Jaypee group, which is into construction, cement, power, real estate, hotel and hospital businesses, has been facing crisis in the last few years due to defaults in debt repayments and huge delays in completion of housing projects in Noida and Greater Noida.
The Ministry of Corporate Affairs (MCA) has ordered a Serious Fraud Investigation Office probe in travel firm Cox & Kings after it uncovered prima facie evidence of siphoning of money, a source told Moneycontrol.
The MCA ordered an SFIO probe on the recommendations of the Western Regional Director of the MCA, which, in its report on CG Power submitted last month, found diversion of funds.
The Registrar of Companies, Mumbai office, has submitted its report on Dewan Housing Finance Corporation (DHFL) to the Ministry of Corporate Affairs a couple of days ago, an official said.
The two officials have been arrested in connection with a National Spot Exchange Limited (NSEL) scam, six years after it first came to light.
The SFIO contended the NCLT does not have the jurisdiction to direct an investigation into the affairs under the provisions of the Companies Act.
The fraud investigation agency had filed the case against the audit firm before a special court in Mumbai and the proceedings were being heard by a bench of the National Company Law Tribunal (NCLT).
This order is huge set back to Delliotte and BSR Associates which is part of KPMG group. Deliotte spokesperson said ““We note the NCLT’s ruling, which is unfortunate. We will review the order and decide on a course of action shortly. DHS LLP remains committed to high standards of audit quality and ethical conduct in its professional practice. The firm has faith in the regulatory and judicial processes and will continue to cooperate fully with the authorities.”
In its report that runs into over 70,000 pages, the investigating agency has charged officials of 13 banks of being hand-in-glove with the Bhushan Steel promoters
The NCLT in an order posted on its website on July 18 said the corporate affairs ministry can go ahead with prosecution based on the findings of the probe conducted by the Serious Fraud Investigation Office (SFIO).
The latest SFIO report also has a mention of former finance minister P Chidambaram based on a passing reference made by C Sivasankaran during the investigation.
In a written reply to the Lok Sabha, Minister of State for Corporate Affairs Anurag Thakur said the SFIO has vast powers under the Companies Act, 2013.
Bhushan Power & Steel defaulted on Rs 47,700 crore worth of loans in 2017 and was one of the 12 cases referred for resolution under Insolvency and Bankruptcy Code.
The investigation revealed that Arun K Saha, the former joint Managing Director of IL&FS, threatened to discontinue business to the rating agencies if they gave unfavourable ratings.
ED will now look into the evidence of money laundering by the officials and find money trails related to the official's account.
C Sivasankaran, promoter of Siva Group, had arranged hospitality and other amenities for IL&FS Chairman Ravi Parthasarathy, director Vibhav Kapoor, and vice-chairman Hari Sankaran, SFIO has said in its report.
According to documents filed by the SFIO, IL&FS has outstanding NCDs of over Rs 25,000 crore.
The huge scam came to light last year after IL&FS and its subsidiaries defaulted on several debt repayments due to a severe liquidity crisis.
The MCA wants to look into several instances where Jet had written off investments in various subsidiary companies without any apparent reason.
Nittin Johari is accused of being the prime perpetrator who manipulated letters of credit (LCs) by filing false documents to avail funds from various banks.
The Enforcement Directorate (ED) has registered a case against former top officials of IL&FS, including its former chairman Ravi Parthasarathy, under the Prevention of Money Laundering Act (PMLA).
Controversies and allegations are not new for Zee promoter Subhash Chandra. But every time, Chandra has managed to forge ahead. Will he succeed this time too?
The National Company Law Tribunal allowed the government's plea for re-opening and re-casting of financial accounts of IL&FS and its group companies.
A supplementary notice is issued by SEBI if any investigation suggests wrongdoing – as pointed in this case by the Serious Fraud Investigation Office (SFIO), that is investigating the Rs 5,600-crore NSEL scam.
A multi-agency probe is already underway into the fraud, which was mainly perpetrated by way of fraudulent Letters of Undertaking (LoUs).