Corporate Frauds

A Market Research and Analysis Unit (MRAU) has been set up in the Serious Fraud Investigation Office (SFIO) with the objectives of analyzing media reports relating to financial frauds and for conducting market surveillance of such corporates. In order to strengthen MRAU’s functioning, an Expert Committee was constituted and on the basis of its recommendations a forensic lab with appropriate technology and skilled technical manpower has been set up in SFIO.

During 2011-12, 2012-13 & 2013-14 and during the current financial year, i.e. from 01-04-2014 to 30-06-2014, SFIO has completed investigations in 78 cases. In these investigations, frauds amounting to ₹ 10,818 crore involving 31 companies has been detected.

SFIO files complaints in the court and has no power to settle cases on its own.

It is the continuous endeavour of the Government to upgrade skills, systems and knowledge through improved coordination mechanisms with other investigating agencies to deal effectively with corporate frauds.

This was stated by Smt. Nirmala Sitharaman, MoS in the Ministry of Corporate Affairs in written reply to a question in the Lok Sabha today.