During the last 3 years, 55 number of research reports prepared by Market Research and Analysis Unit (MRAU) have been submitted to the Ministry of Corporate Affairs (MCA). 12 number of investigations have been assigned to Serious Fraud Investigation Office (SFIO).

This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Lok Sabha today.

The MRAU unit works in SFIO and prepares research reports on the serious complaints alleging fraud and misappropriation by the companies, either referred to it by MCA as well as received by it. The research reports are submitted to the MCA.

The Minister further stated that out of 12 investigations during the above relevant years, prosecutions have been filed against 3 companies by SFIO. In 41 cases, investigations have been ordered by the Ministry to be conducted by Regional Directors (RDs) and Registrar of Companies (ROCs).  Ministry has ordered inspections in 231 cases to be conducted by Regional Directors / Registrar of Companies and inquiry has been ordered against 31 companies to be conducted by ROCs.  Prosecutions have been filed against 27 companies by ROCs for violations of various provisions of Companies Act, 2013 and the cases are in different stages before various courts.

Fraud investigations: research reports prompted ministry referrals, triggering probes by specialised and regional authorities and prosecutions. A Market Research and Analysis unit produces reports on alleged corporate fraud and submits them to the supervising ministry, which directs further action: some matters are assigned to a specialised investigation agency and have resulted in prosecutions, while many others are directed to regional offices and company registrars for investigations, inspections, or inquiries and potential prosecutions for corporate law violations.