The Serious Fraud Investigation Office (SFIO) is a multidisciplinary organization operating under the Ministry of Corporate Affairs in India. The organization’s key mission is to detect and prosecute or recommend for prosecution, white-collar crimes, and frauds. The SFIO brings together experts from various fields, including accountancy, forensic auditing, law, information technology, investigation company law, capital market, and taxation. Headquartered in New Delhi, the SFIO serves as a crucial line of defense against corporate fraud in the country.
The Formation of SFIO
The Indian Government established the Serious Fraud Investigation Office on July 2, 2003, through a resolution, but at that time, it was without a formal legal status. However, the Companies Act of 2013, under Section 211, accorded statutory status to the SFIO. This legitimization was a significant leap towards strengthening the fight against corporate fraud in India.
The Role of Computer Forensic and Data Mining Laboratory
Ten years after the establishment of SFIO, in 2013, the Computer Forensic and Data Mining Laboratory (CFDML) came into existence to render support and services to the SFIO officers in their investigations. CFDML uses industry-leading data mining tools and computer forensic systems to aid in the detection and investigation of complex white-collar crimes.
Powers and Authority of SFIO
SFIO is not just an investigative agency; it has been given legal powers to arrest individuals who violate the Company Law. This power adds muscle to the organization’s operations, ensuring that culprits do not evade the consequences of their illegal actions.
| Year | Event |
|---|---|
| 2003 | SFIO established through a government resolution |
| 2013 | Section 211 of the Companies Act gives SFIO legal status |
| 2013 | The establishment of the Computer Forensic and Data Mining Laboratory |
Initiating an Investigation
An investigation into a company’s affairs by the SFIO can be initiated under several circumstances. The Central Government can trigger this process based on a report received from the Registrar or inspector under Section 208 of the Companies Act, 2013. Besides, a special resolution passed by a company indicating that its affairs require investigation can also lead to an SFIO probe. Other triggers for an investigation include scenarios related to public interest or a request from any Department of the Central or State Government.
