Q3 · UPPSC current affairs · 22 September 2026 · News · Private Complaints on Corporate Fraud under Companies Act

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Consider the following statements regarding the prosecution of corporate fraud under the Companies Act, 2013:1.Offences under the Companies Act, 2013 permit Special Courts to directly take cognizance of private complaints without authorized official intervention.2.Section 435 of the Companies Act, 2013 provides for the establishment of Special Courts for the speedy trial of corporate offences.Which of the statements given above is/are correct?

A 2 only
B 1 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (a) 2 only

Explanation

Statement 1 is incorrect because offences under the Companies Act, 2013 require authorized official complaints for Special Court cognizance, and private complaints cannot be taken directly. Statement 2 is correct as Section 435 establishes Special Courts for speedy trials.

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