Posts Tagged ‘Serious Fraud Investigation Office (SFIO)’


Government has said that the Ponzi and Multi-Level Marketing (MLM) schemes fall within the purview of ‘Money Circulation’ which is an offence under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. That Act is administered by the Ministry of Finance (Department of Financial Services) through the State Governments. Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said that recently Ministry of Finance in consultation with the Reserve Bank of India, have circulated Model Rules to be notified by the States. These rules make it amply clear that investment schemes run in the MLM mode are illegal under the above Act and organizers of such schemes need to be prosecuted. While coordinating action against such schemes lies with the States and the nodal Ministry, the Ministry of Corporate Affairs has so far received complaints against 86 Companies mostly located in West Bengal and Tamil Nadu States and one company registered outside India doing business on-line in association with some Indian companies.

Shri Pilot informed the House that his Ministry has ordered investigation into the affairs of 7 companies under Section 235 of the Companies Act, 1956 to be conducted by Serious Fraud Investigation Office (SFIO) and scrutiny of balance sheets under section 234 and/or inspection of the Books of Accounts and other records of the remaining 80 companies under Section 209A of the Companies Act, 1956 to ascertain, if the activities involve violation of the provisions of the Companies Act, 1956.

Source: Press Information Bureau.


Since inception, Serious Fraud Investigation Office (SFIO) of the Ministry of Corporate Affairs has been entrusted with 133 cases by the Ministry for investigation. Giving this information in written reply to a question in the Lok Sabha, Shri Sachin Pilot, Minister of Corporate Affairs, said out of these cases, investigation in 95 cases has been completed and reports submitted to the Government, while 4 cases have been stayed/ quashed by the Courts and the remaining 34 cases are presently under investigation. Violations of various provisions of the Companies Act, 1956 and various offences involving criminal breach of trust, cheating, falsifications etc. under the Indian Penal Code have been reported by SFIO in many cases. Prosecutions in 991 cases were launched (110 under Indian Penal Code and 881 under Companies Act). Of these, conviction was ordered by the respective Courts in 39 cases relating to violations under the Companies Act, 1956. Three complaints were quashed on the ground of double jeopardy as similar complaints were filed by the Registrar of Companies, Karnataka and the remaining cases are under different stages of progress in the competent Courts, Shri Pilot informed the House.

Source: Press Information Bureau.


The Ministry has not received any specific complaint regarding fraud in Reebok India Company (a company with Unlimited Liability). However, on the basis of media reports, this Ministry has ordered investigation into the affairs of M/s Reebok India under section 235 of the Companies Act, 1956, on 29-05-2012, which is being conducted by the Serious Fraud Investigation Office of this Ministry.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Lok Sabha today.

Source: Press Information Bureau.

 

 

 


The Serious Fraud Investigation Office (SFIO) is investigating the issues relating to misrepresentation in corporate reporting and violation of various sections of Companies Act against M/s S. Kumar Nationwide Ltd. (SKNL). The complaint was taken up with the company by the office of the registrar of Companies (ROC), Mumbai who has reported that reply of the company is under examination. Further action in the matter will be taken on receipt of report from the ROC Mumbai.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.

Source: Press Information Bureau.

 

 

 


The Expert Committee under the Chairmanship of Sh. Vepa Kamesam was constituted by the Ministry on 23.02.2006 to advise on various issues concerning the Serious Fraud Investigation Office (SFIO) particularly the nature of legislation and changes required in the existing laws, to enable effective functioning of SFIO. The Committee has since submitted its report to the Ministry on 29.04.2009. Based on the report, in the Companies Bill, 2011 recognition to SFIO through clause no. 211 and empowering it with powers to investigate into the affairs of the company through clause no. 212 has been provided.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.

Source: Press Information Bureau.