It’s not that the Indian laws are weak. As far back as 1985, the Supreme Court, in its judgment in the Shriran Oleum gas leak case, had said, “It is those who in fact control and determine the management of the company who are held vicariously liable for commission of statutory offences”. Yet, in practice, little is done. Promoters of publicly traded companies routinely siphon off funds from the companies. Cases of excise evasion are routinely filed and equally routinely put on the back burner.

The implications of white-collar crime may not be clearly understood in India, but its impact is far-reaching. The UTI scam alone led to small investors losing anything between Rs 3,000 crore and Rs 5,000 crore. It’s high time the apparatus to tackle white-collar crime is strengthened, before the next big shock hits.

The author is Technology & Special Projects Editor, The Financial Express