The Serious Fraud Investigation Office (SFIO) will be strengthened through legislation in the Companies Bill during the ongoing winter session of Parliament, said Mr R.P.N. Singh, Minister of State for Corporate Affairs.

“The provision in respect of statutory status to SFIO has been proposed in the revised Companies Bill 2011 to be introduced in the ongoing session of Parliament,” the Minister said while replying to a question in Rajya Sabha on Wednesday.

Based on the Vepa Kamesan Committee's recommendations, SFIO is expected to get powers of arrest, raid and seizure through the Bill. It has been proposed to treat SFIO's investigation report as a report filed by the police and to give SFIO the power to issue letter Rogatory or letter of requests in cases involving companies having dealings outside the country.

It has also been proposed to include a definition of the term ‘fraud' along with its punishment in the revamped Bill.

COMPETITION POLICY

The committee constituted for drafting the National Competition Policy had submitted its report, informed the Minister. But as the matter is still in the consultation stage, no date for the finalisation of the policy can be specified, he added.

Two national level consultations were held and comments have been invited from various stakeholders, including the State Governments, on the recommendations of the Committee, which are awaited, he said.

“The Government has constituted a Committee for drafting the National Competition Policy with a view to achieve highest sustainable levels of economic growth, entrepreneurship, employment, higher standards of living for citizens, protect economic rights for just, equitable, inclusive and sustainable economic and social development, promote economic democracy and support good governance by restricting rent seeking practices,” Mr Singh said.

divyat@thehindu.co.in

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