Chapter XIV - Inspection, Inquiry and Investigation
Section 211
Section 211: establishment of the Serious Fraud Investigation Office
Section 211 gives statutory footing to the Serious Fraud Investigation Office (SFIO), the office that investigates frauds relating to companies. It is headed by a Director and staffed by experts from specified fields.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Central Government shall, by notification, establish an office to be called the Serious Fraud Investigation Office to investigate frauds relating to a company: Provided that until the Serious Fraud Investigation Office is established under sub-section (1), the Serious Fraud Investigation Office set-up by the Central Government in terms of the Government of India Resolution No. 45011/16/2003-Adm-I, dated the 2nd July, 2003 shall be deemed to be the Serious Fraud Investigation Office for the purpose of this section. (2) The Serious Fraud Investigation Office shall be headed by a Director and consist of such number of experts from the following fields to be appointed by the Central Government from amongst persons of ability, integrity and experience in,—(i) banking; (ii) corporate affairs; (iii) taxation; (iv) forensic audit; (v) capital market; (vi) information technology; (vii) law; or (viii) such other fields as may be prescribed. (3) The Central Government shall, by notification, appoint a Director in the Serious Fraud Investigation Office, who shall be an officer not below the rank of a Joint Secretary to the Government of India having knowledge and experience in dealing with matters relating to corporate affairs. (4) The Central Government may appoint such experts and other officers and employees in the Serious Fraud Investigation Office as it considers necessary for the efficient discharge of its functions under this Act. (5) The terms and conditions of service of Director, experts, and other officers and employees of the Serious Fraud Investigation Office shall be such as may be prescribed.
Introduction
The Central Government establishes the SFIO by notification. Until that happens, the SFIO set up under Government of India Resolution No. 45011/16/2003-Adm-I, dated the 2nd July, 2003 is deemed to be the SFIO for the section.
The Director must be an officer not below the rank of Joint Secretary with corporate-affairs experience. Section 211 commenced on 1 April 2014 under S.O. 902(E). The India Code shows no amendment, and its text matches the 2013 Gazette.
Key takeaways
Statutory SFIO
The SFIO investigates frauds relating to a company.
Expert composition
Experts in banking, corporate affairs, taxation, forensic audit, capital market, information technology, law or other prescribed fields.
Senior Director
Headed by a Director not below the rank of Joint Secretary to the Government of India.
Investigations under section 212
The SFIO’s investigation powers are in section 212; section 211 deals with its establishment and staffing.
Establishment
Sub-section (1) requires the Central Government to establish the SFIO by notification. Its proviso deems the office set up under the 2003 Government resolution to be the SFIO until then.
Composition
Under sub-section (2), the SFIO is headed by a Director and consists of experts appointed by the Central Government from persons of ability, integrity and experience in banking, corporate affairs, taxation, forensic audit, capital market, information technology, law, or other prescribed fields. Sub-section (3) requires the Director to be appointed by notification and to be an officer not below the rank of Joint Secretary with knowledge and experience of corporate affairs. Under sub-sections (4) and (5) the Government may appoint other experts, officers and employees, whose terms of service are prescribed.
Practical preparation
If an SFIO notice arrives, identify the section 212 order under which the investigation is being conducted; appoint a single point of contact; preserve records; get specialist legal and forensic advice.
Investigation provisions are applied case by case by the Central Government, the Tribunal, the Special Court or the inspector; this guide explains the statutory text and is not a substitute for advice on a live matter.
Practical checklist
Do
- Treat any SFIO communication as urgent and take legal advice.
Avoid
- Do not confuse section 211 (establishment) with section 212 (investigation powers).
Illustrative example
Hypothetical: understanding an SFIO letter
A company’s CFO receives a letter from an SFIO investigating officer.
Identify authority
Counsel checks that the investigation was assigned to the SFIO under section 212.
Coordinate
The company names a contact person and preserves records.
Respond
Information is given through counsel within the time set in the letter.
Outcome
- The company responds in an orderly way to a statutory investigator.
Glossary
- SFIO
- Serious Fraud Investigation Office, established under section 211.
- Forensic audit
- One of the fields of expertise listed in section 211(2).
Frequently asked questions
Who heads the SFIO?
A Director appointed by the Central Government by notification, not below the rank of Joint Secretary to the Government of India.
Where are the SFIO’s investigation powers?
In section 212. Section 211 covers establishment and composition.
Need help applying this provision to your situation?
Contact BizeneedLast updated 12 October 2026