NEW DELHI - India’s Ministry of Corporate Affairs has ordered an inspection of the accounts of Eros International Media, two government officials told Reuters, after the market regulator in June accused the media group of financial misreporting and fund diversion.

The ministry ordered the probe after it was "satisfied" that an inspection was required to check allegations of fund siphoning, one of the officials, who did not want to be named, told Reuters.

Eros International Media is a distributor and producer of movies and owns popular OTT streaming platform Eros Now.

The Ministry Of Corporate Affairs and Eros International did not immediately reply to emails seeking comment.

In an interim order in June, the Securities and Exchange Board of India (SEBI) said it had found prima facie evidence that Eros International's accounts were "overstated and do not present a true and fair picture of the financial health of the Company."

The markets regulator subsequently barred Eros International Media's Managing Director Sunil Arjan Lulla and three of the company's entities from the securities market. Earlier this month the company challenged the regulator's order.

Under Indian law, after launching a probe the Ministry of Corporate Affairs can record statements of company officials and ask for documents. The ministry must compile its report within six months.

(Reporting by Nikunj Ohri and Sarita Chaganti Singh; Editing by Susan Fenton)