SFIO probing books of Subhiksha: Khurshid

Corporate fraud investigating body SFIO is probing the account books of beleaguered retailer Subhiksha Trading Services, Parliament was informed today.

"Investigation has been ordered u/s 235 of the Companies Act, 1956, into affairs of Subhiksha Trading Services, to be carried out by the Serious Fraud Investigation Office (SFIO)," Corporate Affairs Minister Salman Khurshid said in a written reply in Lok Sabha.

The Registrar of Companies in Chennai started inspecting Subhiksha's books following complaints by a group of investors and former employees who alleged mismanagement of funds.

In 2007, ICICI Ventures, the second biggest shareholder in Subhiksha with a 23 per cent stake, had also filed a complaint alleging diversion of funds through more than 100 shell companies.

Further, Khurshid said that in the last three years (from April 1, 2007, to July 31, 2010) investigations into the affairs of 44 companies have been referred by the Ministry to the SFIO and prosecutions have been filed by the fraud probe body under various sections of the Companies Act and the Indian Penal Code.