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Journalism of Courage
After months of deliberation and series of inspections by the Registrar of Companies,the government today finally ordered a Serious Fraud Investigation Office probe into the alleged siphoning of funds and under and over invoicing in iron ore mining company Sesa Goa.
According to the official sources,the investigation has been ordered on the basis of reports submitted by the RoC. The inspection of financial irregularities in the company was ordered in 2003 and has been done more than once.
When contacted,Sesa Goa Managing Director P K Mukherjee said,The matter pertains to Sesa Goa prior to it was acquired by Vedanta. The present management has not received any such communication from the authorities. Vedanta follows strong principles of transparency and a high degree of share holders value. The sources said the company has inflated profits and has indulged in over and under invoicing. Also,there has been siphoning of funds,the sources added.
Many inspections have taken place since 2003 and the ministry has been deliberating on the steps to be taken based on the report of inspection.
The Anil Agarwal-founded Vedanta Resources,a London-listed company,acquired a controlling stake of 51 per cent in Sesa Goa Ltd in 2007 from Japans Mitsui for $981 million (around Rs 4,070 crore).
