MCA ordered SFIO probe against 390 companies for fraudulent acts

The ministry has also initiated various measures to protect investors.

By: PTI | New Delhi | Published:November 22, 2016 4:53 pm

The Corporate Affairs Ministry has ordered an SFIO probe against 390 companies in more than three years for allegedly indulging in fraudulent activities, Parliament was informed Tuesday.

The ministry has also initiated various measures to protect investors.

From 2013-14 till date in the current fiscal, the ministry has ordered investigations through SFIO in the affairs of 390 companies allegedly indulging in fraudulent activities, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Rajya Sabha.

Of these, investigations have been completed in 139 cases and probe is “under progress” in 245 cases.

Besides, such probes have been quashed or stayed by the courts in as many as six cases.

The ministry has also taken several steps to protect investors including stricter norms of corporate governance and their implementation in the Companies Act and giving statutory status to the SFIO (Serious Fraud Investigation Office).

Besides, the minister said that Companies Act has defined “fraud”. Also, the usage of technology has been increasing for early detection of frauds through data mining and forensic audit among others.