Govt moves NCLT for 5-year ban on IL&FS Financial Services auditors

The SFIO, in its complaint, has alleged that the auditors were aware that IFIN was lending to defaulting borrowers through group companies

The Ministry of Corporate Affairs (MCA) moved the National Company Law Tribunal on Monday to bar the auditors of IL&FS Financial Services (IFIN) — Deloitte Haskins & Sells and BSR & Associates — from business for five years for alleged collusion with the IFIN management and failure in reporting mismanagement. 

The application filed by the MCA was against Deloitte, BSR and individuals including former Deloitte Chief Executive Udayan Sen, Deloitte partner Kalpesh Mehta and BSR partner Sampath Ganesh. BSR is a KPMG network accounting firm. 

The MCA’s move to bar the IFIN auditors comes after the investigation by the Serious Fraud Investigation