Fraud, in the legal context, involves intentional deception to secure unfair or unlawful gain, or to deprive a person of a legal right. Under Indian law, fraud-related conduct may attract both civil and criminal consequences, and may arise in contexts such as financial transactions, corporate dealings, securities markets, contracts, and digital or online transactions. The applicable legal framework may include the Bharatiya Nyaya Sanhita, 2023 (with the Indian Penal Code, 1860 continuing to apply to matters arising before its commencement), which contains provisions relating to cheating, forgery, criminal breach of trust and criminal conspiracy; the Indian Contract Act, 1872, which addresses fraud and misrepresentation in contractual contexts; and the Companies Act, 2013, which includes provisions relating to corporate fraud. Depending on the nature of the matter, other laws such as the Prevention of Money-Laundering Act, 2002, the Securities and Exchange Board of India Act, 1992, the Information Technology Act, 2000, and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 may also be relevant.
The nature and procedure of a fraud-related matter depend on the facts of the case, the applicable statute, and the forum or authority having jurisdiction. Matters may be pursued through criminal proceedings, civil suits for damages or restitution, regulatory proceedings, or a combination thereof, depending on the nature of the alleged conduct and the relief sought. The procedure, remedies and defences vary according to the applicable legal framework and the stage of the proceedings.
An overview of the principal categories of fraud-related matters, statutory frameworks and related legal issues arising in this area.
Matters relating to dishonest inducement, deception and conspiracy to commit fraud.
Matters relating to the making of false documents, false representations and related offences.
Matters relating to misappropriation or conversion of property entrusted to a person.
Matters relating to fraud in corporate governance, financial statements and commercial transactions.
Matters relating to fraud, market manipulation and other contraventions in the securities market, including insider trading.
Matters relating to fraud in banking transactions, digital payments and online financial services.
Matters relating to fraud and misrepresentation in contractual and commercial transactions.
Matters relating to fraudulent claims, mis-selling of financial products and investment-related fraud.
Remedies against orders or decisions in fraud-related matters, including statutory appeals, bail and other proceedings.
An overview of the legal assistance that may be relevant in fraud-related matters, depending on the facts, the applicable statute and the forum or authority having jurisdiction.
Understanding the nature of the fraud-related matter, relevant facts and documents, the applicable provisions of laws such as the Bharatiya Nyaya Sanhita, 2023, the Indian Contract Act, 1872, the Companies Act, 2013, the Information Technology Act, 2000 or the relevant regulatory statute — and the appropriate forum or authority, where applicable, before proceedings are initiated or responded to.
Assistance relating to the drafting of complaints, and to the review of and response to notices, summons, show-cause notices, inquiry communications or investigation-related correspondence issued by authorities such as the police, the Economic Offences Wing, the Central Bureau of Investigation, the Enforcement Directorate, the Serious Fraud Investigation Office or a regulatory authority, in accordance with the applicable statutory and procedural framework.
Assistance in matters involving applications for bail, anticipatory bail, interim protection or other interim relief that may be sought before the appropriate court, in accordance with the applicable law and procedural framework, including provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, where applicable.
Assistance relating to civil suits for damages, restitution, specific performance or other relief arising from fraudulent conduct, including proceedings before civil or commercial courts and, where applicable, arbitration, in accordance with the applicable statutory framework.
Representation and assistance in proceedings before investigating agencies, regulatory authorities, adjudicating officers, Special Courts, Sessions Courts, High Courts and other appropriate forums — including proceedings under the Companies Act, the SEBI framework, the PMLA and applicable tax laws, as applicable — including appearances, submissions and related procedural steps.
Assistance concerning appeals and other remedies available under applicable laws — including statutory appeals before the appropriate appellate tribunal or court, where permitted by law, and further remedies before the High Court or the Supreme Court, subject to the statutory conditions, limitation and procedural requirements prescribed under the relevant laws.
A procedural overview of how a fraud-related matter may progress, depending on the nature of the alleged conduct, the applicable statute and the forum or authority involved.
A matter may commence with a complaint, first information report or preliminary inquiry, depending on the applicable statute. Certain fraud-related matters may also be initiated through regulatory referrals or statutory references.
Investigation or inquiry may be conducted by the appropriate agency — such as the police, the Economic Offences Wing, the Central Bureau of Investigation, the Enforcement Directorate, the Serious Fraud Investigation Office or a regulatory authority — in accordance with the applicable statutory framework.
Notices, summons or other communications may be issued to the person or entity, calling upon them to appear, produce documents or respond, within the time prescribed under the applicable law or procedural framework.
Where applicable, applications for bail, anticipatory bail, interim protection, injunction or other interim relief may be sought before the appropriate court, in accordance with the applicable law and procedural framework, including the Bharatiya Nagarik Suraksha Sanhita, 2023, where applicable.
Depending on the nature of the matter, a civil suit, complaint, police report or charge sheet may be filed or presented before the appropriate court or authority, as applicable. Such filing may initiate or advance civil, criminal or other statutory proceedings in accordance with the applicable legal and procedural framework.
Trial or adjudication proceedings may involve the examination of witnesses, presentation of evidence, and consideration of the material placed on record, in accordance with the applicable procedural and evidentiary framework, including the Bharatiya Sakshya Adhiniyam, 2023, where applicable.
After considering the evidence and submissions, the court may pass a judgment, decree or order in accordance with the applicable law and the nature of the proceedings.
Where the applicable law permits, an aggrieved party may pursue a statutory appeal or other available remedy against a judgment, decree or order, subject to the statutory conditions, limitation and procedural requirements.
The sequence illustrated is indicative. Depending on the nature of the matter, the applicable statute and the forum or authority involved, some stages may occur in a different order, concurrently or may not arise at all. Civil and criminal proceedings may also proceed in parallel in certain matters. Not every matter proceeds through every stage. The information provided is a general overview and should not be treated as legal advice for any particular matter.
An overview of how a fraud-related matter may proceed through investigation, proceedings and appellate forums, depending on the applicable statute, the investigating agency or forum involved and the nature of the alleged conduct.
A fraud-related matter may commence with a complaint, first information report or preliminary inquiry, depending on the applicable statute. Certain matters may also arise through regulatory referrals or statutory references. Investigation or inquiry may be conducted by the appropriate agency — such as the police, the Economic Offences Wing, the Central Bureau of Investigation, the Enforcement Directorate, the Serious Fraud Investigation Office or a regulatory authority — in accordance with the applicable statutory framework.
Where applicable, applications for bail, anticipatory bail, interim protection or injunction may be sought before the appropriate court, in accordance with the applicable law and procedural framework, including the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023, where applicable. In civil or commercial matters, applications for interim relief or protective measures may also be sought in accordance with the applicable procedural framework.
Depending on the applicable statute, a civil suit, complaint, police report or charge sheet may be filed or presented, and the matter may proceed to trial or adjudication before the appropriate court, tribunal or authority. The proceedings may involve the examination of witnesses, presentation of evidence and consideration of the material placed on record, in accordance with the applicable procedural and evidentiary framework, including the Bharatiya Sakshya Adhiniyam, 2023, where applicable. Certain regulatory matters may be heard by specialised authorities or adjudicating officers under the relevant statute.
Where the applicable law permits, an aggrieved party may pursue a statutory appeal before the appropriate appellate forum and, where permitted, further remedies before the High Court or the Supreme Court, including judicial review before the High Court or other constitutional or appellate remedies, subject to the applicable legal framework. The availability of the appellate remedy, limitation and grounds of challenge depend on the relevant statute. These remedies are not available in every matter, and their availability depends on the applicable legal framework and the nature of the decision.
The documents and information relevant to a fraud-related matter depend on the nature of the alleged conduct, the applicable statute and the forum or authority involved.
Identity and address-related records of the person or entity, including incorporation documents, partnership deeds, and documents relevant to establishing the legal identity and jurisdiction, where applicable.
Bank statements, financial statements, ledgers, invoices, payment records, and other financial documents relevant to the transaction or the alleged fraud, where applicable to the matter.
Notices, summons, show-cause notices, emails, letters and other communications exchanged with the investigating agency, regulatory authority or the concerned parties, along with any replies or responses made, where applicable.
Agreements, contracts, purchase orders, memoranda, and other commercial records relevant to the transaction or commercial relationship, where applicable to the alleged fraud.
Statutory returns, regulatory filings, disclosures, compliance records and other documents filed under the applicable regulatory or tax framework, where relevant to the matter.
Documents, records, communications, expert opinions or other material that may assist in establishing the factual position or the applicable legal framework, including material relevant to the alleged fraud or the defence, where relevant.
Please Note: The documents relevant to a fraud-related matter vary according to the nature of the alleged conduct, the applicable statute and the investigating agency or forum involved. Not every document listed above will be relevant to every matter. The information provided is a general overview and should not be treated as legal advice for any particular matter.
Common questions about fraud under Indian law, the applicable statutory framework, investigating agencies and related legal remedies.
Fraud, in the legal context, generally refers to intentional deception for unlawful gain or to deprive another of a legal right. Under Indian law, fraud-related conduct may attract both civil and criminal consequences. The applicable framework may include the Bharatiya Nyaya Sanhita, 2023 (with the Indian Penal Code, 1860 continuing to apply to matters arising before its commencement), which contains provisions relating to cheating, forgery, criminal breach of trust and criminal conspiracy; the Indian Contract Act, 1872, which addresses fraud and misrepresentation in contractual contexts; and the Companies Act, 2013, which includes provisions relating to corporate fraud. Other statutes, such as the Prevention of Money-Laundering Act, 2002, the Securities and Exchange Board of India Act, 1992, and the Information Technology Act, 2000, may also be relevant depending on the nature of the matter.
Civil fraud generally involves fraudulent misrepresentation, concealment or conduct that causes loss to another, and is typically addressed through civil proceedings such as suits for damages, restitution, rescission or other relief. Criminal fraud involves conduct that constitutes an offence under the applicable criminal law, such as cheating, forgery or criminal breach of trust, and is addressed through criminal proceedings. The same conduct may give rise to both civil and criminal proceedings, and the two may proceed in parallel, depending on the nature of the matter and the applicable law.
Fraud-related matters in India may be investigated by different agencies depending on the nature of the alleged conduct and the applicable statute. These may include the police, the Economic Offences Wing (EOW) of the State Police, the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), the Serious Fraud Investigation Office (SFIO), the Income Tax Department, and regulatory authorities such as the Securities and Exchange Board of India (SEBI), depending on the matter. The applicable agency and the procedure followed depend on the relevant statute and the nature of the alleged fraud.
Cheating generally involves dishonest or fraudulent inducement of a person to deliver property or to consent to the retention of property, whereas criminal breach of trust involves the misappropriation or conversion of property that has been entrusted to a person. The two offences have different essential ingredients and may attract different statutory provisions under the Bharatiya Nyaya Sanhita, 2023 (or, where applicable, the Indian Penal Code, 1860). The specific classification of an act as one or the other depends on the facts of the case and the applicable statutory provisions.
Under the Indian Contract Act, 1872, fraud involves conduct falling within the statutory definition of fraud, including certain acts or representations made with intent to deceive or induce a person to enter into a contract. Misrepresentation, under the statutory framework, may arise from a false assertion or other conduct falling within Section 18, including where the person making the assertion does not have the intention to deceive. The legal consequences and remedies may differ, and the classification of particular conduct depends on the facts, the applicable provisions and the circumstances in which the representation was made.
The Serious Fraud Investigation Office (SFIO) is a specialised investigation agency constituted under the Companies Act, 2013. It investigates serious corporate fraud matters referred to it by the Central Government and prepares investigation reports in accordance with the applicable provisions of the Act. On the basis of its investigation, further proceedings may be initiated in accordance with the applicable statutory framework. The powers and procedure of the SFIO are provided under the Companies Act, 2013 and the rules made thereunder.
Yes, in certain cases. The Prevention of Money-Laundering Act, 2002 (PMLA) operates in respect of the proceeds of crime derived from scheduled offences. Where the alleged fraud constitutes a scheduled offence under the PMLA, proceedings relating to proceeds of crime — including investigation, attachment and confiscation — may arise in addition to the underlying fraud proceedings. Whether the PMLA applies in a particular matter depends on the nature of the alleged offence and whether it falls within the schedule of the Act. The two sets of proceedings operate under separate statutory frameworks.
Whether a fraud-related matter can be settled or compounded depends on the applicable statute and the nature of the alleged offence. Certain offences may be compoundable under the applicable criminal law, subject to the conditions and procedure prescribed therein, while others may not. In civil or contractual matters, disputes may be resolved through settlement or other dispute-resolution mechanisms, including arbitration, where agreed by the parties. The availability of settlement or compounding is a matter of statutory provisions and must be considered in light of the specific facts and the applicable law.
Remedies available in a fraud matter depend on the applicable statute and the nature of the proceedings. In civil matters, remedies may include damages, restitution, rescission, specific performance or other relief. In criminal matters, remedies may include statutory appeals before the appropriate appellate forum and, where permitted by law, further remedies before the High Court or the Supreme Court, including judicial review before the High Court or other constitutional or appellate remedies under the applicable legal framework. The Supreme Court may exercise jurisdiction under Articles 32 and 136 where their respective requirements are satisfied. The availability of a particular remedy, limitation and grounds of challenge depend on the applicable law and the nature of the order.
Legal representation is not always mandatory in fraud-related matters. Whether representation is required depends on the nature of the matter, the investigating agency or forum involved, the applicable law and procedural rules, and the relief sought. Certain proceedings before courts, tribunals and investigating authorities may require appearance or representation in accordance with the applicable law and procedural requirements. The information provided is a general overview and should not be treated as legal advice for any particular matter.
For information regarding a fraud-related matter, or our areas of practice, you may contact Corpus Juris India through the available contact channels.
Please read the following information before accessing this website.
The Rules of the Bar Council of India prohibit advocates and law firms from soliciting work or advertising in any manner. By clicking on "Proceed to Website", you acknowledge and confirm that:
CJI shall not be liable for reliance on this information. Users are advised to seek independent legal counsel before acting.
