Uday Kotak, non-executive chairman of the newly constituted board for infrastructure lender IL&FS. Photo: AFP
Uday Kotak, non-executive chairman of the newly constituted board of infrastructure lender IL&FS. Photo: AFP

The crisis in India’s leading shadow banker IL&FS group has raised questions about the role played by well-known auditors such as Deloitte and KPMG for not raising timely red flags on bad loans and manipulation of accounts.

The Ministry of Corporate Affairs has approached the National Company Law Tribunal to bar the auditors of the IL&FS Financial Services (IFIN) – Deloitte Haskins & Sells and BSR & Associates – from the business for five years for alleged collusion with the IFIN management. BSR is a KPMG network accounting firm.

The ministry’s application also named individuals – former Deloitte chief executive Udayan Sen, Deloitte partner Kalpesh Mehta and BSR partner Sampath Ganesh. It has also sought to appoint a new statutory auditor for the company.

The National Company Law Tribunal has asked the auditors to file replies by June 19. The case has been listed for hearing on June 21.

Also Read: India’s IL&FS board seeks ban on Deloitte

The move comes after an investigation by the Serious Fraud Investigation Office, which allegedly revealed that auditors connived with IFIN’s former directors to conceal information about wrongdoing by managers.

The entire IL&FS network had more than 35 firms that audited subsidiaries, joint ventures, and associate firms.

Some of the major Indian firms including Sharp and Tannan, KS Aiyar & Co and MP Chitale were auditors of the subsidiaries. The Serious Fraud Investigation Office is investigating the role played by senior executives and audit committee members of these 35 companies.

In a related development, the Serious Fraud Office investigation also revealed that in 2017 a complaint by a whistleblower was allegedly covered up by the top management of IL&FS in connivance with independent directors. The audit committee of IFIN was accused of simply abiding by the management version and not delving into allegations made by the whistleblower.

The scam at IL&FS came to light last year after several group entities defaulted on repayments due to severe liquidity problems.Later, the government appointed a new board of directors, led by noted banker Uday Kotak, which is now working on ways to revive the ailing group. IL&FS group has an accumulated debt burden of more than 900 billion rupees – close to US$13 billion.

Join the Conversation


  1. Hey! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog article or vice-versa? My website addresses a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you happen to be interested feel free to shoot me an email. I look forward to hearing from you! Awesome blog by the way!

  2. I¦ve been exploring for a little bit for any high quality articles or blog posts on this sort of house . Exploring in Yahoo I eventually stumbled upon this web site. Studying this info So i¦m satisfied to convey that I’ve a very good uncanny feeling I came upon exactly what I needed. I most indisputably will make certain to do not forget this web site and provides it a glance on a relentless basis.

  3. Great post. I was checking constantly this blog and I’m impressed! Extremely helpful information specifically the last part 🙂 I care for such info much. I was seeking this particular information for a very long time. Thank you and best of luck.

  4. I’ve been absent for a while, but now I remember why I used to love this site. Thank you, I?¦ll try and check back more frequently. How frequently you update your web site?

  5. I’ve been absent for a while, but now I remember why I used to love this site. Thank you, I’ll try and check back more frequently. How frequently you update your web site?

  6. I am curious to find out what blog platform you are utilizing? I’m experiencing some small security problems with my latest site and I would like to find something more secure. Do you have any recommendations?

  7. You really make it appear so easy together with your presentation however I to find this topic to be actually one thing which I think I’d by no means understand. It sort of feels too complicated and extremely extensive for me. I am looking forward to your subsequent post, I will try to get the grasp of it!

  8. I don’t even know how I ended up here, but I thought this post was good. I don’t know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!

  9. Thank you a lot for giving everyone an exceptionally terrific possiblity to read articles and blog posts from this site. It can be very amazing and packed with a lot of fun for me and my office acquaintances to search your blog at the least 3 times per week to find out the newest tips you have. And lastly, I am also at all times happy for the fabulous tips you serve. Some 1 facts in this post are undeniably the most effective we’ve ever had.

  10. Hey there, I think your site might be having browser compatibility issues. When I look at your blog in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, amazing blog!

  11. You could certainly see your skills within the work you write. The sector hopes for more passionate writers such as you who aren’t afraid to mention how they believe. All the time follow your heart. “No man should marry until he has studied anatomy and dissected at least one woman.” by Honore’ de Balzac.

  12. There are actually numerous details like that to take into consideration. That is a great level to convey up. I supply the ideas above as normal inspiration however clearly there are questions like the one you deliver up where the most important thing might be working in trustworthy good faith. I don?t know if greatest practices have emerged round things like that, however I’m positive that your job is clearly identified as a good game. Each girls and boys really feel the impression of only a second’s pleasure, for the rest of their lives.

Leave a comment

Your email address will not be published. Required fields are marked *