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Section 214 of the Companies Act 2013: Security for Payment of Costs and Expenses of Investigation

SECTION-214 (Security for payment of costs and expenses of investigation) under CHAPTER-XIV (Inspection, Inquiry and Investigation) of the Companies Act, 2013

Where an investigation is ordered by the Central Government in pursuance of clause (b) of sub-section (1) of section 210, or in pursuance of an order made by the Tribunal under section 213, the Central Government may before appointing an inspector under sub-section (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees as may be prescribed, as it may think fit, for payment of the costs and expenses of the investigation and such security shall be refunded to the applicant if the investigation results in prosecution.

Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 214 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April, 2014) - link

(3) Relevant rules of the Companies (Inspection, Investigation and Inquiry) Rules, 2014 (w.e.f. 1st April, 2014) - link
  • Rule 5 - Security
[Also check amendments, if any, to the Companies (Inspection, Investigation and Inquiry) Rules, 2014]

This page was last updated on 29th April, 2017.

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