ROLE OF DATA ANALYTICS AND FORENSIC ACCOUNTING IN DETECTING CORRUPTION AND CORPORATE FRAUD IN INDIA

Abstract

Corruption and corporate fraud continue to pose serious threats to economic growth, corporate governance, and public confidence in institutions. The increasing complexity of financial transactions coupled with rapid digitalization has made traditional methods of fraud detection less effective in identifying sophisticated financial misconduct. This paper examines the role of data analytics and forensic accounting in detecting and investigating corruption and corporate fraud in India. The study adopts a doctrinal and analytical approach by examining relevant legal frameworks, regulatory mechanisms, and famous case studies including the Satyam Computer Services Scam, the Punjab National Bank-Nirav Modi Fraud, and the IL&FS Crisis. The study finds that data analytics enables the identification of unusual patterns, suspicious transactions and potential fraud risks through the examination of large volumes of financial data. Forensic accounting complements these efforts by tracing financial irregularities, uncovering concealed transactions and providing evidentiary support during investigations and legal proceedings. The paper further observes that while India possesses a comprehensive legal and regulatory framework to address corruption and corporate fraud, challenges relating to technological infrastructure, skilled personnel, data integration and institutional coordination continue to affect effective enforcement. The paper concludes that the integration of data analytics and forensic accounting into investigative processes can strengthen fraud detection and improve regulatory oversight. Enhanced technological capabilities, specialized expertise and coordinated enforcement mechanisms are essential for promoting transparency, accountability and integrity within India's corporate and financial sectors.