Supreme Court rejects Centre's plea on private complaints in Companies Act fraud cases

The Supreme Court has rejected the Centre's plea seeking to allow private complaints in fraud cases under the Companies Act. The court ruled that special courts cannot take cognisance of complaints filed directly by private parties in such matters.

However, the court permitted the Centre to authorize designated officers to file complaints in these cases, ensuring an additional layer of scrutiny before fraud allegations proceed. The ruling emerged from a case involving former directors of Shreemukh Namitha Homes.