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.
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?
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.
I got what you mean ,saved to my bookmarks, very nice web site.
It¦s in reality a nice and useful piece of information. I am happy that you shared this useful info with us. Please keep us up to date like this. Thanks for sharing.
buy viagra online new zealand order viagra online nz buy cialis 2.5 mg
I like your writing style truly loving this site.
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.
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!
I dugg some of you post as I cerebrated they were invaluable very useful
discount generic cialis india best mail order viagra can you buy viagra qatar
It’s in point of fact a great and useful piece of information. I am glad that you simply shared this useful information with us. Please keep us informed like this. Thank you for sharing.
Very well written article. It will be valuable to everyone who usess it, as well as me. Keep doing what you are doing – looking forward to more posts.
Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. It extremely helps make reading your blog significantly easier.
buy real cialis uk viagra buy uk online order a viagra online
At this time it seems like BlogEngine is the best blogging platform out there right now. (from what I’ve read) Is that what you are using on your blog?
This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.
With havin so much content do you ever run into any issues of plagorism or copyright infringement? My website has a lot of unique content I’ve either created myself or outsourced but it appears a lot of it is popping it up all over the web without my authorization. Do you know any techniques to help protect against content from being stolen? I’d truly appreciate it.
Hi there! Do you use Twitter? I’d like to follow you if that would be okay. I’m undoubtedly enjoying your blog and look forward to new posts.
Pretty nice post. I just stumbled upon your weblog and wanted to say that I’ve really enjoyed surfing around your blog posts. In any case I will be subscribing to your feed and I hope you write again very soon!
I like the valuable information you provide in your articles. I’ll bookmark your blog and check again here frequently. I’m quite sure I will learn many new stuff right here! Best of luck for the next!