This article has been written by Ms Simran Priyadarshini, a 5th year BA LLB student of SOA National Institute of Law, SOA University, Bhubaneswar

ABSTRACT

Most people think of physical and sexual assault when they hear the term “domestic violence,” especially when it comes to violence against intimate partners. But economic abuse—a far more subtle form of abuse that is typically undetectable in its operations—does not receive the same level of attention.

There is a strong correlation between emotional, sexual, and physical abuse and economic abuse. The three most prevalent types of economic abuse include not receiving money for household expenses, not being trusted with money, and not being permitted to work outside the home.

This is hardly shocking, considering that the majority of popular media depictions of violence against women, children, and LGBTQ individuals take place in a physical or sexual setting. Although the Protection of Women from Domestic Violence Act, 2005 (PWDV Act), a special legislation against domestic violence, recognizes what is referred to as “economic abuse” in Indian law, violence or abuse in an economic context is not as well-known as intimate partner violence that is sexually or physically violent.

This work critically examines the gaps in the definition of economic violence, the ways in which it occurs, and the state’s response, with reference to secondary data and legal case studies. It comes to the conclusion that the legislation disregards numerous economic. Abuse that women experience and hasn’t kept up with advancements in socioeconomic and technological fields. It implies that in order for the remedies to be compliant with India’s constitutional and international human rights commitments, the word “economic violence” needs to be defined widely. 

INTRODUCTION

One common strategy employed by abusers to obtain dominance and control in a relationship is financial abuse. Financial abuse can take many different forms, but generally speaking, it involves strategies to hide information, restrict the victim’s access to assets, or make the family money less accessible. Financial abuse include actions taken with the purpose to control, threaten, and intimidate the victim in order to keep them in the relationship, in addition to emotional, physical, and sexual abuse. Some situations involve financial abuse from the beginning of the relationship, while other situations occur when the victim is trying to leave or has already left.

Although it is not as well known, financial abuse is one of the most effective ways to keep a victim of abuse in a violent relationship and seriously hampers the victim’s capacity to remain safe once they leave the abusive partner. Studies show that in 99 percent of cases of domestic violence, financial abuse takes place. According to survivor surveys, one of the main reasons people stay in or go back to an abusive relationship is fear for their financial security and that of their children. Financial abuse affects people from all socioeconomic, educational, and racial/ethnic backgrounds, just like all other types of abuse.

What starts out as “love” turns into “abuse.”

Financial abuse might start off small, like a spouse expressing “care and concern,” but it eventually escalates to the lover using “power and control.” Since they work in finance and make more money than their partner, the “lover” implies that they should be in charge of the money. The “lover” begs their partner to quit “this terrible job” after learning of a problematic coworker or supervisor, saying that doing so will allow them to “support them both” and spend “more time together.” To help with expenses, the lover gives their partner an allowance each week.

Types of Financial Abuse

Similar to other types of abuse, financial abuse can start off slowly and get worse over time. Because abusers can be effective manipulators and can come across as very charming, it might even seem like love at first. “I know you’re under a lot of stress right now, so why don’t you just let me take care of the finances and I’ll give you money each week to take care of what you need,” the abuser would say, for instance. In such cases, the victim could voluntarily give control of the money and its use because they feel that they can or should trust the person they are in love with. In most cases, this means that the abuser gradually reduces the victim’s “allowance” until, when the victim decides to regain control over the finances, she or he finds that all of the accounts have been transferred or that they are no longer aware of or have access to the family finances.

The financial exploitation might be far more obvious in other situations. Abusers frequently utilize intimidation, threats of violence, and physical harm to prevent their victims from working or accessing family finances. Abusers frequently employ covert or overt means to seize financial control over their partners. Among them are:

• Preventing the victim from working.
• Sabotaging possibilities for work or employment by harassing or stalking the victim at work, or forcing the victim to resign from their position by abusing their body in front of crucial meetings or interviews.
• Prohibiting the victim from taking advantage of possibilities for growth or work training.
• Regulating the entire amount of money spent.
• Not including the victim in choices about banking or investments.
• Denying the victim’s request to access bank accounts.
• Denying someone money or providing “an allowance.”
• Forcing the sufferer to submit false tax returns or write bad checks.
• Accruing significant debt on joint accounts.
• Refusing to work and provide for the family financially.
• Denying the victim or their children access to money for necessities like food and medication.
• Hiding resources.
• Stealing the identity, assets, or inheritance of the victim.
• Making the victim perform unpaid labor at a family-run business.
• Damaging the victims credit score by refusing to pay invoices.
• Threatening to report the victim for “cheating or misusing benefits” or pressuring them to surrender public benefits
• Making fictitious insurance claims.
• Avoiding or refusing to pay child support, or dragging out a divorce by concealing or failing to reveal assets.

The PWDV Act defines economic abuse as depriving an aggrieved individual of any or all financial or economic resources to which they are legally entitled.

The legislation acknowledges that depriving a woman of her right to continue using resources or services is also considered economic abuse.

Furthermore, the definition of economic abuse also includes the selling of household goods, the alienation of any immovable or mobile assets, jewellery, or other property in which the wronged woman has a stake.

Particular to the Indian setting, economic abuse also raises associated concerns like dowry and Stridhan exploitation.

Whatever a lady is given in her lifetime is her Stridhan. Women possess complete authority over their Stridhan.

Furthermore, according to the PWDV Act, courts have ruled that deprivation of money or economic resources or Stridhan constitutes domestic abuse.

Furthermore, regardless of single or joint ownership, the Act permits the resentful woman to get a protective order that forbids the alienation of any assets, including bank lockers or accounts, without the magistrate’s approval.

This also includes any other property owned by the partners, either jointly or separately, as well as the Stridhan of the injured woman.

THE IMPACT OF FINANCIAL ABUSE:

Women who experience economic violence are often prevented from being fully independent, hindered in making life decisions, and often find it extremely difficult to escape violent relationships or to distance themselves from their abuser.

According to a cross-sectional survey conducted in Mumbai’s informal settlements, 23% of women who had ever been married had experienced some sort of financial abuse.Abuse of money was linked, on its own, to positive screenings for anxiety, moderate-to-severe depression, and suicidal thoughts.

The current state of economic abuse in India:

1. According to a 2022 survey by renowned Indian insurance provider Tata AIA, 59% of working women do not manage their own finances, demonstrating the degree of financial dependence among Indian women.
2. According to the NFHS 5, 32% of married women (18–49 years old) report having been the victim of emotional, sexual, or physical abuse from their spouse. Physical violence accounts for the majority of spousal violence (28%), with emotional and sexual violence following closely after.
3. According to a 2017 All-India Democratic Women’s Association study, 72% of women had ever been the victim of economic abuse.

What Are the Contributing Factors to the High Rate of Financial Abuse?’

1. Patriarchal Attitudes: The patriarchal conventions that give males precedence over women in the home and in society are frequently the source of economic abuse. Due to prejudice, obstacles to education, work, and property rights, and other factors, women may become increasingly reliant on their male spouses.
2. Lack of Economic Opportunities for Women: In India, women frequently face barriers to work and education. They become more financially dependent on their spouses as a result, which increases their susceptibility to financial abuse.
3. Lack of Awareness: A lot of victims of economic abuse might not be aware that it is a type of domestic violence or that they have rights and choices for getting assistance.
4. Social Stigma: Cultural or religious beliefs that place distinct roles and responsibilities on men and women can also legitimize or justify economic abuse. This may deter victims from reporting abuse or asking for assistance.

What protections are provided for Economic Abuse?

The Protection of Women from Domestic Violence Act (PWDVA) of 2005 gives a comprehensive definition of economic abuse and gives the harmed women access to financial relief, compensation, and protection orders.

The 1973 Code of Criminal Procedure gives judges the authority to impose support orders on parents, children, and spouses who have neglected them.

The Hindu Succession Act of 1956 (modified in 2005), which gives sons and daughters equal rights to inherit jointly owned property.

The National Commission for Women, India’s highest national institution, was established with the goal of promoting and safeguarding women’s rights.

Mahila Police Volunteers (MPVs), who serve as a liaison between the police and the community and assist women in need, are intended to be employed by the Ministry of Women and Child Development (MoW&CD) in the States and Union Territories in partnership with the Ministry of Home Affairs.

The Ministry of Women and Child Development (MoW&CD) has introduced the Sakhi Dashboard, an online platform that allows staff members of Women Help Lines (WHLs) and One Stop Centers (OSCs) to enter and view vital data regarding women who have been impacted by violence and their respective organizations.

The Department of Telecommunication has given the Women Helpline number, 181, for every state and territory.

The Rail Ministry has introduced the Integrated Emergency Response Management System, which intends to strengthen Security Control Rooms of Railways with Security Helpline, Medical Facilities, RPF and police, installation of CCTV cameras, etc. in order to provide women passengers with round-the-clock security in all Railway Stations.

Under section 357A CrPC, the Ministry of Home Affairs established the Central Victim Compensation Scheme (CVCF). In order to compensate the victim or her dependents who have lost something or been hurt as a result of the crimes, it will assist States and UTs in doing so (including survivors of rape and acid attack).

CONCLUSION

Women are more susceptible to violence when they lack sufficient material resources. The batterer has easier access to women who do attempt to split when there are insufficient material resources. Insufficient physical resources are a main reason why females don’t attempt to split up. Economic abuse must be recognized and addressed as an ongoing type of control the abuser exercises over the victim. Economic abuse must be understood in the broader political and economic context in order to be effectively addressed. Adopting a regressive and depoliticized approach is problematic.

Perspective on women’s rights in marriage without taking structural issues into account. Redistributing resources and power in a way that protects families from harm needs to be done carefully. One of the most important roles of the law is to treat women as equal citizens and to protect their rights both in public as well as private environments. 

Law plays a major role in gradually interpreting and applying legal rules to defend women’s basic rights in a patriarchal society where they endure horrible abuse both inside and outside the family. Law enforcement and policymakers must be aware of the implications of abuse and the effects it has on those who have survived.

REFERENCES

1. https://en.wikipedia.org/wiki/Economic_abuse
2. https://www.drishtiias.com/daily-updates/daily-news-editorials/economic-abuse-a-neglected-facet-of-domestic-abuse
3. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4350642
4. https://www.wire.org.au/financial-abuse/
5. https://www.verywellmind.com/financial-abuse-4155224
6. https://www.drishtiias.com/daily-updates/daily-news-editorials/economic-abuse-a-neglected-facet-of-domestic-abuse
7. https://www.womenandmoney.org.au/what-is-financial-abuse/
8. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10235837/