SERIOUS FRAUD INVESTIGATION OFFICE (SFIO)

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Context:

The Serious Fraud Investigation Office (SFIO) officials have recorded the statement of the daughter of the Kerala Chief Minister.

Details

The Union Corporate Affairs Ministry has ordered the investigation after a report from the Interim Settlement Board (ISB), the report indicated that the company “Exalogic” received a large monthly payment from Cochin Minerals and Rutile Ltd. (CMRL) from 2017 to 2021, despite not providing any real services.

About Serious Fraud Investigation Office (SFIO)

It works under the Union Ministry of Corporate Affairs.

It focuses on investigating white-collar crimes in India.

It includes experts from various fields, including accountancy, law, banking, information technology, and more.

It was set up on the recommendations of the Naresh Chandra Committee on corporate governance.

It was set up in January 2003, and received statutory status through the Companies Act, 2013.

The SFIO investigates cases when:

1. The Department of Company Affairs flags a serious issue.
2. A company passes a special resolution saying it needs investigation.
3. The government believes an investigation is necessary.
4. Any central or state government department requests an investigation.

 Once a case is assigned to the SFIO, no other investigative agency can look into it.

The SFIO is led by a Director who holds the rank of Joint Secretary in the Government of India.

It is headquartered in New Delhi and has offices in major cities like Hyderabad, Mumbai, Kolkata, and Chennai.

Most of its officials come from different government services, such as the Indian Corporate Law Service (ICLS), Indian Administrative Service (IAS), and others.  

Source: 

The Hindu

Wikipedia

PRACTICE QUESTION Q.Consider the following statements in the context of the Serious Fraud Investigation Office (SFIO): 1. It was given statutory status through the Companies Act of 2013. 2. It mainly focuses on prosecuting blue-collar crimes. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Answer: A Explanation: Statement 1 is correct: The Serious Fraud Investigation Office (SFIO) was set up by a resolution in 2003, and under the Companies Act 2013, it was given statutory status. Statement 2 is incorrect: The SFIO focuses on investigating and prosecuting white-collar crimes; financial crimes committed by business and government professionals.