'SFIO probing 67 cos for allegedly floating ponzi schemes'

Don't want to miss the best from Business Standard?

The investigation agency for serious corporate frauds, SFIO, is probing 67 companies for allegedly running ponzi schemes, Parliament was informed today.

 

Corporate Affairs Minister Sachin Pilot said his ministry has ordered the Serious Fraud Investigation Office (SFIO) to conduct probe against 67 companies who had allegedly floated ponzi schemes.

 

"...Investigation is being conducted in respect of all of them," Pilot said in an written reply to the Rajya Sabha.

 

"As and when the investigation is completed, government orders prosecution in respect of violations of the provisions of the Companies Act, 1956 and Indian Penal Code, 1860," he added.

 

Ponzi schemes are fraudulent investment operations which lure investors with promise of high returns.

 

To a separate question about whether the government has decided to legalise lobbying in the country and bring in a legislation for the same, Pilot said, "At present, there is no such proposal under consideration of the Central Government."

 

The issue of corporate lobbying has been a matter of debate for past few months in the wake of global retail giant Walmart having lobbied hard before the US lawmakers to seek their support on its India entry plans.

 

Lobbying is legally permitted in a number of countries, including US, and they require registered lobbyists and the concerned companies to make mandatory disclosures about such activities and the expenses involved.