CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations
Meridian Textiles Ltd is suspected of large-scale diversion of funds. A stakeholder asks which body, established by the Central Government under the Companies Act, 2013, is tasked with investigating frauds relating to a company. Which is it?
The Serious Fraud Investigation Office is the body. Section 211(1) of the Companies Act, 2013 empowers the Central Government to establish it by notification so that it can investigate frauds relating to a company. The other bodies listed have different roles, such as coordination or financial reporting oversight.
- ASerious Fraud Investigation OfficeCorrect
- BFinancial Intelligence Unit, India
- CNational Financial Reporting Authority
- DInter-ministerial Co-ordination Committee
Explanation
Section 211(1) of the Companies Act, 2013 provides for the Central Government to establish by notification the Serious Fraud Investigation Office to investigate frauds relating to a company. The Inter-ministerial Committee under the PMLA is only a coordination forum and does not investigate company frauds.
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