The Central Government notified the Rules relating to arrest of persons in connection with investigation under the Companies Act, 2013.
The Notification released on Thursday stated that the Director, Additional Director or Assistant Director of the Serious Fraud Investigation Office (SFIO) can arrest a person during the course of investigation, where he has a reason to believe that any person has been guilty of any offence punishable under section 212 of the Act.
Under the Companies (Arrests in connection with Investigation by Serious Fraud Investigation Office) Rules, 2017 Additional Director or Assistant Director can make an arrests with the prior approval of the Director SFIO, who is the competent authority for all decisions pertaining to arrest.
Where an arrest of a person is to be made in connection with a Government company or a foreign company under investigation, such arrests shall be made with prior written approval of the Central Government subject to a condition that an intimation of such arrest shall also be given to the Managing Director or the person-in-charge of the affairs of the Government Company, the notification said.
The Form for Arrests Order, Personal search Memo etc., has been notified along with the Rules.
Read the full text of the Notification below.
