The Standing Committee on Finance has urged the government to expedite the filling up of vacancies in Serious Frauds Investigation Office (SFIO) so as to help handle its growing caseload more efficiently and achieve the resolution of pending cases.

In its report tabled in Lok Sabha last week, the Parliamentary Panel  noted that the SFIO faces significant vacancies, with 116 of its 238 sanctioned posts unfilled. Despite efforts to recruit, 43 posts remain for deputation and 27 for direct recruitment, slowing its capacity to handle investigations. 

Additionally, the SFIO has a backlog of cases, with 74 pending as of October 2024, and the average age of pending complaints is alarmingly high at 184 months, indicating delayed resolutions, the Panel report said. 

The Committee noted SFIO has completed more than 20 since its establishment in July 2003. It was accorded statutory status under the Companies Act in 2015, a move necessitated by the major failures of non-banking financial institutions and stock market scams. 

Reduced space in Budget

The Committee observed that over the years, the budgetary allocation for SFIO has seen a gradual increase, with a downward jump in the Budget Estimates (BE) from ₹54.92 crore in 2023-24 to ₹43.01 crore in 2024-25, reflecting the growing responsibilities of the SFIO.

However, the Committee recognised that despite these challenges, the SFIO has achieved 374 successful prosecutions out of 511 disposed complaints, with a conviction rate of 73.2 percent. The Ministry is improving performance through upgrades to the Computer Forensic Data Mining Lab (CFDML),enhancements to the Summon & Notice Management System (SNMS), and the creation of panels for CA firms and legal counsel to assist with investigations.

“Given these circumstances, the Committee strongly recommend that the Ministry expedite the process of filling all vacant posts within SFIO within the current financial year. The Committee feel that the enhancement in budget should be fully utilized towards this goal. Moreover, the Committee urge the Ministry to ensure that by the next financial year, all sanctioned positions in SFIO are filled”, report said. 

The Committee believes that this will enable the SFIO to handle its growing caseload more efficiently and expedite the resolution of pending cases, thus strengthening its role in combating financial fraud and white-collar crimes. The Committee hope that with a fully staffed workforce and upgraded technological infrastructure, the SFIO will be better positioned to meet its growing mandate and deliver timely results in the coming years, according to the report.