Serious Fraud Investigation Office : In News
The Serious Fraud Investigation Office (SFIO) recorded the statement of daughter of Kerala Chief Minister Pinarayi Vijayan and owner of a now-dormant information technology firm, raising a political storm.
- The Union Corporate Affairs Ministry had ordered an SFIO inquiry based on the finding of the Interim Settlement Board (ISB) under the Central Board of Direct Taxes.
- The Serious Fraud Investigation Office (SFIO) is a specialized agency established under the Ministry of Corporate Affairs (MCA), tasked with investigating serious financial frauds in India. It plays a critical role in ensuring corporate governance and financial integrity, especially concerning complex and large-scale frauds.
- The SFIO was set up in 2003 based on the recommendations of the Naresh Chandra Committee on Corporate Governance.
- It gained statutory status under the Companies Act, 2013 (Section 211), empowering it to investigate frauds relating to companies.
- It is a multi-disciplinary organization, consisting of experts in the field of accountancy, forensic auditing, banking, law, information technology, investigation, company law, capital market and taxation, etc. for detecting and prosecuting or recommending for prosecution white-collar crimes/frauds.
- SFIO is headed by a Director as Head of Department in the rank of Joint Secretary to the Government of India.
- SFIO take up for investigation cases characterized by –
- complexity and having inter-departmental and multi- disciplinary ramifications.
- substantial involvement of public interest to be judged by size, either in terms of monetary
- the possibility of investigation leading to or contributing towards a clear improvement in systems, laws or procedures
- SFIO Investigate into the affairs of a company on: –
- on receipt of a report of the Registrar or inspector under section 208 of the Companies Act, 2013.
- on intimation of a special resolution passed by a company that its affairs are required to be investigated in the public interest
- on request from any department of the Central Government or a State Government.
