Corporate Frauds

There is no verified information available to suggest that the cases of corporate frauds are on the increase.

Number of prosecutions filed for the violations of the provisions of the Companies Act, 1956 for the last three years are as under:-

Year No. of prosecutions Total fine imposed
2007-08 17080 Rs. 111.84 lakh
2008-09 13971 Rs. 110.58 lakh
2009-10 9021 Rs.   92.30 lakh

Since 2006, this Ministry has implemented MCA-21, an e-Governance project, which has increased transparency as the data available in the public domain can be viewed by any person. The Ministry has also evolved a system generated ‘Early Warning System’ to help in detecting likely fraud at an early state.  In the process of development of Early Warning System (EWS), the Ministry has identified certain Risk Parameters which can be run on the data available with the MCA, on financial statements furnished by the companies in e-forms developed by the Ministry.           

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today in  the Lok   Sabha in reply to a written question whether the Government whether the Government is aware that the corporate frauds are on the rise during the last three years; there detail, the nature of punishment meted out and penalty imposed on the defaulters    during this period  and the action taken / proposed to be taken for prevention of corporate frauds has constituted the Competition Commission of India (CCI) and the composition and functions of the said Commission.

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June 2021