UPSC Prelims 2026 Q63: CEIB, SFIO, CBI and Their Ministries — Explained
With reference to the organisations under the Government of India, consider the following details:
| Sl.No. | Organisation | Function | Controlling Union Ministry |
| 1 | Central Economic Intelligence Bureau (CEIB) | To coordinate between various law enforcement agencies | Ministry of Home Affairs |
| 2 | Serious Fraud Investigation Office (SFIO) | To investigate complex corporate frauds | Ministry of Finance |
| 3 | Central Bureau of Investigation (CBI) | To preserve values in public life and ensure the health of the national economy | Ministry of Personnel, Public Grievances and Pension |
In how many of the above rows are the given details correctly matched?
- 1
- 2
- 3
- None
Answer: (a) 1
Statement-wise explanation
- 1: incorrect — The function given is broadly correct. CEIB was set up in 1985 to coordinate and strengthen intelligence gathering and enforcement by the agencies that deal with economic offences. The ministry is wrong. CEIB works under the Department of Revenue, Ministry of Finance, not the Ministry of Home Affairs. It also serves as the secretariat of the Economic Intelligence Council, which the Finance Minister chairs.
- 2: incorrect — The function given is correct: SFIO investigates complex corporate frauds. The ministry is wrong. SFIO works under the Ministry of Corporate Affairs, not the Ministry of Finance. It was set up by a government resolution of 2 July 2003 and became a statutory body under the Companies Act, 2013 (Sections 211–212).
- 3: correct — The CBI describes itself as the premier investigating police agency in India and an elite force with a major role in preserving values in public life and ensuring the health of the national economy. The function in the row repeats this wording. The ministry is also right. The CBI works under the Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions.
How to eliminate
Each row has two parts, the function and the ministry, and both must be right. Here every function is close to correct, so the ministry decides each row. Basic knowledge settles two rows. SFIO comes from the Companies Act, so its parent is the Ministry of Corporate Affairs, which administers that Act. CBI is the agency always linked to DoPT, which is why its Director is appointed under the DSPE Act through the Personnel Ministry. That alone gives 'at least 1', which rules out 'None'. For CEIB, use the 'economic' clue. Economic intelligence on customs, tax, smuggling and COFEPOSA sits in the Department of Revenue, Ministry of Finance, not the Home Ministry. Fact to remember: CEIB → Finance (Revenue), SFIO → Corporate Affairs, CBI → Personnel (DoPT). Watch for the trap of swapping ministries between agencies that are close to each other.
Know more
Central investigating and intelligence agencies and their parent ministries
UPSC often tests agencies by their controlling ministry, because the names suggest the wrong parent.
| Agency | Parent ministry / department | Legal basis | Core role |
|---|---|---|---|
| CBI | DoPT, Ministry of Personnel, PG & Pensions | DSPE Act, 1946 (set up by resolution, 1963) | Corruption, economic and special crimes; India's nodal police agency for Interpol |
| SFIO | Ministry of Corporate Affairs | Companies Act, 2013 (Ss. 211–212) | Complex corporate frauds; prosecutes before courts and moves petitions in the NCLT |
| CEIB | Dept of Revenue, Ministry of Finance | Executive (1985) | Clearing house for economic intelligence; secretariat of the Economic Intelligence Council; COFEPOSA work |
| Enforcement Directorate | Dept of Revenue, Ministry of Finance | PMLA, 2002; FEMA, 1999 | Money laundering, foreign exchange violations |
| DRI | CBIC, Dept of Revenue, Ministry of Finance | Customs Act, 1962 | Smuggling, customs fraud |
| NIA | Ministry of Home Affairs | NIA Act, 2008 | Terror-related offences |
| NCB | Ministry of Home Affairs | NDPS Act, 1985 | Drug law enforcement |
Points to remember
- The CBI is not a statutory body. Its powers come from the DSPE Act, 1946. It needs a State's consent (Section 6 of the Act) to investigate in that State, unless a constitutional court orders it.
- The Economic Intelligence Council, chaired by the Finance Minister, is the apex body for coordinating economic intelligence. CEIB is its secretariat.
- CEIB's economic intelligence wing coordinates information on smuggling, hawala, counterfeit currency, stock-market fraud, money laundering and tax evasion. It also shares intelligence with IB, RAW and the CBI.
- SFIO is multi-disciplinary. It brings together experts in accountancy, law, taxation, capital markets and IT.
NCERT Concepts to Revise
- Serious Fraud Investigation Office: Row 2 depends on knowing which ministry SFIO reports to and its statutory basis under the Companies Act, 2013, Sections 211–212.
- Central Bureau of Investigation: Row 3 tests whether the CBI's self-described role and its controlling department, DoPT under the Personnel Ministry, match the details given.
- Delhi Special Police Establishment Act 1946: The CBI draws its legal powers from this Act, so it helps you place the agency under the right ministry when checking Row 3.