Section 217 of Companies Act, 2013

217. Procedure, powers, etc., of inspectors

(1) It shall be the duty of all officers and other employees and agents including

the former officers, employees and agents of a company which is under investigation in

accordance with the provisions contained in this Chapter, and where the affairs of any other

body corporate or a person are investigated under section 219, of all officers and other

employees and agents including former officers, employees and agents of such body corporate

or a person—

(a) to preserve and to produce to an inspector or any person authorised by him

in this behalf all books and papers of, or relating to, the company or, as the case may

be, relating to the other body corporate or the person, which are in their custody or

power; and

(b) otherwise to give to the inspector all assistance in connection with the

investigation which they are reasonably able to give.

(2) The inspector may require any body corporate, other than a body corporate referred

to in sub-section (1), to furnish such information to, or produce such books and papers

before him or any person authorised by him in this behalf as he may consider necessary, if

the furnishing of such information or the production of such books and papers is relevant or

necessary for the purposes of his investigation.

(3) The inspector shall not keep in his custody any books and papers produced under

sub-section (1) or sub-section (2) for more than one hundred and eighty days and return the

same to the company, body corporate, firm or individual by whom or on whose behalf the

books and papers were produced:

Provided that the books and papers may be called for by the inspector if they are needed

again for a further period of one hundred and eighty days by an order in writing.

(4) An inspector may examine on oath—

(a) any of the persons referred to in sub-section (1); and

(b) with the prior approval of the Central Government, any other person,

in relation to the affairs of the company, or other body corporate or person, as the case may

be, and for that purpose may require any of those persons to appear before him personally:

Provided that in case of an investigation under section 212, the prior approval of

Director, Serious Fraud Investigation Office shall be sufficient under clause (b).

(5) Notwithstanding anything contained in any other law for the time being in force or

in any contract to the contrary, the inspector, being an officer of the Central Government,

making an investigation under this Chapter shall have all the powers as are vested in a civil

court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following

matters, namely:—

(a) the discovery and production of books of account and other documents, at

such place and time as may be specified by such person;

(b) summoning and enforcing the attendance of persons and examining them on

oath; and

(c) inspection of any books, registers and other documents of the company at

any place.

(6)               (i) If any director or officer of the company disobeys the direction issued by the

Registrar or the inspector under this section, the director or the officer shall be punishable

with imprisonment which may extend to one year and with fine which shall not be less than

twenty-five thousand rupees but which may extend to one lakh rupees.

(ii) If a director or an officer of the company has been convicted of an offence under

this section, the director or the officer shall, on and from the date on which he is so convicted,

be deemed to have vacated his office as such and on such vacation of office, shall be

disqualified from holding an office in any company.

(7) The notes of any examination under sub-section (4) shall be taken down in writing

and shall be read over to, or by, and signed by, the person examined, and may thereafter be

used in evidence against him.

(8) If any person fails without reasonable cause or refuses—

(a) to produce to an inspector or any person authorised by him in this behalf any

book or paper which is his duty under sub-section (1) or sub-section (2) to produce;

(b) to furnish any information which is his duty under sub-section (2) to furnish;

(c) to appear before the inspector personally when required to do so under subsection

(4) or to answer any question which is put to him by the inspector in pursuance

of that sub-section; or

(d) to sign the notes of any examination referred to in sub-section (7),

he shall be punishable with imprisonment for a term which may extend to six months and with

fine which shall not be less than twenty-five thousand rupees but which may extend to one

lakh rupees, and also with a further fine which may extend to two thousand rupees for every

day after the first during which the failure or refusal continues.

(9) The officers of the Central Government, State Government, police or statutory authority

shall provide assistance to the inspector for the purpose of inspection, inquiry or investigation,

which the inspector may, with the prior approval of the Central Government, require.

(10) The Central Government may enter into an agreement with the Government of a

foreign State for reciprocal arrangements to assist in any inspection, inquiry or investigation

under this Act or under the corresponding law in force in that State and may, by notification,

render the application of this Chapter in relation to a foreign State with which reciprocal

arrangements have been made subject to such modifications, exceptions, conditions and

qualifications as may be deemed expedient for implementing the agreement with that State.

(11) Notwithstanding anything contained in this Act or in the Code of Criminal

Procedure, 1973 if, in the course of an investigation into the affairs of the company, an

application is made to the competent court in India by the inspector stating that evidence is,

or may be, available in a country or place outside India, such court may issue a letter of

request to a court or an authority in such country or place, competent to deal with such

request, to examine orally, or otherwise, any person, supposed to be acquainted with the

facts and circumstances of the case, to record his statement made in the course of such

examination and also to require such person or any other person to produce any document

or thing, which may be in his possession pertaining to the case, and to forward all the

evidence so taken or collected or the authenticated copies thereof or the things so collected

to the court in India which had issued such letter of request:

Provided that the letter of request shall be transmitted in such manner as the Central

Government may specify in this behalf:

Provided further that every statement recorded or document or thing received under

this sub-section shall be deemed to be the evidence collected during the course of

investigation.

(12) Upon receipt of a letter of request from a court or an authority in a country or place

outside India, competent to issue such letter in that country or place for the examination of

any person or production of any document or thing in relation to affairs of a company under

investigation in that country or place, the Central Government may, if it thinks fit, forward

such letter of request to the court concerned, which shall thereupon summon the person

before it and record his statement or cause any document or thing to be produced, or send

the letter to any inspector for investigation, who shall thereupon investigate into the affairs

of company in the same manner as the affairs of a company are investigated under this Act

and the inspector shall submit the report to such court within thirty days or such extended

time as the court may allow for further action:

Provided that the evidence taken or collected under this sub-section or authenticated

copies thereof or the things so collected shall be forwarded by the court, to the Central

Government for transmission, in such manner as the Central Government may deem fit, to the

court or the authority in country or place outside India which had issued the letter of request.

Complete: companies-act-2013