Mumbai: The National Company Law Tribunal on Tuesday allowed the corporate affairs ministry to reopen the books of the crippled IL&FS Group and its subsidiaries for the past five years under Section 130 of the Companies Act, to ascertain financial mismanagement.For the first time, the government on December 21, 2018, had invoked the powers under Section 130 of the new Companies Act of 2013 to reopen the books of a company.
The government wants to check the balance-sheets of the crippled group and its two listed subsidiaries–ITNL and IL&FS Financial Services for the past five years (FY13-FY18) and the move comes after the Serious Fraud Investigation Office (SFIO) and ICAI reports indicated that the accounts were prepared a fraudulently and negligently in the last five years by the previous management. The statutory bodies including, the Reserve Bank, the markets watchdog Sebi and the Income Tax Department gave their no objection for restating the accounts.
