No instance of “Satyam Computers” like corporate fraud and malfeasance has so for come to light. Giving this information in written reply to a question in the Lok Sabha today, Shri Sachin Pilot, Minister for Corporate Affairs, said that alleged irregularities are enquired into through the following measures:

• Conducting technical scrutiny of the Balance Sheets and other documents of companies by the Registrar of Companies, under Section 234 of the Companies Act, 1956;

• Inspection of the books of accounts and other records of companies under Section 209A of the Act;

• Investigation into the affairs of companies under Section 235/ 237 of the Companies Act, 1956.

Corporate irregularity inquiries proceed via technical scrutiny, statutory inspection and formal investigation under company law. Enquiries into corporate irregularities proceed through a graded regime under the Companies Act: the Registrar of Companies conducts technical scrutiny of balance sheets and documents; statutory inspection of books of account and records follows to examine transactions and compliance; and where deeper concerns emerge, formal investigations into the affairs of companies are authorised to determine scope and responsibility.