Mumbai: Investor organisation Midas Touch Investors’ Association (Midas Touch) has requested Finance Minister Arun Jaitley for detailed investigation in the Infrastructure Leasing and Financial Services (IL&FS) mess by Central Bureau of Investigation (CBI). According to Virendra Jain, President of Midas Touch, the investigation ordered by Serious Fraud Investigation Office (SFIO) may not be able to cover the entire sweep of scam as IL&FS is a large systemically important non-deposit accepting core investment company of the country, and is regulated by Reserve Bank of India (RBI) and other regulators.

In such scenario, “…the remit of SFIO, in our view, is limited and would not encompass inquiry and investigation, which may be required under other areas of administration under the present scenario. In view of the present circumstances, it may be appropriate that an inquiry and investigation to be undertaken by CBI be ordered. The SFIO investigation already ordered may supplement CBI probe,” Jain said.

Midas Touch said there is a need to carry out forensic audit of accounts of entire 348 group companies of IL&FS and fix accountability for dereliction of duty by the board of directors, the auditors, credit rating agencies, subscribers to its debt paper and all the respective regulators as well as to retrieve money and assets by recovering ill-gotten wealth from its (erstwhile) chief executive officers, managers, personnel and all those who benefited.

In its letter to the finance minister, Midas Touch demanded an inquiry and investigation by CBI in the entire gamut of issues relating to IL&FS and its 348 subsidiaries, associates and joint ventures. It also asked to fix accountability for dereliction of duty by the chief executives, board of directors, the auditors, the credit rating agencies, the subscribers to its debt paper and all the respective regulators;

“A time-bound cash-in-cash-out statement of all the 348 entities in the IL&FS fold. This can be done by independent auditors. This will clearly identify the holes,” it said in the letter.  (In an arrangement with Moneylife) The letter also sought a forensic audit to follow the money trail from IL&FS and its 348 direct or indirect subsidiaries and associates, to establish the quantum and destination of siphoned funds and assets illegally transferred through any device.

Midas demanded a forensic audit to follow the money trail from IL&FS and its 348 direct and indirect subsidiaries and associates, to their chief executive officers, managing directors, directors, managers, key employees and their families, relatives and other entities to establish the quantum and destination of siphoned funds, ill-gotten gains and assets illegally transferred through any device.