valid as on 24/04/2024

214. Security for payment of costs and expenses of investigation

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 under section 213, the Central Government may before appointing an inspector under subsection (3) of section 210 or clause (b) of section 213, require the applicant to give such security not exceeding twenty-five thousand rupees 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.

 “Tribunal” means the National Company Law Tribunal constituted under section 408
Refer rule 5 of the Companies (Inspection, Investigation and Inquiry) Rules,2014. To view the rule,Click Here

14.1.5-Companies (Inspection, Investigation and Inquiry) Rules,2014

5. Security.—
(1) The Central Government may before appointing an inspector under sub-section (3) of Section 210, require the applicant to give a security not exceeding twenty-five thousand rupees for payment of the costs and expenses of investigation as per the criteria given below—
S.N.     Turnover as per previous year balance sheet (Rs.)            Amount of security (Rs.)
1                   Turnover up to Rs. 50 crore                                                           Rs. 10,000
2                   Turnover more than Rs. 50 crore and up to 200 crore       Rs. 15,000
3                   Turnover more than Rs. 200 crore                                              Rs. 25,000

(2) The security shall be refunded to the applicant if the investigation results in prosecution.


Enforcement Notification S.O. 902(E) dated 26/03/2014


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