What is Serious Fraud Investigation Office (SFIO)?

About 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. Section 211 of the Companies Act, 2013, accorded astatutory status to the SFIO.
• SFIO is a multi-disciplinary organization under the Ministry of Corporate Affairs, consisting of experts in the fields of accountancy, forensic auditing, law, information technology, investigation, company law, capital markets and taxation for detecting and prosecutingor recommending for prosecution white-collar crimes/frauds. 
• SFIO takes up for investigation cases characterized by:
  • Complexity and having interdepartmental and multidisciplinary ramifications.
  • Substantial involvement of public interest to be judged by size, either in terms of monetary.
  • The possibility of investigation leading to or contributing towards a clear improvement in systems, laws, or procedures.
  • Investigate serious cases of fraud received from Department of Company Affairs.
  • Investigation into the affairs of a company is assigned to SFIO, where the Government is of the opinion that it is necessary to investigate into the affairs of a company-
  • on receipt of a report of the Registrar or inspector under section 208 of the Companies Act, 2013
  • on intimation of a special resolution passed by a company that its affairs are required to be investigated
  • In the public interest; or on request from any department of the Central Government or a State Government
• The SFIO can also take up cases on its ownonly 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 withan investigation for any offence under the Act.
• 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. 
• The headquarters of SFIO is at New Delhi with its regional offices at Mumbai, Chennai, Hyderabad, and Kolkata.

Q1: What is 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.

Source: SFIO records statement of Kerala CM’s daughter

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