Ispat Ind: govt probe is on, says DCA chief

The Union Government of India on Thursday confirmed an investigation has been ordered against Ispat Industries to check its balance sheet under the Companies Act.

‘‘Yes, an investigation has been ordered under Section 235 of the Companies Act against Ispat Industries…. This is a balance sheet investigation,’’ Department of Company Affairs Secretary M M K Sardana told reporters here.

Asked whether the investigation was being conducted by the Serious Frauds Investigation Office (SFIO), after the department’s directive, he refused to comment.

Highly placed official sources had earlier said the government reportedly ordered a probe against steel giant Ispat for alleged exposure to Rs 8,500 crore of public funds, erosion of networth and accumulated losses.