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SFIO narrows on five IL&FS firms for fund diversion, mismanagement

The 5 firms constitute for more than 50% of the entire group's revenue and may have diverted funds in projects that were worth Rs 300 bn

Reuters 

SFIO narrows on five IL&FS firms for fund diversion, mismanagement

The Serious Fraud Investigation Office (SFIO) has narrowed on five arms of Infrastructure Leasing & Financial Services (IL&FS) that may have been involved in fund diversion and mismanagement, the Economic Times reported on Wednesday.

Indian government took control of the debt-laden last week after defaults on a string of triggered wider concerns about risks in the country's financial sector.

The five companies under probe are Transportation Networks Ltd, Financial Services Ltd, IL&FS Energy Development, and IL&FS 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 300 billion ($4.04 billion), ET reported, citing two government officials.

ALSO READ: Ex-Goldman banker looks to fill lending gap in India after IL&FS crisis

The (ICAI) has also begun probing the matter and issued notices to statutory auditors seeking an explanation, it said.

IL&FS Group, and did not immediately respond to requests seeking comment.

First Published: Wed, October 10 2018. 10:47 IST
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