Supreme Court upholds Section 212(6), allowing only authorized officers to file fraud complaints via SFIO, not private parties.
Only Authorized Officers Can File SFIO Complaints: SC
The Supreme Court dismissed a review petition challenging the interpretation of Section 212(6) of the Companies Act, 2013, reaffirming that only authorized Central Government officers can initiate investigations through the Serious Fraud Investigation Office (SFIO).
The Court held that private individuals cannot bypass procedural safeguards by directly approaching SFIO for initiating fraud proceedings. This preserves the statutory framework requiring ministerial oversight before launching complex, resource-intensive corporate fraud investigations.
The judgment maintains a critical gatekeeping function to prevent frivolous or vexatious complaints against companies and directors. However, the Court preserved the government’s power to authorize complaints when public interest demands intervention.
Counsel for corporate clients should invoke this precedent to challenge unauthorized SFIO referrals and ensure all investigations comply with due process requirements under the Act.
Citations
- Section 212(6), Companies Act, 2013
