Govt ordered SFIO probe against 185 companies for fraud in 4 years

The corporate affairs ministry ordered SFIO probe against 185 companies for alleged fraud in about four years, of which West Bengal accounts for 135.

In a written reply to the Rajya Sabha, Minister of State for Finance Santosh Kumar Gangwar said the corporate affairs ministry has ordered investigation through SFIO into the affairs of 185 firms during the last three years and first 10 months of the current financial year.

The Serious Fraud Investigation Office (SFIO) comes under the corporate affairs ministry.

The move comes after the government received various complaints of cheating of small investors, particularly by the companies involved in ponzi, chit fund and multi-level marketing activities in different states.

Out of 185 companies, cases pertaining to West Bengal are 135. Besides, the CBI has registered 30 cases relating to chit fund and ponzi schemes in the state. At present, these cases are at the stage of investigation.

"The RBI has indicated that out of 486 cases pertaining to unauthorised collection of money by entities in various states and Union Territories considered in state level coordination committee (SLCC) meetings, 116 cases pertained to West Bengal," Gangwar said.

SLCC is the joint forum formed in all states to facilitate information sharing among regulators and enforcement agencies of the state with an aim to control incidents of unauthorised acceptance of deposits.

It was reconstituted in May 2014 with renewed focus on unauthorised collection of money by unscrupulous entities.