16. (1) Where the Authority has a reasonable ground to believe that—
(a) the activities of the pension fund are being conducted in a manner detrimental
to the interest of the subscriber; or
(b) any intermediary or any person associated with the schemes of the pension
fund has violated any of the provisions of this Act or the rules or the regulations made
or directions issued by the Authority thereunder,
it may, at any time, by order in writing, direct any person (hereafter in this section referred to
as the Investigating Authority) specified in the order to investigate the affairs of such
intermediary or persons associated with the pension fund and to report thereon to the
Authority.
(2) Without prejudice to the provisions contained in sections 235 to 241 of the Companies
Act, 1956, it shall be the duty of every manager, managing director, officer and other employee
of the company, in case of a company and every intermediary or persons or entity referred to
in section 27 or every person associated with the pension fund to preserve and to produce
to the Investigating Authority or any person authorised by him in this behalf, all the books,
registers, other documents and record of, or relating to, the company or, as the case may be,
of or relating to, the intermediary or such person, which are in their custody or power.
(3) The Investigating Authority may require any intermediary or any person or entity
associated with the pension fund in any manner to furnish such information to, or produce
such books, or other documents, or record before him or any person authorised by him in
this behalf as he may consider necessary if the furnishing of such information or the production
of such books, or register, or other documents, or record is relevant or necessary for the
purposes of its investigation.
(4) The Investigating Authority may keep in its custody any books, registers, other
documents and record produced under sub-section (2) or sub-section (3) for six months and
thereafter shall return the same to any intermediary or any person associated or entity with
the pension fund by whom or on whose behalf the books, registers, other documents and
record are produced:
Provided that the Investigating Authority may call for any book, register, other
documents and record if they are required again:
Provided further that if the person on whose behalf the books, registers, other
documents and record are produced requires certified copies of the books, registers,
other documents or record produced before the Investigating Authority, it shall give
certified copies of such books, registers, other documents or, as the case may be, record to
such person or on whose behalf the books, registers, other documents and record were
produced. (5) Any person, directed to make an investigation under sub-section (1), may examine
on oath any intermediary or any person associated with the pension fund in any manner, in
relation to the affairs of his business and may administer an oath accordingly and for that
purpose may require any of those persons to appear before him personally.
(6) Notes of any examination under sub-section (5) shall be taken down in writing and
shall be read over to, or by, and signed by, the person examined, and may thereafter be used
in evidence against him.
(7) If any person fails without reasonable cause or refuses—
(a) to produce to an Investigating Authority or any person authorised by him in
this behalf any book, register, other document or record which it is his duty under subsection
(2) or sub-section (3) to furnish; or
(b) to furnish any information which it is his duty under sub-section (3) to
furnish; or
(c) to appear before the Investigating Authority personally when required to do
so under sub-section (5) or to answer any question which is put to him by the
Investigating Authority in pursuance of that sub-section; or
(d) to sign the notes of any examination referred to in sub-section (6),
he shall be punishable with imprisonment for a term which may extend to one year, or with
fine, which may extend to twenty-five crore rupees, or with both, and also with a further fine
which may extend to ten lakh rupees for every day after the first day during which the failure
or refusal continues.