New Delhi: The Serious Fraud Investigation Office (SFIO) Monday filed a 70,000-page complaint in the Bhushan Steel case wherein the probe agency has found "extreme misuse" of the corporate structure by the promoters which reduced corporate governance requirements to paper formalities, sources said. Bhushan Steel had defaulted on loans and the banks had to take a haircut of more than ₹20,000 crore as part of the resolution process. According to the sources, promoters used more than 150 companies to build a complex web of transactions to carry out the siphoning off funds to hoodwink the lenders and other investors in the company. The investigation brought out the extreme misuse of the corporate form by the promoters who ran the listed company more like a proprietorship concern reducing corporate governance requirements to paper formalities, they added. Sources also said the role of statutory auditors has again come in focus with their conniving role glaringly coming out.

Source: Mint July 01, 2019 19:41 UTC