Probe into affairs of 125 companies for fraud: govt

Letter has been sent to Finance Minister to increase the surveillance by RBI over unautharized NBFCs, says Sachin Pilot

The Corporate Affairs Ministry today said it has ordered investigations into the affairs of 125 companies for allegedly defrauding investors by offering high returns in the last three years and the current year.

Corporate Affairs Minister Sachin Pilot, while replying to a question in the Lok Sabha, said his ministry has recieved complaints against such companies.

'The ministry has ordered investigations into the affairs of 125 such companies under sections 235/237 of the Companies Act, 1956 mostly through the Serious Fraud Investigation Office (SFIO),' Pilot said.

The Lok Sabha was told that the ministry has requested the chief ministers to issue instructions to state police authorities for taking vigorous action under the Prize Chits and Money Circulation Schemes (Banning) Act 1978.

Pilot said he has also written to the Finance Minister to increase the surveillance by RBI over unautharized NBFCs.

The ministry has also been undertaking investor awareness programmes in association with the Institute of Chartered Accountants of India, Institute of Company Secretaries of India and Institute of Cost Accountants of India specifically targeting investors in tier II and III cities.