Eros International Media is under inspection of the Ministry of Corporate Affairs amid allegations of fund syphoning. The development comes mere weeks after accusations of financial misreporting and fund diversion by SEBI. It has subsequently banned MD Sunil Arjan Lulla and three of the company’s entities from the securities market.
Eros International Media is a distributor and producer of movies and owns popular OTT streaming platform Eros Now.
According to a report, the government has ordered an inspection of the company’s accounts. The ministry ordered the probe after it was “satisfied” that an inspection was required to check allegations of fund syphoning.
The Ministry of Corporate Affairs can record statements of company officials and ask for documents once it launches a probe. As per Indian laws, the ministry must compile its report within six months.
