
86 | Chapter 10
Lifting the Corporate Veil
In normal course regulatory agencies use various
regulatory tools of technical scrutiny, inspection etc
by treating each company as a separate legal entity.
However the approach of the regulators and en-
forcement agencies need to change when it comes
to tackling the problem of shell companies and
front companies that are used as tools for fraudu-
lent activities. In such cases, it becomes necessary
to lift the corporate veil and identify the individu-
als responsible directly. In the Skipper Construction
Company case, the Supreme Court has very clear-
ly laid down this principle. The fact that promot