Serious Fraud

Govt asks Byju's to explain delay in filing audited financial accounts

Ministry of Corporate Affairs sent a letter to Byju's parent company asking them to explain the seventeen-month delay in filing audited accounts

SFIO ordered to probe 14 cases this fiscal: Govt in Rajya Sabha

The Serious Fraud Investigation Office (SFIO) has been ordered to probe 14 cases involving 95 companies in the current fiscal till March 17, the government informed Rajya Sabha on Tuesday

SFIO arrests 3 individuals for fraud in Jagat Agro Commodities case

Satish Kumar Pawa, promoter and shareholder; Saurav Aggarwal, son of promoter; and Suhas S Paranjpe, statutory auditor; have been arrested by the probe agency

Arrest of Mirchi's aide turns the spotlight on corporate-underworld nexus

History shows that links between corporate powerhouses and terror financing are not new. Nor are they restricted to industries such as cinema or real estate

Serious fraud rules out arbitration

When there is an arbitration agreement and one party alleges "serious fraud" by the other, the dispute cannot be arbitrated; it should go before a civil court. However, if the alleged fraud is not serious and it is seen only as an allegation to wriggle out of the contract, arbitration can be invoked. The arbitrator can decide the allegation of simple fraud. This clarification was made by the Supreme Court in its judgment, A Ayyasamy vs A Paramasivam. In this case, five brothers disagreed over the running of a hotel which they had inherited from their deceased father. Four brothers alleged that the eldest fudged the accounts, and took him to the civil court. The eldest brother invoked the arbitration clause. The district court and the Madras High Court rejected his prayer as, according to them, allegation of fraud would bar arbitration. Reversing their views, the Supreme Court appointed a retired high court judge as the arbitrator. It observed that arbitration becomes impossible only wh