Latest news with #SFIO
Business Standard
2 days ago
- Business
- Business Standard
Empowering Financial Justice: How Dexian Can Architect the Future of Corporate Fraud Investigation for SFIO
VMPL New Delhi [India], June 21: India is witnessing a troubling rise in corporate fraud, with investigative agencies such as the Serious Fraud Investigation Office (SFIO) handling an increasing number of complex white-collar crime cases. According to Ministry of Corporate Affairs data, over 190 cases were assigned to SFIO between 2021 and 2023, involving serious violations like financial misreporting, fund diversion, shell companies, and corporate governance failures. The surge reflects the growing complexity and digital evolution of fraudulent practices in corporate India. Amidst this landscape, there is an urgent need to replace fragmented legacy tools with a unified, intelligent, and secure digital case management platform. At this inflection point, Dexian India, with its deep expertise in enterprise-grade digital solutions, cybersecurity, and governance frameworks, emerges as a trusted partner to SFIO. Dexian is well-positioned to architect the Scalable Case Investigation Management System (SCIMS), a future-ready solution designed to modernize fraud detection, streamline investigations, and enable faster enforcement actions. The problem isn't merely one of modernization. It is about reinventing the very fabric of how India investigates and adjudicates complex corporate frauds. Dexian India recognizes this nuance. Having enabled several mission-critical digital transformations across the public and private sectors, Dexian brings to the table an intersection of domain knowledge, engineering excellence, and governance-first thinking. The blueprint for SCIMS is not just a software rollout; it is a national imperative to fortify India's corporate governance and legal enforcement machinery. "India's battle against financial fraud demands more than reactive investigation, it demands predictive, integrated, and intelligent systems. Dexian stands ready to deliver just that," asserts Venkat Lakshminarasimha, Executive Director, DISC - Solutions - India & Middle East. Engineering SCIMS: A New-Gen Intelligence Framework Dexian envisions SCIMS as a mission-critical, modular, and tamper-proof ecosystem that not only digitizes workflows but enhances the strategic intelligence of SFIO's operations. Here's how Dexian will deliver impact: 1. Modular Workflow Automation with Tamper-Proof Evidence Handling By designing chapter-wise digital evidence tracking, Dexian will ensure that every document, communication, and data exchange is traceable, digitally signed, and compliant with court admissibility. Tamper resistance isn't just a feature; it is the system's DNA. 2. Inter-Agency Synergy through Real-Time Integration Dexian proposes secure APIs and encrypted pipelines to facilitate data exchange with key regulatory bodies, including the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), the Enforcement Directorate (ED), the IT Department, and the Central Bureau of Investigation (CBI). This interconnected model ensures regulatory agility, enabling the SFIO to respond to fraud cases with precision and speed. 3. Command-Centre Dashboards for Prosecution and Intelligence With centralized dashboards, multilingual accessibility, and advanced data visualization, SFIO officials, from regional offices to headquarters, will gain a single source of truth for all active cases, key performance indicators (KPIs), and legal escalations. 4. Secure Cloud Architecture with Fail-Safe Operations Dexian recommends a hybrid cloud deployment using MeitY/NICSI-empaneled providers, ensuring over 99.5% uptime, automated backups, malware protection, and real-time threat intelligence. The SCIMS platform will be developed in full compliance with the latest GIGW 3.0 guidelines and will undergo mandatory STQC audits, ensuring that all accessibility, security, and usability standards for government digital platforms are rigorously met. 5. Helpdesk & Maintenance Built for High Availability From day one, Dexian will deploy a 360° support model, comprising a technical helpdesk, issue tracking system, proactive patching, performance tuning, and institutionalized change management, to ensure SCIMS always remains operational. "Our systems aren't just about technology, they are about trust. When you're dealing with enforcement-grade platforms, every byte must be defensible in court. That's where Dexian thrives," affirms Venkat Lakshminarasimha. A Human-Centric Implementation Model Recognizing the sensitive and high-stakes nature of fraud investigation, Dexian is committed to establishing a dedicated Program Management Unit (PMU) comprising: * Certified architects and developers with deep expertise in open-source security frameworks * Experienced forensic data analysts skilled in uncovering digital evidence * UI/UX experts capable of designing intuitive, multilingual user experiences * Infrastructure specialists with proficiency in managing secure, cloud-native environments * Legal technologists who ensure system functionalities remain aligned with judicial protocols Proven Credibility, Trusted Execution Dexian's presence across India and a global network spanning the U.S., the Middle East, and the Asia-Pacific, Dexian has been the technology backbone for several state and national e-governance initiatives. Certified at CMMI Level 5 and ISO 27001, the organization demonstrates the highest standards of process maturity and information security, making it exceptionally well-suited for implementing investigative platforms that demand robust security, high availability, and judicial defensibility. "SCIMS is more than a software solution. It's the digital backbone of India's financial ethics. Our goal is not just to implement it, but to elevate it into a benchmark of global best practices," says Venkat Lakshminarasimha. The Strategic Edge: What SFIO Gains with Dexian According to NCRB data, economic offenses in India surged by over 15% between 2020 and 2022. With growing digital sophistication among perpetrators, SFIO needs a system that is not only reactive but also predictive. By partnering with Dexian, SFIO stands to benefit from: * Accelerated investigation timelines via intelligent workflows * Increased inter-agency collaboration through seamless integrations * Enhanced auditability and transparency for public and judicial scrutiny * Reduced cyber risks with built-in compliance and threat monitoring * Future-readiness with modular, upgradable architecture Dexian doesn't just deliver code. It offers confidence in governance, continuity in investigation, and credibility in justice delivery. Conclusion: A Partnership That Fortifies India's Financial Fort In an age where corporate crimes can be orchestrated across borders in milliseconds, India needs systems that think, respond, and act faster than the fraud itself. SCIMS is not just a technological shift, it is a civilizational leap in India's anti-fraud capabilities. Dexian India is not offering a solution; it is offering a strategic alliance. An alliance that blends sovereign-grade security with forensic-grade intelligence. An alliance grounded in decades of digital excellence and public-sector transformation. With SCIMS, SFIO doesn't just get a system. It gets a trusted co-pilot for India's fight against financial crime, purpose-driven, audit-proof, and future-ready. Dexian India stands prepared, not just to build SCIMS, but to elevate it into a national asset that defines how India enforces financial justice in the digital century.
Time of India
6 days ago
- Business
- Time of India
NCLT has powers to direct probe into company's affairs in insolvency matters, says NCLAT
Appellate tribunal NCLAT has clarified that the National Company Law Tribunal ( NCLT ) can order an investigation into the affairs of a company by probe agencies in cases related to the Insolvency & Bankruptcy Code by exercising its power under the Companies Act. The NCLAT order came on May 15 over a plea filed by Max Publicity & Communication which had challenged an NCLT order. The Mumbai bench of NCLT, on January 21, 2025, while rejecting an insolvency plea against Max Publicity & Communication, issued a direction to forward a copy of the order to investigative agencies, including the Serious Fraud Investigation Office (SFIO) and Economic Offences Wing (EOW). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unlock full 2025 solar power in Algeria — install, maintain, upgrade Solar Panels | Search Ads Learn More Undo This was challenged before NCLAT by Max Publicity submitting that no opportunity was given to it to have its say on various adverse observations made against it in the impugned order, which was violation of principle of natural justice. The insolvency plea was filed in NCLT by Max Publicity & Communication's operational creditor claiming debt and default. Live Events The NCLAT (National Company Law Appellate Tribunal) in its latest order, however, said that such orders passed by NCLT under section 213 of the Companies Act, for investigations, can be passed only after complying with preconditions. "The Adjudicating Authority, while exercising jurisdiction under Section 9 of the IBC , also exercise jurisdiction of NCLT under the Companies Act, 2013," said the three-member NCLAT bench, which also comprised Chairperson Justice Ashok Bhushan. Under the IBC (Insolvency & Bankruptcy Code), NCLT is termed as the Adjudicating Authority for resolution and liquidation proceedings. "Adjudicating Authority (NCLT) in exercise of powers under Section 213 of the Companies Act, 2013 can direct for investigation, but the said investigation can be directed after complying with the precondition, i.e. affording a reasonable opportunity to the parties concerned," said NCLAT while modifying the NCLT's order. The appellate tribunal further said that NCLT can also exercise its jurisdiction under Rule 11 of the National Company Law Tribunal Rules, 2016, where it is of the view that a copy of the order needs to be forwarded to the relevant statutory authorities for investigations. "The direction under Section 212 to carry out any investigation of the company's affairs by SFIO can be made only in accordance with the statutory provisions of Section 212 and the Adjudicating Authority, while exercising jurisdiction under the Companies Act 2013, cannot issue any direction to SFIO for carrying out investigation," the NCLAT said. Section 212 of the Companies Act says the central government can direct the SFIO for an investigation into the affairs of a company either on receipt of a report of the registrar or inspector, or on intimation of a special resolution passed by a company that its affairs are required to be investigated. It can also be directed in the public interest or on request from any department of the central government or a state government. Section 213 of the Companies Act, 2013, empowers the NCLT to investigate the affairs of a company if there are grounds to suspect fraud, mismanagement, or oppressive acts. The NCLAT modified the January 21 order of NCLT, saying, "Observations and directions made in paragraphs 65 and 66 are not to be treated any direction for carrying out any investigation by the statutory authorities referred to therein." "There was no occasion to make any observation or referring the matter to EoW or SFIO to investigate and reference of EoW and SFIO in paragraph 65 stands deleted. The direction in paragraph 66 to forward the copy of the order to statutory authorities for taking appropriate steps under the Companies Act, 2013 are upheld," it added.
The Hindu
11-06-2025
- Business
- The Hindu
Kerala CM's daughter T. Veena denies allegations in CMRL case, terms PIL a bid to ‘vilify' her
Kerala Chief Minister Pinarayi Vijayan's daughter T. Veena has refuted the allegation that Exalogic Solutions Private Limited, a company run by her, is a benami firm, saying that it is operated independently of her father. She made the statement in an affidavit filed before the Kerala High Court in response to a public interest litigation (PIL) seeking a CBI probe into the allegations regarding the financial transactions between the Exalogic and the Kochi-based private minerals firm Cochin Minerals and Rutile Limited (CMRL). She pointed out that the company was founded and managed by her and at all times operated independently of her father. He had no role in the business of the company, financial or otherwise. In fact, she founded the company in 2014 whereas her father assumed office of Chief Minister in May 2016. Refutes Kovalam palace charges She also said that she had no role in any decision , communication or transaction relating to the Kovalam palace. The allegation that she had exercised undue influence in the transfer of the Kovalam palace and that she was a conduit for 'unjust enrichment' is baseless and without any material. The allegations are 'ex-facie malicious , defamatory, and disparaging' of a woman professional. It is nothing but political mudslinging disguised as a public litigation, she said. Ms. Veena also said that the allegation that her husband and Minister for Public Works P.A. Mohamed Riyas' disclosure of income in his income affidavit was inconsistent with the firm's revenue is misconceived and misleading. Personal income, company turnover, and tax disclosures are governed by different standards. Any alleged discrepancy can only be addressed by the competent authority under the law. Besides, her husband was not a shareholder, director or beneficiary of Exalogic. He had had no connection with its business or operations at any point of time, according to the affidavit. 'A disguised attempt ' She said the PIL is 'a disguised attempt to vilify' her because of her identity as daughter of the Chief Minister. According to her, the Union Ministry of Corporate Affairs had ordered a probe by the Serious Fraud Investigation Office (SFIO) into certain affairs of CMRL, including the transactions with Exalogic under Section 212 (1)(c)of the Companies Act. As the SFIO is currently seized of the matter, all other agencies are precluded from probing it. The provisions of the Companies Act barred a parallel or overlapping investigation by any other agency into it. Besides, the very allegations forming the basis of the PIL were brought up before various Vigilance courts which had dismissed such complaints. Even the High Court had upheld the dismissals of such complaints and observed that the statements made by an authorised officer before the interim board for settlement – which was inadmissible under Section 4 of the Evidence Act and cannot be treated as judicial facts – cannot be the basis for setting criminal proceedings into motion, the affidavit pointed out.
Mint
29-05-2025
- Automotive
- Mint
Hero Electric: Amid insolvency proceedings, ministry seeks to recover Rs167 crore subsidy
New Delhi: The heavy industries ministry has sought to recover ₹ 167 crore given as subsidy to Hero Electric Vehicles Pvt. Ltd, according to two people aware of developments in the electric two-wheeler maker's insolvency proceedings. The ministry last year accused Hero Electric and a few other electric vehicle manufacturers of fraudulently claiming subsidies under the second iteration of the government's Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME 2) scheme, and sought to recover the money. In January this year, a month after the National Company Law Tribunal directed initiation of insolvency proceedings against Hero Electric, the ministry approached the interim resolution professional appointed to oversee the company's operations to recover the subsidy, according to the two people above. Hero Electric is accused of violating the FAME 2 scheme's localisation rules, which require companies to manufacture a certain portion of their electric vehicles in India to be eligible for the subsidy. 'This move is a big signal to the EV industry: government subsidies come with accountability,' said Randheer Singh, chief executive officer, ForeSee Advisors, and former director at NITI Aayog. 'For other companies in the EV space, it's a reminder that subsidies are not free money—they're performance-linked and tightly audited. Any mismatch in documentation, eligibility, or delivery can come back later with serious financial and legal consequences,' he said. Singh added that a ministry claiming recovery during a company's insolvency proceedings was not routine, but not unprecedented either. Ministries or government departments can and do file claims as operational creditors when subsidies, taxes, or dues are unpaid, he said. The ministry of heavy industries and Hero Electric's managing director Naveen Munjal did not reply to queries emailed on the evening of 28 May. Hero Electric is under scrutiny for other potential violations as well. The Serious Fraud Investigation Office (SFIO) is investigating claims that Hero Electric used imported Chinese parts in its vehicles, which violates the FAME schemes' phased manufacturing programme that specifies components EV manufacturers are allowed to import. On 2 December, SFIO searched the offices of Hero Electric, Benling India Energy and Technology Pvt. Ltd, and Okinawa Autotech International Pvt. Ltd following accusations that these companies fraudulently availed subsidies amounting to Rs. 297 crore cumulatively under the FAME 2 scheme, as per a statement from the ministry of corporate affairs. Following this, Hero Electric approached the Delhi High Court for relief but on 20 December the court ruled that the SFIO probe could continue. Days later, Metro Tyres Ltd, an operational creditor of Hero Electric, filed an insolvency plea against the EV two-wheeler maker over unpaid dues of about ₹ 1 crore. As on 28 April, claims worth a little over ₹ 535 crore have been admitted against Hero Electric, as per information provided by the Insolvency and Bankruptcy Board of India. IBBI filings show that about ₹ 177 crore worth of claims were contingent, and claims worth ₹ 329 crore were not admitted.
Mint
29-05-2025
- Automotive
- Mint
Hero Electric: Ministry joins insolvency proceedings to recover Rs167 crore subsidy
New Delhi: The heavy industries ministry has sought to recover ₹ 167 crore given as subsidy to Hero Electric Vehicles Pvt. Ltd, according to two people aware of developments in the electric two-wheeler maker's insolvency proceedings. The ministry last year accused Hero Electric and a few other electric vehicle manufacturers of fraudulently claiming subsidies under the second iteration of the government's Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME 2) scheme, and sought to recover the money. In January this year, a month after the National Company Law Tribunal directed initiation of insolvency proceedings against Hero Electric, the ministry approached the interim resolution professional appointed to oversee the company's operations to recover the subsidy, according to the two people above. Hero Electric is accused of violating the FAME 2 scheme's localisation rules, which require companies to manufacture a certain portion of their electric vehicles in India to be eligible for the subsidy. 'This move is a big signal to the EV industry: government subsidies come with accountability,' said Randheer Singh, chief executive officer, ForeSee Advisors, and former director at NITI Aayog. 'For other companies in the EV space, it's a reminder that subsidies are not free money—they're performance-linked and tightly audited. Any mismatch in documentation, eligibility, or delivery can come back later with serious financial and legal consequences,' he said. Singh added that a ministry claiming recovery during a company's insolvency proceedings was not routine, but not unprecedented either. Ministries or government departments can and do file claims as operational creditors when subsidies, taxes, or dues are unpaid, he said. Hero Electric is under scrutiny for other potential violations as well. The Serious Fraud Investigation Office (SFIO) is investigating claims that Hero Electric used imported Chinese parts in its vehicles, which violates the FAME schemes' phased manufacturing programme that specifies components EV manufacturers are allowed to import. On 2 December, SFIO searched the offices of Hero Electric, Benling India Energy and Technology Pvt. Ltd, and Okinawa Autotech International Pvt. Ltd following accusations that these companies fraudulently availed subsidies amounting to Rs. 297 crore cumulatively under the FAME 2 scheme, as per a statement from the ministry of corporate affairs. Following this, Hero Electric approached the Delhi High Court for relief but on 20 December the court ruled that the SFIO probe could continue. Days later, Metro Tyres Ltd, an operational creditor of Hero Electric, filed an insolvency plea against the EV two-wheeler maker over unpaid dues of about ₹ 1 crore. As on 28 April, claims worth a little over ₹ 535 crore have been admitted against Hero Electric, as per information provided by the Insolvency and Bankruptcy Board of India. IBBI filings show that about ₹ 177 crore worth of claims were contingent, and claims worth ₹ 329 crore were not admitted. The Hero Electric insolvency case is currently in the claim evaluation stage, IBBI filings show. Hero Electric's resolution professional will receive expressions of interest in the insolvency resolution till 12 June and a list of prospective resolution applicants will be published on 7 July. The last date for submission of resolution plans is 11 August.
