Indian ministry orders probe into Eros International's accounts -sources
24/07/2023 12:51
By Nikunj Ohri and Sarita Chaganti Singh
NEW DELHI, July 24 (Reuters) - India’s Ministry of
Corporate Affairs has ordered an inspection of the accounts of
Eros International Media EROS.NS , two government officials
told Reuters, after the market regulator in June accused the
media group of financial misreporting and fund diversion.
The ministry ordered the probe after it was "satisfied" that
an inspection was required to check allegations of fund
siphoning, one of the officials, who did not want to be named,
told Reuters.
Eros International Media is a distributor and producer of
movies and owns popular OTT streaming platform Eros Now.
The Ministry Of Corporate Affairs and Eros International did
not immediately reply to emails seeking comment.
In an interim order in June, the Securities and Exchange
Board of India (SEBI) said it had found prima facie evidence
that Eros International's accounts were "overstated and do not
present a true and fair picture of the financial health of the
Company."
The markets regulator subsequently barred Eros International
Media's Managing Director Sunil Arjan Lulla and three of the
company's entities from the securities market. Earlier this
month the company challenged the regulator's order.
Under Indian law, after launching a probe the Ministry of
Corporate Affairs can record statements of company officials and
ask for documents. The ministry must compile its report within
six months.
(Reporting by Nikunj Ohri and Sarita Chaganti Singh; Editing by
Susan Fenton)
((Aftab.Ahmed@thomsonreuters.com; +91 99109 33884; Reuters
Messaging: twitter: @aftabahmed00))