SFIO files prosecutions against 8 companies

Feb 6,2014

NEW DELHI: Serious Fraud Investigation Office has so far filed prosecutions against 8 firms including Global Trust Bank and City Limouzines (India).

The agency, which comes under the Corporate Affairs Ministry, has filed the prosecutions against the defaulting companies and errant directors.

Prosecutions have been filed against eight companies related to 61 cases -- under Companies Act as well as IPC -- filed against them, Parliament was informed today.

The companies are Global Trust Bank, Goldquest International Pvt Ltd, Questnet Enterprises India Pvt Ltd,Jayant Vitamins Ltd, City Limouzines (India) Ltd, Palamoor Agro Complex Ltd (under liquidation), Ayushi Buildestates Pvt Ltd and Yusuf Properties Pvt Ltd.

Goldquest International Pvt Ltd, Questnet Enterprises India Pvt Ltd are suspected to be related to multi-level marketing firm QNet, which is currently under the scanner of Economic Offences Wing of the Mumbai Police.

In a written reply to the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that out of the probe reports submitted to the government in the last three years and this year SFIO has secured convictions with respect to two companies involving 39 complaints.

Five directors of these entities were held guilty in such cases for multiple offences.

SFIO does not register cases against individuals but only takes up investigations "under Section 235, 237 or 239 of the Companies Act, 1956" as and when entrusted by the central government.

"Such investigations could bring out the role of individuals including the directors of companies under investigation," Pilot said.

Under the new Companies Act, SFIO would have statutory recognition which would help the agency to carry out investigations more comprehensively.

Meanwhile, the government has initiated various steps including induction of technology to improve investigation methods such as setting up a forensic lab at SFIO premises.

Towards strengthening inter-agency co-ordination, recently an Inter Ministerial Group (IMG) with members from Corporate Affairs Ministry, Department of Financial Services, Reserve Bank of India and Securities and Exchange Board of India has been set up to "deal with frauds by unscrupulous companies".