Cheque bounce,Fraud,Money Laundering,Theft
Common legal problems faced by individual in India which requires a Lawyer
26 Nov 2016  |  Views: 31  | 
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Various recourses to a legal problem have come nowadays. Every legal problem faced by an individual does not necessarily require a lawyer to be solved in today’s technological era. But there are certain important issues which cannot be rectified without a lawyer. Money is an important mode of transaction as well as living hence money matters must be handled with utmost diligence. Common problems faced by individuals regarding monetary issues are as follows:

Cheque Bounce: The Negotiable Instruments Act, 1881 is applicable for the cases of dishonour of cheque. This Act has been amended many times since 1881. According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both.

Hawala Transactions: Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted to prevent money-laundering and to provide for confiscation of property derived from money-laundering. PMLA and the Rules notified there under came into force with effect from July 1, 2005.

Debt recovery: The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011, amends two Acts — Sarfaesi Act 2002, and Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act). Banks can then sell this property to a new bidder at a later date to clear off the debt completely.

Theft of money: Section 378 under IPC defines theft, which is whoever, intending to take dishonestly any moveable property out of the possession of any person without that per-son’s consent, moves that property in order to such taking, is said to commit theft.

Fraud in terms of money: The term 'fraud' has not been defined in the Indian Penal Code (IPC). Nevertheless, Section 25 of the IPC does attempt to define the word 'fraudulently' by saying that there can be no fraud unless there is an intention to defraud. In general, fraud is committed in three different ways as listed under sections 421-424: 

  1. To deprive a person of his/her right/s, either by obtaining something by deception or by taking something wrongfully without the knowledge or consent of the owner; 
  2. To withhold wrongfully from another what is due to him/her, or to wrongfully prevent a person from obtaining what he/she may claim first, and; 
  3. To defeat or frustrate wrongfully another person's right to property.Whenever the words 'fraud', 'intent to defraud' and 'fraudulently' occur in the definition of a crime under the IPC, two elements are essential to the commission of that crime as opined by the SC in Dr. Vimla v. Delhi Administration (1963 AIR 1572):  Deceit or an intention to deceive, and; 
  4. Either actual injury or possible injury or an intent to expose some person to actual or possible injury.  The main intent of a fraudulent person is, in almost every case, his/her own advantage. A conclusive test to the fraudulent character of a deception for criminal purpose is whether the author of the deceit derived any advantage from it which he would not have had if the truth had been known.

Corruption in India: Major concern in India regarding money is Corruption wherein the rich are becoming richer and the poor are becoming poorer. Recent Demonetization by the Prime Minister and the upcoming GST might bring certain reduction to corruption in India but there are certain laws in India which regulates Corruption to great extent.

Anti-corruption laws in India

  1. Indian Penal Code, 1860. 
  2. Prosecution section of Income Tax Act, 1961. 
  3. The Prevention of Corruption Act, 1988. 
  4. The Benami Transactions (Prohibition) Act, 1988 to prohibit benami transactions. 
  5. Prevention of Money Laundering Act, 2002.
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