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SFIO gets extension to probe into alleged Austral Coke fraud
PTI
Last Updated IST

"The investigation is still going on and we will take some more time. We had got an extension for another six months and we hope to complete the case and submit report by January, 2011," SFIO joint director Rajesh Sharma told PTI.

Sharma, however, declined to throw light on the ongoing investigation, saying it could get longer if cross-border transactions were involved.

The government has ordered an enquiry by the Serious Fraud Investigation Office into the alleged financial irregularities by the city-headquartered coking coal company, in January, 2010. SFIO was supposed to submit investigation report to the government in six months.

Attempts to contact Austral Coke management turned futile.

Corporate Affairs Ministry official had said they found ‘prima facie’ evidences of fund diversion, manipulation of accounts and tax evasion by the company.

The Securities and Exchange Board of India (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 IT department had observed that a part of the Rs 142.29 crore fund raised by the company last year through an IPO had been used in a fraudulent manner.

"Such purchases identified so far by the IT Department totalled up to Rs 553 crore. The company has also shown sales of around Rs 495 crore which apparently were bogus," the SEBI order had said.

The SEBI order had come ahead of Austral Coke's board meeting on September three to consider raising about Rs 960.22 crore through private placements with institutions.

The market regulator had said the I-T Department in June had conducted raids at the business and residential premises of Austral Coke and found ‘bogus’ transactions to the tune of Rs 1,048 crore.

The SFIO probe is carried out under Section 235 of the Companies Act under which the investigating agency can call for information or explanation from the company.

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(Published 07 September 2010, 11:46 IST)