The accounts of Eros International Media will undergo inspection following orders from the Ministry of Corporate Affairs.
As reported by Reuters, the ministry acknowledged the need to investigate allegations of fund siphoning. Last month, SEBI (Securities and Exchange Board of India) prohibited Eros International Media, its promoter Sunil Lulla, and CEO Pradeep Kumar Dwivedi from accessing the securities market, until further orders. SEBI has also disallowed Lulla, who serves as the vice-chairman and managing director of Eros, and Dwivedi from holding positions in the boardrooms of listed companies.
SEBI in its investigation has found out that that Eros International Media had inflated its financial records and moved funds under the guise of content advances, subsequently recognizing them as revenue by channeling them through different entities.
Eros International Media Ltd, also known as Eros India, is a Indian motion picture production and distribution company headquartered in Mumbai, India. Established by Arjan Lulla in 1977, the management of the company is presently overseen by his sons, Kishore Lulla and Sunil Lulla. Eros India operates as a subsidiary of Eros Media World, a company formed in 2020.