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Grant Thornton India LLP (GT), the forensic auditor of IL&FS Engineering and Construction Co Ltd (IECCL), has found instances of potential bogus purchase transactions, and anomalies pertaining to sub-contractors in the company s Pune-Solapur Road project. IECCL was doing this project for its sister concern IL&FS Transportation Networks (ITNL).
Poddar Enterprises and Jagdamba Traders were steel vendors for the Pune-Solapur Road project. GT says, We identified an email dated 29 December 2010, which was sent by Rajesh Sunkaraveera to Naresh Penumetcha, both from IECCL, with regard to the purchase of steel from Poddar Enterprises and Jagdamba Traders where it was mentioned that inward receipt notes (IRN) were generated against the purchase order (PO) amounting to Rs1.64 crore. However, actual material or steel was not received at the site.
Grant Thornton India LLP (GT), the forensic auditor of IL&FS Engineering and Construction Co Ltd (IECCL), found several anomalies in the many projects undertaken by the company.
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Grant Thornton India LLP (GT), which was appointed to conduct a forensic audit of IL&FS Engineering and Construction Co Ltd (IECCL), a unit of Infrastructure Leasing & Financial Services (IL&FS), shows lack of system and record to handle complaints raised by whistle-blowers. The forensic auditor identified numerous email communications that highlighted whistleblower complaints with regards to the business operations of IECCL.
GT says, during its review, it had identified multiple whistleblower complaints, which highlighted anomalies in the projects executed by IECCL.
However, based on the clarification dated 22 November 2019, we were informed by the representatives of IECCL that there were no whistleblower complaints received by IECCL during the review period. Thus, it appears unusual that even after multiple whistleblower complaints highlighting various issues in the projects, no documentation such as actions taken or investigation reports are available with the