A fraud is punishable offence whereas the non-compliance also attracts the penalties. Differentiate between the two concepts i.e. Fraud and Non-Compliance.

Any person who is found to be guilty of fraud shall be punishable with imprisonment and shall also be liable to fine as prescribed under section 447 of the Companies Act, 2013. The term fraud can be defined as an act or course of deception, an intentional concealment, omission, or perversion of truth, to Gain unlawful or unfair advantage, Induce another to part with some valuable item or surrender a legal right, or Inflict injury in some manner. Non Compliance: The term non-compliance refers to failure to comply with the laws, rules regulations etc. The term non-compliance is commonly used in regard to a failure to meet the compliance requirements, be it the failure in following procedures, filing of information, eligibility conditions, reporting etc. The relationship between fraud and the Non-compliance can be constructed as the Non-compliance in the company may lead to a fraud. However the fraud can also be made in the compliant company.