The government wants a review of Eros International's financial records

25 Jul 2023 , 11:58 AM

After the market regulator accused the media business of financial misreporting and fund diversion in June, the Ministry of Corporate Affairs reportedly requested a review of the accounts of Eros International Media.

According to news reports, the ministry ordered the investigation after it was ‘satisfied’ that an inspection was necessary to verify claims of fund siphoning.

Film producer and distributor Eros International Media also owns the well-known OTT streaming service Eros Now.

The Securities and Exchange Board of India (SEBI) claimed in an interim decision from June that it had discovered prima facie evidence that the financial statements for Eros International were ‘overstated and do not present a true and fair picture of the financial health of the Company.’

Sunil Arjan Lulla, the managing director of Eros International Media, as well as three of the company’s subsidiaries, were subsequently banned from the securities market by the markets regulator. The corporation contested the regulator’s order earlier this month.

The Ministry of Corporate Affairs is authorized under Indian law to record comments made by corporate officials and request documentation after opening an investigation. Within six months, the ministry must complete its report.

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