For More Details contact us on :- +91-9833604902 022-23892325 www.optimalegalsolutions.com

1. OLS Mumbai
For More Details
contact us on :-
+91-
9833604902
022-23892325
www.optimalega
lsolutions.com

2. Advocate for
Economic Offences

4. WHAT IS ECONOMIC OFFENSES????
•Economic and financial
offences cover fraud, forgery
and counterfeiting, offences
against the legislation
governing cheques (in
particular forgery or use of
stolen cheques), forgery or use
of credit cards, undeclared
employment, offences against
companies (such as misuse of
company assets).

5. TYPES OF ECONOMIC OFFENCES:
NBFC’S
SECONDARY
MARKET FRAUD
PRIMARY MARKET
FRAUD
BANK FRAUD
IMPORT/EXPORT
FRAUD
INSURANCE FRAUD FAKE CURRENCY
INTELLECTUAL
PROPERTY FRAUD

6. Bank fraud is the use of potentially illegal means to obtain money, assets, or other
property owned or held by a financial institution, or to obtain money from depositors by
fraudulently posing as a bank or other financial institution.
Types Of Banking Fraud
ELECTRONIC FRAUD
CREDIT/DEBIT CARD FRAUD
IDENTITY THEFT
CHEQUE FRAUD
BANK FRAUD

7. TYPES OF ECONOMIC OFFENCES:
NBFC’S
SECONDARY
MARKET FRAUD
PRIMARY MARKET
FRAUD
BANK FRAUD
IMPORT/EXPORT
FRAUD
INSURANCE FRAUD FAKE CURRENCY
INTELLECTUAL
PROPERTY FRAUD

9. Sl.
No.
Economic Crimes
Acts / Legislation Enforcement Authorities
1. Tax Evasion Income Tax Act Central Board of Direct
Taxes
2. Bank Frauds , Credit card
frauds, Insurance frauds
IPC Police/State
Vigilance/CB-CID/CBI
3. Stock Market Manipulations IPC Police/CB-CID/CBI
4. Company Frauds Companies Act,
1956/IPC
MRTP Act, 1968
Police/CBI/SFIO

10. Sl.
No.
Economic Crimes Acts / Legislation Enforcement Authorities
5. Racketeering in false Travel
documents
Passport Act,
1920/IPC
Police/State CB-CID/CBI
6. Computer Crime/Software
piracy
Copyright Act,
1957/I.T.Act, 2000
Police/State CB-CID/CBI
7. Money Laundering Foreign Exchange
Regulations Act,
1973;
Money Laundering
Act, 2002
Directorate of
Enforcement
8. Evasion of Excise Duty Central Excise Act,
1944
Collectors of Central
Excise

11. Bank fraud is the use of potentially illegal means to obtain money, assets, or other
property owned or held by a financial institution, or to obtain money from depositors by
fraudulently posing as a bank or other financial institution.
Types Of Banking Fraud
ELECTRONIC FRAUD
CREDIT/DEBIT CARD FRAUD
IDENTITY THEFT
CHEQUE FRAUD
BANK FRAUD

12. Insider trading is the trading of a corporation's stock or other security by
corporate insiders such as officers, key employees, directors, or holders of more
than ten percent of the firm's shares.
Rajat Gupta, former corporate chairman and
member of the Boards of Directors of Goldman
Sachs and Procter & Gamble who surrendered
before the FBI earlier, was arrested and charged
with committing securities fraud as he shared
confidential information with hedge fund
manager Rajaratnam
INSIDER TRADING

13. MONEY LAUNDERING
Money laundering is the process of cleaning dirty money with the objective of hiding its
source and enabling it to be used later in a legal form.
This process creates a web to hide the origin/true nature of these funds.
Prior this crime was covered (FERA) & (FEMA).
The Prevention of Money Laundering Act (PML), 2002 was passed to combat money
laundering in India .
The Saradha group and its investments
are already being probed by a host of
agencies like the SEBI, income tax
department and investigation units under
the ministry of corporate affairs

14. STEPS TAKEN BY THE GOVERNMENT TO CURB MONEY LAUNDERING
The Reserve Bank of India, which is the Central Bank for the country, has issued
directions to be strictly followed by the Banks regarding the standard practices
under the ‘Know Your Customer’ (KYC) guidelines.
The banks are required to obtain all information necessary to establish the
identity/legal existence of each new customer.
The PMLA makes it mandatory for every banking company, financial institution
and intermediary to maintain records of transactions for a period of ten years.
In case of any violation of this legal obligation, these institutions have to face
penal consequences.

15. BANK & STOCK MARKET SCAM:
Harshad Shantilal Mehta(1992)
An Indian stockbroker, well known for his wealth and for having been charged
with numerous financial crimes that took place in 1992.
Of the 27 criminal charges brought against him, he was only convicted of one,
before his death at age 47 in 2001. It was alleged that Mehta engaged in a
massive stock manipulation scheme financed by worthless bank receipts, which his
firm brokered in "ready forward" transactions between banks.
Mehta was convicted by the Bombay High Court and Supreme Court of India for
his part in a financial scandal valued at 50 billion (US$860 million) which took place
on the Bombay Stock Exchange (BSE).
In reality he actually exposed the loopholes in the Bombay Stock Exchange
(BSE) transaction system and SEBI further introduced new rules to cover those
loopholes. He was tried for 9 years, until he died in the late 2001.

16. KETAN PAREKH(2001)
A former stock broker from Mumbai, India, who was convicted in
2008, for involvement in the Indian stock market manipulation scam
in late 1999-2001. Currently he has been debarred from trading in
the Indian stock exchanges till 2017. He was trainee of Harshad
Mehta.
Parekh is alleged to have been involved in circular
trading throughout the time period and with a variety of companies,
including Global Trust Bank and Madhavpura Mercantile Co-
operative Bank.Parekh made potent use of "layering" of financial
transactions through a vast chain of inter linked fraudulent
"benaami" bank accounts opened in the name of fictitious entities
through violation of KYC guidelines.

17. FAKE STAMP PAPER SCAM:
Abdul Karim Telgi
He earned money by printing counterfeit stamp paper in India. He cited Sharad
Pawar's name in relation to a 600 billion (US$10 billion) stamp-paper scam, during
a narcoanalysis filmed by various Indian news channels, wherein he also
mentioned Chhagan Bhujbal.
For example, one Assistant Police Investigator was found to have a net worth
of over 1 billion (US$17 million), despite making a salary of only 9,000 (US$150)
per month.
On 17 January 2006, Telgi and several associates were sentenced to 30
years rigorous imprisonment.On 28 June 2007, Telgi was sentenced to rigorous
imprisonment for 13 years for another aspect of the scandal. He was also
fined 1,000 crore (US$170 million). The Income Tax Department requested that
Telgi's property be confiscated to pay the fine.

18. CITI BANK FRAUD: (2009)
SCAM WAS OF MORE THAN 400 RS CRORE.
THE SCAM WAS DONE BY SHIVRAJ PURI WORKING
AS RELATIONSHIP MANAGER FOR MORE THAN 7-8
YEARS.
HE MAINTAINED MANY FAKE ACCOUNTS NAMELY
PREM NATH, SHENA PREM NATH.
THEY WERE RUNNING A FAKE SCHEME WHICH
PAID HIGHER INTEREST , BUT INTERNAL INQUIRY SAYS
THERE WAS NO SUCH SCHEME.
18 FAKE ACCOUNTS WAS FOUND WITH NET
AMOUNT WORTH RS. 3.85 CRORE

19. Palmolein Oil Import Scam (91-92)
Kerala government decided to import palm oil from
a Malaysian company in Singapore named "Power and Energy
Ltd" above the international price which was approved by the
Kerala Cabinet. The price of import was fixed to $405.0 per ton
which was higher than the international price of $392.25 per ton.
The decision was to import 15,000 tonnes of palm oil.
K Karunakaran
Oommen Chandy
The opposition cried foul in the import. A vigilance case was
filed against K. Karunakaran and seven others including Thomas.
Thomas was bailed in 2003. A Special Leave Petition by the late K.
Karunakaran made the Supreme Court stay the proceedings. The
court closed the proceedings against K. Karunakaran after his
death in December 2010.
The case was reopened in March 2011

20. 2G SPECTRUM SCAM
It is about selling the Communication Bandwidth for lower than the market value.
This has created a great damage to country’s economy.
 This scam amounted to Rs.1,76,000 crores
The key players involved in this scam are: A.Raja,
M.K.Kanimozhi,Nira Radia and many telecommunication companies.
This scam is also responsible for present economic and financial crisis in India

21. Securities and Exchange Board of India
भारतीय प्रततभूतत और वितिमय बोर्ड
SEBI Bhavan, Mumbai headquarters
Agency overview
Formed 12 April 1992
Jurisdiction Government of India
Headquarters Mumbai, Maharashtra
Employees 525 (2009)
Agency executive U. K. Sinha, Chairman
Website
www.sebi.gov.in

22. POWERS OF SEBI:
For the discharge of its functions efficiently, SEBI has been vested
with the following powers:
To approve by−laws of stock exchanges.Sebi.
To require the stock exchange to amend their by−laws.
Inspect the books of accounts and call for periodical returns from recognized
stock exchanges.
Inspect the books of accounts of a financial intermediaries.
Compel certain companies to list their shares in one or more stock exchanges.

23. SEBI COMMITTEES
Technical Advisory
Committee
Committee for review of
structure of market
infrastructure institutions
Members of the Advisory
Committee for the SEBI
Investor Protection and
Education Fund
Takeover Regulations
Advisory Committe
Primary Market Advisory
Committee (PMAC)
Secondary Market Advisory
Committee (SMAC)
Mutual Fund Advisory
Committee
Corporate Bonds &
Securitization Advisory
Committee

24. MAJOR
SEBI is credited for quick movement towards making the
markets electronic and paperless by introducing T+5 rolling cycle
from July 2001 and T+3 in April 2002 and further to T+2 in April
2003
SEBI did away with physical certificates that were prone to
postal delays, theft and forgery, apart from making the settlement
process slow and cumbersome by passing Depositories Act, 1996.
SEBI has increased the application limit for retail investors to Rs
2 lakh, from Rs 1 lakh at present.

25. THE REAL PICTURE OF
INDIAN ECONOMY

26. SAHARA V/S SEBI CASE
In the high profile Sahara case involving over Rs. 24,000 crore raised through
‘various illegalities’, market regulator SEBI has begun the process of refund to
individual investors who have been verified by it.
The money so far deposited by Sahara be permitted to be refunded to the genuine
investors, with interest, after verifying the genuineness of the documents
SEBI has also filed a contempt petition against Sahara, accusing them of not following
court directions, while it has also sought orders for arrest of group chief Subrata Roy
and his debarment from leaving the country. These matters are also likely to be heard
by the court on July 17.
Administrative costs and expenses relating to the case would also be incurred by
Sahara and Besides, another contract of Rs. 29.88 crore was given to UTI Infrastructure
Technology and Services for the work relating to redemption related activities in this
case.

27. OLS Mumbai
For More Details
contact us on :-
+91-
9833604902
022-23892325
www.optimalega
lsolutions.com