The Standing Committee on Finance headed by Jayant Sinha has recommended that Serious Fraud Investigation Office (SFIO) may be armed with sufficient teeth to exclusively investigate and prosecute cases relating to complex corporate frauds that have huge impact on the economy and various stakeholders.

While recognising that the SFIO functions within the purview of the Companies Act, the Parliamentary Panel has, however, found that SFIO’s initial objective of single handedly tackling complex corporate frauds remains a fry cry with multiple law enforcement agencies conducting investigations into the same financial crime resulting in prolonged litigation.

‘Surprise and concern’

The Standing Committee has also expressed “surprise and concern” to learn that since its inception, SFIO has not seen any convictions in non-compoundable cases so far and that the average time taken for disposal of prosecution cases is 8-10 years.

“The Committee would expect the SFIO to equip itself for higher standard of performance,” the Panel said.

Meanwhile, on Competition Commission of India, the Standing Committee on Finance has recommended that practice of carrying forward pending cases year after year should be discontinued.

It also highlighted that out of 291 cases in 2020-21, only 133 cases were decided during the year resulting in more than 50 per cent of cases pending at the end of the year. The panel also expressed hope that its earlier report recommendation of the merger of the DG office with CCI as per international practice will get implemented.

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