Govt set to probe ‘irregularities’ at Austral Coke

NEW DELHI: The government has ordered an enquiry by the Serious Fraud Investigation Office (SFIO) into the alleged financial irregularities by metallurgical coking coal producer Austral Coke.

“The SFIO has been asked to submit its report on the enquiry into Austral Coke within six months and seven officers have been designated for the probe,” a corporate affairs ministry official said. The ministry, he added, has found “prima facie” evidences of fund diversion, manipulation of accounts, and tax evasion by the company.

Austral Coke did not respond to calls and e-mail queries. Market regulator Sebi, in September 2009, had barred Austral Coke from raising fresh equity after the income tax department unearthed an alleged over Rs 1,000-crore fraud in the company’s transactions.

The SFIO probe, the official said, would be carried out under section 235 of the Companies Act under which the investigating agency can call for information or explanation from the company.