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 IL&FS board earlier this month.
However, specific details were not disclosed.
"The Disciplinary Directorate of the ICAI, upon coming across such news 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.
"Based on the responses received, the ICAI 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.