Corporate affairs ministry investigates irregularities at Edelweiss ARC

Its shares were locked in the 5 per cent lower circuit on the BSE on Thursday at Rs 80.20 following reports of the probe

The Ministry of Corp­orate Affairs (MCA) has launched a probe into the books of Edelweiss Asset Reconstruction Company (EARC) following allegations by a whistleblower of fund diversion and irregularities.
 
The whistle-blower, Paras Kuhad, a former additional soli­citor general of India, had written to the Prime Minister’s Office and the Reserve Bank of India (RBI).
 
Kuhad has alleged that Edelweiss Group and Caisse de depot et placement du Québec (CDPQ), a Canadian institutional investor, which hold stakes in the ARC, diverted funds and did not adhere to norms while making investments in EARC’s instruments.
 
Sources have indicated that