As per media reports, India’s Serious Fraud Investigation Office has begun an inquiry into the accounts of iron ore miner Sesa Goa Ltd. As per report, the SFIO will investigate the past eight years of Sesa Goa’s accounts and will also check the movement of its share prices.

On October 27th 2009, Sesa Goa Limited issued a clarification on media reports regarding the Company and stated that as of October 27th 2009, the Company had not received any notification or communication from the Serious Fraud Investigation Office with respect to the company on certain alleged matters that appear to pertain to the period prior to its acquisition by Vedanta Resources plc.

On October 28th 2009, the company received a copy of an order dated October 23rd 2009 from the Ministry of Corporate Affairs of the Government of India ordering an investigation by the SFIO into the affairs of the Company and that of its subsidiary, Sesa Industries Limited.

The scope of investigation includes looking into the state of affairs of the company and Sesa Industries Limited in respect of mismanagement, malpractices, financial and other irregularities. According to this order, this investigation must be completed within six months of the date of the order.

The Company understands from the order that this investigation has been initiated pursuant to a report of the Registrar of Companies that recommended such an investigation and the order directs inquiry into allegations made in certain complaints, but does not identify the complaints. The Company did not have any notice of this report prior to the receipt of the order and has not received a copy of this report of the Registrar of Companies, but has received requests from the Registrar of Companies for information for the period from 2001 to 2009. The Company believes that the investigation originates from the complaint filed by one of the shareholders of Sesa Industries Limited against Sesa Industries Limited, the Company and their directors in 2003 prior to the acquisition of the Company by Vedanta in April 2007.

The release added that “The Company and its management are committed to the highest levels of corporate governance and transparency and will fully cooperate with the investigation. The Company continues to conduct its business in full compliance with all applicable laws and regulations.”