The government took control of the debt-laden ILFS last week.The Serious Fraud Investigation Office (SFIO) has narrowed on five arms of Infrastructure Leasing Financial Services (ILFS) that may have been involved in fund diversion and mismanagement, the Economic Times reported.
The government took control of the debt-laden ILFS last week after defaults on a string of debt obligations triggered wider concerns about risks in the country's financial sector.The five companies under SFIO probe are ILFS Transportation Networks Ltd, ILFS Financial Services Ltd, ILFS Energy Development, ILFS Tamil Nadu Power and ILFS Engineering and Construction Company, 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 Rs 30,000 crore ($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.ILFS Group, SFIO and ICAI did not immediately respond to requests seeking comment.
Thomson Reuters 2018(This story has not been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)