Parliament Question: Companies under Investigation of SFIO in Andhra Pradesh

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 93 ANSWERED ON Monday, July 21, 2025 Companies under Investigation of SFIO in Andhra Pradesh

93. Shri B K Parthasarathi:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

(a) the details of companies based in Andhra Pradesh under investigation of the Serious Fraud Investigation Office (SFIO) since 2020, year-wise;

(b) the nature of frauds being investigated and the sectors involved along with the current status of each investigation—pending, completed or charge sheet filed;

(c) whether SFIO has filed prosecutions in any Andhra Pradesh–related cases before NCLT/NCLAT or other courts during the last five years; and

(d) if so, the status of the investigation of these cases and the steps being taken to ensure dedicated benches in NCLT or fast-track courts for corporate fraud? ANSWER Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

(a): The details of companies based in Andhra Pradesh under investigation of the Serious Fraud Investigation Office (SFIO) since 2020, year-wise is as

under: - Financial Year 2020- 2021- 2022- 2023- 2024-25 2025-26 (till 21 22 23 24 30.06.2025) No. of Nil Nil 01 Nil Nil 10 Companies based in Andhra Pradesh under SFIO Investigation(b): The nature of frauds being investigated and the sectors involved along

with the current status are as follows:

Sector Number of Nature of Current Status Companies Fraud being under investigated Investigation Construction/ Real 2 Diversion & Pending Estate Siphoning Agriculture Producer 2 Diversion & Pending Companies Siphoning Manufacture of Food 1 Diversion & Pending Siphoning Metals 2 Diversion & Pending Siphoning Others/ Miscellaneous Diversion & Pending 3 Siphoning 1 Racket of Completed Paper Companies with dummy directors.

(c)& (d) :Prosecutions by the SFIO are required to be filed before Special Court constituted under Section 435 of the Companies Act, 2013. During the last five years no prosecution has been filed against any company having jurisdiction in the state of Andhra Pradesh. Further, no petition, application or reference has been filed before the NCLT/NCLAT against any company having jurisdiction in the state of Andhra Pradesh therefore, there is no need to constitute any dedicated bench for the NCLT or any additional Special Court for corporate fraud.

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