Serious Fraud Investigation Office

Consider the below statements with reference to Serious Fraud Investigation Office, which is often in news:

1.      It is under the jurisdiction of the Ministry of Corporate Affairs.

2.      The agency is a multidisciplinary organisation having experts for prosecution of white collar crimes and frauds under the companies law.

3.      It has powers to arrest people for violations of companies law.

Which of the above given statement(s) is/are correct?

a       1 and 2 only
b       1 and 3 only
c       2 and 3 only
d       1, 2 and 3

Solution (d)

The Serious Fraud Investigation Office (SFIO) has started investigating 75 companies for alleged fraud in the current fiscal (2017-18).

The agency comes under the Ministry of Corporate Affairs, which is implementing the Companies Act.

Government had setup SFIO on 9 January 2003 based on Naresh Chandra Committee on corporate governance.

It was set up in the backdrop of stock market scams as also the failure of non-banking companies resulting in huge financial loss to the public.

The SFIO is involved in major fraud probes and is the co-ordinating agency with the Income Tax Department and the Central Bureau of Investigation.

It is a multi-disciplinary organization having experts from financial sector, capital market, accountancy, forensic audit, taxation, law, information technology, company law, customs and investigation.

These experts have been taken from various organizations like banks, Securities and Exchange Board of India, Comptroller and Auditor General and concerned organizations and departments of the Government.

Its headquarters is in Delhi.

The Companies Act, 2013 has enlarged the scope of SFIO to a statutory recognition and SFIO has been vested with police power in their investigation.