What does it mean to siphon something off?
: to convey, draw off, or empty by or as if by a siphon —often used with off.
How do you siphon funds?
In fact, the most commonly used route to siphon off money was by inflating project costs, adds the banker on condition of anonymity. The project cost is generally inflated by 20-30 per cent by conniving with vendors or suppliers of plant and machineries to take the money out from the company.
What is an example of siphoning?
When you hook up a tube to a gas tank and then use atmospheric pressure to move the gas out of that tank into a gas canister below it, this is an example of a time when you siphon.
What means diversion of funds?
Diverting funds is defined as the use of funds by the debtor in defiance of the authorized terms of the moneylender, in a number of circumstances such as the extension of the credit facility, shifting the funds to its subsidiaries or other companies, and various other circumstances which are not in compliance with the …
What is the meaning of misappropriation of funds?
In law, misappropriation may be defined as “[t]he unauthorized, improper, or unlawful use of funds or other property for purposes other than that for which intended.” Misappropriation commonly refers to situations in which the offending party has an added measure of responsibility, such as misconduct by a public …
Is diversion of fund a crime?
The law and the home ministries are of the view that diverting funds is a breach of trust, and hence, a punishable offence.
What is the difference between misappropriation of funds and embezzlement?
An employee who uses company property for his personal projects commits embezzlement. Embezzlement can encompass both money and other forms of property. Misappropriation. Misappropriation of funds is embezzlement of money only.
What is fund mismanagement?
Mismanagement of funds refers to instances where a person fails to observe laws or guidelines when handling finances for another person or organization. Most mismanagement lawsuits involve some form of negligence or neglect on the account of the liable party.
How do you prevent siphoning?
There are two ways to stop a siphon:
- Put a valve inline with the siphon that simply blocks the flow, “freezing” the state of the system.
- Put a valve in the top of the siphon that allows air into the tubing, breaking the suction that keeps the siphon flowing.
What causes siphoning?
When a certain amount of water moves over the bend in the siphon, gravity pulls it down on the longer leg lowers the atmospheric pressure in the bend of the siphon. So, the atmospheric pressure on the other side of the siphon becomes stronger and forces the rest of the water up and over the bend in the siphon.
What is a syphon used for?
siphon, also spelled syphon, instrument, usually in the form of a tube bent to form two legs of unequal length, for conveying liquid over the edge of a vessel and delivering it at a lower level. Siphons may be of any size.
What is the meaning of diversion of funds?
Which of the following practice is referred to as diversion of funds?
Reserve Bank of India (RBI) defines diversion of funds as utilisation of short-term working capital funds for long-term purposes not in conformity with the terms of sanction; deploying borrowed funds for purposes/activities other than those for which the loan was sanctioned; and transferring borrowed funds to …
What is considered misuse of funds?
1. Misappropriation of funds. Misappropriation of funds refers to the illegal use of another person’s money. While the person committing the offense was given lawful access to the money, it is the use for their own purposes or another unauthorized use that makes it a crime.