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 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. *****