212. Investigation into affairs of Company by Serious Fraud Investigation Office.— (1) Without
prejudice to the provisions of section 210, where the Central Government is of the opinion, that it is
necessary to investigate into the affairs of a company by the Serious Fraud Investigation Office—
(a) on receipt of a report of the Registrar or inspector under section 208;
(b) on intimation of a special resolution passed by a company that its affairs are required to be
investigated;
(c) in the public interest; or
(d) on request from any Department of the Central Government or a State Government,
the Central Government may, by order, assign the investigation into the affairs of the said company to the
Serious Fraud Investigation Office and its Director, may designate such number of inspectors, as he may
consider necessary for the purpose of such investigation.
(2) Where any case has been assigned by the Central Government to the Serious Fraud Investigation
Office for investigation under this Act, no other investigating agency of Central Government or any State
Government shall proceed with investigation in such case in respect of any offence under this Act and in
case any such investigation has already been initiated, it shall not be proceeded further with and the
concerned agency shall transfer the relevant documents and records in respect of such offences under this
Act to Serious Fraud Investigation Office.
(3) Where the investigation into the affairs of a company has been assigned by the Central
Government to Serious Fraud Investigation Office, it shall conduct the investigation in the manner and
follow the procedure provided in this Chapter; and submit its report to the Central Government within
such period as may be specified in the order.
(4) The Director, Serious Fraud Investigation Office shall cause the affairs of the company to be
investigated by an Investigating Officer who shall have the power of the inspector under section 217.
(5) The company and its officers and employees, who are or have been in employment of the
company shall be responsible to provide all information, explanation, documents and assistance to the
Investigating Officer as he may require for conduct of the investigation.
(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),
[offence covered under section 447] of this Act shall be cognizable and no person accused of any offence
under those sections shall be released on bail or on his own bond unless—
(i) the Public Prosecutor has been given an opportunity to oppose the application for such release;
and
(ii) where the Public Prosecutor opposes the application, the court is satisfied that there are
reasonable grounds for believing that he is not guilty of such offence and that he is not likely to
commit any offence while on bail:
Provided that a person, who, is under the age of sixteen years or is a woman or is sick or infirm, may
be released on bail, if the Special Court so directs:
Provided further that the Special Court shall not take cognizance of any offence referred to this sub-
section except upon a complaint in writing made by—
(i) the Director, Serious Fraud Investigation Office; or
(ii) any officer of the Central Government authorised, by a general or special order in writing in
this behalf by that Government.
(7) The limitation on granting of bail specified in sub-section (6) is in addition to the limitations under
the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting
of bail.
(8) If the Director, Additional Director or Assistant Director of Serious Fraud Investigation Office
authorised in this behalf by the Central Government by general or special order, has on the basis of
material in his possession reason to believe (the reason for such belief to be recorded in writing) that any
person has been guilty of any offence punishable under sections referred to in sub-section (6), he may
arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.
(9) The Director, Additional Director or Assistant Director of Serious Fraud Investigation Office
shall, immediately after arrest of such person under sub-section (8), forward a copy of the order, along
with the material in his possession, referred to in that sub-section, to the Serious Fraud Investigation
Office in a sealed envelope, in such manner as may be prescribed and the Serious Fraud Investigation
Office shall keep such order and material for such period as may be prescribed.
(10) Every person arrested under sub-section (8) shall within twenty-four hours, be taken to a Judical
Magistrate or a Metropolitan Magistrate, as the case may be, having jurisdiction:
Provided that the period of twenty-four hours shall exclude the time necessary for the journey from
the place of arrest to the Magistrate’s court.
(11) The Central Government if so directs, the Serious Fraud Investigation Office shall submit an
interim report to the Central Government.
(12) On completion of the investigation, the Serious Fraud Investigation Office shall submit the
investigation report to the Central Government.
(13) Notwithstanding anything contained in this Act or in any other law for the time being in force, a
copy of the investigation report may be obtained by any person concerned by making an application in
this regard to the court.
(14) On receipt of the investigation report, the Central Government may, after examination of the
report (and after taking such legal advice, as it may think fit), direct the Serious Fraud Investigation
Office to initiate prosecution against the company and its officers or employees, who are or have been in
employment of the company or any other person directly or indirectly connected with the affairs of the
company.
(15) Notwithstanding anything contained in this Act or in any other law for the time being in force,
the investigation report filed with the Special Court for framing of charges shall be deemed to be a report
filed by a police officer under section 173 of the Code of Criminal Procedure, 1973 (2 of 1974).
(16) Notwithstanding anything contained in this Act, any investigation or other action taken or
initiated by Serious Fraud Investigation Office under the provisions of the Companies Act, 1956 (1 of
1956) shall continue to be proceeded with under that Act as if this Act had not been passed.
(17) (a) In case Serious Fraud Investigation Office has been investigating any offence under this Act,
any other investigating agency, State Government, police authority, income-tax authorities having any
information or documents in respect of such offence shall provide all such information or documents
available with it to the Serious Fraud Investigation Office;
(b) The Serious Fraud Investigation Office shall share any information or documents available with it,
with any investigating agency, State Government, police authority or income-tax authorities, which may
be relevant or useful for such investigating agency, State Government, police authority or income-tax
authorities in respect of any offence or matter being investigated or examined by it under any other law.
