New Delhi: Government’s investigation arm Serious Fraud Investigation Office (SFIO) is probing into fraudulent activities of 28 corporates and has filed prosecution proceedings against various companies, including Usha India, Malavika Steel and Morepan Laboratories.
“The Ministry has referred 28 cases to inspectors drawn from SFIO or otherwise during the last three years for investigations into alleged frauds,” Minister of Corporate Affairs Prem Chand Gupta told Lok Sabha today.
Action is being taken against employees who were found to be involved in fraudulent action, he said in a written reply, adding “wherever corporate fraud is detected, concerned revenue authorities are also intimated about the findings of the investigation for taking action as warranted.”
The important companies against whom prosecution proceedings have been filed by the government include Usha India, Malavika Steel, Koshika Telecom, Morepan Laboratories and Shonkh group companies.
In addition, Gupta said, instructions have also been issued for filing of prosecution proceedings against Verma Steel and Wires, Sporting Pastime India and Prabhat Forging.
The investigations, the minister said, is also on against several corporates including JVG group companies, Stock Holding Corporation of India (SHCIL), Systems India (America), Krishi Export Commercial Corporation and Leafin India.
Pointing out that frauds diminish the value of the shareholders and increase the risk of the creditors, he said, “Various government agencies are taking action as per the existing statutory framework dealing with various types of fraud.”
The government, he added, reviews the action taken by such agencies from time to time and takes appropriate measures for their effective functioning.