
Corporate Frauds and the Macroeconomic Environment in India | 7
cities. The use of hawala channels is not restricted
to smugglers, terrorist networks, fraudsters and
other criminals; these channels are extensively used
for transfer of funds connected with normal busi-
ness activity. The objective here is to evade taxes by
not billing. Hawala channels, though unauthorised,
are considered highly cost-eective, ecient and
reliable for transfer of funds.
The Impact of Corporate Frauds
The scale, at which the abovementioned macro-
economic factors operate, sustains and allows
for a conducive environment for a multitude of
frauds. This makes combating ...