SFIO can soon seek info without govt nod

The Serious Fraud Investigation Office (SFIO),the investigating arm of the Ministry of Corporate Affairs,will now be able to ask for information from subsidiaries of a company being probed by it without having to seek the Centres approval....

The Serious Fraud Investigation Office (SFIO),the investigating arm of the Ministry of Corporate Affairs,will now be able to ask for information from subsidiaries of a company being probed by it without having to seek the Centres approval.

With the mandate of giving more powers to the SFIO,especially after the din created during the Satyam fraud,the government is planning to amend Section 240 of the Companies Act to authorise the investigating agency to ask for production of documents and evidence from subsidiaries and related companies without having to seek the approval of the Central government.

Section 240 of the Companies Act,1956,enables the inspectors to ask for all books and papers relating to a company while investigating the case.

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It is the duty of the company to give to the inspector all assistance in connection with the investigation. As per the current practice,the inspectors have to take the permission of the Centre before asking for documents.

The governments move will provide independence to the SFIO to a large extent and would also help in expediting the process of resolving the large number of pending cases with it.

There are about 22 investigation cases pending with the SFIO and 767 ongoing court cases. The ministry has already sanctioned the recruitment of more people for the hugely-understaffed agency and has initiated the process of a permanent cadre for it. According to sources,of the 130 posts sanctioned,80 are lying vacant.