Deloitte Haskins and Sells Llp, the auditor of struggling IL&FS Financial Services Ltd (IFIN), may have to disgorge the audit fees it had received from the lender with penalty if a probe finds that the auditing firm had overlooked irregularities or colluded with the non-bank’s management, a person familiar with the investigation said.
Deloitte may also face class action suits from bondholders and shareholders of IFIN, the person said on condition of anonymity.
The Serious Fraud Investigation Office (SFIO), which comes under the corporate affairs ministry, has also extended its probe to BSR and Associates Llp, which came in as the joint auditor of IFIN for the year ended 31 March 2018.
