moral values and engage in illegal acts with impunity, without fear of loss of prestige or status. These types of crimes are known as white-collar crimes, and they are mainly the result of economic and industrial growth in the mid-twentieth century. It must be said with empathy that white-collar crime thrives on public indifference to it. The reason for this community's insensitivity is first because these criminals operate within the framework of the law and exploit the trust of the victims and secondly, the legal battles involving the courts continue practices for many years and hence the severity of the law. The offence is lost completely in oblivion. Sutherland points out that white-collar crime causes more damage to the public than ordinary crime because the financial loss to the public is much greater than the financial loss due to theft, burglary, theft, etc.
Reference:
1. American Sociological Review Vol. V No. 1 (1941).
2. 1. Report by the Police Officials, https://www.thehindu.com/news/cities/Delhi/tightening-the-nooseon-white collarfrauds/article33427317.ece .