SFIO developing early warning system to detect frauds

NEW DELHI: To detect financial frauds, SFIO is in the process of developing an early warning system and a consulting agency has been engaged to prepare the conceptual framework, the government said today.

In a written reply to the Lok Sabha, Minister of State Arjun Ram Meghwal said the development of EWS (Early Warning System) is an "iterative process".

The system would show results after the framework under development stabilises, he noted.

Serious Fraud Investigation Office (SFIO) comes under the Corporate Affairs Ministry.

According to the Minister, the agency is in the process of developing EWS for "early identification and pre-intimation/ warning system to detect financial frauds in the country".

In this regard, services of a consulting agency have been engaged to develop the conceptual framework.

SFIO has been ordered against 390 companies in more than three years for allegedly indulging in fraudulent activities.

From 2013-14 till date in the current fiscal, the ministry has ordered investigations through SFIO in the affairs of 390 companies allegedly indulging in fraudulent activities, Meghwal had told the Rajya Sabha last month.

Of these, investigations have been completed in 139 cases and probe is "under progress" in 245 cases. Besides, such probes have been quashed or stayed by the courts in as many as six cases, he had said.