What is the Serious Fraud Investigation Office (SFIO)?

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.