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SREI orders probe into irregularities; shares fall

SREI orders probe into irregularities; shares fall
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First Published: Wed, Sep 14 2011. 03 25 PM IST
Updated: Wed, Sep 14 2011. 03 25 PM IST
Mumbai: SREI Infrastructure Finance shares fell as much as 14% on Wednesday and the company said it had hired KPMG to look into allegations of financial irregularities concerning tower company Viom Networks.
“We initiated it (the probe) ourselves,” Sunil Kanoria, vice chairman of SREI Infrastructure and a director with Viom Networks told Reuters.
“It is a board-run company, a professionally run company. When we got (the letter) we decided to investigate, because we believe in corporate governance,” Kanoria said.
Viom is a joint venture between telecom carrier Tata Teleservices and SREI Group firm Quippo.
SREI Infrastructure shares fell as much as 14% on Wednesday but pared losses to trade 2.7% lower by 02:20 pm.
Viom’s board received a letter from a former company secretary stating there is a “misappropriation” in the company, Kanoria said.
Tata group holds about 53% and Hemant Kanoria, director of Viom and chairman and managing director of SREI, together with Infrastructure Development Finance, Oman Investment Fund and Government of Singapore Investment Corporation, hold a little over 46%.
Media reports said as much as Rs 300 crore ($63 million) may have been diverted.
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First Published: Wed, Sep 14 2011. 03 25 PM IST
More Topics: SREI | Infrastructure | Probe | Irregularities | KPMG |