Companies commit such frauds for a variety of reasons like:-
There are many types of frauds like Fraudulent Financial Statements, Employee Fraud, Vendor Fraud, Customer Fraud, Investment Scams and
Bankruptcy frauds and miscellaneous frauds
Manipulation of accounting
omission of amounts
Misapplication of accounting
Misleading or omitted
Theft of tangible assets by
internal or external parties
Sale of proprietary
Causing improper payments.
Making or receiving
Offering bribes to
public or private
Aiding and abetting
fraud by others
Depends upon the type of offence, however, few persons who can be prosecuted are as follows:
Right to bail: No one accused of an offence of corporate fraud under CA 2013 can be released on bail unless the public prosecutor has been given an opportunity to oppose the application for such release; and where the public prosecutor opposes the
application, the court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail. Penalties: The sanctions for offences under the CA2013 depend on the quantum or amount involved in fraud
Mr. Harry Kane was appointed as a director in Tottenham Hotspurs Pvt. Ltd. on 31 March 2017. The Income-tax department, sends a notice to him for prosecution as the company has failed to pay TDS for the financial Year 2014-15.
Can Mr. Kane be prosecuted in this case ?
Mr. Eric Cantona resigned from the directorship of Manchester United Pvt. Ltd. on 31 March 2017. The Company failed to deposit GST collected by them in account of the government for the financial year 2017-18. Can Mr. Cantona be prosecuted in this case ?
Mr. Sergio ‘Kun’ Aguero was appointed as the Chief Financial Officer of Manchester City Pvt. Ltd. on 31 March 2017. As a CFO, Mr. Aguero is authorized to sign financials of the company. The Company submitted false accounts before the Ministry of Corporate Affairs for Financial Year 2018-19. Can Mr. Aguero be prosecuted in this case ?
Mr. Mohammad Salah was appointed by the State Bank of Liverpool as the assistant branch manager for the Stamford bridge branch in Pune for the year 2016-17. As a part of his duties, Mr. Salah was authorized to issue letter of undertaking (LoUs) to other banks for issuing a line of credit to its customers. Mr. Salah, bypassed SLB’s core system to issue fake LOUs to overseas branches of other Indian Banks to issue funds to M/s.
HeereJawahrat Pvt. Ltd., a regular customer of SBL in Pune. The fake LoUs were issued as a part of larger scheme between the owners of Heere Jawahrat and Mr. Salah. Can Mr. Salah be prosecuted in this case ?