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IL&FS' final audit report marks bad loans, shady deals and management-borrower nexus
By IndianMandarins- 16 May 2019
592A 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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IL&FS' final audit report marks bad loans, shady deals and management-borrower nexus
By IndianMandarins - 2019-05-16 12:34:20
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.
