The Central Government under the Companies Act has special powers to investigate into the affairs of a company. Section 210 of the Company Act, 2013 is as follows:
210. Investigation into affairs of company
(1) Where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company,—
(a) on the receipt of a report of the Registrar or inspector under section 208;
(b) on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or
(c) in public interest,
it may order an investigation into the affairs of the company.
(2) Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company.
(3) For the purposes of this section, the Central Government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the Central Government may direct.
The Central Government in public interest alone can direct to initiate investigation into the affairs of a company when large number of consumers get affected or put under loss by a company. Investigation into affairs of the Company can be done by Serious Fraud Investigation Office (SFIO) as per Section 212 of the Companies Act, 2013. SFIO is a multi-disciplinary organization under Ministry of Corporate Affairs, 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.
SFIO has head office in New Delhi and regional offices in Maharashtra, Andhra Pradesh, Tamil Nadu and West Bengal .
Still need help to clarify? write to: help@lawnat.com
Copyright LawNat.com all Rights Reserved
