Alipore Court restrains KPMG, banks from acting on SREI audit report

The order was passed on May 20, based on a petition by SREI promoter Hemant Kanoria. Next hearing on May 30

The Commercial Court at Alipore has passed an order restraining KPMG Assurance and Consulting Services and banks from using or acting on the forensic audit report on SREI till the next date of hearing.

The order, passed on May 20, was based on a petition filed by SREI promoter Hemant Kanoria. The next date of hearing has been fixed for May 30.

Kanoria had prayed for an injunction restraining KPMG and the banks from giving any effect or further effect to the audit report.

The commercial court order comes after the Kolkata Bench of the National Company Law Tribunal (NCLT) recently dismissed applications filed by Kanoria challenging the forensic report.

The tribunal also dismissed a contempt petition filed by Kanoria after Punjab & Sind Bank (PSB) declared its outstanding dues of around Rs 1,234 crore to Srei group firms as fraud.

However, last month, the Delhi High Court had restrained the bank from taking any further steps on the basis of its reclassification till the next hearing.

On May 18, the high court also restrained Karnataka Bank from taking further steps on the basis of declaring the Srei account as fraud. The bank had declared its outstanding dues of Rs 12.81 crore to Srei Equipment Finance as fraud.