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In a fresh regulatory setback for IndusInd Bank, the Ministry of Corporate Affairs (MCA), which had initiated a "suo motu inquiry" into alleged accounting lapses at the private sector lender, sources told CNBC-TV18 that “the ministry's preliminary investigation points to possible violations of corporate governance norms and provisions under the Companies Act.”
Further, based on the initial findings, “The MCA is now evaluating whether to escalate the matter to its Directorate General of Investigations or assign the case to the Serious Fraud Investigation Office (SFIO), signalling potentially graver implications,” sources added.
The bank has not received any communication from the MCA in this regard.
This development adds to a growing web of regulatory scrutiny surrounding the bank, which has been under the scanner of multiple authorities—including the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Institute of Chartered Accountants of India (ICAI)—after it disclosed significant financial misstatements earlier this year.
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