Corporate Affairs Ministry orders SFIO to probe Ruchi Soya, Sterling Biotech, Kanishk Gold for financial irregularities

New Delhi: The Serious Fraud Investigation Office (SFIO) is probing three companies -- Ruchi Soya, Sterling Biotech and Kanishk Gold - that are already under the regulatory scanner for loan defaults, according to an official source.

The Corporate Affairs Ministry has ordered investigation by SFIO against the three firms for alleged financial irregularities, the source said.

In recent months, many companies and individuals, including those related to diamond merchants Nirav Modi and his uncle Mehul Choksi - the alleged kingpins behind the Rs 13,000 crore fraud at Punjab National Bank - have come under the SFIO lens.

Ruchi Soya did not respond to a query seeking comments on the SFIO probe while Sterling Biotech and Kanishk Gold could not be immediately contacted.

The SFIO, which also has powers to arrest people, mainly investigates violations under the Companies Act.

Leading edible oil firm Ruchi Soya Industries is under insolvency proceedings. The company, which owns brands such as Nutrela, Mahakosh, Sunrich and Ruchi Gold, has a total debt of around Rs 12,000 crore.

Representative image. Reuters

Representative image. Reuters

Gujarat-based pharmaceutical company Sterlite Biotech and Chennai-based jewellery firm Kanishk Gold are already being probed by the CBI with respect to default in loan payments.

All the three firms have defaulted in paying back bank loans.

Among other entities, SFIO is investigating 107 companies and seven Limited Liability Partnerships linked to Modi-Choksi groups with regard to PNB scam.

As part of larger efforts to curb illicit fund flows, the government has been cracking the whip on shell companies and defaulting entities, among others.


Updated Date: May 14, 2018 17:13 PM

Also Watch

Rethinking pornography: Cyber Sexy author Richa Kaul Padte makes the case for decriminalising porn in India
  • Friday, July 27, 2018 First Day First Showsha — Reviewing Tom Cruise's Mission: Impossible - Fallout in 10 questions
  • Friday, July 27, 2018 It's a Wrap: Karwaan stars Dulquer Salmaan, Mithila Palkar in conversation with Parul Sharma
  • Friday, July 27, 2018 3 alternatives to WhatsApp | What The App
  • Friday, July 27, 2018 Manika Batra interview: Table Tennis star looks back at Commonwealth Games 2018 success, reveals her diet plan and more

Also See