Govt orders probe into alleged corporate governance lapses; 13 cases referred to serious fraud investigator

Corporate affairs minister Piyush Goyal claims corporate governance standards at public sector banks (PSBs) are much better than before.

Press Trust of India August 03, 2018 13:47:19 IST
Govt orders probe into alleged corporate governance lapses; 13 cases referred to serious fraud investigator

The government on Friday said it has ordered 83 investigations in the first three months of this fiscal into alleged violations of corporate governance norms under the companies law. The probes have been ordered on the basis of various complaints.

Corporate affairs minister Piyush Goyal told the Lok Sabha that there is an elaborate framework under the Companies Act, 2013 to deal with minor and major violations. In fiscal 2018-19, the ministry has ordered 83 investigations till the end of June into violations of corporate governance norms, as per data provided in the written reply given by the minister.

Govt orders probe into alleged corporate governance lapses 13 cases referred to serious fraud investigator

A file image of union minister Piyush Goyal. PIB

During the period from fiscal 2015-16 to 30 June, 2018, the total number of investigations ordered stood at 207, the data showed.

Besides, the minister said Registrar of Companies (RoCs) have filed 399 prosecutions against entities for various violations of the Companies Act in the current fiscal till 30 June.

Meanwhile, 13 cases have been assigned to the Serious Fraud Investigation Office (SFIO) till 30 June this fiscal. There are 114 sections dealing with defaults under the Companies Act, 2013.

Goyal said the government has taken several steps to improve corporate governance, including nationwide drive to strike-off inactive companies, disqualification of defaulting directors and electronic 'Know Your Customer' (KYC) requirements for directors.

Responding to supplementary queries related to banking sector during 'question hour', Goyal said corporate governance standards at public sector banks (PSBs) are much better than before.

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