The government on Thursday confirmed that 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 said.
Asked whether the investigation was being conducted by the Serious Frauds Investigation Office, he refused to comment.
Highly placed official sources had earlier said the Government reportedly ordered a probe against steel giant Ispat Industries for alleged exposure to Rs 8,500 crore (Rs 85 billion) of public funds, erosion of net worth and high accumulated losses.
The investigation was ordered under Section 235 of the Companies Act (investigations into a company's affairs) and the case was referred by the DCA to SFIO, they had said.