The provisions relating to inspection, inquiry and investigation are contained in Chapter XIV of the Companies Act, 2013 and these have been discussed under Sections 206 to 229 of the said Act.
Power of the Registrar to call for information, explanation or documents are contained in section 206(1) of the Companies Act, 2013, where on a scrutiny of any document filed by a company or on any information received by him, the Registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company to furnish in writing such information or explanation; or to produce such documents, within such reasonable time, as may be specified in the notice.
Provisions contained in Section 206(4) of the Companies Act, 2013 contain the basis of conducting Inquiry by the Registrar. Inquiry may be conducted, if the Registrar is satisfied on the basis of information available with or furnished to him or on a representation made to him by any person that the business of a company is being carried on for a fraudulent or unlawful purpose or not in compliance of provisions of this Act or if the grievances of investors are not being addressed.
The Central Government may, if it is satisfied that the circumstances so warrant, direct the Registrar or an inspector appointed by it for the purpose to carry out the inquiry under this sub-section.
Section 206(5) & (6) of the Companies Act, 2013 contain the provisions relating to inspection. The Central Government may, having regard to the circumstances by general or special order, authorise any statutory authority to carry out inspection of books of account of a company or class of companies.
The provisions relating to investigation are contained in section 210 to 229 of the Companies Act, 2013 as per these provisions the Central Government may order an investigation where it is of the opinion that it is necessary to investigate into the affairs of a company on the receipt of a report of the Registrar or Inspector under section 208, on intimation of a special resolution passed by a company that its affairs ought to be investigated or in public interest. The Central Government shall also order an investigation into the affairs of a company where an order to the affect has been passed by a Court or the Tribunal (presently Company Law Board). The Central Government may, by an order, assign an investigation to Serious Fraud Investigation Office (SFIO).