Corporate Criminal Liability in Financial Frauds: Case Studiesin India
- YourLawArticle
- Apr 16
- 2 min read
Authored by: Ishan Bhatt , B.B.A.LL.B, United World School of Law, Karnavati University
&
Dr. Kratika Gupta, Assistant Professor of Law, United World School of Law, Karnavati University
Abstract
This dissertation explores the evolving concept of corporate criminal liability in the context of financial frauds in India. With the increasing complexity of corporate operations and the growing number of white-collar crimes, the Indian legal framework faces significant challenges in holding corporate entities accountable for financial misconduct. This research examines the underlying legal principles, judicial approaches, statutory frameworks, and enforcement mechanisms that govern corporate criminal liability in India.
The study begins by outlining foundational doctrines such as nulla poena sine lege, actus reus, mens rea, and the doctrine of strict liability. It further analyzes the judicial evolution from initial reluctance to a more assertive stance on attributing criminal liability to corporations, highlighting landmark judgments that have shaped this domain. The dissertation delves into the application of the Indian Penal Code, the Companies Act, 2013, SEBI regulations, and other relevant statutes that define and regulate corporate crimes.
A critical section of this work is dedicated to theoretical perspectives including the Vicarious Liability Theory, Identification Theory, Sanctioning Theory, and Direct Liability Theory—each offering different approaches to attributing criminal responsibility to corporate entities. Through case studies of prominent financial frauds such as the Satyam Scam, SEBI v. Sahara, and the 2G Spectrum case, the study illustrates practical applications of these legal principles and examines enforcement challenges.
Overall, this study contributes to the understanding of corporate criminal liability in India, offering insights for policymakers, legal professionals, and corporate stakeholders to address financial frauds effectively and uphold the integrity of the financial system.
Keywords: Corporate Criminal Liability, Indian Legal Frameworks, IPC, Companies Act.
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