**Summary:**
This document summarizes information provided by the Minister of State in the Ministry of Corporate Affairs regarding Serious Fraud Investigation Office (SFIO) investigations of companies based in Andhra Pradesh. The information was presented in response to Lok Sabha Unstarred Question No. 93 on July 21, 2025.
**(a) Companies Under SFIO Investigation:**
The number of Andhra Pradesh-based companies under SFIO investigation since 2020 is as follows:
* 2020-2021: Nil
* 2021-2022: Nil
* 2022-2023: 1
* 2023-2024: Nil
* 2024-2025: Nil
* 2025-2026 (till June 30, 2025): 10
**(b) Nature of Frauds and Current Status:**
The investigations involve companies across several sectors, primarily focusing on diversion and siphoning of funds:
* **Construction/Real Estate:** 2 Companies; Diversion/Siphoning; Status: Pending
* **Agriculture Producer:** 2 Companies; Diversion/Siphoning; Status: Pending
* **Manufacture of Food:** 1 Company; Diversion/Siphoning; Status: Pending
* **Metals:** 2 Companies; Diversion/Siphoning; Status: Pending
* **Others (Miscellaneous):** 3 Companies; Diversion/Siphoning; Status: Pending
* **Others (Miscellaneous):** 1 Company; Racket of Paper Companies/Dummy Directors; Status: Completed
**(c & d) Prosecutions and Special Courts:**
No prosecutions have been filed by the SFIO against any company with jurisdiction in Andhra Pradesh before the Special Court constituted under Section 435 of the Companies Act, 2013, in the last five years. Furthermore, no petitions, applications, or references have been filed before the NCLT/NCLAT against any Andhra Pradesh-based company. Consequently, the Ministry does not deem it necessary to constitute dedicated benches within the NCLT or establish additional fast-track courts for corporate fraud cases related to Andhra Pradesh.
Key Entities Referenced
Serious Fraud Investigation Office (SFIO): An Indian statutory corporate fraud investigating agency.
Andhra Pradesh: A state in India where the companies under investigation are based.
Shri B K Parthasarathi: The Member of Parliament who raised the question in the Lok Sabha.
Shri Harsh Malhotra: Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways who answered the question.
National Company Law Tribunal (NCLT): A quasi-judicial body in India that adjudicates issues relating to Indian companies.
National Company Law Appellate Tribunal (NCLAT): An appellate tribunal in India that hears appeals against orders of the National Company Law Tribunal (NCLT).
Companies Act, 2013: An Act of the Parliament of India that regulates incorporation, operation and winding up of companies.
Lok Sabha: The lower house of the Parliament of India.
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.
*******