During the last three years (i.e. 2010-11 to 2012-13), 154 complaints against companies have been received in the Ministry of Corporate Affairs. Giving this information in written reply to a question in the Rajya Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, said that inspections u/s 209A and/ or Investigations u/s 235 or scrutiny of the Balance Sheets and other documents u/s 234 of the Act in these cases have been ordered. He also informed the House that his Ministry is in the process of developing an early warning system to identify cases of frauds or potential frauds at the earliest and the Pilot testing of the system is expected to be completed during current Financial Year.

Complaints against companies trigger statutory inspections and investigations and drive a pilot early warning system for fraud detection. Complaints against companies received by the Ministry led to statutory inspections, investigations and scrutiny of balance sheets under the Companies Act, and the Ministry is developing an early warning system for earlier identification of fraud, with pilot testing expected during the current financial year.