MUMBAI: The Bombay HC is hearing a petition to strike down Section 212 of the Companies Act, pertaining to the manner in which the Serious Fraud Investigation Office (SFIO) is engaged by the government.
The section gives broad powers to the government to ask SFIO to investigate a company based on the government’s opinion that it is in public interest or on request from any government department.The petition has been filed by a director ofBirla Power Solutions, a Yash Birla company, which is facing probes for its failure to repay public funds. The HC has accepted the petitioner’s request for a stay of proceedings in a Mumbai court till December 5.
The section gives broad powers to the government to ask SFIO to investigate a company based on the government’s opinion that it is in public interest or on request from any government department.The petition has been filed by a director ofBirla Power Solutions, a Yash Birla company, which is facing probes for its failure to repay public funds. The HC has accepted the petitioner’s request for a stay of proceedings in a Mumbai court till December 5.