A magnifying glass is used to browse a document in Davos, Switzerland. (Photographer: Matthew Lloyd/Bloomberg)

SFIO Starts Probe Into IL&FS Crisis

The Serious Fraud Investigation Office has started investigations into the affairs of crisis-hit Infrastructure Leasing & Financial Services and its subsidiaries amid concerns over financial irregularities, according to a senior official.

The corporate affairs ministry, on whose petition the National Company Law Tribunal allowed superseding IL&FS board on Monday, has ordered the SFIO probe. The official said the SFIO has started the probe into affairs of IL&FS and its subsidiaries.

In a rare move, the government has superseded the board of IL&FS on Monday against the backdrop of debt defaults by some of its group entities that triggered fears of liquidity crunch.

The agency has started gathering information and once the hypothesis is ready, then a decision would be taken into what specific aspects need to be investigated, the official added.

IL&FS had 24 direct and 135 indirect subsidiaries in 2017-18.

According to the corporate affairs ministry, there have also been serious complaints on some of the companies for which an SFIO investigation has been ordered.