Centre orders probe into Eros International Media’s accounts: Report

Two government officials told Reuters that India’s Ministry of Corporate Affairs has ordered an examination of Eros International Media’s accounts, after the market regulator in June accused the media group of financial misreporting and money transfer.

One of the officials, who asked not to be named, told Reuters that the ministry ordered the investigation after it was “convinced” of the need for an inspection to verify allegations of money theft.

Eros International Media is a film distributor and producer and owner of the popular OTT streaming platform Eros Now.

The Ministry of Corporate Affairs and Eros International did not immediately respond to emails seeking comment.

In an interim order in June, the Securities and Exchange Board of India (SEBI) said it had found prima facie evidence that Eros International’s accounts were “overstated and do not present a true and fair picture of the company’s financial health.”

Subsequently, Sunil Arjan Lulla, managing director of Eros International Media, and three of the company’s entities were banned by the markets regulator from the stock market. Earlier this month, the company challenged the regulator’s order.

Under Indian law, after the investigation is initiated, the Ministry of Corporate Affairs can record the details of company officials and request documents. The ministry must compile its report within six months.

(Reporting by Nikong Ohri and Sarita Chaganti Singh; Editing by Susan Fenton)