1. Definition of Fraud: Includes any act of deception, concealment of facts, abuse of position, or wrongful gain/loss made to a person or company.

2. Punishment (Fraud Involving ₹10 lakh or 1% of Turnover or More):
Imprisonment: Minimum 6 months, extendable up to 10 years.
Fine: Not less than the amount involved in fraud, extendable up to three times the amount.

3. Punishment (Fraud Involving Less than ₹10 lakh and not involving public interest):
Imprisonment: Up to 5 years.
Fine: May extend up to ₹50 lakh, or both.

4. Covers All Persons:
Applies to directors, officers, auditors, consultants, or any person found guilty of fraud in company affairs.