Companies Act Section 211 — Establishment of Serious Fraud Investigation Office
CHAPTER XIV INSPECTION, INQUIRY AND INVESTIGATION
Commercial / Corporate
Summary
Sub-section (1) requires the Central Government to establish, through a formal notification, an office called the Serious Fraud Investigation Office to investigate frauds related to a company. It also states that until this new office is formally established, the previously existing Serious Fraud Investigation Office set up by the government in 2003 will be treated as the official office for this purpose.
Sub-section (2) says that the Serious Fraud Investigation Office will be led by a Director and will include a number of experts appointed by the Central Government from among people with ability, integrity, and experience in the following fields: banking, corporate affairs, taxation, forensic audit, capital market, information technology, law, or any other fields that may be prescribed by rules.
Sub-section (3) requires the Central Government to appoint, by notification, a Director for the Serious Fraud Investigation Office. This Director must be an officer not below the rank of a Joint Secretary to the Government of India and must have knowledge and experience in dealing with matters related to corporate affairs.
Sub-section (4) allows the Central Government to appoint such experts, officers, and employees in the Serious Fraud Investigation Office as it considers necessary for the efficient discharge of the office's functions under this Act.
Sub-section (5) states that the terms and conditions of service for the Director, experts, and other officers and employees of the Serious Fraud Investigation Office will be as prescribed by rules.
Official Text
(1) The Central Government shall, by notification, establish an office to be called the Serious Fraud Investigation Office to investigate frauds relating to a company:
Provided that until the Serious Fraud Investigation Office is established under sub-section (1), the Serious Fraud Investigation Office set-up by the Central Government in terms of the Government of India Resolution No. 45011/16/2003-Adm-I, dated the 2nd July, 2003 shall be deemed to be the Serious Fraud Investigation Office for the purpose of this section.
(2) The Serious Fraud Investigation Office shall be headed by a Director and consist of such number of experts from the following fields to be appointed by the Central Government from amongst persons of ability, integrity and experience in,—
(i) banking;
(ii) corporate affairs;
(iii) taxation;
(iv) forensic audit;
(v) capital market;
(vi) information technology;
(vii) law; or
(viii) such other fields as may be prescribed.
(3) The Central Government shall, by notification, appoint a Director in the Serious Fraud Investigation Office, who shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs.
(4) The Central Government may appoint such experts and other officers and employees in the Serious Fraud Investigation Office as it considers necessary for the efficient discharge of its functions under this Act.
(5) The terms and conditions of service of Director, experts, and other officers and employees of the Serious Fraud Investigation Office shall be such as may be prescribed.