https://www.taxtmi.com/caselaws?id=790610 SFIO investigation under the Companies Act, 2013 must rest on a legally compliant Section 208 report built on the statutory process under Sections 206 and 207. The court noted that the company had not been issued notice under Sections 206(1), 206(3) or 206(4), and the report relied mainly on persistent repayment defaults and complaints rather than a proper inspection or inquiry. It further held that default in repayment, even if persistent, does not by itself amount to fraud because fraud requires deception and dishonest intent. The report, the order directing SFIO investigation, and the consequential summons and notices were therefore quashed. en-us Wed, 08 Apr 2026 00:00:00 +0530 Tue, 28 Apr 2026 07:29:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790610 SFIO investigation under the Companies Act, 2013 must rest on a legally compliant Section 208 report built on the statutory process under Sections 206 and 207. The court noted that the company had not been issued notice under Sections 206(1), 206(3) or 206(4), and the report relied mainly on persistent repayment defaults and complaints rather than a proper inspection or inquiry. It further held that default in repayment, even if persistent, does not by itself amount to fraud because fraud requires deception and dishonest intent. The report, the order directing SFIO investigation, and the consequential summons and notices were therefore quashed. Case-Laws Companies Law Wed, 08 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790610