Corporate Affairs Ministry orders probe into 152 companies in over 3 years

NEW DELHI: The Corporate Affairs Ministry ordered investigations into affairs of more than 150 companies for alleged fraudulent activities in over three years, the Parliament was informed today.

In the last three years and period till June 2014, Corporate Affairs Minister Arun Jaitley said the Ministry ordered probes against 152 companies for allegedly indulging in fraudulent/illegal activities.

"Of these, 64 investigations have been completed and reports submitted to the Ministry while in two cases, investigations have been stayed by the courts," Jaitley said in a written reply in the Lok Sabha.

However, specific details were not disclosed. With respect to investigations that have been completed, the Ministry has ordered filing of prosecutions against companies/directors/officers in default on account of various offences.

To prevent instances of fraudulent activities, the Ministry has initiated various steps. These include setting up of a Market Research and Analysis Unit (MRAU) in the Serious Fraud Investigation Office (SFIO).

The unit analyses media reports relating to financial frauds and conducts market surveillance of such corporates.

Besides, an 'Early Warning System' is being developed to generate alerts for analysis and early detection of potential frauds.