CORPORATE FRAUD UNDER COMPANIES ACT, 2013: AN EVALUATION OF ENFORCEMENT AND PENALTIES

AUTHORS – SHUBHAM GUPTA* & AMBAR SRIVASTAVA**,

* STUDENT AT LAW COLLEGE DEHRADUN, FACULTY OF UTTARANCHAL UNIVERSITY. EMAIL – SHUBHAMGUPTARKSH16@GMAIL.COM

** ASSISTANT PROFESSOR, LAW COLLEGE DEHRADUN, FACULTY OF UTTARANCHAL UNIVERSITY. EMAIL – AMBARSRI76@GMAIL.COM

BEST CITATION – SHUBHAM GUPTA & AMBAR SRIVASTAVA, CORPORATE FRAUD UNDER COMPANIES ACT, 2013: AN EVALUATION OF ENFORCEMENT AND PENALTIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 300-310, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract

“The purpose of this study is to assess the efficiency of the enforcement procedures and punishment measures for corporate fraud that are outlined in India’s Companies Act, 2013. Restructuring the principles of corporate governance was the purpose of the Act, which was developed as a reaction to high-profile business scandals both internationally and inside India. The purpose of this article is to explore the appropriateness of the legal framework, identify problems to its execution, and evaluate the effectiveness of penalty deterrence through the examination of legislative provisions, case studies, and enforcement statistics. According to the findings, despite the fact that the Act provided rigorous measures for the prevention and detection of fraud, major implementation and enforcement gaps still exist. In conclusion, the paper provides ideas for improving the regulatory environment in order to combat corporate fraud in a manner that is more successful within the context of India.”

Keywords: Corporate fraud, Companies Act 2013, corporate governance, enforcement mechanisms, penalties, Securities and Exchange Board of India (SEBI), Serious Fraud Investigation Office (SFIO)