462 companies investigated for corporate fraud in last 5 years: Govt data

More than 450 companies have come under the scanner of the Ministry of Corporate Affairs' regional directors for suspected fraud in the last five financial years, revealed official data.

The Ministry of Corporate Affairs (MCA) takes action against frauds as defined under the Companies Act, 2013.

The data of companies investigated by the RDs and cases probed by SFIO were shared by the ministry with Lok Sabha as part of a written reply on Feb 10.

Serious Fraud Investigation Office (SFIO) and Regional Directors (RDs) are responsible for investigating the matter of fraud under Sections 212 and 210 of the Companies Act, respectively.

As many as 72 companies are being probed by the FSFIO in five financial years starting from 2019-20. Meanwhile, 51 companies were under probe of RDs in 2023-24 while the count stood at 205 in 2022-23 and at 39 in 2021-22.

RDs probed 65 companies and 102 companies in 2020-21 and 2019-20, respectively.

Minister of State for Corporate Affairs Harsh Malhotra in the written reply said there is no such verified information regarding an increase in the number of corporate fraud cases in the last five years have been noticed by the ministry.

The reply was to a query on whether the government is aware that the cases of corporate fraud have increased in the country during the last five years.