Copyright indiatimes
TIL CreativesRepresentational AI Image. The corporate affairs ministry has ordered a probe by the Serious Fraud Investigation Office (SFIO) into Future Retail Limited and its associate companies over alleged corporate governance violations and suspected irregularities in related party transactions, following an intelligence input shared by the Central Economic Intelligence Bureau (CEIB), said officials.The companies of the financially distressed group which are being probed under the Companies Act include Future Corporate Resource Private Limited. The CEIB, which functions under the Department of Revenue, is understood to have flagged certain transactions between the group entities which need to be thoroughly investigated. Based on this input, the ministry last month directed the SFIO to initiate a detailed investigation to examine the books of accounts, board decisions and the role of key managerial personnel involved in the alleged transactions."While the probe will look into corporate governance issues, it will also investigate the nature and extent of the related party transactions entered into by Future Retail and its associate companies, and determine whether these were carried out at arm's length and in accordance with the Companies Act," a senior official told ET on condition of anonymity.The SFIO, which is the investigation arm of the corporate affairs ministry, has the power to summon, arrest and prosecute under the Companies Act. It will summon former directors, auditors and key finance executives of the group to record their statements during the course of the probe .Live Events"The probe team, after making its assessments and studying the documents available to them, will call those linked to the probe during the course of the investigation," the official said, adding that nobody has been summoned so far in the investigation. Kishore Biyani, the founder and CEO of Future Group, was not immediately available for comment.According to the officials, the investigation will focus on whether the transactions violated sections 177 and 188 of the Companies Act, 2013, which govern audit committee approvals and related party dealings. The probe will also assess whether the transactions were used to shift assets or liabilities among group entities, especially during the period when the group was facing mounting financial stress.The SFIO will examine whether Future Retail and related entities failed to make proper disclosures of related party transactions in their annual financial statements or to seek requisite approvals from shareholders and audit committees as required under law. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onSFIO probe Future RetailFuture Retail corporate governance violationsSerious Fraud Investigation Officerelated party transactions Future RetailKishore Biyani Future GroupCompanies Act 2013CEIB intelligence inputaudit committee approvals (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onSFIO probe Future RetailFuture Retail corporate governance violationsSerious Fraud Investigation Officerelated party transactions Future RetailKishore Biyani Future GroupCompanies Act 2013CEIB intelligence inputaudit committee approvals(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
