Government orders probe on 125 companies for defrauding investors

Aug 22 2013, 16:45 IST
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Corporate Affairs Minister Sachin Pilot informed Parliament on Thursday the Government has ordered SFIO to probe 125 companies for alleged fraud in last 4 years (IE photo) Corporate Affairs Minister Sachin Pilot informed Parliament on Thursday the Government has ordered SFIO to probe 125 companies for alleged fraud in last 4 years (IE photo)
SummaryA number of steps will also be taken to inform and caution public of financial fraud.

The government has ordered Serious Fraud Investigation Office (SFIO) to probe as many as 125 companies for allegedly defrauding investors by offering high returns in nearly four years, Parliament was informed on Thursday.

In a written reply to the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that his Ministry has received complaints that some companies are allegedly defrauding investors by offering high returns.

During the last three years and the current year, the ministry has ordered investigation into the affairs of 125 such firms, under Companies Act, by SFIO, he said.

Pilot said that his Ministry has taken various steps to sensitise the public and other agencies about fraudulent investment schemes.

He requested Chief Ministers to issue instruction to their respective police authorities for taking vigorous action under Prize Chits and Money Circulation Schemes (Banning)Act.

Besides, he also wrote to the Finance Minister to increase the surveillance by Reserve Bank over authorised non banking finance companies.

In addition, Pilot said various measures had been undertaken to protect the investor' interests through programmes on awareness and education.

Some of these steps include issue of multi-lingual print media advertisements from time to time to caution the investors about fraudulent investment schemes, creation of facility on MCA-21 website for lodging complaints and for tracking their status and a system of sending SMSes cautioning investors to be careful while making investments.

Sachin Pilot, Fraud, Serious Fraud Investigation Office, Corporate Affairs Ministry, Prize Chits and Money Circulation Schemes (Banning)Act, Reserve Bank of India, Financial news, India news, Nation news

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