Section 216 — Investigation of ownership of company

(1) Where it appears to the Central Government that
there is a reason so to do, it may appoint one or more inspectors to investigate and report on matters relating
to the company, and its membership for the purpose of determining the true persons—
(a) who are or have been financially interested in the success or failure, whether real or apparent,
of the company; or
(b) who are or have been able to control or to materially influence the policy of the 1[company;
or].
2[(c) who have or had beneficial interest in shares of a company or who are or have been beneficial
owners or significant beneficial owner of a company].
(2) Without prejudice to its powers under sub-section (1), the Central Government shall appoint one or
more inspectors under that sub-section, if the Tribunal, in the course of any proceeding before it, directs by
an order that the affairs of the company ought to be investigated as regards the membership of the company
and other matters relating to the company, for the purposes specified in sub-section (1).
(3) While appointing an inspector under sub-section (1), the Central Government may define the scope
of the investigation, whether as respects the matters or the period to which it is to extend or otherwise, and
in particular, may limit the investigation to matters connected with particular shares or debentures.
(4) Subject to the terms of appointment of an inspector, his powers shall extend to the investigation of
any circumstances suggesting the existence of any arrangement or understanding which, though not legally
binding, is or was observed or is likely to be observed in practice and which is relevant for the purposes of
his investigation.

1. Subs. by Act 1 of 2018, s. 71, for “company” (w.e.f. 13-6-2018).
2. Ins. by s. 71, ibid. (w.e.f. 13-6-2018).