Muddy Waters, a forensic and activist investment firm, recently published a report accusing Fairfax Financial Holdings, led by Canadian billionaire Prem Watsa, of using Quess Corp as an accounting tool to artificially inflate profits and book value. According to the report, Fairfax manipulated its financials in Q1 2018 by leveraging Quess to create a profit of $889.9 million. Muddy Waters contends that, in reality, Fairfax might have reported a loss of approximately $205 million for that quarter if Quess had not been de-consolidated.

Fairfax Financial, which has been increasing its stakes in several Indian companies like Quess Corp, Thomas Cook, and Bangalore International Airport, is now under scrutiny for alleged accounting practices that could have misrepresented the company’s true financial performance.