Panel set up to strengthen system against corporate fraud

New Delhi, Jan 31 | Updated: Feb 1 2006, 05:30am hrs
The government has set up a committee to strengthening the Serious Frauds Investigation Office (SFIO),which was set up by the government to probe big corporate frauds. The committee is expected to come up with a more stringent mechanism against corporate offenders, company affairs minister PC Gupta said here on Tuesday.

The committee would be headed by former RBI deputy governor Vepa Kamesan. A committee has been constituted to go in to the affairs of the SFIO and see how to make it more effective, Mr Gupta added. According to him, the report is likely to be ready in three months.

The minister said the new Companies Act was also likely to be submitted. About 30 cases, including that of Daewoo Motors, Design Auto Systems and Ketan Parekh group of companies, have already been referred to the body. The body has submitted reports on eight cases.

MMK Sardana, former secretary, company affairs and B Swarup of the Settlement Commission are also in the committee, apart from representatives from CBI and the law ministry.