Extra Judicial Powers of SFIO

The Registrar of Companies (ROC) has powers under section 234 of the Companies Act, 1956, to call for such information or explanation, as may be deemed necessary from any company based on the documents submitted to his office by the Company and submit a report to the Central Government under Section 234 (6) of the Act. Based on the report of ROC under Section 234 (6) of the Act, the Central Government can order investigation of the affairs of the company under Section 235 of the Act. Multi dimensional financial irregularities/frauds of complex nature are normally assigned to the Serious Fraud Investigation Office of this Ministry which is a multi-disciplinary investigative agency comprising of experts from banking sector, capital market, company law, general law, forensic, audit, taxation, information technology etc.

Also, Section 235 of the Act empowers the Central Government, to appoint Inspectors for investigation of affairs of a company. This Section does not bestow any extra judicial power to SFIO.