CA NeWs Beta*: Serious fraud office may probe ex-servicemen's company

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Tuesday, September 27, 2011

Serious fraud office may probe ex-servicemen's company

A private limited company of ex-servicemen that is under the Ministry
of Defence may come under the scanner of the Serious Fraud
Investigation Office.

In an inquiry report, the Ministry found irregularities in the
workings of Ex-Servicemen Airlink Transport Service Pvt Ltd (EATS), a
company set up by ex-servicemen under Directorate General
Resettlement.

The Directorate General Resettlement is attached to the Department of
Ex-Servicemen Welfare. It trains and rehabilitates retired defence
personnel and ex-servicemen through self-employment schemes.

EATS was part of the scheme to provide security to public sector
undertakings. It has been alleged that a few officers had been
subletting the services for favours.

“Action is being initiated against the officers who flouted the extant
norms and guidelines of various schemes and thus were involved in
administrative improprieties,” a Ministry official had said earlier.

The Serious Fraud Investigation Office has not yet received orders to
investigate. It is an investigative arm of the Ministry of Corporate
Affairs, and other Ministries cannot order it to conduct
investigations.

The Serious Fraud Investigation Office has not yet received orders to
investigate.

“We have not received any orders as yet, but we can probe the matter
if MCA asks us to,” an SFIO official told Business Line.

An official of the Ministry of Corporate Affairs said: “We are still
awaiting orders. As and when we get them we will initiate
investigation.”

(This article was published in the Business Line print edition dated
September 27, 2011)

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