New Delhi: During the last 4 years, SFIO (Serious Fraud Investigation Office) has filed 258 prosecutions in various courts for corporate fraud, which resulted in 77 convictions and punishment in the form of imprisonment of directors and heavy fines.
The mandate for SFIO is to conduct investigation to find out the violations of Companies Act, 1956 and take appropriate action against such companies.
According to information made available by Arjun Meghwal, Minister of State, Ministry of Corporate Affairs, total 390 cases of corporate frauds have been investigated since 2013, of which 139 have been completed, 6 have been stayed by courts and 245 are still in progress.
Various measures have been introduced to strengthen SFIO to check frauds/ irregularities by companies:
- The term “Fraud” has been defined in the Companies Act, 2013;
- Statutory status to the Serious Fraud Investigation Office (SFIO);
- Increasing application of technology for early detection of frauds through data mining and Forensic Audit, etc.