Nikki joined a retail store run by Jain Daily Needs Ltd. as Manager. After some time she manipulated the accounts of the branch and thus made illegal money amounting to ₹ 15 lakh. The fraud was unearthed during the regul

The penal action against Nikki will be determined by Section 447 of the Companies Act, 2013 , which deals with punishment for fraud. The severity of the punishment depends on the amount involved in the fraud. Case 1: Where the amount involved is at least ₹ 10 Lakhs According to Section 447 of the Companies Act, 2013 , without prejudice to any liability including repayment of any debt under this Act or any other law, any person who is found to be guilty of fraud involving an amount of at least ₹ 10 lakh or one per cent. of the turnover of the company, whichever is lower , shall be punishable with: Imprisonment: For a term which shall not be less than six months but which may extend to ten years. Fine: Shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud. Proviso 1: Where the fraud in question involves public interest, the term of imprisonment shall not be less than three years. In the given situation, the fraud amount is ₹ 15 lakh , which exceeds ₹ 10 lakh. Therefore, Nikki can be punishable with: Imprisonment for a term not less than six months but which may extend to ten years. Fine not less than ₹ 15 lakh but which may extend to three times the amount involved in the fraud, i.e., ₹ 45 lakh . Case 2: Where the amount involved is less than ₹ 10 Lakhs Proviso 2 of Section 447 of the Act provides that where the fraud involves an amount less than ₹ 10 lakh or one per cent. of the turnover of the company, whichever is lower , and does not involve public interest, any person guilty of such fraud shall be punishable with: Imprisonment: For a term which may extend to five years. Fine: Which may extend to fifty lakh rupees, or with both. If the fraud amount is ₹ 5 lakh (and assuming it does not involve public interest and is less than 1% of turnover), Nikki can be punishable with: Imprisonment for a term which may extend to five years. Fine which may extend to ₹ 50 lakh , or with both.