Lok Sabha Question No. 2842 (UNSTARRED), answered on 2023-08-07
Subject: Corporate Fraud Cases in India
Ministry: CORPORATE AFFAIRS
Asked by: Hasnain Masoodi

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA UN-STARRED QUESTION NO. 2842 TO BE ANSWERED ON MONDAY, AUGUST 07, 2023/SRAVANA 16, 1945(SAKA) CORPORATE FRAUD CASES IN INDIA

## QUESTION

2842. SHRI HASNAIN MASOODI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether around 66 per cent of Indian companies have experienced at least one instance of economic crime since FY 2021;
- (b) if so, the details thereof;
- (c)  the  steps  taken  by  the  Government  regarding  the  rising  number  of corporate fraud cases in India;
- (d)  whether  the  Government  is  taking  measures  to  crack  down  on  the corporate fraudsters;
- (e) if so, the details thereof and if not, the reasons therefor;
- (f) whether any guidelines have been laid by the Government to protect the investors from the financial losses caused by corporate fraud; and
- (g) if so, the details thereof?

## ANSWER

Minister  of  State  (Independent  Charge)  of  the  Ministry  of  Statistics  and Programme Implementation; Minister of State  (Independent Charge) of the Ministry  of  Planning  and  Minister  of  State  in  the  Ministry  of  Corporate Affairs.

(Rao Inderjit Singh)

- (a)  and  (b):  No,  such  data  is  maintained  with  the  Ministry  of  Corporate Affairs (MCA).

(c),  (d)  and  (e):  With  regard  to  fraud  committed  by  companies,  whenever any  complaint  or  reference  regarding  fraud  is  received  and  after  due examination,  investigations are ordered under section 210 or 212 of the

Companies Act, 2013 against the company to be carried out by Regional Directors  (RDs)  or  Serious  Fraud  Investigation  Office  (SFIO).  In  the  last three  years  (2020-21  to  2022-23)  the  MCA  has  ordered  investigations  of 410 companies to be conducted by the Regional Directors (RDs) and 260 companies by the Serious Fraud Investigation Office (SFIO). (f)  and  (g)  :  Yes  Sir.  Investor  Education  and  Protection  Fund   Authority  ( IEPFA)  has  been  established  under  sub-section  (5)  of  Section  125  of Companies Act, 2013 for promotion of Investors' education, awareness and protection. IEPFA organizes Investor Awareness Programmes, State-Level Conferences, Tele Lecture Series on IGNOU Gyandarshan TV channel; talks and telecasts of informative audio-visual content through All India Radio, Prasar Bharti (Sansad TV & Doordarshan). In addition, Social Media handles are also being utilized to educate investors about financial literacy. IEPFA has de ployed  55  mobile  vans  named  'Niveshak  Saarthi'  across  19 states  in  the  country.  These  vans  serve  as  Investor  Education  Hubs, spreading  awareness  about  essential  financial  aspects  among  the  public and 'Niveshak  Didi'  has  been  launched  to  promote  Investor  Ed ucation amongst  women  investors  in  rural  village  through  women  Gramin  Dak Sevak (GDS) IEPF  Authority  also  conducts  various  state  level  conferences  aimed  to educate  and  protect  investors.  Last  such  conference  titled  'Financial Literacy  in  Amrit  Kaal -Emp owering  Investors'  was  held  in  Aizawl, Mizoram  in  the  month  of  February  2023.  In  addition,  investor  awareness activities and programmes  are conducted by other agencies as well, such as Securities and Exchange Board of India (SEBI).

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