Economic Offences and their Investigation

Law library

Economic offences

A table listing various economic offences, the relevant legislations and concerned enforcement authorities is given below.
Economic offences not only inflict pecuniary losses on individuals but also damage the national economy and have security implications as well. The offences of smuggling of narcotic substances, counterfeiting of currency and valuable securities, financial scams, frauds, money laundering and hawala transactions etc. evoke serious concern about their impact on the national security. Local police deals with a considerable number of economic offences falling under the broad category of `cheating’, `counterfeiting’ and `criminal breach of trust’.

(i) The Indian Stamp Act, 1899 (2 of 1899);
(ii) the Central Excise Act, 1944 (1 of 1944);
(iii) The Industries (Development and Regulation) Act, 1951 (65 of 1951)
(iv) The Prevention of Food Adulteration Act, 1954 (37 of 1954)
(v) The Essential Commodities Act, 1955 (10 of 1955);
(vi) the Companies Act, 2013
(vii) The Securities Contracts (Regulation) Act, 1956 (42 of 1956)
(viii) the Wealth-tax Act, 1957 (27 of 1957);
(ix) the Income-tax Act, 1961 (43 of 1961);
(x) the Customs Act, 1962 (52 of 1962);
(xi) The Competition Act, 2002 (12 of 2003);
(xii) The Foreign Exchange Management Act, 1999 (42 of 1999)
(xiii) The Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986)
(xiv) The Securities and Exchange Board of India Act, 1992 (15 of 1992)
(xv) The Foreign Trade (Development and Regulation) Act, 1922 (22 of 1922)
(xvi) The Prevention of Money-Laundering Act, 2002 (15 of 2003)
(b) Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974)

BULLET 2No person shall be eligible for appointment as a managing or whole-time director or a
manager of a company (2013 or previous Acts) unless he had  been sentenced to imprisonment for any period, or to a fine exceeding one thousand rupees, for the conviction of an offence under any of the following Acts


Sl. No. Economic crimes Acts / Legislation and Enforcement authorities

Other major offenses

1. Tax evasion Income Tax Act  by Central Board of Direct Taxes
2. Illicit trafficking in contraband goods (smuggling) Customs Act 1962 ,COFEPOSA, 1974  by Collectors of Customs
3. Evasion of Excise Duty Central Excise Act, 1944  by Collectors of Central Excise
4. Cultural object’s theft Antiquity and Art Treasures Act, 1972 by  Police/State CB-CID/CBI
5. Money laundering Foreign Exchange Regulations Act, 1973; Money Laundering Act, 2002  by Directorate of Enforcement
6. Foreign contribution manipulations Foreign Contribution (Regulation) Act, 1976; by Police/CBI
7. Land grabbing/Real estate frauds IPC by Police/State CB-CID/CBI
8. Trade in human body parts Transplantation of Human Organs Act, 1994 by Police/State CB-CID/CBI
9. Illicit drug trafficking Narcotic Drugs and Psychotropic Substances Act 1985 & NDPS Act, 1988 by NCB/ Police/State CB-CID/CBI
10. Fraudulent bankruptcy Banking Regulation Act, 1949 by Police, CBI
11 Corruption and bribery of public servants Prevention of Corruption Act, 1988  by State/Anti Corruption Bureaux/ Vigilance Bureaux/CBI
12. Bank frauds  by IPC Police/State Vigilance/CB-CID/CBI
13. Insurance frauds by  IPC Police/State Vigilance/CB-CID/CBI
14. Racketeering in employment IPC Police/State  by CB-CID/CBI
15. Illegal foreign trade Import & Export (Control) Act,1947 by Directorate General of Foreign Trade/CBI
16. Racketeering in false travel documents Passport Act, 1920/IPC  by Police/State CB-CID/CBI
17. Credit cards fraud IPC by Police/State CB-CID/CBI
18. Terrorist activities IPC & related Acts by Police/State CB-CID/CBI
19. Illicit trafficking in arms Arms Act,1959  by Police/State CB-CID/CBI
20. Illicit trafficking in explosives Explosives Act, 1884 & Explosive Substances Act, 1908 by Police/State CB-CID/CBI
21. Theft of intellectual property Copyright Act, 1957 by  Police/State CB-CID/CBI
22 Computer crime/software piracy Copyright Act, 1957/I.T.Act, 2000 by Police/State CB-CID/CBI
23. Stock market manipulations IPC by Police/State CB-CID/CBI
24. Company frauds Companies Act, 1956/IPC MRTP Act, 1968 by Police/CBI/SFIO