1

Serious Fraud Investigation Office (SFIO)

|

The Supreme Court, while dismissing a petition for quashing a complaint filed by the Serious Fraud Investigation Office (SFIO), has left a crucial question of law open i.e., whether SFIO are police officer(s) under the Code of Criminal Procedure, 1973.

About Serious Fraud Investigation Office (SFIO):

  • It is a corporate fraud investigating agency set up by the Government of India.
  • The SFIO was established on 21st July, 2015,and operates under the Ministry of Corporate Affairs.
  • Section 211 of the Companies Act, 2013, accorded a statutory status to the SFIO.
  • Objective: The core objective of the SFIO is to be an investigative and law enforcement agency to detect and prosecute or recommend to prosecute white-collar frauds or crimes.
  • Types of Investigations: SFIO will usually take up the following types of cases sent by the Central Government:
    • Complex cases needing investigation across multi-discipline and inter-departmental affairs.
    • Cases with a huge monetary impact on the public.
    • Cases where investigation can lead to the cleaning up of systems and the implementation of changes in laws and procedures.
    • Serious fraud cases sent by the Department of Company Affairs.
  • SFIO can also take up cases on its own only when decided by the Director of the SFIO, and also give the reasons for taking up the case in writing.
  • Upon assignment of a case to the SFIO, no other investigative agency can proceed with an investigation for any offence under the Act.
  • The Central Government can ask the SFIO to investigate a company in the following cases:
    • When it receives a report from the Registrar or Inspector under Section 208 of the Companies Act 2013.
    • When the company itself passes a special resolution and requests an investigation.
    • Where there is a huge monetary impact on the public or for other large-scale public interest cases.
    • When any Central Government or State Government department makes a request for an investigation.
  • Headquarters: The headquarters of SFIO is in New Delhi, with five regional offices in Mumbai, New Delhi, Chennai, Hyderabad, and Kolkata.