The media reported that MCA has begun an investigating into the allegations of financial irregularities in the asset reconstruction business of the company.

MCA has reportedly ordered inspection into the company's books of accounts, following a whistleblower complaint to the Prime Minister's Office and Reserve Bank of India.

In a clarification filed with the bourses on Thursday, Edelweiss Asset Reconstruction Company (EARC), a subsidiary of Edelweiss Financial, said that it has not received any intimation of any inspection being conducted by the MCA.

EARC denied each and every allegation, contention, statement and/or assertion against it, as contained in the media report.

"EARC is in full compliance with the applicable laws, and has been conducting its business and operations in a fair and transparent manner. We have always acted responsibly and discharged our fiduciary responsibilities, and these allegations seem to be motivated," the asset reconstruction company said in a statement.

"It is shocking that wild, grossly inaccurate, unsubstantiated, fabricated and clearly motivated allegations have been selectively published by a reputed media house without doing any due diligence," it added.

Edelweiss Group operates ten entities across NBFC, housing finance, wealth management, asset management, asset reconstruction, life insurance, general insurance and insurance broking.

Edelweiss Financial Services reported a consolidated net loss of Rs 69.72 crore in Q3 FY21 compared with net profit of Rs 16.71 crore in Q3 FY20.Total income during the quarter declined by 17.3% year-on-year (YoY) to Rs 2191.34 crore.