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India · EOW and SFIO

EOW and SFIO Investigations: Defence for Companies and Directors

Economic Offences Wing complaints and FIRs, Serious Fraud Investigation Office investigations under the Companies Act, summons and examination on oath, arrest and bail, and quashing petitions through counsel.

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Overview

Economic offence cases are accounting cases first.

The Economic Offences Wing is a unit of the state police. It registers FIRs for cheating, criminal breach of trust and conspiracy, now under the Bharatiya Nyaya Sanhita, 2023, and investigates them under the Bharatiya Nagarik Suraksha Sanhita, 2023. The Serious Fraud Investigation Office investigates companies when the Central Government orders it under section 212 of the Companies Act, 2013, with its own power of arrest and strict bail conditions for fraud under section 447. In both, the defence rests on the accounts and the paper trail.

◆Directors, promoters and finance heads named in an EOW complaint or FIR
◆Companies whose affairs are under SFIO investigation, and their auditors and officers summoned under section 217
◆Investors, lenders and partners who want to file a complaint supported by a proper forensic report
◆Accused persons whose advocate needs the transactions reconstructed for anticipatory bail or quashing
What’s Included

The forensic and documentary side of the defence.

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Transaction reconstruction

A reconciliation of every transaction in the complaint against bank records, books and agreements, showing where the complainant’s account is incomplete or wrong.

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Responses to the investigator

Replies to notices and questionnaires from the EOW or the SFIO, with documents indexed and explained.

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Preparation for examination

Preparation for examination on oath under section 217 of the Companies Act and for questioning by the police.

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Civil or criminal?

An analysis showing whether the dispute is in substance a commercial one, which supports a quashing petition drafted by counsel.

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Forensic reports for complainants

Where you are the victim, a forensic report that sets out the loss and the money trail in a form the police and the court can use.

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Company law compliance

A review of filings, related-party approvals and board records, which the SFIO examines first.

How We Work

How we approach an investigation.

01

Read the case

The complaint or FIR, the sections invoked and the documents relied on.

02

Rebuild the record

Bank statements, books, agreements and approvals, transaction by transaction.

03

Respond consistently

One version of the facts across the investigator, the court and any civil forum.

04

Support counsel

A financial brief for anticipatory bail, bail or quashing.

Why LexVerge

We read the transactions the way the investigator will.

Economic Offences WingBNS Section 316BNS Section 318BNSS Section 482BNSS Section 528SFIOCompanies Act Section 212Section 217Section 447

Many economic offence complaints are commercial disputes given a criminal colour. The accounts usually show it.

Related Services

Related practice areas.

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Enforcement Directorate

PMLA and FEMA proceedings: summons, attachment, adjudication, bail.

Explore →◆

NCLT and IBC

Insolvency petitions, oppression and mismanagement, NCLAT appeals.

Explore →◆

Regulatory Defence

ED, SFIO, EOW, SEBI, FEMA and NCLT matters under one team.

Explore →◆

SEBI Proceedings

Show cause notices, adjudication, settlement and SAT appeals.

Explore →
FAQ

EOW and SFIO, answered.

What is the Economic Offences Wing?
It is a specialised unit of a state police force that investigates financial crimes such as cheating, criminal breach of trust, investment frauds and bank frauds. It works under the ordinary criminal law: offences are now defined in the Bharatiya Nyaya Sanhita, 2023 and investigated under the Bharatiya Nagarik Suraksha Sanhita, 2023, which replaced the IPC and the CrPC from 1 July 2024.
What is the SFIO and when does it investigate?
The Serious Fraud Investigation Office is a multi-disciplinary agency under the Ministry of Corporate Affairs. It investigates a company only when the Central Government assigns the case under section 212 of the Companies Act, 2013, for example on a Registrar’s report, a request from the company, or in the public interest. Once the SFIO takes up a case, no other agency investigates the same offence under the Companies Act.
Can the SFIO arrest a director?
Yes. Under section 212(8) the Director, an Additional Director or an Assistant Director of the SFIO may arrest a person if, on the material in their possession, they have reason to believe the person is guilty of an offence punishable under the specified sections, including fraud under section 447. The reasons must be recorded in writing, the grounds communicated, and the person produced before a court within 24 hours.
Why is bail harder in an SFIO case?
Section 212(6) applies twin conditions to an accused of fraud under section 447: if the prosecutor opposes bail, the court must be satisfied that there are reasonable grounds to believe the accused is not guilty and is not likely to commit an offence on bail. The conditions do not apply to some accused, such as women and the sick or infirm, or where the fraud is below Rs 10 lakh or 1% of turnover, whichever is lower, and does not involve public interest.
What is the punishment for fraud under section 447 of the Companies Act?
Imprisonment of six months to ten years and a fine of at least the amount involved, up to three times that amount. Where public interest is involved the minimum term is three years. Smaller frauds, below Rs 10 lakh or 1% of turnover, whichever is lower, that do not involve public interest carry up to five years, a fine up to Rs 50 lakh, or both.
Can an EOW case be quashed?
The High Court can quash an FIR or proceedings under its inherent powers, now preserved in section 528 of the BNSS, where the allegations do not disclose an offence, where the dispute is essentially civil, or where the proceedings are an abuse of process. A quashing petition is filed by an advocate; the strength of the petition usually depends on the documents showing what the transaction really was.
Do I need anticipatory bail if I receive an EOW notice?
Not always. For offences punishable with up to seven years, the police can issue a notice of appearance under section 35(3) of the BNSS instead of arresting, and a person who complies is not ordinarily arrested. Where arrest is a real risk, anticipatory bail can be sought under section 482 of the BNSS from the Sessions Court or the High Court, through an advocate.
In detail

EOW and SFIO: the law, the stages and how they differ from the ED

EOW, SFIO and ED compared

EOWSFIOEnforcement Directorate
Who they areState police unitAgency of the Ministry of Corporate AffairsCentral agency under the Ministry of Finance
How a case startsComplaint, then an FIRCentral Government order under section 212ECIR on a scheduled offence
Main lawBNS and BNSS (earlier IPC and CrPC)Companies Act, 2013PMLA and FEMA
Typical offencesCheating, criminal breach of trust, conspiracy, forgeryFraud under section 447, false statements, false evidenceMoney laundering; foreign exchange contraventions
ArrestUnder the BNSS; notice of appearance for offences up to 7 yearsSection 212(8), with reasons in writingPMLA section 19, with grounds in writing
BailOrdinary bail lawTwin conditions in section 212(6) for section 447Twin conditions in PMLA section 45

The new criminal codes

Offences committed from 1 July 2024 are charged under the Bharatiya Nyaya Sanhita, 2023 and investigated under the Bharatiya Nagarik Suraksha Sanhita, 2023. Older matters continue under the IPC and the CrPC. The provisions that come up most in economic offence cases:

SubjectOld law (IPC / CrPC)New law (BNS / BNSS)
CheatingSection 420Section 318
Criminal breach of trustSection 406 and 409Section 316
Criminal conspiracySection 120BSection 61
Anticipatory bailCrPC section 438BNSS section 482
Notice of appearance instead of arrestCrPC section 41ABNSS section 35(3)
High Court’s inherent powers (quashing)CrPC section 482BNSS section 528

An SFIO investigation, step by step

  1. The Central Government assigns the investigation under section 212(1) and the SFIO appoints investigating officers.
  2. Officers call for documents and examine directors, officers, auditors and others on oath under section 217. Statements are recorded and signed.
  3. Where the material justifies it, the SFIO may arrest under section 212(8), recording its reasons.
  4. The SFIO submits its report to the Central Government under section 212(12), and prosecution follows in the Special Court on the government’s direction.
  5. Parallel action by the Registrar, the ED or the income tax department often follows the report.

What helps most

  • A complete set of board minutes, related-party approvals and filings, before the investigator asks
  • A reconciliation of every fund flow the complaint or the order mentions
  • A clear account of who decided each transaction, which matters for directors who were not involved
  • Consistency: the same facts in the reply to the investigator, the civil suit and the bail application

Who does what

Anticipatory bail, bail, quashing and trial are handled by advocates in the Sessions Court, the Special Court and the High Court. LexVerge prepares the financial analysis, the replies to the investigator and the documentary record, and works alongside the client’s counsel. Chartered accountants can represent parties before the NCLT in related company law proceedings.

Prepared by the LexVerge editorial team and reviewed by Vijay Dhawan, Managing Partner, on 11 October 2026. Facts checked against the Acts, rules, regulations and judgments cited on this page on 11 October 2026. General information, not legal advice: deadlines run from the date of your notice or order, so confirm them for your matter.

Further reading

Guides from the practice

Regulatory DefenceSFIO Summons Under Section 217: What Directors, Officers and Auditors Should Do

What section 217 of the Companies Act requires of people called by the SFIO, how notes of examination are used, and how to prepare.

Read the guide →Regulatory DefenceED Summons Under Section 50 of the PMLA: What to Do

What a section 50 PMLA summons requires, how statements are used, the consequences of not attending, and how to prepare for the first appearance.

Read the guide →Choosing an AdviserTax Litigators in India: CA, Advocate or Both? Forums, Deadlines and How to Choose

Who can represent you at each stage of an income-tax or GST dispute, the deadlines and pre-deposits at every forum, and eight checks for choosing t...

Read the guide →
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