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SFIO Looks At 11 Companies Involved In BoB Forex Scam

Bank of BarodaThe Bank of Baroda forex scam that took place at the Ashok Vihar Branch in New Delhi posed serious questions for Indian authorities as over 6,000 crore rupees in forex transactions were remitted to a number of different accounts located in Hong Kong and the Middle East.

The forex scam was unearthed after a routine internal audit exposed a number of high valued forex transactions taking place on a regular basis. The Central Bureau of Investigation and the Enforcement Directorate launched an investigation and had pulled in senior executives of the Ashok Vihar Branch for questioning.

The authorities also tried to go after the beneficiaries located in Hong Kong and the Middle East but found it difficult due to the strict banking and confidential laws that prevail in these countries. The Department of Financial Services also decided to launch a forensic probe into these financial transactions to get to the heart of the matter.

India has launched a crackdown on all black money transactions and is in the process of implementing a number of strict financial laws that will seek to prevent incidents like this. The government has also ordered the Serious Fraud Investigation Office (SFIO) take a closer look at the companies who were beneficiaries of these fraudulent forex transactions.

The SFIO confirmed is looking into 11 companies that are suspected to have ties to the fraudulent forex transactions. Some of the companies that the SFIO will investigate include Msquare Prudent Multitrade Pvt Ltd, Dabang Marketing and Trading, Peacock Overseas Pvt Ltd, Laksh Rubber India Pvt Ltd, Acoustic Trading India Pvt Ltd and Sun Air Solutions Pvt Ltd.

In a statement, Arun Jaitley, Corporate Affairs Minister today said

Based on preliminary scrutiny, the Ministry has ordered investigation under Section 212(1)(c) of the Companies Act, 2013 into the affairs of 11 companies which are allegedly involved in suspicious foreign exchange transactions.

The SFIO is a specialist division that is governed by the Ministry of Corporate Affairs and investigates companies that are suspected of violating Section 212 of the Companies Act. The SFIO has received criticism in the past as the SFIO has so far investigated an average of 14 cases per year during the last 12 years. Government authorities want the SFIO to expedite the investigation into the Bank of Baroda forex scam and be pro-active.