Punishment for fraud under Companies Act, Section 447 deals with the provision related to punishment for fraud. It says: ‘Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 10 years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to 3 times the amount involved in the fraud, where the fraud in question involves public interest, the term of imprisonment shall not be less than 3 years. Now check more details about “Punishment for fraud under Companies Act” from below…
Punishment for fraud under Companies Act
Different sections of the Act provide punishment for fraud. These are 7(5), 7(6), 8(11), 34, 36, 38(1), 46(5), 56(7), 66(10), 75, 140(5), 206(4), 213, 229, 251(1), 266(1), 339(3), 448, and others. These sections provide punishment for directors, key managerial personnel (KMP), auditors and/or officers of company. Thus, the new Act goes beyond professional liability for fraud and extends to personal liability if a company contravenes such provisions
Penalties for corporate frauds under the Companies Act
Relevant Parts of this article
- Corporate Frauds and Auditors ResponsibilityFraud reporting under Companies Act – Auditors ResponsibilityPros and Cons of Sole Proprietorship ConcernAll about Import Export Code (IEC) in India12 Privileges to the Government Companies in IndiaCompliances of Annual Return under Companies Act 2013
