National Company Law Appellate Tribunal ruled that the National Company Law Tribunal cannot directly order an investigation by the Serious Fraud Investigation Office and clarified that such powers rest with the Central Government.

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• NCLAT ruled that NCLT cannot directly order an SFIO investigation.
• Tribunal said power to order SFIO probe lies with the Central Government.
• Matter was referred to the Ministry of Corporate Affairs for further action.
• Investigation can now proceed through inspectors as per Companies Act provisions.
• NCLAT modified an earlier NCLT order while partly allowing the appeal.
• Tribunal referred to legal provisions under Sections 212 and 213 of Companies Act.
• Order clarified that statutory procedure must be followed before SFIO involvement.
• NCLAT relied on earlier judgments regarding limits of NCLT’s powers.
• Tribunal upheld findings related to alleged fraudulent financial transactions.
• Company investments reportedly continued appearing in balance sheets despite alleged sale.
• Tribunal observed that creditors may have been misled through financial disclosures.
• Suspended directors allegedly failed to explain transfer of sale proceeds properly.
• NCLAT also noted lack of cooperation during insolvency resolution proceedings.
• Ruling reinforces distinction between tribunal powers and Central Government authority.