Tuesday, April 01, 2014

First Leasing Company

Farouk Irani was considered a legendary figure in financial circles for initiating the practice of leasing finance in India. The company promoted by him and A.C.Muthiah was a pioneer in the field.

It is a pity that this company has now come to total grief. Forensic auditors are trying to figure out how a substantial sum of Rs.1,000 crore has been spirited away. A.C.Muthiah and Irani have quit their positions as Chairman and President respectively.

The interesting part of this development is the Chairman blaming the President for keeping him in the dark about the fraud and the President, in turn, blaming the CFO. Well done!

Would the shareholders file a class action suit against the fraudsters?

No comments: