Serious Fraud Investigation Office: A panacea for corporate frauds

Published By: Financial Express

The recent engrossing Netflix documentary ‘Bad Boy Billionaires: India’ has once again highlighted instances of monumental corporate frauds. YES Bank, Dewan Housing, IL&FS, Kingfisher Airlines, Gitanjali Group and Nirav Modi (the fugitive diamantaire), which had once enjoyed stellar reputation, are now reeling under the allegations of gigantic corporate frauds.

While these scams involve mind-boggling amounts, their tracing and recovery have been slow and ineffectual. In most cases, a fraction of the sum involved is traced after protracted and arduous investigations. These frauds impair the economy and also jeopardise interests of public shareholders since large corporates are mostly public-listed companies where promoters conduct business with funds from others.

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