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Feb 01, 2014, 04.46 PM IST | Source: CNBC-TV18

EOW tightens noose around Yash Birla Group Cos

The EOW has issued a lookout notice against Yash Birla. Yash Birla, meanwhile, has sought time till Feb 7 to appear before EOW. And this comes on the back of the arrest of PVR Murthy – the MD and CFO of Birla Power.

At the epicenter of a multi-agency probe, the Yash Birla group of companies is beginning to feel the heat from the Economic Offences Wing (EOW) of the Mumbai police.

The EOW has issued a lookout notice against Yash Birla. Yash Birla, meanwhile, has sought time till February 7 to appear before EOW. And this comes on the back of the arrest of PVR Murthy – the MD and CFO of Birla Power.

The company is alleged to have raised money from retail investors through fixed deposits and is believed to have defaulted on repayments. The company raised a total of Rs 57 crore, and investors alleged that even the principal has not been repaid.

Also read: FIR against Birla Power on payment default 

Sources within the EOW confirmed that the outside of the retail investors, corporates and HNIs too have invested into the company through brokers.

EOW sources asserted that there is strong evidence that suggests the money raised through investors was then siphoned off the books of Birla Power in the form of loans to sister concerns.

Meanwhile, PVR Murthy has been remanded to police custody until February 5.

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