Economic Offences

3831 Words Sep 3rd, 2012 16 Pages
ECONOMIC OFFENCES | REGULATION OF SECURITIES MARKET | Naiti Kansara (3)Anushka Debnath (14)Aayush Mehta (25)Manan Parekh (36)Urvashi Baldia (47)Sejal Chhajed (59) |

CONTENTS

1. What are economic offences?

2. Types of offences, legislation, enforcement authorities

3. A few scams * Telgi Scam * 2G Scam * Demat Scam * Harshad Mehta Scam 4. Acknowledgements

5. Bibliography

WHAT ARE ECONOMIC OFFENCES?
Economic offences form a separate category of crimes under Criminal offences. These are often confused with White/Blue Collar crimes. Generally people belonging to upper economic classes are found involved in such crimes with the help of some unscrupulous and corrupt Government functionaries and advanced
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At that time, Telgi was serving time in a cheating case.
Telgi’s modus operandi involved washing cancelled stamp papers with chemicals, which would make them look as good as new. He would sell them through his network of front men. Additionally, he cultivated officials at the Security Press in Nashik, where stamp papers are printed. With their connivance he used government machinery to print stamp paper. In a public auction the government security press in Nashik sold to Mr. Telgi a dozen presses without dismantling them and without removing the dyes. This was illegal. It enabled printing of authentic stamp paper. The official responsible for the auction was promoted. Mr. Ram Jethmalani, as cabinet minister, recommended his promotion. Mr. Yashwant Sinha, as finance minister, ordered it. Later the police arrested the official. But the government did not dismiss him. The Committee of Secretaries and senior officials of the finance ministry defended him.
Telgi's “executives” would approach big corporations such as Indian Oil or the Life Insurance Corporation and offer them discounts of up to 5 per cent – a substantial amount given that most stamp vendors give discounts up to 2.5 per cent.
Apparently, Telgi established contact with politicians through their henchmen. He never entered into too many deals. Once he reached an agreement for the circulation of stamps, he would offer them a Statewide and, in some cases, countrywide contract on
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