BDO India has carried out two separate forensic audits for the period of 01 Jan 2002 to 28 Feb 2015 and from 01 Feb 2015 to 31 Mar 2016 and the losses have been estimated as deviations from a ‘base rate’ calculated from secondary market yields.
As per the estimates, the total loss incurred from 2005 to 28 Feb 2015 is 10.5 billion rupees under direct placements but for the period of 01 Feb 2015 to 31 Mar 2016, the maximum loss in the auctions process is 9.7 billion rupees.
On 27 Feb 2015, the Public Debt Department discontinued the direct placements as a method for raising public debt based on the instructions given by the then Governor without prior approval of the Monetary Board.
Forensic audits of the Central Bank also highlights various irregularities in the bond selling process from 2002 to 2016. The five forensic audit reports tabled in Parliament, however, not contained the relevant annexes and exhibits.
Related: Speaker decides to table Central Bank’s forensic audit report
(Except for the headline, this story, originally published by LBO has not been edited by SLM staff)