Press Information Bureau

Government of India

Ministry of Corporate Affairs

05-September-2011 18:21 IST

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, the Ministry has implemented MCA-21, an e- Governance project, bringing greater transparency as the data available in the public domain can be viewed by any person. The Ministry has also evolved 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 Ministry of Corporate Affairs, on financial statements furnished by the companies in e-forms developed by the Ministry.

The Minister of State for Corporate Affairs Shri R.P.N. Singh  gave this information in reply to a question in the Rajya Sabha today.

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ST/BS

Corporate fraud monitoring: e governance disclosure and an early warning system to detect likely irregularities and prioritise follow up. The Ministry reports no verified increase in corporate frauds while publishing prosecution counts and aggregate fines for recent years; it has implemented MCA-21 to make company filings publicly viewable and is developing an Early Warning System (EWS) that applies identified risk parameters to submitted financial statement data to detect likely fraud and prioritise follow up action.