Press Information Bureau

Government of India

Ministry of Corporate Affairs

29-August-2011 15:41 IST

Strengthening of Serious Fraud Investigation Office (SFIO)

Keeping in view the recommendations made by Vepa Kamesam committee, it is proposed to give statutory recognition to SFIO. Besides, powers such as treating its investigation report as a report filed by a Police Officer, giving SFIO power to issue letter of requests (letter Rogatory) in cases involving companies having business/interest outside the country and definition of the term ‘fraud’ alongwith its punishment are also proposed to be included, subject to due approvals, in the revised Companies Bill for strengthening its enforcement framework. On the enactment of the new Companies Bill, these legislative provisions will become effective. Besides the legislative measures, 58 additional posts have been created in SFIO and it has been decided to set up regional offices at New Delhi, Mumbai, Hyderabad, Chennai, Kolkata and Ahmedabad for effective oversight, monitoring and prosecution of cases.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today in the Rajya Sabha in reply to a written question whether it is a fact that Government proposes to further strengthen the Serious Fraud Investigation Office and by when it is likely to be effected.

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Statutory recognition of SFIO expands its powers to treat reports as police reports and pursue cross-border cooperation. Statutory recognition is proposed for the Serious Fraud Investigation Office (SFIO) in the revised Companies Bill, granting SFIO powers to have its investigation report treated as a report filed by a police officer, to issue letters of request (letters rogatory) in cross-border company matters, and to include a statutory definition of fraud with associated punishment; administrative measures include creation of additional posts and establishment of regional offices to strengthen oversight, monitoring and prosecution.