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IL&FS crisis: ICAI issues notice to audit firms, seeks explanation

The crisis at diversified IL&FS, following loan defaults by some group entities, has raised concerns about liquidity crunch in the financial system

Press Trust of India  |  New Delhi 

IL&FS
IL&FS

Chartered accountants' apex body has sought explanation from firms that carried out statutory works of crisis-hit group in the past few years.

The crisis at diversified IL&FS, following loan defaults by some group entities, has raised concerns about liquidity crunch in the financial system. Against this backdrop, the government seized control of the board earlier this month.

The of India (ICAI) Wednesday said it has issued notices to firms that conducted statutory audit works of group in the past few years.

However, specific details were not disclosed.

In the recent past, there has been reports regarding diversion of loan money in IL&FS and its subsidiary companies, the said in a statement.

"The of the ICAI, upon coming across such report has suo moto taken cognisance of the matter and pro-actively issued notices to the statutory auditors on October 4, 2018 for the relevant years of the concerned company seeking their explanation in the matter," it said.

The institute has also written to the and the Office seeking details about IL&FS issue.

"Based on the responses received, the would be fast-tracking its investigation on the role of member/ firm of the institute allegedly involved in terms of the disciplinary mechanism," the statement said.

First Published: Wed, October 10 2018. 21:40 IST
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