More trouble for debt-laden Aircel; company under SFIO scanner
Debt-laden Aircel has again come to news after Serious Fraud Investigation Office (SFIO) is probing alleged financial irregularities committed by the firm. The two other group entities -- Aircel Cellular and Dishnet Wireless are also under the SFIO lens.
Debt-laden Aircel has again come to news after Serious Fraud Investigation Office (SFIO) is probing alleged financial irregularities committed by the firm. The two other group entities -- Aircel Cellular and Dishnet Wireless are also under the SFIO lens.
Aircel is already under the lens of the CBI and the Enforcement Directorate, and now the SFIO scanner has further added to the company's woes. The Aircel-Maxis case pertains to grant of Foreign Investment Promotion Board (FIPB) clearance to firm Global Communication Holding Services in 2006 for investment in Aircel.
According to a senior official, cited by PTI, the Corporate Affairs Ministry has ordered a probe by the SFIO into the affairs of the three companies.
Aircel, which has announced filing for bankruptcy in February, has been facing "troubled times" in "highly financially stressed" industry.
According to the report, intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant "negative business and reputational impact" on the company.
The SFIO is a multi-disciplinary organisation, under the ministry, which probes white-collar crimes and frauds that are in violation of Companies Act.
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Former Finance Minister P Chidambaram and his son Karti Chidambaram are also under the scanner of CBI and Enforcement Directorate, with regard to the Aircel-Maxis case.
The Supreme Court, in March, had directed the CBI and the ED to complete their probe into the 2G spectrum allocation cases, including the Aircel-Maxis alleged money laundering case, in six months.
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