Investigations by Serious Fraud Investigation Office :- Serious Fraud Investigation Office (SFIO), functioning under the Ministry of Corporate Affairs, has handled 61 cases for investigation during 2004-05 to 2008-09. Giving this information in reply to a question in the Rajya Sabha, the Minsiter for Corporate Affairs, Shri Salman Khurshid told the House that SFIO
has filed prosecutions in the matter of 32 companies against 632 accused (which includes individuals as well as companies) during the last five financial years. He said that as the SFIO is an investigating agency and not a revenue earning organization, hence the benefits on account of an investigating agency cannot be quantified in terms of revenue.
Expert Committee on Serious Fraud Investigation Office :-The Government has said that the Expert Committee i.e. the Vepa Kamesam Committee constituted to examine the issues concerning Serious Fraud Investigation Office (SFIO) has submitted its report; and has made recommendations in respect of statutory, administrative and organizational changes for improving effectiveness and efficient discharge of duties by SFIO. Giving this information in written reply to a question in the Lok Sabha today, the Minsiter for Corporate Affairs, Shri Salman Khurshid told the House that necessary steps have been initiated to strengthen the SFIO by releasing additional 56 posts. As regards the legislative changes in respect of the definition of corporate frauds etc., necessary suggestions have been made to the Parliamentary Standing Committee on Finance for consideration as the Standing Committee is considering the Companies Bill, 2009.
Cases Referred to the Serious Fraud Investigation Office :-The Ministry of Corporate Affairs has referred cases of 22 companies to the Serious Fraud Investigation Office (SFIO) for investigation during last two years. Giving this information in written reply to a question in the Lok Sabha today, the Minsiter for Corporate Affairs, Shri Salman Khurshid said that out of these 22 cases, investigation reports in respect of two companies were submitted by SFIO. Necessary instructions for action in respect of violation of various provisions of the Companies Act, 1956 have been issued to SFIO.
