Movie Case Study
The above scene shows a conversation between Vivaan (played by Akshay Oberoi) and his friend. Vivaan wants to help her friend RJ (played by Sandeepa Dhar) who is in trouble. He decides to use the sponsorship money he had received for his theatre act. His friend instructs him not to use that money as that would be classified as misappropriation of funds, which is a criminal offense. Learning Perspectives will explore the meaning of the misappropriation of funds in this blog.
What is Misappropriation of funds?
Misappropriation literally means unauthorized use. This misappropriation can include name, property, identity, inventions, etc. Similar to the scene you saw. Money of Rs. seven lakhs or Rs. 7,00,000 was given for sponsoring his play which he later decided to use for a personal cause. When money is used illegally, it is called the misappropriation of funds. He wasn’t seen taking permission from the sponsors to do this. Hence, this act will be considered a misappropriation of funds.
This is witnessed quite often at workplaces. Let’s say an employee is granted funds for procurement and marketing. The employee goes on to use these funds to pay off his personal bills. This too falls in the category of misappropriation of funds.
In India, there are many cases related to the misappropriation of public funds. Many times this leads to the fabrication of documents to misappropriate records.
Understand the Misappropriation of Funds with a Youtube Video
Many times embezzlement and misappropriation are used synonymously. However, there is a minor difference between the two terms. Embezzlement is generally used in case of theft or breach of trust. It is considered financial fraud. Assets or property can be acquired lawfully but later can be misused and this is embezzlement. This crime is considered planned & well-organized.
Harshad Mehta Case
Harshad Mehta’s case of 1992 is a good case to understand embezzlement. He had created fake bank receipts to get unsecured loans. He embezzled close to Rs. 1,439 crores. He manipulated stocks by exploiting the loopholes in the banking system. In layman’s language, he illegally took money from the banks and invested this huge amount of money in the stock market to manipulate share prices. He was convicted of 27 crimes.
Consequence of Missapropriation
Misappropriation can have serious consequences, it can cause imprisonment. The Indian Penal code 1860 (IPC), penalizes dishonest misappropriation of property, cheating, dishonesty inducing delivery, property, and forgery. Criminal misappropriation is defined under section 403 of the Indian penal code.
Embezzlement Vs. Misappropriation
