Serious Fraud Investigation Office plans forensic audit laboratory

PTI Updated - March 05, 2013 at 07:27 PM.

To strengthen its overall capabilities, Serious Fraud Investigation Office (SFIO) plans to set up a forensic audit laboratory next fiscal.

SFIO, under the Corporate Affairs Ministry, has the mandate to investigate corporate frauds and is probing many high profile cases.

For setting up the laboratory, the agency will soon enter into a pact with the National Institute of Electronics and Information Technology (NIELIT), said a source.

The Ministry has given the administrative clearance for setting up the laboratory.

“The laboratory is expected to be operational in the next financial year. It will help the agency with tools and techniques required for financial documentation, among others, in making better analysis,” the source said.

SFIO will soon ink a MoU with NIELIT, which is under the Department of Electronics and Information Technology.

A specialised field in accounting, forensic audit is prominently used in cases of financial frauds to make a more accurate analysis of facts and figures.

In December, the Corporate Affairs Ministry had said that SFIO was probing 38 firms including SpeakAsiaOnline, Vaishnavi Corporate Communications and Reebok India.

The agency has been ordered to investigate alleged fraud in 83 companies in the last four years, the ministry had said.

Already, SFIO has a Market Research and Analysis Unit for capacity building, co-ordination with other investigating agencies and market surveillance.

The new Companies Bill proposes to provide more powers to the agency to curb frauds.

A multi-disciplinary organisation, SFIO has the powers to recommend prosecution in white collar crimes. Generally, the agency probes cases where there is much complexity and substantial public interest, among others.

It was set up under the provisions of the Companies Act 1956.

Published on March 5, 2013 13:57