The document summarizes various crimes and illegal activities that occur in the black market, including fraud, prostitution, drug manufacturing and sales, smuggled goods, and human trafficking. It notes that the black market is the second largest economy globally, valued at an estimated $10 trillion. Common fraudulent activities discussed include tax, credit card, and securities fraud. The black market generates large amounts of "black money" that widens wealth inequality and undermines the government and economy.

1. THE CRIMES OF
BLACK MARKET
By Tamanna Bhattacharjee
1st Year, BBA-B

2. WHAT IS BLACK MARKET ??
Black market is a place where various illegal economic activities take place
outside the government-sanctioned channels. Illegal market transactions
usually occur “under the table” to let participants avoid government price
controls or taxes.
• Black markets are also known as illegal markets, shadow or underground
economy.
• It is the fastest growing and second largest economy in the world.
• Globally the estimated total value of the shadow economy is close to
$10 trillion.

4. CRIMES OF BLACK MARKET
Some of the black market activities or crimes include:
1. FRAUD
2. PROSTITUTION
3.DRUG MANUFACTURING
& SALES
4. SMUGGLED GOODS
5.HUMAN TRAFFICKING

5. 1. FRAUD
Fraud is an intentionally deceptive action designed to make an unlawful
gain or to deny a right to a victim. Types of fraud include tax fraud, credit
card fraud, wire fraud, securities fraud, and bankruptcy fraud.
Fraudulent activity can be carried out by one individual, multiple
individuals or a business firm as a whole.
Fraud involves the false representation of facts, whether by intentionally
withholding important information or providing false statements to
another party for the specific purpose of gaining something that may not
have been provided without the deception.

6. NEWS ARTICLES SHOWING FRAUDULENT
ACTIVITIES
According to a global survey conducted by FIS, a financial services
technology firm, Indians are among the most frequent victims of
frauds. In fact, around 18% of Indians surveyed reported a fraud in
the preceding year. This was a higher percentage than any other
country’s respondents. In comparison, only 8% of people from
Germany reported a fraud followed by 6% in the UK.

7. 2.PROSTITUTION
Prostitution is the practice or business where people
takes part in sexual activity in exchange for money and a
person who is engaged in this field is referred as a
prostitute.
Is prostitution illegal in India??
• In the Indian context, prostitution is not explicitly
illegal though pronounced to be unethical by the
Court, certain acts that facilitate prostitution are
regarded as illegal.
• Acts like managing a brothel, living off the money
procured by means of prostitution, traffic of children
and women for the purpose of prostitution, etc. are
the activities which makes it illegal.
Earlier only females were seen as prostitutes and males
were their clients but now in the 21st century male,
female and transgender, all are working in this profession.
According to the BBC report, the males as prostitutes in
India are rising at a great pace.

8. 3. DRUG MANUFACTURING & SALES
• For the last three decades India has become a
transit hub as well as a destination for heroin and
hashish produced in the ‘Golden Triangle’ and the
‘Golden Crescent’. The two-way illegal flow of
these drugs and chemicals not only violates
India’s borders, but also poses a significant threat
to national security.
• The nexus between drug traffickers, organized
criminal networks and terrorists has created a
force powerful enough to cause instability in the
country. Money generated through drug trade
has been used to fund various insurgent and
terrorist movements.

9. 4. SMUGGLED GOODS
• Smuggling is the secret movement of goods across
national borders to avoid customs duties or
import/export restrictions.
• There are various motivations to smuggle. These
include the participation in illegal trade, such as in the
drug trade, illegal weapons trade, exotic wildlife trade,
illegal immigration or illegal emigration, tax evasion,
providing contraband to a prison inmate, or the theft
of the items being smuggled.
• The effects of smuggling are numerous and
economically significant. Smuggling is a serious
problem and its impacts are far reaching, affecting
various stakeholders including government, domestic
industries and citizens of the country.

10. 5. HUMAN TRAFFICKING
• Human trafficking is one of the major concern of
twenty first century that has taken a rapid pace
with the advent of the free movement and free
trade under the shadow of globalization.
• One should not be confuse about Human
Trafficking as a form of human smuggling and
migration. Smuggling involves illicit crossing of
nation-state border with proper intention and
consensus of the individual and migration is
nothing, but voluntary movement of individuals.
On the other side, Human-trafficking has been
subjected to the act without the wishes of the
individuals leading to vulnerability and
exploitation.

11. BLACK MARKET & BLACK MONEY
• Black market and Black money are inter-related terms. The money which
is earned by performing various black market activities can be termed as
black money.
• Black money is the proceeds of an illegal transaction, on which income and
other taxes have not been paid, and which can only be legitimized by some
form of money laundering.
• The black money is accumulated by the criminals, smugglers, hoarders,
tax-evaders and other anti-social elements of society.
• The root cause for the increasing rate of black money in the country is the
lack of strict punishments for the offenders. The criminals pay bribes to
the tax authorities to hide their corrupt activities. Thus, they are rarely
punished by the judge.

12. EFFECTS OF BLACK MARKET AND
BLACK MONEY IN OUR ECONOMY
Some of the major effects of BLACK MARKET &
BLACK MONEY in our economy includes:
1. Widening the Gap between the Rich and the Poor
2. Loss of Revenue to the Government
3. Under-estimation of Economy
4. Improper Distribution of Scarce recourses
5. Deteriorate the General Moral Standards of the Society

13. CONCLUSION
Black market is dangerous yet people are turning a blind eye about
it. They don’t want to get involved in this type of transaction
because some of the world’s most powerful people are regular
buyers. We are all aware that this exists, yet no one has the courage
to put a stop to this.
This knowledge of the underground economy illustrates the need
to develop, maintain, and mature robust monitoring solutions that
focus on the tactics, techniques, and procedures to stop all these
illegal activities in our country. Because it’s not only destroying the
economy but also coming out as a big threat to the mankind.