Section 211 of the Companies Act, 2013
Here is a detailed explanation of Section 211 of the Companies Act, 2013:
📘 Section 211 – Establishment of Serious Fraud Investigation Office (SFIO)
This section provides for the establishment of the Serious Fraud Investigation Office (SFIO) by the Central Government to investigate serious cases of corporate fraud.
🧾 Key Provisions of Section 211
🏢 1. Establishment
The Central Government shall establish an office called the Serious Fraud Investigation Office (SFIO).
👨💼 2. Composition of SFIO
The SFIO shall consist of:
A Director, and
Experts from fields such as:
Banking,
Corporate affairs,
Taxation,
Forensic audit,
Capital markets,
Law,
Information technology, etc.
The Director and officers are appointed as per rules and notified by the Central Government.
📋 3. Function of SFIO
To investigate frauds relating to companies, as assigned by the Central Government under Section 212 of the Act.
SFIO has the powers of:
Inspecting books of account and records,
Summoning individuals,
Conducting raids and arrests (with prior sanction under Section 212).
📍 4. Notification
The offices, jurisdictions, and powers of the SFIO are defined by the notification issued by the Central Government.
🧠 Purpose of Section 211
To provide a dedicated investigative body for serious and complex corporate frauds.
Ensure better enforcement of company law and corporate accountability.
🔎 Related Section
Section 212: Deals with the investigation process by SFIO once it is ordered by the Central Government.
✅ Summary Table
| Aspect | Details |
|---|---|
| Office Established | Serious Fraud Investigation Office (SFIO) |
| Established By | Central Government |
| Officers | Director + Experts from multiple disciplines |
| Purpose | Investigation of serious corporate frauds |
| Investigation Powers | Triggered under Section 212 |
| Jurisdiction | As notified by the Government |
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