The Role Of Sfio In Combating Corporate Frauds In India: A Critical Analysis - With Brief Insights Into Green-Washing Practices

Abstract

Corporate fraud in India has emerged as serious economic and governance challenge. These frauds, often executed by sophisticated actors in leadership positions, have compromised transparency, shaken investor confidence, and tarnished country’s global image. The emergence of the large-scale scandals like Satyam Computers scam (2009), Punjab National Bank fraud (2018), and ABG Shipyard case demonstrate clear need for stronger oversight. In response to such failures, Indian legislature brought Serious Fraud Investigation Office (SFIO) into statutory existence under Companies Act, 2013. This research critically analyses statutory powers, functioning, and systemic limitations of the SFIO. The study draws upon statutory provisions, landmark case laws, and empirical evidence to assess whether SFIO has fulfilled its legislative promise. The paper further identifies lacunae in enforcement and recommends structural reforms to improve India’s corporate fraud enforcement architecture. It also briefly highlights emerging forms of corporate deception such as Green washing, which demand evolving regulatory responses.