# NCLAT upholds SFIO power to seek asset disgorgement in IL and FS case 2026-08-25T19:58:05+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals by audit firm BSR and Associates LLP and its former partner N Sampath Ganesh, upholding the authority of the Serious Fraud Investigation Office (SFIO) to seek disgorgement of assets in a case linked to IL and FS Securities Services Ltd. The tribunal rejected arguments that SFIO could not file such applications as it would create a conflict of roles, terming the contention 'completely baseless.' The appellants had challenged a March 2026 NCLT order, arguing SFIO lacked the power to file for asset attachment under the Companies Act. The NCLAT held that the disgorgement petition was filed in the name of the Union of India, not SFIO, and the decision to proceed was the central government's. SFIO was merely authorised to present the petition, the bench comprising Justice Yogesh Khanna and technical members Barun Mitra and Ajai Das Mehrotra said. The dispute originates from a 2018 government order for an SFIO probe into IL and FS and its subsidiaries. SFIO submitted its report in July 2023, and the Ministry of Corporate Affairs authorised SFIO's Director to pursue proceedings in September 2023. The NCLAT ruling affirms that civil and criminal liability arising from such investigations remains subject to determination by the appropriate court or tribunal. ## Indian Opinion Analysis Both sources provide straight factual reporting of separate court rulings with no discernible slant. The Economic Times piece focuses on the NCLAT's legal reasoning upholding SFIO's powers, while LiveLaw covers the Delhi High Court dismissing a PIL on IFCI's NSE share divestment due to suppression of facts. The common thread is judicial scrutiny of corporate governance cases. The key implication is that courts are reinforcing procedural discipline, whether on SFIO's authority or on PIL litigants' candour. The Delhi High Court imposed Rs 5 lakh costs, a significant deterrent against forum shopping. Note: The two sources cover different cases. Source 1 is the IL and FS matter, Source 2 is the IFCI-NSE divestment PIL. Both are neutral reports of distinct judicial outcomes. ## Coverage Coverage: 2 sources, 2 neutral - legal.economictimes.indiatimes.com (neutral report) Reports the NCLAT ruling and legal arguments without editorial slant - livelaw.in (neutral report) Reports the court order and petitioner's allegations without commentary This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Updated: this story now draws on 2 sources. Last updated 2026-08-26T16:41:38+00:00. Tags: BSR & Associates, IL&FS, Ministry of Corporate Affairs, NCLAT, SFIO Canonical: https://indianopinion.org/nclat-upholds-sfio-power-to-seek-disgorgement-in-ilfs-case/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nclat-upholds-sfio-power-to-seek-disgorgement-in-ilfs-case/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/