Diffusing the Focus

India has witnessed a marked increase in the number of scams that have surfaced both in public and private sectors, said Ranjit Sinha, Director, Central Bureau of Investigation (CBI). Ranjit Sinha is also reported to have said, that the scale and size of corporate frauds in India has zoomed in the last 15 years with majority of the cases of fraud involving siphoning off funds by promoters, top management and defrauding the lenders or investors. He said commercial banks have reported 1.69 lakh cases of frauds involving an amount of Rs 29,910 crore as on March 31, 2013.

The regulatory bodies and investigating agencies like Serious Fraud Investigation Office (SFIO), Securities and Exchange Board of India (SEBI), CBI and Enforcement Directorate (ED), along the Registrar of Companies and the Ministry of Corporate Affairs need to interact more frequently at various levels to share the intelligence and the outcome of the respective investigations.

The statement by the CBI Director Mr. Ranjit Sinha is of utmost importance in the present fight against money laundering and corporate fraud.

The focus of RBI is mainly on cross-jurisdictional black money as well as combating terrorism. The draconian PMLA (Prevention of Money Laundering Act) has been rendered a toothless demon. A recently published article on the same subject by Agama Law Associates is available here.


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