What legal actions can one taken for forged signatures on company documents for loans?

Husband, being the director of the company forged signature of his wife on the balance sheets to get loans.


Forging of documents is a crime in the eyes of law and can have severe repurcussions on the company as well the person doing it. The first step is to complaint before the National Company Law Tribunal (NCLT). Section 229 of the Companies Act, 2013 provides for such false information provided for wrongful gain and the punishment for which is mentioned is under Section 447 of Companies Act, 2013. The National Company Law Tribunal will reverse the actions and the penalty for same can be imprisonment of minimum 6 months which can be extended to 10 years along with fine of 3 times the loan amount taken.

A FIR must also be done before the nearest police station as Forgery is a Crime under section 420 for Cheating, Section 468 for Forgery for purpose of cheating, Section 470 for forged documents, Section 471 provides for using for such forged documents and Section 120B for being party to criminal consipracy of the Indian Penal Code, 1860. You must also get your signature verified by experts and copies of the varying signature must be submitted while filing the FIR.

All these documents can then be submitted to the bank where loan was taken so that all the accounts can be freezed with immediate effect.

Reference: Section 229, Section 447
Companies Act, 2013

Where a person who is required to provide an explanation or make a statement during the course of inspection, inquiry or investigation, or an officer or other employee ofa company or other body corporate which is also under investigation,Ñ

(a) destroys, mutilates or falsifies, or conceals or tampers or unauthorisedly removes, or is a party to the destruction, mutilation or falsification or concealment or tampering or unauthorised removal of, documents relating to the property, assets or affairs of the company or the body corporate;

(b) makes, or is a party to the making of, a false entry in any document concerning the company or body corporate; or

(c) provides an explanation which is false or which he knows to be false, he shall be punishable for fraud in the manner as provided in section 447.

Punishment for Fraud

Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:

Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years.

Section 420, Section 468, Section 470, Section 471, Section 120B
Indian Penal Code, 1860



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