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DCA may ask for Kale report on Tata Finance

BS Bureaus in New Delhi

The Department of Company Affairs is likely to call for the Y M Kale report on Tata Finance alongwith the company's comments. A F Ferguson had withdrawn the report authored by Kale on Tuesday.

DCA sources told Busines Standard that though a formal probe had not yet been launched, it would soon ask for relevant information, including the books of accounts of Tata Finance to find out whether or not there have been financial irregularities.

Top ICAI functionaries met senior DCA officials to request them for a copy of the original A F Ferguson report authored by Kale, a partner in the firm who on Wednesday put in his papers, as well as the comments of Tata Finance on the report to carry out its investigations on whether or not there has been a lapse on the part of the auditors.

According to sources, DCA has assured ICAI that it will give all help in carrying out the investigations.

The DCA move comes a day after both the Securities and Exchange Board of India and the ICAI said that the matter would be looked into.

According to an ICAI functionary, on its own the institute cannot ask either Tata Finance or A F Ferguson for information. It has therefore requested DCA to source the relevant information.

ICAI president Ashok Chandak also met the Union Law Minister, Jana Krishnamurthy, to apprise him of the development.

Tata Finance had appointed A F Ferguson in May 2001 to look into the affairs of the company.

The firm submitted its final report in April this year. On 23 July, Tata Finance wrote to A F Ferguson disagreeing with several comments made by it. Soon, extracts of the report came out in the newspapers. On August 2, A F Ferguson wrote to Tata Finance withdrawing the report.

It also appointed a new team to prepare a fresh report, while returning a cheque of Rs 9.5 million, which it had received as part payment for repairing the report. Yesterday, Kale, who had authored the report, resigned from A F Ferguson.

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