What Types of White Collar Crimes Are Investigated by the CBI?

The Central Bureau of Investigation (CBI) investigates serious and complex white collar crimes involving corruption, large-scale financial frauds, economic offences, and crimes having inter-state, national, or public interest implications, particularly where public servants, public sector undertakings, or central government institutions are involved.

Introduction

White collar crimes pose a grave threat to the economic stability and governance structure of India. These offences are typically committed by individuals in positions of trust, authority, or professional standing and involve sophisticated methods of deception, financial manipulation, and abuse of power. Given the magnitude, complexity, and public impact of such crimes, the Central Bureau of Investigation (CBI) plays a crucial role in their investigation.

The CBI is India’s premier investigating agency for serious economic and corruption-related offences. This article provides a detailed, structured, and comprehensive analysis of the various types of white collar crimes investigated by the CBI, the legal framework governing such investigations, and the practical scope of CBI’s jurisdiction.

Overview of the CBI’s Role in White Collar Crime Investigation

The CBI functions under the Delhi Special Police Establishment Act, 1946. Its mandate includes investigating:

Corruption in public offices
Major economic offences
Bank and financial institution frauds
Corporate and PSU-related frauds
High-value cheating and forgery cases

The CBI generally steps in when:

The offence involves central government employees or PSUs
The financial impact is substantial
The crime spans multiple states
The case is referred by a court

Categories of White Collar Crimes Investigated by the CBI

1. Corruption Offences Under the Prevention of Corruption Act, 1988

Corruption cases form the backbone of CBI investigations.

CBI investigates offences involving:

Bribery by public servants
Abuse of official position for pecuniary advantage
Criminal misconduct
Illegal gratification through intermediaries

These cases typically involve:

Central government employees
Officers of PSUs
Bank officials
Autonomous bodies under central control

2. Bank Frauds and Financial Institution Scams

Bank frauds constitute a significant portion of CBI white collar crime cases.

Common forms include:

Fraudulent loan sanction and disbursement
Wilful default with dishonest intention
Siphoning and diversion of funds
Fake collateral and inflated asset valuation
Consortium and multiple banking frauds

Such cases are usually registered when:

Public sector banks are involved
The fraud amount is large
Internal vigilance reports indicate criminality

3. Corporate Frauds and Company-Related Offences

CBI investigates corporate frauds having public interest implications.

These include:

Falsification of balance sheets
Manipulation of accounts
Diversion of company funds
Fraudulent related-party transactions
Misrepresentation to investors or lenders

Relevant laws:

Bharatiya Nyaya Sanhita (earlier IPC)
Companies Act, 2013

4. Cheating and Criminal Conspiracy in High-Value Transactions

CBI handles cases of cheating involving:

Large monetary values
Multiple accused
Inter-state or international dimensions

Relevant provisions:

Section 318(4) BNS (earlier Section 420 IPC)
Criminal conspiracy provisions

These cases often arise from:

Infrastructure projects
Defence procurements
Large commercial contracts

5. Criminal Breach of Trust by Public Servants and Bank Officials

CBI investigates cases where public servants or bank officials misuse entrusted property.

Examples include:

Misappropriation of public funds
Unauthorized release of loans
Breach of fiduciary duties

Relevant provisions:

Sections 316–318 BNS (earlier Sections 405–409 IPC)

6. Forgery, Fabrication, and Use of Fake Documents

Forgery-related white collar crimes are frequently investigated by the CBI, particularly when:

Government records are tampered with
Forged documents are used to obtain loans, contracts, or benefits

These include:

Fake certificates
Fabricated agreements
Altered financial statements

7. Economic Offences Involving Public Sector Undertakings (PSUs)

CBI investigates offences involving PSUs where:

Public funds are misused
Procurement processes are manipulated
Tendering norms are violated

Such cases involve:

Inflated contracts
Kickbacks
Cartelization

8. Large-Scale Procurement and Tender Frauds

Tender and procurement frauds involve manipulation of government contracts.

CBI investigates:

Bid rigging
Favoritism
Kickbacks
Violation of tender conditions

These cases often involve conspiracy between:

Public officials
Contractors
Middlemen

9. Defence and Strategic Sector Offences

Due to national security implications, the CBI investigates white collar crimes related to:

Defence procurement
Strategic infrastructure projects

Such cases involve:

Overpricing
False documentation
Corrupt practices

10. Multi-State and Inter-Agency Economic Offences

CBI handles white collar crimes with:

Inter-state ramifications
Cross-border financial transactions

These cases require:

Coordination with state police
Assistance from foreign agencies
Letters rogatory and mutual legal assistance

Preliminary Enquiry and Registration of CBI Cases

In many white collar crimes, the CBI conducts a Preliminary Enquiry (PE) to verify allegations. If sufficient material is found, a Regular Case (RC) is registered.

This mechanism helps prevent:

Frivolous prosecutions
Abuse of criminal process

Distinction Between CBI and Other Agencies in White Collar Crimes

Agency	Nature of Offences
CBI	Corruption, major frauds, PSU and bank-related crimes
ED	Money laundering and proceeds of crime
SFIO	Serious corporate frauds
Income Tax	Tax evasion and benami transactions

Multiple agencies can investigate different aspects of the same transaction.

Judicial View on CBI Investigation of White Collar Crimes

Courts have repeatedly held that white collar crimes are a class apart and require specialized investigation by agencies like the CBI due to their complexity and public impact.

However, courts also caution against misuse of criminal law to settle civil disputes.

Conclusion

The Central Bureau of Investigation plays a pivotal role in uncovering and prosecuting serious white collar crimes in India. From corruption and bank frauds to corporate scams and tender manipulations, the CBI’s jurisdiction covers a wide spectrum of economic offences that have a significant impact on public interest and national economy. Understanding the types of white collar crimes investigated by the CBI helps individuals, professionals, and institutions appreciate the seriousness of such offences and the robust legal framework designed to combat them.

Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.

Advocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)

Contact: 88271 22304