The Serious Fraud Investigation Office (SFIO) is a specialized agency under the Ministry of Corporate Affairs, responsible for investigating complex corporate frauds in India. It was established to investigate frauds related to companies under the Companies Act, and its investigations are separate from regular company investigations. SFIO was given statutory status under Section 211 of the Companies Act, 2013, making it a crucial agency for tackling corporate fraud.
Key Functions of SFIO:
- Investigation of Corporate Frauds: SFIO is tasked with investigating cases of fraud that involve significant public interest and complex, multi-disciplinary issues.
- Coordination with Other Agencies: SFIO works closely with other authorities like the Income Tax Department and CBI.
- Fraud Categories: It investigates frauds characterized by:
- Complexity: Frauds involving multiple departments or fields.
- Public Interest: Large-scale frauds impacting a significant number of people or the economy.
- Systemic Improvement: Investigations that could lead to improvements in laws or corporate systems.
Power of Investigation
Under Section 212 of the Companies Act, 2013, the Central Government can assign investigations into company affairs to SFIO. The investigation can begin in the following situations:
- Reports from the Registrar or Inspector (under Section 208).
- Special Resolutions passed by companies requesting an investigation.
- Public Interest or upon a request from any department of the Central or State Government.
Investigation Procedure and Arrest Powers
- Investigation Procedures: SFIO investigates the company’s affairs according to Chapter XIV of the Companies Act, 2013. The company’s
officers and employees must cooperate and provide all necessary documents and explanations to the investigating officer.
- Powers of Arrest: Under Section 447 of the Companies Act, if SFIO officers have material evidence, they have the power to arrest individuals involved in the fraud. The arrested individuals must be brought to a Special Court or Magistrate within 24 hours.
Our Expertise in SFIO Cases
Our law firm is recognized for its extensive experience in handling SFIO cases in Mumbai and Delhi. We specialize in corporate fraud investigations and have an in-depth understanding of Companies Act offenses. Our expert SFIO lawyers are well-versed in defending clients facing charges under SFIO investigations, including fraud cases involving company law violations.
We have a successful track record of defending clients and providing legal counsel during investigations by SFIO, as well as representing clients in corporate fraud cases.
If you are under investigation by the SFIO or involved in a corporate fraud matter, our expert lawyers can provide strategic legal support to navigate the complexities of these high-stakes cases.