Serious Fraud Investigation Office

Serious Fraud Investigation Office

Subject: National Organisations

Context:  Following the government order, the Serious Fraud Investigation Office (SFIO) conducted a three-day search operation at premises connected to the Videocon Group in at least five cities

Concept:

The Government of India had set up a Committee on Corporate Governance under the Chairmanship of Shri Naresh Chandra, former Cabinet Secretary. The Naresh Chandra Committee inter-alia recommended setting up of Corporate Serious Fraud Office.

 The Central Government issued a resolution on 2nd July, 2003 constituting this organisation.

Structure

• SFIO is headed by a Director as Head of Department in the rank of Joint Secretary to the Government of India.
• The Director is assisted by Additional Directors, Joint Directors, Deputy Directors, Senior Assistant Directors, Assistant Directors Prosecutors and other secretarial staff.
• The Headquarter of SFIO is at New Delhi, with five Regional Offices at Mumbai, New Delhi, Chennai, Hyderabad & Kolkata

Powers

• The SFIO is expected to be a multi-disciplinary organisation consisting of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market and taxation for detecting and prosecuting or recommending for prosecution white collar crimes/frauds.
• The SFIO will normally take up for investigation only such cases, which are characterized by –
• complexity and having inter-departmental and multi- disciplinary ramifications;
• substantial involvement of public interest to be judged by size, either in terms of monetary
• The possibility of investigation leading to or contributing towards a clear improvement in systems, laws or procedures.
• The SFIO shall investigate serious cases of fraud received from Department of Company Affairs. SFIO may also take up cases on its own,
• The SFIO would make investigations under the provisions of the Companies Act, 1956