The Ministry of Corporate Affairs (MCA) has asked MG Motor India to explain certain alleged irregularities in its books. MCA, through its registrar of companies (RoC), has summoned the company's directors and its auditor Deloitte to explain certain alleged audit deficiencies that had been discovered during the course of the probe. This could be seen in the light of deepening scrutiny of Chinese firms operating in the country. The scrutiny started after a detailed analysis of the company’s financial statements indicated suspicious related-party transactions, alleged tax evasion, under and over-invoicing of bills and other irregularities. The ministry is already investigating the account books of more than 500 Chinese companies to look into allegations of significant financial impropriety.
 

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