Daily News Analysis

Serious Fraud Investigation Office (SFIO)

stylish_lining

The Supreme Court, while dismissing a petition for quashing a complaint filed by the Serious Fraud Investigation Office (SFIO), has left a crucial question of law open i.e., whether SFIO are police officer(s) under the Code of Criminal Procedure, 1973.

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 giving 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.
  • Organisational Structure:
    • It consists of experts in the fields of accountancy, forensic auditing, law, information technology, investigation, company law, capital markets and taxation.
    • 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. 

Headquarters: The headquarters of SFIO is in New Delhi, with five regional offices in Mumbai, New Delhi, Chennai, Hyderabad, and Kolkata.

Forensic auditing?

A forensic audit is an analysis and review of the financial records of a company or person to extract facts, which can be used in a court of law. Forensic auditing is a specialty in the accounting industry, and most major accounting firms have a department of forensic auditing. Forensic audits include the experience in accounting and auditing practices as well as expert knowledge of forensic audit's legal framework.

International Year of the Woman Farmer

The United Nations General Assembly's declaration of 2026 as the International Year of the Woman Farmer marks an important milestone in recognizing the pivotal role women play in global agricu
Share It

Mental Health Coverage in India

India has made significant strides in integrating mental health treatment into its health insurance policies, following the Mental Healthcare Act, 2017 and the IRDAI directive, which now mandates
Share It

India and EU

The recent UK-EU agreement presents a Eurocentric framework that primarily benefits European integration but also holds substantial implications for India in terms of both opportunities and challe
Share It

Paris Agreement

India’s progress on its climate commitments under the Paris Agreement has been commendable, with significant achievements in areas like non-fossil fuel capacity, carbon sinks, and emissions
Share It

cooperative and fiscal federalism

India’s journey toward cooperative and fiscal federalism over the past decade has resulted in significant changes in the relationship between the Centre and state governments. The shift towa
Share It

The Evolving Landscape of Warfare

The recent asymmetric strike by Ukraine, Operation Spiderweb, which involved long-range drone assaults on Russian air bases, offers critical insights into modern warfare. This operation not only h
Share It

India-Maldives

India’s Prime Minister’s participation as the guest of honor at the 60th Independence Day celebrations of the Maldives represents a significant reset in bilateral relations, offering a
Share It

Insolvency and Bankruptcy Code (IBC)

The Insolvency and Bankruptcy Code (IBC), which was introduced in 2016, was designed to streamline and strengthen India’s insolvency resolution process. However, recent developments suggest
Share It

Bay of Bengal

India’s maritime ambitions in the Bay of Bengal are central to its geopolitical and economic strategies, but there are several challenges that need to be addressed to strengthen its leadersh
Share It

The Great Nicobar Project

The Great Nicobar Project is a massive infrastructure overhaul that has emerged as a focal point for India’s strategic and developmental ambitions. Piloted by NITI Aayog, the project is valu
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS