Serious Fraud Investigation Office (SFIO)

Table of Contents

The SFIO is a multi-disciplinary organization under the Ministry of Corporate Affairs (MCA) that investigates corporate frauds in India. It was established in 2003 in response to major failures in the financial sector, including stock market scams and the issue of vanishing companies.

Key Features

Nodal Ministry: Ministry of Corporate Affairs (MCA)
Establishment Year: 2003
Head: Director (a Joint Secretary to the Government of India)
Regional Offices: Mumbai, Chennai, Hyderabad, and Kolkata

Functions of SFIO

Detection and prosecution of white-collar crimes and frauds:
- Investigates cases related to financial frauds, corporate scams, and economic offenses.
Handling complex cases with multi-disciplinary ramifications:
- SFIO comprises experts from various fields like law, forensic auditing, taxation, capital markets, information technology, and investigations.
Investigating cases involving public interest:
- Cases that impact large groups of investors or have broader economic implications.
Improving corporate governance and laws:
- Investigations may lead to policy recommendations for strengthening financial regulations.

Powers and Jurisdiction

Statutory status under the Companies Act, 2013 (Section 211).
Can arrest individuals involved in serious fraud cases.
Can take up cases referred by the Central Government or courts.
Works in coordination with other agencies like CBI, ED, SEBI, and IT Department.

Significant Cases Investigated by SFIO

IL&FS Scam (2018): One of India’s biggest financial fraud cases.
Satyam Scandal (2009): A corporate fraud involving falsification of accounts.
Bhushan Steel Fraud: Investigated financial irregularities.