NCLT allows ban on Deloitte, BSR for alleged auditing lapses in IL&FS firm

The auditors had challenged the jurisdiction of the NCLT to ban them under Sec 140(5) of Company's Act.

A raw deal for auditors

The National Company Law Tribunal (NCLT) Tribunal Friday rejected Deloitte's and BSR's appeals challenging a five-year ban on them for alleged lapses in their audits of a unit of Infrastructure Leasing & Financial Services (IL&FS), which the government took control of last year. The tribunal had earlier allowed the corporate affairs ministry to prosecute the audit firms and 21 others in the same case, though the implementation of the same has been stayed after they sought time to challenge the order at the appellate tribunal NCLAT. The auditors had challenged the ...