Ministry of Corporate Affairs is looking forward to rework the investigation mechanism for companies, including a shift to a committee-driven approach, to deal with allegations of officers arm-twisting companies, promoters or indulging in corruption. Following the arrest of BK Bansal, director general, on alleged corruption charges, the changes are being discussed in the ministry.
"There is a need to rework the system... we are discussing various options," a source said. A committee-led approach is expected to reduce discretion in interpretation of provisions of the Companies Act and also help protect officers from charges. The ministry currently orders probe against companies or their directors based on complaints that it receives. The number of cases has increased in the past few months after a brief period when the ministry was going slow on probes, which was attributed to slackness in the system.
However, sources pointed out that in the coming months there was an increase in number of cases being referred to SFIO, something that was flagged at the highest level in the government. Even in case of Bansal, who was dealing with a case of a pharma company, CBI has accused him of trying to prevent the case being referred to SFIO.
