SFIO may seek second extension for Sesa Goa probe

Corporate fraud probe agency SFIO is likely to seek a second extension to complete its investigation into the alleged mismanagement and financial irregularities of Vedanta Group-owned Sesa Goa and subsidiary Sesa Industries (SIL).

The Serious Fraud Investigation Office (SFIO), an arm of the Corporate Affairs Ministry, which had begun its probe in October last year, was initially given six months to submit its report, but later sought an extension.

"October 24 was the second deadline, which too they have failed to keep. Also, in the last session of the Supreme Court hearing on the Sesa Goa and Sesa Industries merger, the SFIO has said before the court that it would submit the probe report by December of this year. So, it is most likely that SFIO will seek another extension," a senior official told PTI.

The probe body is normally given six months by the ministry to submit its findings, but extensions can also be sought.

The SFIO enquiry follows a probe by the Registrar of Companies, which has been looking into Sesa Goa's case since 2003.

Corporate Affairs Ministry officials said that Sesa Goa was 'prima facie' found guilty by the RoC of fudging invoices.

Allegations against the company, official sources said, also include diversion of funds.

Earlier, in a filing to the Bombay Stock Exchange, Sesa Goa had said, "The scope of the SFIO investigation includes looking into the state of affairs of the company and its subsidiary, Sesa Industries Ltd, in respect of mismanagement, malpractices, financial and other irregularities."

The company had added that it will fully cooperate with the investigation and expressed its commitment to follow the highest norms for corporate governance and transparency.

London-based Vedanta Resources had acquired a 51 per cent controlling stake in Sesa Goa in 2007 from Mitsui Co for $981 million.