Investigation into affairs of company (Section 210 of the Companies Act, 2013) :

Section 210 of the Companies Act, 2013 provides for Investigation into affairs of company. According to this section:

(i) Investigation in the opinion of Central Government: Where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company, —

(a) on the receipt of a report of the Registrar or inspector under section 208;

(b) on intimation of a special resolution passed by a company that the affairs of the company ought to be investigated; or

(c) in public interest,

it may order an investigation into the affairs of the company. [Sub-section (1)]

(ii) Investigation on the order by a court or the Tribunal: Where an order is passed by a court or the Tribunal in any proceedings before it that the affairs of a company ought to be investigated, the Central Government shall order an investigation into the affairs of that company [Sub-section (2)].

(iii) Appointment of inspectors: For the purposes of this section, the Central Government may appoint one or more persons as inspectors to investigate into the affairs of the company and to report thereon in such manner as the Central Government may direct [Sub-section (3)].

According to the Companies (Inspection, investigation and inquiry) Rules, 2014:

(i) The Central Government may before appointing an inspector under sub-section (3) of Section 210, require the applicant to give a security not exceeding 25,000 rupees for payment of the costs and expenses of investigation as per the criteria given in the said rule.

(ii) Further, the above referred security shall be refunded to the applicant if the investigation results in prosecution.