Citizens' Issues
Individual prosecution key to deter fraud: EY survey
Mumbai : Prosecuting individual executives for fraud, bribery and corruption will help deter the crime, a study finds.
 
"Eighty percent of Indian respondents are of the opinion that individual prosecutions will help deter such instances in the future, which is almost at par with the global perspective, at 83 percent," said the 14th edition of Ernst and Young's (EY) Global Fraud Survey "Corporate misconduct - individual consequences" survey which interviewed senior executives across finance, internal audit and risk, legal and compliance among others.
 
According to the study, corporate India needs to enhance its compliance focus from a micro level to boost the success of macro initiative being executed by India.
 
"Indian respondents show a gradual but positive shift in the perception of bribery and corruption being widespread in the country at 58 percent, from 67 percent and 70 percent, in 2014 and 2012 respectively," said the statement.
 
"The escalating threats of cyber crime, terrorist financing and a widespread possible misuse of offshore jurisdictions, have increased pressure on governments to act and companies to identify and mitigate fraud, bribery and corruption issues," said EY India fraud investigation and dispute services national leader Arpinder Singh in a statement.
 
The survey discovered that India ranks fairly high in terms of accepting bribery as a practice for winning contracts and conducting business, 28 percent respondents said it occurs frequently which reduced from 29 percent in 2014. It rose from 20 percent clocked in 2012.
 
While 70 percent Indians believed that at least one form of unethical behaviour can be justified for reaching financial targets, the survey said.
 
"Furthermore, 44 percent of Indian respondents consider practices such as entertainment, personal gifts or services, cash payments or misrepresentation of financial performance acceptable means to meet business targets," the statement said.
 
Interestingly, 30 percent and 28 percent respondents cited loyalty to the company and colleagues as a reason for not whistleblowing on fraud.
 
Though the risk of cyber crime is rising in India, only 34 percent Indian respondents considered it to be a risk compared to 47 percent globally.
 
The survey also highlighted that Indian banks are still under scrutiny for money laundering issues pertaining to international trade and remittances.
 
"Companies need to upgrade their anti-fraud technologies to support monitoring of suspicious transactions and duly inform the authorities as stipulated by the regulators," the survey added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Tribunal asks CCI to reconsider penalty order: SpiceJet
Mumbai : SpiceJet on Wednesday said the Competition Appellate Tribunal (COMPAT) has set aside an impugned Competition Commission of India (CCI) order penalising the low-cost airline and two more rivals for alleged concerted action in relation to cargo fuel surcharge.
 
"COMPAT vide it's order dated April 18 has set aside the impugned CCI order. The matter has been remanded back to the CCI with the direction to re-consider the report of the Joint Director General (JDG) and to take appropriate decision under Section 26(8) of the Competition Act, 2002," said a SpiceJet regulatory filing.
 
SpiceJet, Jet Airways and Indigo airlines were fined a total of Rs.258 crore for acting in a concerted manner to fix and revise fuel surcharge (FSC) prices for transporting cargo on November 17, 2015.
 
Accordingly, the CCI imposed penalties amounting to Rs.151.69 crore, Rs.63.74 crore and Rs.42.48 crore on Jet Airways, InterGlobe Aviation and SpiceJet, respectively.
 
Asking CCI to pass a fresh order, the tribunal said in case the fair trade regulator disagrees with the findings of JDG after reconsidering, it can indicate the reasons.
 
"The CCI shall indicate the reasons for such disagreement and issue notice to the parties, incorporating the reasons of disagreement and give them opportunity to file their replies/objections and thereafter to pass appropriate order in accordance with law," said the regulatory filing citing the tribunal order.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Vijay Mallya convicted in cheque bounce case
Hyderabad : A city court on Wednesday convicted now defunct Kingfisher Airlines chairman Vijay Mallya in a cheque bounce case.
 
The 14th Additional Chief Metropolitan Magistrate convicted the industrialist under section 138 of Negotiable Instruments Act.
 
The court will pronounce the quantum of punishment on May 5, said Ashok Reddy, lawyer of GMR Hyderabad International Airport Ltd. which filed the case.
 
The liquor baron is currently in Britain.
 
The court had last month issued a non-bailable warrant against him on a petition filed by GMR Hyderabad International Airport Ltd. seeking his prosecution for defaulting on payments and cheating the company by issuing cheques that bounced.
 
The airport officials had filed 11 cases against Kingfisher for non-payment of dues to the tune of Rs.8 crore.
 
Cheques issued for Rs.50 lakh had bounced and a case in this connection was filed against him under provisions of the Negotiable Instruments Act.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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