Provide various grounds on which the investigation is assigned to Serious Fraud Investigation Office (SFIO)?

CS Executive · Company Law and Practice · PYQS · December 2023
Provide various grounds on which the investigation is assigned to Serious Fraud Investigation Office (SFIO)?

Answer & Explanation:

As per section 212 of the Companies Act, 2013, the Central Government may assign the investigation into affairs of a company to the Serious Frauds Investigation Office (SFIO) on the basis of an opinion formed from the following: The Registrar or inspector shall, after the inspection of the books of account or an inquiry under section 206 and other books and papers of the company under section 207, submit a report in writing to the Central Government along with such documents, if any, and such report may, if necessary, include a recommendation that further investigation into the affairs of the company is necessary giving his reasons in support. The Central Government on receipt of such report can order an investigation under Serious Frauds Investigation Office; On intimation of a special resolution passed by a company that its affairs ought to be investigated; In the public interest; On request from any Department of the Central Government or a State Government, the Central Government may, by order, assign the investigation into the affairs of the said company to the Serious Fraud Investigation Office and its Director, may designate such number of inspectors, as he may consider necessary for the purpose of such investigation.

Topics: Company Law

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