Is there a fine line between business gone wrong and a planned fraud?

Is there a fine line between business gone wrong and a planned
fraud?
When an individual or a group of entrepreneurs start with a
vision or a dream to make the world a better place, work with
passion and focus, the universe including the banks align with them and based on
forecasts and projections offer them loans to generate revenues so that they all
can benefit. During the upturn the banks chase these clients offering them
incentives and compete with each other to get industry market share. The
consultants create an environment to ensure investments and make money off both
the bankers and the entrepreneurs. The cycle continues as long as the consumer
is willing to pay for the product or services.
However as the global dynamics change and the consumer either moves to the
next new thing or there is a disruption due to technology innovations, large
infrastructure starts idling. The poster boys of the industry loose support of the
bankers, financial institutions, media and tax authorities. If they are not able to
quickly adapt and change the business model their liabilities keep increasing and
soon they are labelled as scamsters.
In India about 1.5 lakh cases of economic offence are reported every year and the
economic value of the scams keep increasing. Is there a way to differentiate
between a planned scam and a business gone wrong. Can the banker who had been
a share holder in the business and earning in the good times shun all responsibility
and claim to be a victim. The same consultants based on whose reports, investment
decisions were made by the board now critically analyse the company and submit
documents for presenting in NCLT.
As regulations in India are changing, the implementation of economic offence is
getting stronger, while doing business is getting more difficult. We need to ponder
if future entrepreneurs because of fear of law will loose their enthusiasm to tread
Dhirubai’s path.

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