Apr 6: Larsen & Toubro Ltd (BSE:500510, NSE: LT) has declined 1.23% to s 1312.25 in morning trade on news of likely probe by Special Fraud Investigation Office (SFIO) regarding allegations of misappropriation of funds and bank loans surfaced.
The scrip had risen to 1336 recently on Q3FY18 results and good order book. Net profit for Q3 had risen 66.37% to Rs 1,617.88 cr while sales rose 10.49% to Rs 28,747.45 cr.
L&T had loans aggregating Rs 8000 cr from various public sector banks such as Allahabad Bank, UCO Bank, Oriental Bank of Commerce, Syndicate Bank, Vijaya Bank and IDBI. The allegations regarding misappropriation of funds were first raised by Kahkashan Perween, a Rajya Sabha MP from Bihar who said that the company and its subsidiaries L&T Halol and L&T Chennai Tada Ltd had defaulted on loans and faces a serious threat of becoming NPAs.
The SFIO has sought Ministry of Corporate Affairs approval for probing the allegations, according to a report by The Hindu Business Line. L&T has maintained that the allegations are baseless and the stock exchanges have asked for clarification from the company.