Chapter XIV - Inspection, Inquiry and Investigation
Section 208
Section 208: report on inspection made
After an inspection of books of account or an inquiry under section 206, and an inspection of books and papers under section 207, the Registrar or inspector must submit a written report to the Central Government.
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This article is for general information. Refer to the Companies Act, 2013 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The Registrar or inspector shall, after the inspection of the books of account or an inquiry under section 206 and other books and papers of the company under section 207, submit a report in writing to the Central Government along with such documents, if any, and such report may, if necessary, include a recommendation that further investigation into the affairs of the company is necessary giving his reasons in support.
Introduction
The report may attach documents and may, if necessary, recommend that a further investigation into the company’s affairs is necessary, giving reasons. A section 208 report is one of the grounds on which the Central Government may order an investigation under section 210(1)(a) or assign one to the Serious Fraud Investigation Office under section 212(1)(a).
Section 208 commenced on 1 April 2014 under S.O. 902(E); the India Code consolidated text shows no amendment.
Key takeaways
Written report
The Registrar or inspector reports in writing to the Central Government, with documents if any.
Possible recommendation
The report may recommend further investigation, with reasons in support.
Gateway to investigation
Sections 210 and 212 both treat a section 208 report as a ground for ordering an investigation.
What the report contains
The report is submitted in writing to the Central Government along with such documents, if any, as the Registrar or inspector considers relevant. If necessary, it includes a recommendation that further investigation into the affairs of the company is necessary, with reasons.
How the report leads to investigation
A recommendation does not itself start an investigation. Under section 210(1)(a), the Central Government may order an investigation on receipt of the report if it is of the opinion that one is necessary. Under section 212(1)(a), it may instead assign the investigation to the Serious Fraud Investigation Office.
Practical preparation
Keep a full record of what was produced and said during the inspection or inquiry; correct any factual misunderstanding in writing while the inspection is in progress; track any later order under section 210 or section 212.
Practical checklist
Do
- Answer every point raised during the inspection, so that the report reflects the company’s explanation.
- Keep copies of all papers given to the Registrar or inspector.
Avoid
- Do not assume an inspection ends without consequences; the report may recommend investigation.
Illustrative example
Hypothetical: inspection report recommends investigation
An inspector finds unexplained transfers to entities linked to a director and reports under section 208.
Report
The written report attaches the bank statements and recommends further investigation, giving reasons.
Government
The Central Government considers whether an investigation is necessary.
Order
It may order an investigation under section 210 or assign it to the SFIO under section 212.
Outcome
- The company’s explanations given during the inspection form part of the record on which the Government acts.
Glossary
- Investigation
- A formal examination of a company’s affairs ordered by the Central Government under section 210 or assigned to the SFIO under section 212.
- Recommendation
- The Registrar’s or inspector’s reasoned view, in the report, that further investigation is necessary.
Frequently asked questions
Does the company get a copy of the report?
Section 208 only requires the report to be submitted to the Central Government. It does not itself provide for a copy to the company.
Does a recommendation automatically start an investigation?
No. The Central Government decides whether an investigation is necessary under section 210, or whether to assign it to the SFIO under section 212.
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Contact BizeneedLast updated 11 October 2026