Section 220 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 220 gives an inspector a power of entry and seizure. Where he has reasonable grounds to believe that books and papers relevant to an investigation are likely to be destroyed, mutilated, altered, falsified or secreted, he may enter the place where they are kept and seize them. The company has the right to take copies first, and the inspector must eventually return the documents.
The power arises only when the inspector has reasonable grounds to believe that books and papers are likely to be destroyed, mutilated, altered, falsified or secreted. He may enter the premises and seize what he considers necessary after allowing the company to take copies or extracts at its own cost. He keeps the papers no longer than the conclusion of the investigation, and then returns them. The Code of Criminal Procedure, 1973 provisions on search and seizure apply.
When the power can be used
Sub-section (1) applies "where in the course of an investigation under this Chapter" the inspector "has reasonable grounds to believe" that the books and papers "of, or relating to, any company or other body corporate or managing director or manager of such company" are likely to be destroyed, mutilated, altered, falsified or secreted.
There are three conditions to meet.
- An investigation must be under way under Chapter XIV. The power is not a stand-alone search power.
- The inspector must hold a belief that is based on reasonable grounds. A bare suspicion is not enough on the words of the section.
- The risk must be of a specific kind: destruction, mutilation, alteration, falsification or secreting. The aim is to preserve evidence.
Note the reach. The books and papers may belong to the company, to another body corporate, or to the managing director or manager. That matches the wider reach of section 219 on related companies.
What the inspector may do
| Step | What the text says |
|---|---|
| Entry | Enter, "with such assistance as may be required", the place or places where the books and papers are kept, "in such manner as may be required" |
| Seizure | Seize books and papers "as he considers necessary" |
| Precondition to seizure | The company must first be allowed "to take copies of, or extracts from" the books and papers |
| Cost of copies | Borne by the company |
| Purpose | The copies are for "the purposes of his investigation" |
The order matters. The inspector must "allow" the company to take copies before seizing. Because the company bears the cost, a company that expects a seizure should be able to get the copying done promptly, for example by having its own records properly indexed.
The section does not list the assistance the inspector may take. It leaves the nature of the assistance and the manner of entry to what is "required".
If you are facing an entry or seizure during an investigation, getting advice on the day helps you protect your position. Our legal dispute resolution team can explain what the section allows and what it does not.
Custody and return
Sub-section (2) sets the period of custody. The inspector "shall keep in his custody the books and papers seized under this section for such a period not later than the conclusion of the investigation as he considers necessary". After that he "shall" return them to the company, the other body corporate, or "the managing director or the manager or any other person from whose custody or power they were seized".
Two features of this sub-section are easy to miss.
- The period is for the inspector to decide, but it cannot run past the conclusion of the investigation.
- Return is to the person from whom the papers were seized, not necessarily to the company.
The proviso: what he may do before returning
The proviso lets the inspector, before returning the books and papers, "take copies of, or extracts from them or place identification marks on them or any part thereof or deal with the same in such manner as he considers necessary". So returned documents may carry marks, and the inspector may retain copies.
Code of Criminal Procedure applies
Sub-section (3) says that the provisions of the Code of Criminal Procedure, 1973 "relating to searches or seizures shall apply mutatis mutandis to every search or seizure made under this section". In practice this brings in the ordinary procedural safeguards of a search, for example the way in which a search is conducted and recorded. The official text we have relied on still refers to the 1973 Code. That Code has since been replaced by the Bharatiya Nagarik Suraksha Sanhita, 2023, so confirm how the cross-reference is now read before relying on any particular procedural step.
Section 220 and other provisions
Section 220 is for the risk of loss of evidence. Other powers in the chapter cover ordinary production of documents and examination of persons, which are in section 217. If a person destroys or falsifies documents during an investigation, the consequence is punishment as for fraud under section 447, dealt with in section 229 of this series. For a related discussion on an earlier provision of the chapter, see seizure of documents during investigation under section 209.
Proposed change
We checked the Corporate Laws (Amendment) Bill, 2026 for a clause amending section 220 and found none. The Bill is pending and is not law as on 30 September 2026.
Practical examples
Example 1: records about to be removed. During an investigation, the inspector learns that a company's accounting server and file room are about to be cleared. On reasonable grounds he enters, allows the company to copy what it needs, and seizes the originals.
Example 2: papers held by a manager. Relevant papers are in the custody of the company's manager. Section 220 covers books and papers "of, or relating to" the manager, and the return goes back to him after the investigation.
Example 3: marked originals. When the inspector returns the papers after the investigation, some carry identification marks. That is permitted by the proviso to sub-section (2).
Need help when an inspector asks for your books?
If an inspector has entered your premises or told you that records will be seized, prepare the copying and keep a record of what is taken. Our team can guide you through the steps with our legal dispute resolution service.
Key takeaways
- The power needs an investigation under way and reasonable grounds to believe that books and papers are at risk.
- The risk must be destruction, mutilation, alteration, falsification or secreting.
- The company must be allowed to take copies or extracts, at its own cost, before seizure.
- Custody lasts no longer than the conclusion of the investigation, and the papers must be returned.
- Search and seizure provisions of the Code of Criminal Procedure, 1973 apply mutatis mutandis.
- The Bill, 2026 has no clause amending section 220.
Read next
- Section 219: Investigation of related companies
- Section 221: Freezing of assets
- Section 217: Powers of inspectors
- Section 446: Destruction or falsification of books
Disclaimer: Based on the Companies Act, 2013 as amended up to 1 April 2021 (official consolidated text), read with later developments noted in the article; proposals in the Corporate Laws (Amendment) Bill, 2026 are pending and not law as on 30 September 2026. Verify current notifications and rules before acting.