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TFL accounts inspection is routine, says RBI

Reserve Bank of India has undertaken a "routine" inspection of the accounts of Tata Finance Ltd, which is in the centre of an accounting controversy.

"The inspection is of routine nature similar to the one carried out in August last year and it has nothing to do with the present controversy," RBI sources said in Mumbai on Thursday.

RBI has no role to play in the controversy and "we are only carrying out an inspection to see that the non-banking finance company is following the guidelines laid down by us," the sources added.

After the controversy over financial irregularities last year, the RBI had laid down certain guidelines, which includes non-acceptance of fresh deposits, the sources said, adding, "We are keeping a close watch on the deposits, which has considerably gone down.

According to TFL chairman Ishaat Hussain, the Tata group had already pumped in Rs 3 billion and will invest a further Rs 2 billion in due course.

Hussain had on Wednesday denied that pressure was applied on chartered accountants A F Ferguson & Co to withdraw their report on the finance company even as a senior partner of the accounting firm Y M Kale and three other employees quit over the issue of withdrawal of the confidential report.

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