Corporate Fraud and Judicial Review in India: Evaluating the Effectiveness of Legal Remedies for White Collar Crimes

Abstract

Corporate fraud in India has grown increasingly complex due to technological advancement, financial innovation, and globalization of business operations. This study examines the nature of corporate fraud, the legal framework regulating it, and the crucial role of judicial review in ensuring accountability. It explores how institutions such as SEBI, the MCA, the SFIO, and the ED enforce laws and how courts intervene to uphold due process, clarify statutory interpretation, and strengthen regulatory actions. Through an analysis of landmark judgments—including the Satyam, Sahara, NSEL, and IL&FS cases—the study highlights the judiciary’s role in shaping corporate governance norms and protecting investor interests. While India possesses a comprehensive legal framework under the Companies Act, IPC, PMLA, SEBI Act, and IBC, the effectiveness of remedies remains mixed due to procedural delays, technical complexities, and coordination challenges among enforcement agencies. The study identifies key obstacles in prosecuting corporate fraud and emphasizes the need for specialized investigative capacity, stronger institutional collaboration, and judicial efficiency. It concludes that robust judicial review, combined with improved regulatory enforcement and governance reforms, is essential to effectively address white-collar crime and maintain public trust in India’s corporate ecosystem.