Section 225 - Expenses of investigation

Section 225: Who Ultimately Pays Government Investigation Costs and When They Become a First Charge on Recoveries

Section 225 provides that investigation expenses incurred by a government-appointed inspector are initially borne by the Central Government but are recoverable from specified persons. Reimbursement may be ordered from any person convicted, or ordered to pay damages or restore property, to the extent directed by the court. A company or body corporate in whose name proceedings are brought must reimburse costs up to the amount or value recovered. If no prosecution under section 224 follows, the company, its managing director or manager, and, where applicable, the investigation applicants may be directed to reimburse expenses. Any liability under clause (b) becomes a first charge on the sums or property recovered.