Lok Sabha Question No. 93 (UNSTARRED), answered on 2025-07-21
Subject: Companies under Investigation of SFIO in Andhra Pradesh
Ministry: CORPORATE AFFAIRS
Asked by: Shri B K Parthasarathi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UNSTARRED QUESTION NO. 93 ANSWERED ON Monday, July 21, 2025

Companies under Investigation of SFIO in Andhra Pradesh

93. Shri B K Parthasarathi:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

(a) the details of companies based in Andhra Pradesh under investigation of the Serious Fraud Investigation Office (SFIO) since 2020, year-wise; (b) the nature of frauds being investigated and the sectors involved along with  the  current  status  of  each  investigation -pending,  completed  or charge sheet filed; (c)  whether  SFIO  has  filed  prosecutions  in  any  Andhra  Pradesh -related cases before NCLT/NCLAT or other courts during the last five years; and (d) if so, the status of the investigation of these cases and the steps being taken  to  ensure  dedicated  benches  in  NCLT  or  fast-track  courts  for

- corporate fraud?

## ANSWER

Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

(a): The details of companies based in Andhra Pradesh under investigation of the Serious Fraud Investigation Office (SFIO) since 2020, year-wise is as under: -

| Financial Year                                                    | 2020- 21   | 2021- 22   |   2022- 23 | 2023- 24   | 2024-25   |   2025-26 (till 30.06.2025) |
|-------------------------------------------------------------------|------------|------------|------------|------------|-----------|-----------------------------|
| No. of Companies based in Andhra Pradesh under SFIO Investigation | Nil        | Nil        |         01 | Nil        | Nil       |                          10 |

(b): The nature of frauds being investigated and the sectors involved along with the current status are as follows:

| Sector                         |   Number of Companies under Investigation | Nature of Fraud being investigated              | Current Status   |
|--------------------------------|-------------------------------------------|-------------------------------------------------|------------------|
| Construction/ Real Estate      |                                         2 | Diversion & Siphoning                           | Pending          |
| Agriculture Producer Companies |                                         2 | Diversion & Siphoning                           | Pending          |
| Manufacture of Food            |                                         1 | Diversion & Siphoning                           | Pending          |
| Metals                         |                                         2 | Diversion & Siphoning                           | Pending          |
| Others/ Miscellaneous          |                                         3 | Diversion & Siphoning                           | Pending          |
|                                |                                         1 | Racket of Paper Companies with dummy directors. | Completed        |

(c)& (d) :Prosecutions by the SFIO are required to be filed before Special Court constituted under Section 435 of the Companies Act, 2013. During the  last  five  years  no  prosecution  has  been  filed  against  any  company having  jurisdiction  in  the  state  of  Andhra  Pradesh.  Further,  no  petition, application  or  reference  has  been  filed  before  the  NCLT/NCLAT  against any company having jurisdiction in the state of Andhra Pradesh therefore, there is no need to constitute any dedicated bench for the NCLT or any additional Special Court for corporate fraud.

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