The ministry of Corporate Affairs has ordered an inspection of the accounts of Eros International Media for fund siphoning after SEBI in June accused the media house of financial misreporting and fund diversion. The ministry said, it was “satisfied” that an inspection was required to check allegations of fund siphoning.
It may be mentioned here that the SEBI, in an interim order in June this year, had said that it had found prima facie evidence that Eros International’s accounts were “overstated and do not present a true and fair picture of the financial health of the company”. It barred managing director Sunil Lulla and three of the company’s entities from the securities market. The company challenged the SEBI order earlier this month.