Ramesh, the managing director of Sudarshan Ltd, fabricated invoices and diverted ₹2 crore of company funds to his personal account. If he is convicted of fraud under section 447 of the Companies Act, 2013, he is liable to:

Section 447 of the Companies Act, 2013 punishes fraud, which includes any act, omission, concealment or abuse of position committed with intent to deceive, to gain undue advantage for oneself or another, or to cause wrongful loss. The punishment is imprisonment of not less than six months which may extend to ten years, and a fine of not less than the amount involved in the fraud which may extend to three times that amount; where the fraud involves public interest, the minimum term is three years. By the Explanation to section 447, 'fraud' covers an amount of at least ₹10 lakh or one per cent of the company's turnover, whichever is lower, and the diversion of ₹2 crore crosses that threshold. Fabrication of invoices to divert funds is an abuse of position attracting this punishment.