Mumbai: The economic offences wing (EOW) of the Mumbai police on Friday said it had issued a “look out" notice against Yashovardhan Birla, chairman of the Yash Birla group. The notice relates to a pending case of default on repayments of fixed deposits by Birla Power Solutions Ltd., a group firm. The company has also defaulted on interest payments to its investors.

The EOW has also summoned Yashovardhan Birla in the case and he is due to appear before it on 7 February.

The EOW had filed a first information report (FIR) against Birla Power Solutions and Birla after receiving complaints from investors.

Yash Birla group spokespersons could not be reached for comments despite repeated calls.

Earlier this month, the income-tax department raided at least 20 offices of the group across the country for alleged tax evasion.

Issuing a look out notice is to ensure that people named in an FIR do not leave the country without police permission.

Rajvardhan Sinha, EOW additional commissioner of police, said the agency is looking into the books of accounts of Birla Power to determine the total money raised through the fixed deposits. “So far the agency has found that the retail investors had invested Rs57 crore in fixed deposits."

“The EOW is in the process of ascertaining the exposure of brokers in this case," he said.

Meanwhile, the police has arrested Birla Power’s former managing director PVR Murthy and remanded him to custody till 7 February.

In mid-January, EOW said it had registered 28 investors’ complaints against the term investments offered by Birla Power Solutions and a case has been registered against the company under the Maharashtra Protection of Interest of Depositors Act.

The Yash Birla group has interests ranging from health and wellness to engineering and financial services. The group’s financial health has deteriorated over time and some of its companies are facing winding up petitions filed by lenders and debtors.

The group’s official website, however, says that the group has a turnover of Rs3,000 crore.

The enforcement directorate (ED), which investigates instances of foreign exchange violations in the country, is also probing the Yash Birla group in connection with foreign bank accounts of the promoters, Mint reported on 13 January.

The ED is examining whether the promoter of the company has obtained the permission of the Reserve Bank of India (RBI) for transactions related to these accounts.