Context:
Bombay HC directs Serious Fraud Investigation Office (SFIO) not to take coercive action against former ICICI Bank CEO Chanda Kochhar
Serious Fraud Investigation Office (SFIO):
- Established in 2003 based on the recommendations of the Naresh Chandra Committee on corporate governance.
- Statutory Status – It gained statutory status under Section 211 of the Companies Act, 2013.
- Objective –
- To investigate and prosecute white-collar crimes and frauds.
- To detect and recommend prosecution for corporate frauds.
- Headed by a Director in the rank of Joint Secretary to the Government of India.
- Headquarters – Located in New Delhi with regional offices in Mumbai, Chennai, Hyderabad, and Kolkata.
- Functions and Powers –
- Takes up cases characterized by complexity, substantial public interest, and potential for systemic improvement.
- Cases can be assigned by the government based on reports from the Registrar or inspector, special resolutions by companies, or requests from central or state governments.
- Once a case is assigned to SFIO, no other agency can investigate the same offence under the Companies Act.
Source: The Hindu
Previous Year Question
With reference to ‘Financial Stability and Development Council’, consider the following statements:
1. It is an organ of NITI Aayog.
2. It is headed by the Union Finance Minister.
3. It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?
[UPSC Civil Service Exam – 2016 Prelims]
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (c)
Explanation:
FSDC was constituted by an Executive Order of the Union Government as a non-statutory apex body under the Ministry of Finance. It is not an organ of the NITI (National Institute of Transforming India) Aayog. Statement 1 is not correct.
