MUMBAI: When a Mumbai-based executive at a US private-equity firm got a phone call about how the senior management of an Indian company majority held by it was siphoning off money, he didn't believe it. Still, the PE firm hired one of the big four auditors to investigate, and what came out of the probe was shocking.
"The management team was dishing out contracts, including purchasing of machines, materials and services through one company without going through a tendering process. The evidence collected revealed that the management team owned this company though which purchasing was done," said a person directly involved in the investigations.
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