Quick answer: White collar crime
White collar crimes are financial offences committed through deception or misuse of a position of trust: money laundering under the PMLA, bank and corporate fraud, corruption under the Prevention of Corruption Act, GST offences, cheating (Section 318 BNS, earlier 420 IPC), criminal breach of trust (Section 316 BNS, earlier 406 IPC) and forgery (Sections 336 and 340 BNS). They are investigated by agencies such as the Enforcement Directorate, the CBI, the police Economic Offences Wings and the SFIO. Advice matters most at the summons stage, before statements are recorded or an arrest is made. Law Chambers of Mridul Jindal handles these matters in Delhi, Noida and Ghaziabad. Call +91-8800669834.
Written and reviewed by Adv. Mridul Jindal, Advocate enrolled with the Bar Council of Delhi (2021) · Last updated 1 Nov 2026
What Counts as a White Collar Crime?
"White collar crime" is not a single section of law. It describes financial offences where money or property is obtained through deception, forged records or misuse of a position of trust, usually by individuals, company officers, employees or public servants. The main laws involved are:
- Bharatiya Nyaya Sanhita, 2023: cheating (Section 318, earlier 420 IPC), criminal breach of trust (Section 316, earlier 406 IPC; breach of trust by a public servant, banker, merchant or agent is Section 316(5), earlier 409 IPC), forgery (Section 336, earlier Sections 463, 465 and 468 IPC), using a forged document as genuine (Section 340, earlier 471 IPC) and criminal conspiracy (Section 61, earlier 120B IPC).
- Prevention of Money Laundering Act, 2002 (PMLA): money laundering under Section 3, punishable under Section 4 with rigorous imprisonment of three to seven years (up to ten years where the underlying offence is under the NDPS Act). Cases are investigated by the Enforcement Directorate (ED).
- Companies Act, 2013: fraud under Section 447, often investigated by the Serious Fraud Investigation Office (SFIO).
- Prevention of Corruption Act, 1988: bribery and criminal misconduct by public servants, usually investigated by the CBI or a state anti-corruption agency.
- GST and customs laws: offences such as fake invoicing and wrongful input tax credit under Section 132 of the CGST Act.
For one-to-one cheating disputes, see our cheating and fraud case page. For online fraud and frozen bank accounts, see cybercrime.
Received a Summons From the ED, CBI or EOW?
A summons or notice is usually the first step, and how it is handled can shape the rest of the case. Do not ignore it, and take advice before appearing. Statements given to the ED under Section 50 of the PMLA are recorded on oath and can be used in the case; the Supreme Court in Prem Prakash v. Union of India (2024) held that a statement recorded while the person is in custody is not admissible against him. Police investigators, including the Economic Offences Wing, generally issue a notice of appearance under Section 35(3) of the BNSS (earlier Section 41A CrPC) where arrest is not required.
Before appearing, we review the summons, the documents called for and the likely line of questioning, and help organise bank statements, agreements, board resolutions and correspondence so that the record is complete and accurate.
Arrest and Bail in Economic Offences
The Supreme Court has set out important safeguards:
- Grounds of arrest in writing: the ED must give the arrested person the grounds of arrest in writing (Pankaj Bansal v. Union of India, 2023).
- No arrest after cognizance: once the Special Court has taken cognizance of a PMLA complaint, the ED cannot arrest an accused who appears on summons; it must apply to the court for custody (Tarsem Lal v. Directorate of Enforcement, 2024).
- Twin conditions under Section 45 PMLA: bail requires the court to be satisfied that there are reasonable grounds to believe the accused is not guilty and is not likely to commit an offence on bail. These conditions do not apply to a person under sixteen, a woman, a sick or infirm person, or where the amount involved is less than one crore rupees, if the court so directs. The provision was upheld in Vijay Madanlal Choudhary v. Union of India (2022).
- GST and customs arrests: the protections of the criminal procedure code, including anticipatory bail, are available to persons who fear arrest under the GST and Customs Acts (Radhika Agarwal v. Union of India, 2025).
Depending on the stage, we apply for anticipatory or regular bail under Sections 482, 480 and 483 of the BNSS before the Special Court, Sessions Court or High Court, and approach the Supreme Court where needed.
Quashing, Discharge and Civil Disputes
Many commercial disagreements are given a criminal colour. Where the dispute is essentially civil, or the facts do not disclose an offence, the High Court can quash the proceedings under Section 528 of the BNSS (earlier Section 482 CrPC), and the accused can seek discharge at the stage of framing of charges.
A money laundering case depends on an underlying ("scheduled") offence. Under Vijay Madanlal Choudhary, if the person is finally discharged or acquitted of the scheduled offence, or that case is quashed, the money laundering case against him cannot continue. For public servants, Section 17A of the Prevention of Corruption Act requires prior approval before an inquiry into decisions taken in the discharge of official duties.
For Companies, Banks and Investors Who Have Been Defrauded
If money has been taken through fraud, we help prepare a complaint to the police or the Economic Offences Wing with the supporting documents, and, if the police do not act, an application to the Magistrate under Section 175(3) of the BNSS. Recovery can be pursued in parallel through a legal notice, a civil recovery suit or, for bank dues, the DRT.
Documents to bring: the summons or FIR (if any), agreements, invoices, bank statements, email and WhatsApp correspondence, company records and any earlier replies to authorities.
Consultations are by prior appointment at our Indirapuram chamber or online. Please contact us to fix a time.
Case in Delhi? See our Delhi courts guide to find which court complex (Tis Hazari, Karkardooma, Saket, Patiala House, Rohini, Dwarka or Rouse Avenue) will hear it.
Frequently Asked Questions on White Collar Crime
No. An ECIR (Enforcement Case Information Report) is the Enforcement Directorate's internal document. In Vijay Madanlal Choudhary v. Union of India (2022) the Supreme Court held that a copy need not be supplied in every case, but the grounds of arrest must be given to an arrested person in writing (Pankaj Bansal, 2023).
An application can be made. In PMLA cases the twin conditions of Section 45 also apply to anticipatory bail. For GST and customs cases, the Supreme Court in Radhika Agarwal v. Union of India (2025) held that anticipatory bail is available to a person who fears arrest.
Under Section 45 of the PMLA, the court must be satisfied that there are reasonable grounds to believe the accused is not guilty and is not likely to commit an offence while on bail. The conditions do not apply to a person under sixteen, a woman, a sick or infirm person, or where less than one crore rupees is involved, if the court so directs.
Under Vijay Madanlal Choudhary (2022), if the person is finally discharged or acquitted of the scheduled offence, or the case is quashed, there can be no money laundering offence against him on that basis.
Cheated, or accused of fraud?
Whether a matter is criminal or only a contract dispute changes everything. Speak to Adv. Mridul Jindal about the right route.
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