The government is in the process of developing an early warning system to identify cases of fraud or potential fraud at the earliest

The government, on Monday, said a probe had been ordered to look into complaints of financial fraud against 154 companies, including those connected with Saradha Group.

“Complaints have been received against 154 companies/organisations during the last three years,” Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha, adding that scrutiny of the balance sheets and other documents in these cases had been ordered.

As per the list provided by the minister, complaints of financial fraud have been received against 10 Saradha Group entities, including Saradha Realty, Saradha Agro Development, Saradha Exports and Saradha Garden Resorts & Hotel. The list also includes names of 14 entities related to Rose Valley Group, including Rose Valley Industries, Rose Valley Marketing and Rose Valley Hotels and Entertainment. Vaishnavi Corporate Communication, Speak Asia, Reebok India, Alchemist Infra are other companies against whom complaints have been received.

The ministry was in the process of developing an early warning system to identify cases of fraud or potential fraud at the earliest, he said. The pilot testing of the system was expected to be completed during the current fiscal, he added.

SFIO probe

On action against companies indulging in ponzi schemes, Mr. Pilot informed the House that the Serious Fraud Investigation Office (SFIO) was probing 67 such companies.

“As and when the investigation is completed, Government orders prosecution in respect of violations of the provisions of the Companies Act, 1956 and Indian Penal Code, 1860,” the minister said. Parliament was also informed that the government, at present, was not considering any proposal to legalise lobbying by companies.

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