Punishment for fraud (Section 447 of the Companies Act, 2013) :

Section 447 of the Companies Act, 2013 provides for Punishment for fraud. According to this section:

(i) Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 10 years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to 3 times the amount involved in the fraud

(ii) Where the fraud in question involves public interest, the term of imprisonment shall not be less than 3 years.

Explanation.—For the purposes of this section—

(a) “fraud” in relation to affairs of a company or anybody corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;

(b) “wrongful gain” means the gain by unlawful means of property to which the person gaining is not legally entitled;

(c) “wrongful loss” means the loss by unlawful means of property to which the person losing is legally entitled.