Menace of increasing corporate frauds needs fresh look at legal framework
The Companies Act, 2013, PMLA, SEBI LODR, and the Prevention of Corruption Act make different types of frauds punishable. These are generally reactive, focusing on punishing frauds after they occur. Further, prosecution requires establishing mens rea, i.e., criminal intent of those personally involved in the fraudulent act. The current framework makes it nearly impossible to pin criminal liability on large, decentralised, multinational organisations.
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