ICAI issues suo motu notices to statutory auditors of Amrapali Group

Chartered accountants' apex body ICAI has issued notices to auditors of Amrapali Group, days after the Supreme Court said the realty player diverted money collected from home buyers to other firms.

Based on reports and various interim orders passed by the court, the Institute of Chartered Accountants of India (ICAI) Friday said it has issued suo motu notices to the statutory auditors of Amrapali Group for the period 2008-2015 and also for the latter period.

"The ICAI would be vigorously investigating the matter and take all necessary steps for ensuring that any misconduct by the errant auditors are enquired into in a fast-track mode...," it said in a release.

On Wednesday, the Supreme Court said Amrapali Group of companies has played a "big fraud" by diverting money collected from home buyers to other firms and the "big racket" behind this has to be unearthed.

Citing the interim reports of the forensic auditors appointed by the apex court, "it is coming out that there have been huge diversion of funds of the home buyers investing in housing projects of Amprapali Group", the release said.

The news reports also indicate that there were serious irregularities in the conduct of the statutory auditors of the Amrapali Group companies which have reportedly been pointed out by the forensic auditors in their report to the court, it added.