Govt orders inspection of Eros International's accounts over fund siphoning allegations
Eros International Media is facing scrutiny from the Ministry of Corporate Affairs amid allegations of fund siphoning. The development comes mere weeks after SEBI accused the media group of financial misreporting and fund diversion.
It has subsequently banned MD Sunil Arjan Lulla and three of the company's entities from the securities market. According to a Reuters report quoting unnamed government officials, the government has ordered an inspection of the company's accounts.
The ministry ordered the probe after it was "satisfied" that an inspection was required to check allegations of fund siphoning. The Ministry of Corporate Affairs can record statements of company officials and ask for documents once it launches a probe. As per Indian laws, the ministry must compile its report within six months.
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