IL&FS Under Investigation On Issue Of Close Down Of Firms

Infrastructure leasing and financial services ltd, (IL&FS) was recently in question due to shutdown of debt laden 45 firms. On Tuesday for the first time IL&FS confirmed that they are being investigated by various government agencies after some of its debt obligations triggering tremors through Indian financial market.

IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS.

All the results of investigation are still pending; IFIN had engaged Grant Thornton for conducting forensic audit.

Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral in month of March. Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&FS also they accused IL&FS’s auditors and others of concealing information and falsifying accounts  on 31st may.

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