The financial frauds investigator, Serious Fraud Investigation Office (SFIO), is strengthening its regional presence. It will soon set up offices in Chennai, Kolkata, Hyderabad, Bangalore, Ahmedabad and Pune. It also plans to hire 200 persons, according to a senior corporate affairs official. The fraud office has a staff of around 58 at the moment, which is much lower than its requirements.

“We are scouting for land,” an SFIO official told Business Line .

The MCA Minister, Mr Veerappa Moily, had announced that the SFIO would be strengthened through legislation in the Companies Bill, expected to be tabled in the ongoing session of the Parliament.

“We plan to give more powers to the SFIO through statutory recognition. We need to strengthen it by giving it powers of arrest, raid and seizure,” Mr Moily said.

In 2009-10, the total number of prosecutions filed for the violations of the provisions of the Companies Act 1956 were 9,021 and the fine imposed was Rs 92.3 lakh, according to Mr R.P.N. Singh, Minister of State, MCA. Some of the provisions proposed in the new Bill include treating the SFIO's investigation report as a report filed by a police officer, and giving it the power to issue letters of request in cases involving companies having businesses outside the country.

Of the 200 people that SFIO plans to hire, several will hold key positions such as those of additional director and deputy directors in the new centers. SFIO is also looking to hire specialists in the fields ranging from banking to audit and consultants.

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