India's frauds investigator probes five IL&FS firms for fund diversion - ET

IL&FS Engineering and Construction

10/10/2018 04:41

Oct 10 (Reuters) - The Serious Fraud Investigation Office
(SFIO) has narrowed on five arms of Infrastructure Leasing &
Financial Services (IL&FS)that may have been involved in fund
diversion and mismanagement, the Economic Times reported https://economictimes.indiatimes.com/industry/banking/finance/five-ilfs-firms-under-sfio-lens-for-fund-diversion/articleshow/66142150.cms
 on Wednesday.
    Indian government took control of the debt-laden IL&FS last
week after defaults on a string of debt obligations triggered
wider concerns about risks in the country's financial sector.
 urn:newsml:reuters.com:*:nL4N1WH20Z
    The five companies under SFIO probe are IL&FS Transportation
Networks Ltd  ILFT.NS , IL&FS Financial Services Ltd, IL&FS
Energy Development, IL&FS Tamil Nadu Power and IL&FS Engineering
and Construction Company  ILFE.NS , the paper said.
    The five firms constitute for more than 50 per cent of the
entire group's revenue and may have diverted funds in projects
that were worth 300 billion rupees ($4.04 billion), ET reported,
citing two government officials.
    The Institute of Chartered Accountants of India (ICAI) has
also begun probing the matter and issued notices to statutory
auditors seeking an explanation, it said. 
    IL&FS Group, SFIO and ICAI did not immediately respond to
requests seeking comment.
 ($1 = 74.3300 Indian rupees)

 (Reporting by Mekhla Raina and Tanvi Mehta in Bengaluru;
Editing by Gopakumar Warrier)
 ((Mekhla.Raina@thomsonreuters.com; +918067491775;))