Begin due diligence tomorrow: HC to firm

HYDERABAD:  Expressing displeasure at Deloitte, an accounting firm, for causing delay in examining the documents pertaining to Agri Gold company with the AP CID as part of its due diligence exercise to take over the scam-hit company, a division bench of the High Court on Tuesday directed Deloitte to conduct its exercise from October 12 on a daily basis. On an earlier occasion, the bench of justices V Ramasubramanian and S V Bhatt directed the Subhash Chandra Foundation of Essel group and Zee TV to begin the process of consultation with AP CID during September 25-27.

Further, it directed Deloitte, which was representing the foundation before the court, to frame modalities and have a schedule for examining the company’s documents from October 3 on a daily basis to avoid unnecessary delays. The bench was dealing with a batch of petitions filed by the Telangana Agri Gold Customers and Agents Welfare Association and others seeking CBI probe into Agri Gold scam and return of the depositors’ monies. An intervention application was filed by Deloitte on behalf of Subhash Chandra Foundation, expressing its interest in taking over the company.

The court allowed the application after the firm deposited Rs 10 crore to begin the due diligence exercise. On Tuesday, the counsel for Deloitte submitted that they could only had correspondence with the agencies concerned and that the actual examination of documents was yet to begin. The counsel cited the letter of AP CID asking for specific list of documents so that they can be shared with them. The bench pointed out that there was loss of precious time due to non-implementation of its earlier order. It also found fault with the CID for raising queries in spite of a clear order from the court for making available all documents relating to Agri Gold, except those required for criminal prosecution, to the intervenor.