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Organised crimes in India
1.0 INTRODUCTION
Like most nations, criminal gangs have operated in India since ancient times. The operation of 'thugs' during the British period is well documented. Another popular criminal grouping includes the dacoits of the Chambal region till recent times (resurgence reported lately). Several such gangs used to operate in the States of Madhya Pradesh and Uttar Pradesh, and were neutralised as a result of police action and the social reform movement.
Organised crime is not confined to the boundaries of any one country and has become a transnational problem. Organised criminal activity has existed in different forms since ancient times, but contemporary patterns of organised crime are infinitely more complex than they have been at any point of time in history. The core organized crime activity is the supply of illegal goods and services to countless numbers of citizen customers. It is also deeply involved in legitimate business and in labour unions.
Organised crime employs illegitimate methods - monopolization, terrorism, extortion and tax-evasion to drive out or control lawful ownership and leadership, and to extract illegal profits from the public. Organized crime also corrupts public officials to avert governmental interference and is becoming increasingly sophisticated. In the next stage, the money and power earned by organized crime are converted into legitimate business interests.
The spheres of activity in India in organized crime include the traditional spheres of activities like extortion, seeking protection money, contract killing, boot-legging, gambling, prostitution and smuggling. The new sphere of activities are drug trafficking, illicit arms trading, money laundering, transporting and other illegitimate activities based essentially on brute force, fear of violence and violence if necessary.
2.0 MEANING OF ORGANIZED CRIME
One of the basic definitions of organized crime can be "those involved, normally working with others, in continuing serious criminal activities for substantial profit, elsewhere". Organised criminals that work together for the duration of a particular criminal activity or activities are what we call an organised crime group.
The US Task Force Report of 1967 described organised crime as "a society that seeks to operate outside the control of the American people and their government. It involves thousands of criminals working within structures as complex as those of any large corporation, subject to laws more tightly enforced than those of legitimate governments. Its actions are not impulsive but the result of intricate conspiracies, carried on over whole fields of activity in order to amass huge profits".
Organised crime and criminal organizations are a group of terms which categorise transnational, national, or local groupings of highly centralized enterprises run by criminals, who intend to engage in illegal activity, most commonly for monetary profit.
There is no uniform structure for an organised crime group. Many groups are in practice loose networks of criminals that come together for the duration of a criminal activity, acting in different roles depending on their skills and expertise. Collaboration is reinforced by shared experiences (such as prison), or recommendation from trusted individuals. Others are bonded by family or ethnic ties - some 'crime families' are precisely that. This concept was glamourised in “The Godfather” film series by the potrayal of Vito Corleone family.
Most of the successful organised crime groups often consist of a durable core of key individuals. Around them, there's a cluster of subordinates, specialists, and other more transient members, plus an extended network of disposable associates.
3.0 CHARACTERISTICS OF ORGANISED CRIME
3.1 Characteristics of the criminal group
Continuity: The criminal group operates beyond the life time of individual members and is structured to survive changes in leadership.
Structure: The criminal group is structured as a collection of hierarchically arranged interdependent offices devoted to the accomplishment of a particular function. It may be highly structured or may be rather fluid. It is, however, distinguishable as the ranks are based on power and authority.
Membership: The membership in the core criminal group is restricted and based on common traits such as ethnicity, criminal background or common interests. The potential members are subjected to a lot of scrutiny and required to prove their worth and loyalty to the criminal group. The rules of membership include secrecy, a willingness to commit any act for the group and intent to protect the group. In return for loyalty, the member of a criminal group receives economic benefits, certain prestige, and protection from law enforcement.
Criminality: The criminal group relies on continuing criminal activity to generate income. Thus, continuing criminal conspiracy is inherent in organized crime for example supplying illegal goods and services.
Violence: Violence and the threat of violence are an integral part of a criminal group. The violence or threat of it is used against the members of the group to keep them in line as also against the outsiders to protect the economic interests of the group. Members are expected to commit, condone or authorize violent acts.
Power/Profit goal: The members of the criminal group aim at maximizing the group's profits. Political power is achieved through the corruption of public officials, including legislators and political executive. The criminal group maintains power through its association with the "protectors" who defend the group and its profits.
3.2 Legal position in India on organized crime
In India law and order is a state subject. Entries 1 and 2 of List 2 of the seventh schedule of the Indian Constitution mention public order and police. Various state legislatures have enacted laws to curb and combat the influence of organized crime e.g. Maharashtra Control of Organised Crime Act (MCOCA) in Maharashtra, Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act, 1986 etc. There are some provisions related to crime in the Central Government Acts also.
3.2.1 The Indian Penal Code (IPC)
Sec. 120-A of the Indian Penal Code defines criminal conspiracy as:
"When two or more persons agree to do, or cause to be done
- An illegal act, or
- An Act which is not illegal by illegal means.
Such an agreement is designated as criminal conspiracy: “provided that no agreement except an agreement to commit an offence shall amount to a criminal conspiracy unless some act besides the agreement is done by one or more parties to such agreement in pursunce thereof merely incidental to that object".
Section 120-B of the India Penal Code provides for punishment for criminal conspiracy.
Section 391 of the Penal Code defines dacoity as "When five or more persons conjointly commit or attempt to commit a robbery, or where the whole number of Persons conjointly committing or attempting to commit a robbery, and persons present and aiding such commission or attempt amount to five or more, every person so committing, attempting or aiding is said to commit 'dacoity'."
In other words, if five or more persons commit the offence of robbery, they commit 'dacoity'.
Dacoity is punishable with imprisonment for life or rigorous imprisonment up to 10 years and five months (section 395).
There are several other central statutes which deal with specific facets of organized crime. Some of them are:
- The Customs Act, 1962
- The Narcotics Drugs and Psychotropic Substances Act, 1884
- The Immoral Traffic (Prevention) Act, 1956
- Foreign Exchange Regulation Act, 1973 replaced by Foreign Exchange Management Act (FEMA) in 1998
- The Public Gambling Act, 1867 etc.
4.0 Evolution of the underworld in Mumbai
Organised crime in contemporary India has become a complex issue. Widening aspiration fulfillment gaps and socio political circumstances have contributed to rise of organised crime. The fact that the Constitution of India aimed at achieving socio-economic equality in a popular, nebulous and pluralistic democracy has generated processes favouring the creation of greater political legitimacy for various patterns of deviance and crime. An upsurge in economic crimes includes a variety of financial scams, tax evasion and money laundering.
After independence, due to the prohibition policy adopted by the Government of Maharashtra, bootlegging or trade in illicit liquor became a lucrative business for criminal gangs. They made considerable sums of money by supplying illicit liquor to the local citizenry.
Their activities also extended to the neighbouring state of Gujarat, which was declared 'dry' at the time of independence and continues to be so till date. Varadarajan Mudaliar, who started as a porter at the Victoria Terminus (VT) railway station, took to committing theft at the Mumbai Docks and later graduated to bootlegging in the nineteen sixties. He acquired considerable wealth through such activities and also subverted the law enforcement system considerably. In the mid nineteen eighties, he became so influential that he used to hold durbars (conclaves) in his area of influence to settle disputes.
Similarly, Haji Mastan and Yusuf Patel began as small-scale criminals and later took to smuggling gold and silver. They made a lot of money and invested it in 'legitimate' business ventures, primarily construction and real estate. Haji Mastan made an attempt on Yusuf Patel's life in the nineteen seventies due to business rivalry but the latter survived. This was the beginning of the gang warfare in Mumbai, which continues unabated to date and has claimed hundreds of lives.
A major gang to emerge in Mumbai was that of Varadarajan Mudaliar in the nineteen seventies on the basis of bootlegging and Matka operations. In later years, he diversified his illegal activities into smuggling, dock thefts and contract killing, ruling the city's underground for over a decade till the mid-nineteen eighties.
Another example was Abdul Latif, the Mafia don of Ahmedabad in the State of Gujarat. He also started his career as a small time bootlegger and went on to monopolise the entire illicit liquor business in the State. In 1985, he aligned with notorious Pathan gangster Alamzeb of Mumbai to put down his rival Pappu Khan. His influence and power in the city of Ahmedabad increased so much that he was even elected as a corporator from five different municipal wards while still in jail (he was arrested in the year 1985 for the murder of a police officer) during the 1987 elections. Later, he linked up with the Dawood Ibrahim gang and killed Alamzeb. In January 1993, he received a consignment of 57 AK-56 rifles and 15,000 rounds of ammunition from Dawood Ibrahim for use during the post-Ayodhya riots. Abdul Latif, a mere bootlegger thus turned out to be a dangerous gangster-cum-terrorist-cum-politician in due course of time and became a major headache for the Gujarat Police, until he was nabbed at Dariyagunj in New Delhi on October 10, 1995, and was killed in a police encounter subsequently. His area of operation extended across the States of Gujarat, Rajasthan, Madhya Pradesh and Maharashtra.
The year 1991 was a watershed in India's economic resurgence. Liberalisation and globalisation of the economy allowed a free flow of foreign goods and capital into the country, and the dramatic growth in computerisation and e-business that followed have led to the emergence of cyber-crime.
All schemes introduced to boost the country's foreign exchange reserves are open to manipulation. This is best illustrated by the Value Based Advance License (VABAL) scheme, where up to 60 per cent of the value of exports was allowed at zero import duty and with no income tax on the foreign exchange earning. This led to the hawala (illegal money transfer system) racket, where unscrupulous exporters started obtaining export license on the strength of bogus export orders, and made huge profit by arranging foreign remittances through hawala channels. Expert M.N. Singh estimates that total hawala transactions in the country stood at Rs.305 billion a year in 1994. This currency flight continues to be a lucrative underworld operation. The Mumbai bomb blast-case accused, such as Tiger Memon and Moolchand Shah alias Choksi, channelised their illegal earnings through this hawala route, which they also used to fund their bombing operations.
Various legislative initiatives have also given rise to other patterns of organised crime. In keeping with the spirit of the Directive Principles of the State Policy enshrined in the Constitution, many laws were enacted to remove social inequalities and evils, and to reduce economic disparities.
As the financial capital of India, Mumbai has long been the playground of several criminal gangs and their continuing warfare for dominance.
The Dawood Ibrahim Gang: Dawood Ibrahim is the most powerful Mumbai Mafia 'don', with a countrywide network and extensive linkages abroad. He is one of the most powerful gangsters involved in transnational crimes, including narcotics smuggling, extortion and contract killing. He has lived in Dubai and is currently based in Pakistan. He had a phenomenal rise within a short time.
The son of Ibrahim Kaskar, a former Criminal Investigation Department (CID) constable, dawood started off as a petty criminal and had the sympathies of Bombay (now Mumbai) Police due to his father's connections. He used to assist smugglers to recover money from those who did not keep up their 'word'. In the nineteen seventies, other gangs had become relatively weak and he took advantage of the vacuum, taking up smuggling of gold and silver. He built up his criminal empire with the help of his brothers and close associates, and was responsible for the elimination of hundreds of criminals belonging to rival gangs. The liberal bail policy pronounced by the Supreme Court helped him consolidate his gang. In the nineteen eighties, he became the most feared gangster of Mumbai.
However, fearing for his life at the hands of rival gangs, he fled to Dubai, though his criminal network remained virtually intact. He currently controls his gang's operations with complete impunity, as there is no extradition treaty between India and Dubai or Pakistan, and authorities in these countries have refused to extradite him - and, indeed, deny his presence on their soil despite overwhelming evidence. He also attempted to win social respectability by playing host to many influential politicians and film stars in Dubai.
Dawood's brother Anees Ibrahim looks after the smuggling, narcotics trafficking and contract killing operations. Another key associate, Noora, looks after film financing and extortion from film personalities. Iqbal, a low profile operative, looks after his 'legitimate' business activities, including trading in the share markets of Hong Kong and jewellery and gold businesses. His gang consists of about 4,000 to 5,000 men. Fifty per cent of the Dawood gang members hail from Mumbai and the neighbouring districts and 25 per cent, including Abu Salem, his close lieutenant, hail from the State of Uttar Pradesh.
Due to changes in fiscal policies, the smuggling of gold and silver has become less lucrative. Currently, the primary activities of this gang are extortion, contract killing, film financing, drug trafficking, smuggling computer parts and illicit trade in arms and ammunition. The Dawood gang has been supplying arms both to criminals and terrorists.
Dawood Ibrahim has also invested heavily in 'legitimate' business ventures. His brother Anees owns a trading company in Dubai and Dawood has invested approximately Rs.20 crores in the Diwan Shopping Centre in Mumbai and is also reported to have financial stakes in the Diamond Rock Hotel in Mumbai. Noora runs the Suhail Travel agency in Mumbai, which has since come under severe enforcement pressure. Dawood also reportedly had huge financial stakes in East West Airlines. His 'legitimate' business empire is estimated to have a turn over of approximately Rs.2,000 crores a year.
Dawood's gang was secular in character before the year 1993 and used to attract 'volunteers' from both the Hindu and Muslim communities. However, after his involvement in the serial blasts in 1993, most of the Hindu gangsters have parted company from him. Sunil Samant, a dreaded gangster who continued to be loyal to him, was killed in Dubai in year 1995 by the Chota Rajan gang. Apart from his brothers, who are his chief counsellors, he continued to run his empire through Chota Shakeel.
The Chhota Shakeel gang initially used to be a wing of Dawood Ibrahim's 'D Company'. Currently operating as an independent gang, though not in dispute with the Dawood gang, it is active in the south, central and north-west areas of Mumbai.
Arun Gawli Gang: After the death of Ramya Naik, the mantel of leadership of his gang fell on the shoulders of Arun Gawli. There have been several inter-gang killings against the Dawood gang, and they have also targeted each other's political and economic interests. This gang consists of about 2000 to 3000 persons. Interestingly, Arun Gawli was sent to prison in 1990 and even though he was granted bail by the Courts, he chose to remain in jail primarily to escape the wrath of the Dawood gang. He continued to run his criminal empire from within the jail premises by passing instructions through his visitors. His gang is involved in the collection of protection money from rich businessmen and also contract killings. He came out of prison and started a political party, the Akhil Bhartiya Sena. He has been sent back to jail for his alleged involvement in a contract killing case. Arun Gawli is politically very active and has considerable influence in the slum areas of Mumbai. He even posed a significant political challenge to the dominant Shiv Sena party in the State of Maharashtra.
Amar Naik Gang: This gang originated in the year 1980 and commenced with the collection of protection money from various vegetable vendors in the Dadar area of Mumbai city. When Ram Bhat, the leader of this gang was sentenced to imprisonment in a robbery case, Amar Naik took over the reigns. The main thrust of his criminal activities was to collect hafta (extortion money) from vegetable vendors, hawkers, bootleggers and smugglers. Due to a clash of interests, his gang had several violent skirmishes with the Arun Gawli gang, not only outside jail but even within the jail premises, where members of both the gangs were lodged, resulting in several killings. This gang has a strength of about 200 criminals. Amar Naik was killed on August 9, 1996, and the mantle of leadership has now fallen on the shoulders of Ashwin Naik, his younger brother, an engineer by profession.
Chhota Rajan Gang: Chhota Rajan commenced his criminal career with the Dawood Ibrahim gang. Hailing from Mumbai's eastern suburb of Chembur, he started out with extortion rackets centred on the Sahyadri Krida Mandal, which organises the annual Ganesh festival at Tilak Nagar. Subsequent to the 1993 serial blasts in Mumbai, Dawood's gang was divided on communal lines and Chota Rajan fell out with Dawood and fled from India. He raised a new gang in 1994-95. According to an estimate, the membership of this gang numbers about 800. His areas of operation are in the States of Maharashtra, Karnataka, Uttar Pradesh and Delhi. He is essentially a drug-trafficker and contract killer. He joined hands with Arun Gawli and was responsible for the killing of Sunil Samant, a trusted lieutenant of Dawood Ibrahim, in Dubai in 1995. It was a retaliatory killing. He has targeted many Dawood loyalists and his gang has also suffered in retaliatory actions. Chhota Rajan is presently operating from South East Asia.
5.0 Types Of Organised Crime
Drug abuse and drug trafficking: India lies right in the middle of the Golden Cresecent and the Golden Triangle which makes it a transit point for narcotic drugs produced in these regions to the West. India also produces a considerable amount of licit opium, part of which also finds place in the illicit market in different forms. Illicit drug trade in India centres around five major substances, namely, heroin, hashish, opium, cannibas and methaqualone. Seizures of cocaine, amphetamine, and LSD are not unknown but are insignificant and rare.
Smuggling: The main reasons for Smuggling operations are tariff and non tariff barriers imposed on goods entering a nation. The volume of smuggling depends on the nature of fiscal policies pursued by the Government. The nature of smuggled items and the quantum thereof is also determined by the prevailing fiscal policies.
India has a vast coast line of about 7,500 kms and open borders with Nepal and Bhutan and is prone to large scale smuggling of contraband and other consumable items. Though it is not possible to quantify the value of contraband goods smuggled into this country, it is possible to have some idea of the extent of smuggling from the value of contraband seized, even though they may constitute a very small proportion of the actual smuggling.
Money laundering & Hawala: Money laundering is a process by which illegal money is converted into seemingly legal money. This money is then integrated into the legitimate economy. Proceeds of drug related crimes are an important source of money laundering world over. Besides, tax evasion and violation of exchange regulations play an important role in merging this ill-gotten money with tax evaded income so as to obscure its origin. This aim is generally achieved via the intricate steps of placement, layering and integration so that the money so integrated in the legitimate economy can be freely used by the offenders without any fear of detection. Money laundering poses a serious threat world over, not only to the only to the criminal justice systems of the countries but also to their sovereignty. Money Laundering also place an important role in the financing of terrorist activities.
Contract killings: The offence of murder is punishable under section 302 IPC by life imprisonment or death sentence. Conviction rate in murder cases is about 38%. The chance of detection in contract kilings is quite low. The method adopted in contract killings is by engaging a professional gang for a monetary consideration.
Kidnapping for ransom: Kidnapping for ransom is a highly organised crime in urban conglomerates. There are several local as well as inter-State gangs involved in it as the financial rewards are immense vis-a-vis the labour and risk involved.
6.0 Problems In controlling organised crime
6.1 Inadequate legal structure
There are several difficulties in combatting organised crime. First of all, India does not have a special law to control/suppress organised crime. Being a continuing conspiracy, the incidents of organised crime are dealt with under the general conspiracy law. The existing law is inadequate as it targets individuals and not the criminal groups or criminal enterprises. Proving conspiracies in a court of law is a tough task for the prosecution.
6.2 Difficulties in obtaining proof
As organised criminal groups are structured in a hierarchical manner, the higher echelons of leadership are insulated from law enforcement. It may be possible to have the actual perpetrators of crime convicted, but it is difficult to go beyond them in the hierarchy because of rules of evidence, particularly, non-admissibility of confessions made by criminals before the police. The witnesses are not willing to depose for fear of their lives and there is no law to provide protection to the witnesses against organized gangs. The informers are not willing to come forward as some kind of stigma is attached to being an 'informer'.
6.3 Lack of resources & training
According to the indian constitution investigation of cases, their prosecution and the setting up of the criminal courts is the responsibility of the State Government concerned. Most of the States face a resource crunch and are not in the position to spare adequate resources for the criminal justice system agencies. The number of police personnel posted in police stations is inadequate. Besides, hardly anytraining facilities exist for the investigation of organised crime.
6.4 Lack of co-ordination
India does not have a national level agency to co-ordinate the efforts of the State/city police organisations as well as central enforcement agencies, for combating organised crime. Further, there is no agency to collect, collate, analyse, document and function as a central exchange of information relating to international and inter-state gangs operating in India and abroad. Similarly, there is no system of sustained pursuit of selected gangs at the national and State level. Apart from lack of institutional frame-work, there are problems of coordination between the Central Government and the State Governments and between one State Government and another State Government due to differences in political perceptions
6.5 Criminal, political & bureaucratic nexus
There has been a rapid spread and growth of criminal gangs, armed Senas, drug mafias, smuggling gangs, drug peddlers and economic lobbiests in the country which have, over the years, developed an extensive network of contacts with the bureaucrats, government functionaries, politicians, media persons and democratically elected individuals at the local level. Some of these syndicates also have international linkages, including with the foreign intelligence agencies. In certain States like Bihar, Haryana and Uttar Pradesh, these gangs enjoy the patronage of local level politicians cutting across party lines.
6.6 Lack of uniform and cohesive international laws
The crime syndicates do not respect national boundaries. Certain crimes, particularly drug trafficking, are planned in one part of the world and executed in another. Criminals also move fast from one part of the globe to another. Different nations have different legal structures. A certain act may be 'crime' in one country but not in another. To illustrate, money laundering is crime in USA and several European countries but for a long-time was not so in India.
7.0 Maharashtra Control of Organised Crime Act (MCOCA), 1999
With the object of combating organised crime in the city, the Maharashtra government enacted the Maharashtra Control of Organised Crime Act (MCOCA) in the year 1999. Under MCOCA:
- Whoever commits an offence of organised crime shall,
- if such offence has resulted in the death of any person, be punishable with death or imprisonment for life and shall also be liable to a fine; subject to a minimum fine of rupees one hundred thousand;
- in any other case, be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to a fine, subject to a minimum of rupees five hundred thousand.
- Whoever conspires or attempts to commit or advocates, abets or knowingly facilitates the commission of an organised crime or any act preparatory to organised crime, shall be punishable with imprisonment for a term which shall be not less than five years but which may extend to imprisonment for life, and shall also be liable to a fine, subject to a minimum of rupees five hundred thousand.
- Whoever harbours or conceals or attempts to harbour or conceal any member of an organised crime syndicate shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to a fine, subject to a minimum of rupees five hundred thousand.
- Any person who is a member of an organised crime syndicate shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to imprisonment for life and shall also be liable to a fine, subject to a minimum of rupees five hundred thousand.
- Whoever holds any property derived or obtained from commission of an organised crime or which has been acquired through organised crime syndicate funds shall be punishable with a term which shall not be less than three years but which may extend to imprisonment for life and shall also be liable to fine, subject to a minimum of rupees two hundred thousand.
If any person on behalf of a member of an organised crime syndicate is, or, at any time has been, in possession of movable or immovable property which he cannot satisfactorily account for, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to 10 years and shall also be liable to fine, subject to a minimum of rupees one hundred thousand and such property shall also be liable for attachment and forfeiture, as provided by Section 20.
The opinion of about 120 police officials and 20 public prosecutors was sought to determine whether MCOCA was proving a significant deterrent to organised crime in Mumbai. Responses suggested that it was difficult to secure bail in MCOCA cases and that this gave the Act some 'punch'. In other criminal cases, a policy had been laid down by Justice Krishna lyer in 1977 that 'made bail and not jail' the credo of the judiciary, which had helped offenders to secure easy release. Many organised criminals, thus, escaped from the clutches of law and entered into a pattern of hardcore recidivism.
For example, Dawood Ibrahim, along with seven others, had robbed a businessman on February 4, 1974. All the accused were arrested in this case but later released on bail. They were convicted on July 3, 1977, and sentenced by the Sessions Court for a period of 7 years rigorous imprisonment. However, by that time, they had left India and Dawood had established his underworld network. Thus, organised criminals take full advantage of such 'judicial liberalism' and a soft bail policy, much to the disadvantage of the people and law enforcers. Under MCOCA, 'not bail but jail' becomes the controlling principle.
If the need to deal with cases of organised crime differently and as a distinct category is accepted, an effective response would be to enact a separate Organised Crime Code rather than making patchwork amendments to the IPC. The existing laws of extradition have also been of little help. Certain fugitives like Anis Kaskar, Dawood Ibrahim, Tiger Memon, Chhota Rajan, etc, wanted for serious offences in India, have been living in various countries abroad and our law enforcers are totally helpless.
Merely enacting special laws is, however, not adequate. Police and other investigating agencies should not be lulled into inaction till a special law is enacted, or after such a law is in place, but should vigorously pursue investigation. We need to develop specialised infrastructure for investigation and prosecution of such crimes. Stricter control on possession of illegal firearms and explosives, and also provisions for enhanced punishment for those found in possession of ordnance type of bombs/hand grenades, explosives like RDX, etc, are needed. The criminal-intelligence system also needs to be immensely strengthened.
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