ABSTRACT
Economic crime poses a serious challenge to constitutional governance in India by weakening the foundations of the rule of law, accountability, and democratic integrity. Offences such as corruption, money laundering, tax evasion, banking fraud, and large-scale financial irregularities directly affect public resources and obstruct the realization of constitutional goals enshrined in the Indian Constitution. These crimes distort policy-making, undermine institutional independence, and erode public confidence in constitutional authorities, thereby threatening principles such as equality before law, transparency in governance, and social justice.
This paper examines economic crime within the framework of Indian constitutional governance, focusing on its impact on fundamental rights, federal structure, and institutional balance among the legislature, executive, and judiciary. The study adopts a doctrinal and analytical methodology, drawing upon constitutional provisions, judicial interpretations, and statutory mechanisms such as anti-corruption and financial regulatory laws. It critically evaluates the effectiveness of enforcement agencies and oversight institutions in addressing economic crimes and highlights challenges relating to legal complexity, political influence, and implementation gaps. The paper argues that combating economic crime is essential not only for economic stability but also for preserving constitutional morality and democratic legitimacy in India. Strengthening legal frameworks, ensuring institutional autonomy, and promoting transparency are essential to safeguarding constitutional governance against the growing threat of economic crime.
Keywords: Economic Crime, Constitutional Governance, Rule of Law, Corruption, Money Laundering, Legal Reform, India, Public Trust.
- Introduction
The stability of a constitutional democracy rests upon the invisible pillars of institutional integrity, the rule of law, and the social contract. While traditional threats to constitutional governance—such as military coups or extremist insurgencies—are overt and visible, modern constitutionalism faces a more insidious enemy: economic crime. No longer confined to the fringes of the marketplace, sophisticated financial crimes such as systemic corruption, money laundering, and tax evasion have evolved into existential threats that hollow out the state from within.
At its core, a constitution is more than a legal text; it is a promise of equitable governance and the impartial application of the law. However, the rise of “State Capture” and the transnational flow of illicit capital suggest that wealth can effectively bypass constitutional constraints. When the financial resources of a nation are diverted into private hands through illicit means, the state loses its capacity to fulfill its socio-economic mandates, thereby breaking the bond between the governor and the governed.
This paper argues that economic crime is not merely a breach of the penal code, but a direct assault on the constitutional order. It explores how the concentration of illicit wealth facilitates the “purchase” of political influence, thereby neutralizing the system of checks and balances designed to prevent the abuse of power. By examining the intersection of criminal law and constitutional theory, this study seeks to demonstrate that unless the financial integrity of the state is protected, the “Rule of Law” risks becoming a hollow phrase, applied only to those without the means to subvert it.