The Serious Fraud Investigation Office (SFIO) is probing alleged financial irregularities at debt-laden Aircel as well as two group entities -- Aircel Cellular and Dishnet Wireless, according to a senior official. The official said the Corporate Affairs Ministry has ordered a probe by the SFIO into the affairs of the three companies.
In February, Aircel announced filing for bankruptcy as the company was facing "troubled times" in "highly financially stressed" industry. Intense competition following the disruptive entry of a new player, legal and regulatory challenges, high level of unsustainable debt and increased losses had together caused significant "negative business and reputational impact" on the company, it had said. The SFIO is a multi-disciplinary organisation, under the ministry, which probes white-collar crimes and frauds that are in violation of Companies Act.
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