Updated: Wed, 7 Nov 2012

SFIO’s SpeakAsia probe hits legal hurdle

Mon Oct 01 2012, 

The Serious Fraud Investigation Office’s probe into the alleged scam at multi-level online marketing entity SpeakAsia has hit a legal hurdle on whether the agency has powers to investigate a company registered outside India.

SFIO is now awaiting advice from the corporate affairs and law ministries.
Officials close to the development said the SFIO has sought clarification on whether it has the powers to probe irregularities of a company, which is registered in Singapore, but has operations in India as well.
The agency is awaiting clarity before proceeding further on the case, they added.
In the wake of an alleged scam at SpeakAsia, which came to light early last year, the Ministry of Corporate Affairs (MCA) had ordered an SFIO investigation into the issue.
SFIO, under the MCA, was set up for investigations into corporate frauds under the provisions of the Companies Act 1956.
SpeakAsia is not registered as a company in India as it is not a permanent establishment here. The members, who register with SpeakAsia after paying an annual fee, are required to conduct online surveys for various clients