Press Information Bureau
Government of India
Ministry of Corporate Affairs

19-December-2011 17:37 IST

Working of SFIO

 

            SFIO was established for investigations falling with the following characteristics:

(i)        of complex nature with inter -departmental  and multi-disciplinary ramifications;

(ii)      involving substantial public interest to be judged by size, either in terms of monetary misappropriation or in terms of  persons affected, and;

(iii)    with the possibility that investigation  will lead to or contribute towards a clear improvement in systems,  laws or procedures. 

            The details of  cases investigated by SFIO in the last three years is placed at Annexure “A”.

            The Veppa Kamesam Committee constituted by the Ministry of Corporate  Affairs

In February, 2006 to consider measures to strengthen SFIO and streamline its functioning has recommended inter-alia statutory, administrative and organisational changes for making SFIO more effective in containing corporate frauds. As regards the legislative changes in respect of the definition of corporate frauds and statutory recognition to SFIO  etc. The Ministry of Corporate Affairs has introduced the Companies Bill, 2011 in the ongoing session of the Parliament incorporating the suggestions of the expert committee to strengthen investigation process and the machinery. In addition to the legislative measures, 58 additional posts have been created and it has been decided to set up regional offices at Mumbai, New Delhi, Hyderabad, Chennai, Kolkata and Ahmadabad to increase the reach of the office and for better monitoring of procecution cases in progress at various places.

            Union Corporate Affairs Dr. M. Veerappa Moily gave this information in a  written reply in Lok Sabha today.

ST/-

 

 

ANNEXURE-‘A’

 

ANNEXURE TO PART (C) OF THE RAJYA SABHA UNSTARRED QUESTION NO. 2828 FOR 19.12.2011.

 

Corporate fraud investigation criteria prompt SFIO expansion and legislative strengthening to improve probing and prosecution reach. SFIO investigates corporate misconduct that is complex, multi-disciplinary, involves substantial public interest by scale or persons affected, or where investigation can improve systems; the Ministry has advanced legislative changes in the Companies Bill, created additional posts, and is establishing regional offices to expand reach and monitor prosecutions.