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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 375
ANSWERED ON TUESDAY, 03rd FEBRUARY 2026
Resolution of corporate frauds
375 Shri Raghav Chadha:
Will the Minister of Corporate Affairs be pleased to state:
(a) whether Government is investigating corporate fraud cases, including
instances of prolonged pendency and if so, details thereof;
(b) the steps taken by Government to expedite the investigation and prosecution
of corporate frauds;
(c) whether there is any coordination mechanism in place with investigative and
prosecuting agencies and if so, the details thereof;
(d) the details of corporate fraud cases dealt with during the last five years, year-
wise, and
(e) the details on the current trends in pendency and conviction rates in corporate
fraud cases?
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) to (c) The Ministry of Corporate Affairs takes action against frauds as defined under
section 447 of the Companies Act, 2013. Investigation in the matter of serious frauds
are assigned to the Serious Fraud Investigation Office (SFIO) under section 212 of
Companies Act, 2013 while the Regional Directors (RDs) investigate under section 210
of the Companies Act, 2013.
All the investigation reports are to be submitted within the prescribed time limit as
per investigation orders, however, on account of complexities in investigations
reported by Investigating Officers, extension of time is ordered on case to case basis.
The progress of investigation is reviewed from time to time. Similarly, prosecution
cases are monitored through Legal Information Management and Briefing System
(LIMBS).There is mechanism for collaboration and data integration among enforcement and
intelligence agencies through Regional Economic Intelligence Committees at Regional
level and Central Economic Intelligence Bureau at Central level.
(d) & (e) During the last 05 financial years, investigation reports submitted to the
Central Government are as under: -
Financial Number of Investigation reports Number of Investigation
year submitted by Regional Directors reports submitted by SFIO
2020-2021 29 7
2021-2022 44 13
2022-2023 47 19
2023-2024 64 18
2024-2025 23 22
Total 208 79
On these reports, suitable instructions have been issued for further action.
During the period from 01.04.2020 to 31.03.2025, 88 prosecutions have been filed under
section 447 of the Companies Act, 2013 and are pending in various Courts. During this
period, no conviction under section 447 of the Act has been reported.
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