Section 447 Companies Act 2013 defines 'FRAUD' broadly and prescribes punishment of:

1. Section 447 Companies Act 2013 (substituted 2017): 'Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, involving an amount of at least Rs 10 lakh or 1% of the turnover of the company, whichever is lower, shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 10 years AND shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud.' 2. PROVISO: where the fraud in question involves PUBLIC INTEREST, minimum imprisonment shall not be less than 3 years. 3. Sub-section (2): for fraud involving < Rs 10 lakh or < 1% turnover, imprisonment up to 5 years OR fine up to Rs 50 lakh, OR both. 4. The Explanation defines 'fraud' broadly to cover any act, omission, concealment of fact or abuse of position with intent to deceive, gain undue advantage from, or injure the interests of company, shareholders, creditors. 5. Hence option C is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 447 (substituted by Companies (Amendment) Act 2017)_