Forensic Accounting, Corporate Fraud Investigation & Dispute Advisory
Independent forensic accounting, corporate fraud investigation, and economic dispute advisory under the ICAI Forensic Accounting and Investigation Standards (FAIS), Companies Act, 2013, and Insolvency and Bankruptcy Code (IBC), 2016. Assisting Audit Committees, Resolution Professionals, commercial lenders, and corporate counsel with empirical evidence and objective fact-finding.
Corporate Fraud & ADT-4 Inquiries
Independent fact-finding for Audit Committees and Independent Directors under Section 143(12) and Rule 13 (mandatory fraud reporting to MCA ≥ ₹1 Crore). Forensic examination of revenue inflation, circular vendor billing, and CARO 2020 Clause (xi) whistleblower grievances to protect board leadership against Section 164(2) disqualification and Section 447 penal consequences.
Deliverable: Independent Fact-Finding Dossier
Target: Audit Committees, Boards, Statutory Auditors
IBC Avoidance Audits (PUFE)
Comprehensive transaction audits for Resolution Professionals (RPs) and Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016: Section 43 (Preferential transactions), Section 45 (Undervalued transactions), Section 50 (Extortionate credit transactions), and Section 66 (Fraudulent or wrongful trading with unlimited personal liability).
Deliverable: NCLT-Ready PUFE Forensic Audit Report
Target: Resolution Professionals, CoC, Liquidators
RBI Red Flag & Fund Diversion Defense
Rigorous forensic fund flow tracing and cash flow reconciliations against the 42 RBI Early Warning Signals (EWS) for accounts classified as Red Flagged Accounts (RFA). Enforcing natural justice defense before Joint Lenders Meetings (JLM) under the Supreme Court landmark State Bank of India v. Rajesh Agarwal (2023) to rebut unilateral fraud classifications.
Deliverable: Fund Flow Audit & JLM Defense Submissions
Target: Corporate Borrowers, Lenders, Consortiums
Digital Forensics & BSA § 63 Certification
Forensic preservation, bit-stream disk imaging (E01/DD), cryptographic hashing (SHA-256), and ERP database transaction log reconstruction (SAP, Oracle, Tally audit trail). Drafting and attesting statutory certificates of electronic records under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023 for admissibility in High Courts, NCLT, and arbitral proceedings.
Deliverable: BSA § 63 Electronic Evidence Certificate
Target: Corporate Legal Counsel, Litigants, Tribunals
Anti-Bribery (ABAC) & Whistleblower Desk
Independent triaging and forensic investigation of whistleblower allegations under Section 177(9) of the Companies Act. Anti-Bribery and Anti-Corruption (ABAC) reviews establishing the statutory defense of "adequate procedures" under Section 9 of the Prevention of Corruption Act, 1988, including vendor conflict-of-interest screening and procurement kickback detection.
Deliverable: ABAC Review & Whistleblower Investigation Report
Target: Audit Committees, MNC Subsidiaries, General Counsel
Dispute Advisory & Economic Loss Quantification
Objective financial quantification of lost profits, business interruption claims, and economic damages in domestic and international commercial arbitrations under Section 26 of the Arbitration and Conciliation Act, 1996. Post-acquisition purchase price adjustment audits, earn-out dispute reviews, and breach of warranty damage calculations.
Deliverable: Expert Financial Report & Tribunal Testimony
Target: Arbitral Tribunals, M&A Buyers/Sellers, Litigants
Forensic Accounting & Investigation Standards (FAIS) Framework
In accordance with the standards issued by the Digital Accounting and Assurance Board (DAAB) of the Institute of Chartered Accountants of India (ICAI), our forensic engagements are conducted with strict adherence to the FAIS 100 to 500 series:
FAIS 110 & 120: Delineating forensic accounting from investigation; maintaining objectivity, integrity, and non-advocacy factual reporting.
FAIS 210 & 240: Clear terms of engagement, hypothesis formulation, independent engagement quality review, and conflict assessment.
FAIS 310, 320 & 330: Verifiable chain of custody, non-coercive cognitive interviews, Benford's Law analysis, and Relative Size Factor (RSF) testing.
FAIS 410, 520 & 530: Factual finding presentation without legal conclusions, digital forensics acquisition, and loan diversion tracing.
Statutory Comparison: Corporate Fraud & Forensics Mandates in India
| Statutory Dimension | Companies Act § 143(12) | IBC 2016 §§ 43–66 (PUFE) | RBI Fraud Master Directions |
|---|---|---|---|
| Governing Authority | Ministry of Corporate Affairs (MCA) | NCLT / IBBI | Reserve Bank of India (RBI) |
| Threshold / Trigger | Fraud ≥ ₹1 Crore against Company | Insolvency commencement (CIRP) | Borrowings ≥ ₹50 Cr with EWS / RFA |
| Statutory Timelines | 45 days board response, 60 days MCA | Look-back: 1 yr (unrelated), 2 yrs (related) | Forensic audit within 3 to 6 months |
| Key Sanction / Liability | Section 447 (Imprisonment up to 10 yrs) | Section 66 (Unlimited personal liability) | De-barment from credit for 5 years |
| Key Defense Doctrine | Absence of fraudulent intent, ICFR proof | Ordinary course of business (§ 43(3)) | Rajesh Agarwal SC Natural Justice |
Confidential Forensic Scoping & Consultations
Engage with our senior partners regarding independent board investigations, IBC PUFE transaction audits, digital evidence preservation, and RBI red-flagged account defense.