SFIO Alone can File Fraud Complaints Under Companies Act: Supreme Court

The Supreme Court held that a private complaint alleging fraud under the Companies Act, 2013 is not maintainable and can be instituted only by the Serious Fraud Investigation Office (SFIO).

The Court observed that offences relating to fraud are governed by a special statutory scheme, where investigation and prosecution are entrusted exclusively to the SFIO upon authorization by the Central Government.

It held that permitting private complaints would defeat the legislative intent behind the Act.

Accordingly, the Court set aside the proceedings initiated on a private complaint, holding them to be legally unsustainable.

[Yerram Vijay Kumar v. State of Telangana & Anr.]