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 Office (SFIO), which revealed that the auditors connived with IFIN’s former directors in concealing information about wrongdoings of the management despite having full knowledge of the sorry state.
