NEW DELHI: With anomalies being reported in the account books of companies undergoing the Insolvency and Bankruptcy Code (IBC) proceedings, the Serious Fraud Investigation Office (SFIO) has started examining the books of all such firms to check if the NPAs are a result of any banking fraud.
“During the forensic auditing of accounts of companies undergoing IBC proceedings, it was detected that there were suspected cases of financial frauds that were clubbed along with NPA accounts. There were three such companies, including a real estate firm. The matter has been reported to the SFIO and they are examining them closely,” said a senior official from Ministry of Corporate Affairs.
During the resolution process, the extensive audit of bankrupt companies threw up financial irregularities, including in case of Bhushan Steel. Two other companies are also being examined for financial fraud.
Immediately after the Nirav Modi fraud, the Finance Ministry had warned the banks to come out clean. They were told to examine all NPAs above Rs 50 crore and report if there is a fraud angle to such accounts.