SFIO to get powers of arrest in corporate scams: Moily
23 Jan 2012
The Serious Fraud Investigation Office, which investigates corporate malpractices, will gain the power to arrest suspects after the new Companies Bill is passed by Parliament, law and corporate affairs minister Veerappa Moily said today.
"The SFIO shall have the power to arrest in respect of certain offences of the bill which attract punishment for fraud. Those offences shall be cognisable and the persons accused of such offences shall be released on bail subject to certain conditions provided in the bill," Moily said at a business conference in New Delhi.
He said the government expects the Companies Bill, 2011, to "modernise, reform and clean up the corporate sector".
Moily further said the union government plans to frame a national corporate governance policy as part of its efforts to improve corporate governance.
The corporate affairs ministry will soon set up a committee headed by a private sector representative to help the government frame the policy, he said.
The minister also called for a revamp of the criminal laws in the country.
