Introduction

Prospect Legal is a leading law firm specializing in forensic accounting, financial fraud investigation, and litigation support. With over 15+ years of experience, our multidisciplinary team of attorneys, forensic accountants, and cybersecurity experts has uncovered complex financial frauds, from embezzlement and money laundering to securities fraud and corporate mismanagement. We assist businesses, shareholders, and regulators in unraveling financial discrepancies, securing evidence, and pursuing legal remedies under the Companies Act, 2013, Indian Penal Code (IPC), and SEBI regulations. Our proactive approach combines technical precision with courtroom-ready strategies to recover assets and hold fraudsters accountable.

Where You Can Find Remedies?

Key authorities for addressing financial fraud include:

• National Company Law Tribunal (NCLT): Adjudicates fraud cases under Section 447 of the Companies Act.
• Serious Fraud Investigation Office (SFIO): Investigates complex frauds under Section 212 of the Companies Act.
• SEBI (Securities and Exchange Board of India): Handles securities fraud and insider trading cases.
• Criminal Courts: Prosecute fraudsters under Sections 420 (Cheating) and 406 (Criminal Breach of Trust) of the IPC.

Suspect financial fraud? Contact Prospect Legal today to safeguard your assets and initiate a forensic investigation.

📞 Call us at 7000-12-7225

Understanding the Legal Process

Voluntary Process (Internal Investigation):

1. Internal Audit: Conduct a forensic audit to identify irregularities.
2. Whistleblower Reports: Address complaints via internal vigilance committees.
3. Settlement Negotiations: Recover losses through confidential settlements.

Compulsory Process (Regulatory/Litigation-Driven):

1. SFIO Investigation: Triggered by MCA or NCLT orders under Section 212.
2. Filing FIR: Lodge criminal complaints with economic offense wings.
3. NCLT Petition: Seek asset freezing or compensation under Section 241-242.
4. SEBI Action: File complaints for market manipulation or insider trading.

Legal Protection Under Key Provisions

Section 447 of the Companies Act: Punishment for Fraud

• When Can a Claim Be Filed?
  • If fraud involves wrongful gain/loss exceeding ₹10 lakh or 1% of turnover.
  • If directors or employees falsify accounts, siphon funds, or conceal information.
  • Upon discovery of fraudulent activity within 3 years (limitation period).

Section 212 of the Companies Act: SFIO’s Investigative Powers

• Powers of the Adjudicating Authority (SFIO):
  • Arrest individuals without a warrant during investigations.
  • Seize documents, electronic records, and assets linked to fraud.
  • Submit findings to NCLT for prosecution and recovery.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Risk Assessment

• Fraud Detection: Analyze financial statements, bank trails, and whistleblower complaints.
• Digital Forensics: Scrutinize emails, metadata, and deleted files for evidence.
• Legal Risk Report: Outline liabilities under Companies Act, IPC, and SEBI norms.

Step 2: Legal Documentation & Filing

• Draft SFIO complaints with prima facie evidence of fraud.
• File NCLT petitions for asset freezing under Section 221.
• Prepare criminal complaints under IPC Sections 420/406.
• Submit SEBI grievances for securities fraud.

Step 3: Compliance & Negotiations

• Coordinate with forensic accountants to quantify losses.
• Negotiate settlements with fraudulent parties for asset recovery.
• Represent clients in SFIO interrogations and regulatory hearings.

Step 4: Resolution & Final Actions

• Secure NCLT orders for compensation or asset liquidation.
• Pursue criminal convictions and recovery via restitution orders.
• Implement anti-fraud controls to prevent recurrence.

For expert legal representation, reach out to Prospect Legal now.
📞 Call us at 7000-12-7225