This chapter examines corporate frauds in India through the lens of organizational psychodynamics and culturally embedded behaviours, like Jugaad (frugal innovations). Using cases such as of Satyam, Nirav Modi-PNB, Harshad Mehta, and Byju's, it points out how dysfunctional psychodynamic processes lead to taking of unethical decisions. It discusses how Jugaad, (frugal innovations), while fostering innovation, when misused, also normalize rule-bending and ethical lapses. Organizational Psychodynamic Diagnostic Model (OPDM) is proposed to identify early warning signs of organizational dysfunction. Emphasizing a holistic approach, the proposed model advocates considering individual traits, organizational processes, and cultural contexts to prevent fraud. It is contended that addressing these root causes of unethical behaviours is the key to fostering sustainable and ethical organizations.