Multinational engineering conglomerate, Larsen and Toubro (L&T) lands in hot water once again. The Registrar of Companies (RoC) on Friday issued notices to L&T Welfare Co Ltd. and L&T Employees Welfare Foundation to inspect accounts of the latter on allegations of cheating and misappropriation of funds, sources told Bloomberg.
The inspection was initiated after an internal inquiry into the allegations made by the company’s employees. According to Bloomberg, the complaints by the employees stated that L&T had deducted contributions from their salaries with the assurance of giving them equity shares of Larsen & Toubro. However, the funds collected were used for the expansion of the company.
Bloomberg noted that the corporate ministry did not respond, while L&T’s spokesperson said that the company has contested the allegations and “the matter is sub judice”.
This is not the first time the company is falling under scrutiny. As reported by Bloomberg, in 2018, L&T’s former employee and shareholder had filed a petition in the National Company Law Tribunal alleging mismanagement of employee welfare funds and assets of the company. According to the complaint, the management had collected Rs. 150 crores between November 2003 and March 2008 from 30,000 employees and bought shares of L&T which is now worth Rs 176 crore.
