Article published in One World News, April 2016

He has been practicing as Company Secretary (CS) from last 20 years and has recently come up with a book on ‘Corporate Frauds and their Regulation in India’ to make everyone aware of it.

One World News recently got candid with him and here is all what he shared with us.

1. Why did you decide to write a book on corporate frauds?

I did my research on corporate fraud, so it inspired me to share my research exposure and knowledge with the general public who always become victims of a corporate fraud. In 1992 to 1995, the capital market was flooded with various public issues and suddenly these companies were declared as vanished companies which siphoned off the public money for their personal uses due to which poor investors lost their hard earned money by investing in these vanished companies. These circumstances and unavailability of much material on corporate frauds, inspired me to do some research work on corporate frauds on the line of who commits a fraud, how it is committed, why it is committed and what legal provisions are available to fight with these fraudsters.

2. How does your book can help a budding entrepreneur?

The young entrepreneurs can have knowledge about the means adopted by employees and vendors to commit fraud against the company and the modus operandi of various frauds. They can be aware about consequences of fraud on the reputation of their business and knowledge about ingredients of fraud can help them in selection of personnel for their organization. The penalty provisions of fraud and regulatory agencies powers can motivate these entrepreneurs to follow sound business ethics and good corporate governance in their organization.

3. As a writer, what was your biggest challenge while writing this book?

Non availability of material on Corporate Fraud
Time adjustment with my practice

4. What all provisions are present for company fraud in our legal system?

The Companies Act, 2013 has first time introduced the concept of fraud in it and various offences punishable with fraud has been categorized. Section 447 of the Act primarily deals with the meaning of fraud and penalty provisions. Indian Legal Systems plays an important role to punish the fraudsters, however time taken to punish a fraudster is a major constrained in curbing fraud. Number of agencies like Serious Fraud Investigation Office and Securities and Exchange Board of India and Inspection and Investigation wing under MCA alongwith other agencies like CBI, RBI, Income Tax authorities are there but lack of coordination and jurisdictional disadvantage of authorities are not much helpful to prevent or curb fraud.

5. What Kind stuffs you like to read?

Professional Bodies journal Like Chartered Accountants, Chartered Secretary, Journal of Financial Crime, MCA E book, Annual reports of different authorities.
Business newspapers like Economic Times , Financial Express and MINT

6. What is your motive behind writing this book?

The motive is to provide a primer on corporate fraud and to provide and share knowledge on the cases of frauds occurred during last 20 years in India, and the consequences of fraud on the stakeholders, company and economy.

7. Is there any other topic, you are working on?

Yes , I am working on the Corporate Social Responsibility (CSR).

8. What is your take on day to day ethics policy including politics, workplace and our personal life?

I keep away myself from the politics as I have no interest in politics. I am a law abiding citizen and try my best to adopt good professional practices as I am a Company Secretary in Practice and always convince and educate my clients to comply with the provisions of the applicable Acts and never compromises with my own values and working style. I never cheat and lie and never harm anybody due to my acts.

9. How is Sanjeev Gupta as a person?

As having faith in God and in Indian traditions, I believe that the God has sent us for a noble cause on the earth so we have to be trustworthy with all persons. As far as my profession is concerned I am a Practicing Company Secretary anddoing my profession under the name and style as Sanjeev Gupta & Associates and also a professional director in La-SIYA Corporate Consultants Private Limited.

10. How did you conceive your plot idea?

When I came to know about various scams in the country and poor investor losing their money, I decided to do some research work on frauds perpetrated by Management or others to provide some knowledge to the poor investors by educating them with the contents of my book.

11. What advice would you like to give to the people, you wants to try their hand in writing?