SFIO charged financial irregularities against Sesa Goa

Posted By: Religare
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SFIO charged financial irregularities against Sesa Goa
Sesa Goa is charged of serious financial irregularities by the Serious Fraud Investigation Office (SFIO). The fraud in accounts mentioned by the SFIO are mainly during the period when it was controlled and monitored by Japan's Mitsui & Co.

In a report submitted to the ministry of corporate affairs, the SFIO said that between 2003 and 2008, Sesa Goa under-invoiced exports causing the company a cumulative loss of 1002 crore. Sesa Goa lost another 40 crore by inflating the commission paid to agents involved in exporting ore to various parties, including Mitsui & Co.

SFIO also added that the miscalculation were high enough to warrant prosecution of Managing directors of the company during that period between 2001-2007.One of which is PK Mukherjee who still holds as MD of Sesa Goa.

The company which was recently in news for acquiring Cairn India said that this irregularity of "stellar" track record won"t ruin its plans of past commitments of acquisition. PK Mukherjee said that as of now no action had been initiated against the company by the officials as ministry still in process to evaluate the report submitted by SFIO.

He told ET that “Before that no final conclusions can be drawn, we have been questioned earlier in the last year and a half and our stance remains the same. Even after going to the RBI, our other private bankers and other financial institutions the SFIO has not been able to provide a lot of evidence against the company"

Mukherjee said in response of allegation imposed by the SFIO “On the issue of alleged irregularities in invoicing, If I sell steel at price x to one party and 2x to another party is that over-invoicing and is the other way around under-invoicing isn"t that a commercial arrangement between two parties". He questioned the above statement to press.

Read more about: sesa goa, sfio, bse, nse
Story first published: Monday, May 23, 2011, 9:31 [IST]
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