Fraud threshold in corporate law narrows criminal scope for small-value, non-public-interest frauds but retains imprisonment and fine. Amendment inserts a monetary and turnover-based threshold into section 447 limiting the scope of the fraud offence to amounts 'at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower,' and adds a proviso that frauds below that threshold which do not involve public interest attract imprisonment up to five years or fine up to twenty lakh rupees or both.
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Provisions expressly mentioned in the judgment/order text.
Fraud threshold in corporate law narrows criminal scope for small-value, non-public-interest frauds but retains imprisonment and fine.
Amendment inserts a monetary and turnover-based threshold into section 447 limiting the scope of the fraud offence to amounts "at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower," and adds a proviso that frauds below that threshold which do not involve public interest attract imprisonment up to five years or fine up to twenty lakh rupees or both.
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