Kolkata: The investigation by the Serious Fraud Investigation Office (SFIO) into the alleged financial irregularities to the tune of Rs1,000 crore by metallurgical coking coal producer Austral Coke and Projects is likely to be completed by January, 2011, reports PTI.
"The investigation is still going on and we will take some more time. We had got an extension for another six months and we hope to complete the case and submit report by January, 2011," SFIO joint director Rajesh Sharma told PTI.
Mr Sharma, however, declined to throw light on the ongoing investigation, saying it could get longer if cross-border transactions were involved.
The government has ordered an enquiry by the SFIO into the alleged financial irregularities by the city-headquartered coking coal company, in January, 2010. SFIO was supposed to submit investigation report to the government in six months.
Attempts to contact Austral Coke management turned futile.
A corporate affairs ministry official had said they found 'prima facie' evidences of fund diversion, manipulation of accounts and tax evasion by the company.
The Securities and Exchange Board of India (SEBI) in September, 2009 had barred Austral Coke from raising fresh equity after the Income Tax (I-T) department unearthed an alleged over Rs1,000 crore fraud in the company's transactions.
The I-T department had observed that a part of the Rs142.29 crore fund raised by the company last year through an initial public offer (IPO) had been used in a fraudulent manner.
"Such purchases identified so far by the I-T Department totalled up to Rs553 crore. The company has also shown sales of around Rs495 crore, which apparently were bogus," the SEBI order had said.
The SEBI order had come ahead of Austral Coke's board meeting on September three to consider raising about Rs960.22 crore through private placements with institutions.
The market regulator had said the I-T department in June had conducted raids at the business and residential premises of Austral Coke and found 'bogus' transactions to the tune of Rs1,048 crore.
The SFIO probe is carried out under Section 235 of the Companies Act under which the investigating agency can call for information or explanation from the company.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
