The Minister of Corporate Affairs has informed the Lok Sabha that during the period from 01/04/2007 to 31/7/2010, investigations into the affairs of 44 companies have been referred by the Ministry to Serious Fraud Investigation Office. Giving this information in written reply to a question Shri Salman Khurshid, Minister of Corporate Affairs, said that prosecutions have been filed in Courts for violations of Sections 81(1A), 193, 205(1) r/w 205A(3), 211 r/w Sch-VI, 217, 220, 269, 295, 297, 309, 629 etc. of the Companies Act, 1956 and sections 406, 408, 409, 418, 420, 468, 471, 477A of Indian Penal Code (IPC) against the entities/persons.
Shri Khurshid said that elaborate regulatory mechanism exists to deal with the matters relating to money laundering, auditing and other financial frauds under the following laws:
1. Prevention of Money Laundering Act, 2002.
2. Foreign Exchange Management Act, 1999.
3. Companies Act, 1956.
4. Securities Contracts (Regulation) Act, 1956
5. Securities and Exchange Board of India Act, 1992.
6. Banking Regulation Act, 1949.
7. Income Tax Act, 1961.
8. Chartered Accountants Act, 1949.
In addition, provisions of Indian Penal Code and other Laws are applied wherever felt necessary.
The Minister also informed the House that investigation has been ordered u/s 235 of the Companies Act, 1956 into the affairs of M/s Subhiksha Trading Services Ltd., to be carried out by Serious Fraud Investigation Office.
