SC upholds requirement for government authorisation before SFIO fraud complaints. Private individuals cannot directly file complaints under Section 212(6).
Private Individuals Can’t Bypass SFIO Complaint Norm: Supreme Court
The Supreme Court dismissed a review petition seeking relaxation of the mandatory requirement under Section 212(6) of the Companies Act, 2013, that fraud complaints be initiated only upon authorisation by the Central Government.
The Court reaffirmed that private litigants cannot directly invoke the SFIO’s investigative jurisdiction. Only officers duly authorised under Section 212(6) may file complaints, preserving the gatekeeping role of the government in serious corporate fraud cases. However, the Court preserved the power of the Centre to authorise complaints based on private submissions.
This ruling maintains procedural discipline in SFIO proceedings. While whistleblowers may approach the government with evidence, they cannot independently trigger investigations. Legal strategy in fraud cases must now focus on influencing regulatory referral rather than direct recourse.
Citations
- Companies Act, 2013, Section 212(6)
