Bengaluru, Karnataka, India
IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS.
The outcome of these investigations is still pending, IFIN said, adding that it had engaged Grant Thornton to conduct a forensic audit.
In March, Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral.
On May 31, a leading daily reported that the Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&FS.
The newspaper also reported that the SFIO accused IL&FS's auditors and others of concealing information and falsifying accounts.
A spokesman for IL&FS did not respond to a Reuters request for comment on the SFIO charges.
The series of defaults by IL&FS in 2018 led to a slew of credit rating downgrades on the company and its subsidiaries and triggered a massive sell-off in stock and debt markets.
The Indian government took control of IL&FS in October and replaced its board in a bid to insulate the financial system from contagion, as it feared the lender's collapse would cause "catastrophic" damage to financial markets and the economy.