Frauds By Foreign Companies In U.S And India: Comparative Analysis

Singh Shivani, Chanakya National Law University, Patna

ABSTRACT

Corporate fraud has become a huge global concern and has emerged as one of the most critical hazards to which organizations are vulnerable. Rules that ensure oversight, alertness, and transparency procedures—including whistleblower complaints—are constantly reinforced. Everyone agrees that fraudsters always find a way around the law and stay one step ahead of the authorities.

The concept of "alter ego," which sees the director/shareholder and the company as one and the same, has been studied by the researcher in this article to explain the criminal liability of the corporations. Concerns about human health, consumer complaints, and corporate liability of multinational corporations have been raised in the wake of recent allegations that Johnson & Johnson's baby powder, talcum powder, and other talc-based products contained asbestos, a known carcinogen; and its defective Acetabular Surface Replacement (ASR) hip implants; and the Gambian incident where nearly 66 children allegedly died after consuming cough syrup exported by Maiden Pharmaceuticals, based in the Sonipat district of Haryana. The occurrence in Gambia called into doubt the reliability of medical supplies made in India. The incident was highlighted in the international media.

It becomes relevant to research the following in order to comprehend the need for stronger regulations to deter fraud by foreign companies, particularly for India: the development of the concept of corporate liability regarding fraud in both the US and India; pertinent laws regarding the subject matter in both the jurisdictions; and cases concerning fraud by foreign companies in both the jurisdictions.