The new corporate detective: Forensics and the future of corporate accountability in India

Once associated mainly with criminal investigations, the word "forensics" has found a new home in India's corporate corridors.

- PANKAJ CHHUTTANI

Over the past decade, corporate forensics—a fusion of accounting, analytics, and investigative tech niques—has emerged as a powerful tool to strengthen governance and transparency.

No longer a post-crisis reaction, forensic auditing is now seen as a proactive shield against corporate malpractice, helping companies detect financial irregularities, conflicts of interest, and data manipulation before they spiral into scandals.

The Companies Act, 2013 marked a turning point in India’s approach to corporate oversight. Its provisions, especially Sections 206 to 212, empower the Registrar of Companies (RoC) and the Serious Fraud Investigation Office (SFIO) to probe suspicious activities, order inspections, and initiate forensic audits in cases of suspected fraud, mismanagement, or financial misreporting.

Meanwhile, Section 447 offers a comprehensive definition of “fraud,” encompassing any act of deception, concealment, or abuse of position for unlawful gain. This broad definition gives regulators and auditors the authority to investigate a wide range of corporate offenses—financial, operational, or governance-related.

The SFIO, with its expanding expertise, has become India’s central agency for corporate forensic investigations. It works in coordination with other regulatory bodies to ensure that complex corporate frauds do not go undetected or unpunished.