Lok Sabha Question No. 4110 (UNSTARRED), answered on 2018-08-10
Subject: Financial Irregularities/Fraud
Ministry: FINANCE
Asked by: NALIN KUMAR KATEEL, B.N. CHANDRAPPA, DODDAALAHALLI KEMPEGOWDA SURESH

Government of India Ministry of Finance Department of Revenue

LOK SABHA UNSTARRED QUESTION NO. 4410, ANSWERED ON FRIDAY, AUGUST 10,2018 TO BE

SHRAVANA 19, 1940 (SAKA)

## IRREGULARITIESIFRAUD e

## FINANCIAL

4110: SHRI NALIN KUMAR KATEEL: SHRI B.N: CHANDRAPPA: SHRI D.K SURESH:

of Finance be pleased to state: Will the Minister

- during the last three years and the current year; various   agencies inclucling Government punished till date under personslcompanies
- of the irregularities/fraud identified by various
- a) the number cf cases of financial agencies
- (b) the number of Enforcement Directorate; recovered the loss suffered by the exchequer due (c) Whether the Government has successfully
- (d) whether the Government
- fraudlirregularities committed in that such irreguiarities do to is taking stringent measures to ensure such
- the response of the Government in this regard? (e)
- if the details thereof; cases and
- not occur in future; if so, the details thereof; and

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

ies to The cletails of cases cf financial (a) (c): Government during the last three punished by various agencies of the and recovery made are given at Annexure. year years

- (d) and persons involved in tax evasion and levy epplicable:
- The Income-tax Department takes  appropriate  action (e):Yes Madam: which is an on-going process. Such black money assessment of incorre courts, wherever and   filing of prosecution   complaints before criminal of   penalties against against

is committed to curb financial Further , Directorate of Revenue irregularitieslfraud to safeguard government revenue regard.

measures to ensure compliance with accounting and The government has taken stringent under various provisions of the act; auditing standards; compliance relating to statutory filings committees such as aldit duties assigned to the board of directors and board discharge of committee, nomination and remuneration   committee; duties of   independent directors   zind statutory auditors; mandatory disclosures with reference to related party transactions; otner disclosures required in annual report and financial statement; disclosures to the shareholders etc.

There were instarices of big time offenders; including economic offenders, fleeing the country' to escape the reach of law. In order to address the inadequacies and to provide an effeclive process and down measures to deter economic offenders from evading the process of Indian law by  remaining outside the jurisdiction of Indian courts, Economic Offenders Act, 2018 has been enacted:

For enforcement of auditing standards and ensuring the quality of audits, Government has initiated establishment of National Financial Reporting Authority as an independent

To send a clear message that borrowers cannot wilfully default and continue to enjoy ownership of their assets, wilful defaulters and connected persons have been debarred from participating in the resolution Frocess under the Insolvency and Bankruptcy Code (IBC)

Launch of Central Fraud Registry (CFR), a web based searchable database of frauds reported by the banks, containing data for the last 13 years has been made operational by RBI in

Ministry of Home Affairs has   constituted an  Inter-Ministerial Committee on Phone Fraiud (IMCPF) having members of all stakeholder organizations, namely, Ministry of Electronics "& Information Technology, Department of Financial Services, Department of Telecommunication; Reserve Bank of India and Law enforcement agencies, to address the problem: FCORD-FICN Coordination agency has been  designated as Central Nodal Agency zind ADGPIIGP crime in each StatelUT as the State Nodal Officer.

The details of number of cases of financial irregularitieslfraud identified, personslcompanies punished and recovery by various agencies of the Government during last three years and current year are given as under:-

Central Board of Direct Taxes (CBDT) -

## Search & Seizure:-

| Financial Year   |   Number of groups searched |   Total assets seized (Rs. in Crore) |   Undisclosed income admitted (Rs. In Crore) |
|------------------|-----------------------------|--------------------------------------|----------------------------------------------|
| 2014-15          |                         545 |                               761.7  |                                      10228   |
| 2015-16          |                         447 |                               712.32 |                                      11226   |
| 2016-17          |                        1152 |                              1469.45 |                                      15496.7 |
| *2017-18         |                         581 |                               997.17 |                                      15755   |

## Prosecutions Filed: -

| Financial Year   |   Prosecution cases filed in court |   No. of cases in which court passed conviction order |
|------------------|------------------------------------|-------------------------------------------------------|
| 2014-15          |                                669 |                                                    34 |
| 2015-16          |                                552 |                                                    28 |
| 2016-17          |                               1252 |                                                    16 |
| 2017-18          |                               4524 |                                                    75 |

## Enforcement Directorate(ED): -

Enforcement Directorate has identified 376 cases Total value of attachments / seizure etc;. is Rs 30434.63 crore. The said attachments / seizure etc: are subject to final outcome of the order of the Hon'ble Courtl Authority. Further investigations are ongoing process.

## Directorate of Revenue Intelligence (DRI): -

| Financial Year        |   No of cases* Detected |   Duty involved in crore) (Rs. | No. of arrest   |   Duty recovered* (Rs:in crore) |
|-----------------------|-------------------------|--------------------------------|-----------------|---------------------------------|
| 2015-16               |                     437 |                        5971.09 | 57              |                          500.09 |
| 2016-17               |                     561 |                        2653.7  |                 |                          467.03 |
| 2017-18               |                     847 |                        2892.24 | 85              |                          956.03 |
| 2018-19 (upto July18) |                     181 |                        1297.59 | 15              |                          724.63 |

The above mentioned cases are only those cases in which extended period has beeri invoked:

Directorate General of GST Intelligence: Details of financial irregularitieslfraud in cases of Central Excise, Services tax and Goods and Services Tax(GST) are as under:

|                          | Detection    | Detection             | Recovery     | Recovery               | No. of persons arrested   |
|--------------------------|--------------|-----------------------|--------------|------------------------|---------------------------|
| Financial Year           | No. of Cases | Amount (Rs. In Crore) | No. of Cases | Recovery (Rs_In Crore) |                           |
| 2015-16                  | 1550         | 12112.5               | 1067         | 1975.4                 | 14                        |
| 2016-17                  | 2011         | 15074.1               | 1224         | 2449.5                 | 13                        |
| 2017-18                  | 237          | 1332.6                | 93           | 354.9                  | 23                        |
| 2018-19 (upto June'2018) |              | 727.1                 | 127          | 475.8                  | 9                         |

## Serious Fraud Investigation Office(SFIO):

The details of investigations assigned to SFIO during the last three years and current year are as under:

| Financial Year      | Total Cases_              |
|---------------------|---------------------------|
| 2015-16             | 23 involving 184 entities |
| 2016-17             | 25 involving 111 entities |
| 2017-18             | 21 involving 225 entities |
| 2018-19 (Till Date) | 13 involving 186 entities |

## Registrar of Companies(ROCs): -

The following   investigations also been assigned to Regional   Directors (RDs) and Registrars of Companies (ROCs): have

| Financial Year      |   Total Cases |
|---------------------|---------------|
| 2015-16             |            02 |
| 2016-17             |            03 |
| 2017-18             |           119 |
| 2018-19 (till date) |            83 |

Till date, 19 personslcompanies have been convicted in 91 criminal complaints cases.

## Central Bureau of Investigation(CBI): CBI has registered the following cases

| Financial Year   |   Total no of cases of financial irregularitieslfraud registered |
|------------------|------------------------------------------------------------------|
| 2015             |                                                              305 |
| 2016             |                                                              395 |
| 2017             |                                                              497 |
|                  |                                                              190 |