If an employee defrauds his company, is it obligatory / mandatory for the company to file FIR?

Question

An accounts department employee has committed fraud and bungled some funds actually meant for certain clients of the company. Company desires to take action against the employee by dismissing him, filing a civil suit, etc. But criminal action may be too costly and may damage the goodwill of the company also. Is it mandatory for the company to take criminal action as per Indian Law.

Answer 1

it is up to the company to call police & have them arrested for embezzlement, theft & conspiracy to commit the crime. Their is no law that he should be reported the decision is based on the employer & the evidence that they have on the suspect.

Answer 2

It's not up to them to pay the costs of a trial.  All they have to do is report it to the police.  The District Attorney's office takes it from there.  It isn't a civil action; it is a criminal action.  Plus a person can be fired for any reason as long as it isn't based upon discrimination regarding s*x, age, race or religion.