Min told parliament: Probe against 110 firms for involvement in fraud activities
Specific details about the investigation were not disclosed. The Minister of State for Corporate Affairs told the Lok Sabha that investigation has been ordered against companies for their involvement in fraudulent activities during the last three years.
As per data provided by him as part of a written reply, the probe was ordered against 110 companies in the last three years. In a separate written reply, the minister said the Serious Fraud Investigation Office (SFIO) has been ordered to probe such companies where they are "allegedly involved in fraudulent activities, including through illegal accounts/ transactions".
The SFIO comes under the Corporate Affairs Ministry. "12 complaints were received by the SFIO against the scam of QNet during the period 2013-14 to 2018-19 (till November 30, 2018) and these were forwarded to the respective Registrar of Companies for necessary action," Chaudhary said in another written reply. QNet is a direct selling firm.
"The ministry had ordered an investigation into the affairs of Goldquest International and Questnet Enterprises India (now known as QNet) and assigned the same to the SFIO on July 28, 2010," the minister said. The report was submitted to the ministry on March 5, 2012.
"On the basis of instructions issued by the ministry, the SFIO has filed prosecution against the companies and its directors and these are pending at various stages in respective courts. The matter is subjudice," Chaudhary said.
(With inputs from agencies.)