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IL&FS' final audit report marks bad loans, shady deals and management-borrower nexus

By IndianMandarins- 16 May 2019
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A host of irregularities costing tens of thousands of rupees have reportedly been found in the final forensic audit report submitted by auditors Grant Thornton in the IL&FS case. The report has been handed over to the new board of directors of the company.

 

The audit report points to over a hundred, or 107 to be exact, cases of what it calls to be ever-greening of loans, lack of proper collaterals and guarantees to protect huge amounts lending and management’s and borrowers nexus.

 

Often thousands of crores of rupees were financed to precarious and unsound companies with little promise of return. This was resorted to despite adverse reports from assessors. The audit report points to giving a go by to provisions and regulations of Companies Act and RBI norms for loans.

 

Following IL&FS fall its Financial Services (IFIN) Managing Director Ramesh Bawa was arrested by SFIO, or Serious Fraud Investigation Office, last month. With the submission of the audit report the Government agencies like Enforcement Directorate are expected to move further in the case.

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