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SFIO Arrest Rules G.S.R. 1062(E)

The Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017

Who in the SFIO may arrest under section 212(8) and with whose approval, the arrest order and personal search memo, forwarding of the material to the Director within twenty four hours, the arrest register, and the retention of records.

9 Rules
G.S.R. 1062(E) Notification
24 hours Forward within
5 years Records kept
G.S.R. 1062(E) Enacted 24 August 2017 Enforced 24 August 2017 Ministry of Corporate Affairs As amended upto Principal rules, unamended
Made under

The Companies Act, 2013 Chapter XIV

s. 212 s. 469
10 rules visible
Default readable text
Opening text

Preamble

MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 24th August, 2017
G.S.R. 1062(E).--In exercise of the powers conferred under sub-section (1) of section 469 read with section 212 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules namely:--
Chapter I

Power of Arrest

3 rules
R. 1 Short title and commencement
Open rule
1. Short title and commencement.--
(1) These rules may be called the Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017.
(2) They shall come into force on the date of their publication in the Official Gazette.
R. 2 Power to arrest and competent authority
Open rule
2. (1) Where the Director, Additional Director or Assistant Director of the Serious Fraud Investigation Office (herein after referred to as SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act.) investigating into the affairs of a company other than a Government company or foreign company has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of any offence punishable under section 212 of the Act, he may arrest such person;
Provided that in case of an arrest being made by Additional Director or Assistant Director, the prior written approval of the Director SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. shall be obtained.
(2) The Director SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. shall be the competent authority for all decisions pertaining to arrest.
R. 3 Arrest in a Government company or foreign company
Open rule
3. Where an arrest of a person is to be made in connection with a Government company or a foreign company under investigation, such arrest shall be made with prior written approval of the Central Government.
Provided that the intimation of such arrest shall also be given to the Managing Director or the person in-charge of the affairs of the Government Company and where the person arrested is the Managing Director or person in-charge of the Government Company, to the Secretary of the administrative ministry concerned, by the arresting officer.
Chapter II

Procedure, Records and Application of the Code

7 rules
R. 4 Arrest order and personal search memo
Open rule
4. The Director, Additional Director or Assistant Director, while exercising powers under sub-section (8) of section 212 of the Act, shall sign the arrest order together with personal search memo in the Form appended to these rules and shall serve it on the arrestee and obtain written acknowledgement of service.
R. 5 Forwarding of the arrest order and material
Open rule
5. The Director, Additional Director or Assistant Director shall forward a copy of the arrest order along with the material in his possession and all the other documents including personal search memo to the office of Director, SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. in a sealed envelope with a forwarding letter after signing on each page of these documents, so as to reach the office of the Director, SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. within twenty four hours through the quickest possible means.
R. 6 Arrest register
Open rule
6. An arrest register shall be maintained in the office of Director, SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. and the Director or any officer nominated by Director shall ensure that entries with regard to particulars of the arrestee, date and time of arrest and other relevant information pertaining to the arrest are made in the arrest register in respect of all arrests made by the arresting officers.
R. 7 Entry on receipt of documents
Open rule
7. The entry regarding arrest of the person and information given to such person shall be made in the arrest register immediately on receipt of the documents as specified under rule 5 in the arrest register maintained by the SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. office.
R. 8 Preservation of records
Open rule
8. The office of Director, SFIOUsed in rule 2(1) for the Serious Fraud Investigation Office established under section 211 of the Act. shall preserve the copy of arrest order together with supporting materials for a period of five years
(a) from the date of judgment or final order of the Trial Court, in cases where the said judgment has not been impugned in the appellate court; or
(b) from the date of disposal of the matter before the final appellate court, in cases where the said judgment or final order has been impugned, whichever is later.
R. 9 Application of the Code of Criminal Procedure
Open rule
9. The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to arrest shall be applied mutatis mutandis to every arrest made under this Act.
Form Arrest order form
Open rule
FORM
ARREST ORDER
(see rule 4 and 5 of the Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017)
Whereas, I ............ Director/Additional Director/Assistant Director authorised in this behalf by the Central Government, have reason to believe that ............ [name of the person arrested] resident of ............ has been guilty of an offence punishable under the provisions of the Companies Act, 2013 (18 of 2013).
Now, THEREFORE, in exercise of the powers conferred on me under section 212 of the Companies Act, 2013 (18 of 2013), I hereby arrest the said ............ [name of the person arrested].