No proposal to review investigation mechanism under Companies Act: Minister

Arjun Ram Meghwal, Minister of State in the Ministry of Corporate Affairs today said that presently, there is no proposal to review the existing investigation mechanism under the Companies Act, 2013.

In a written reply the Minister stated that Government has taken the following measures to curb and prevent corporate frauds:

(i) ‘Fraud’ as a substantive offence has been introduced in the Companies Act, 2013

(ii) Statutory status to the Serious Fraud Investigation Office has been granted under the said Act.

(iii) Stricter norms of Corporate Governance and their implementation under the Companies Act, 2013

(iv) Application of technology for early detection of frauds through data analysis, surveillance and usage of forensic tools, etc.

The Minister also stated that the Government has inspected/investigated the companies found guilty of alleged irregularities. Details of the last three years are as per table below: