IL&FS case: Auditors defend themselves,question justification for ban
Auditors Deloitte Haskins & Sells and the KPMG affiliate BSR Associates, who are under fire for their alleged laps in the IL&FS scam, Friday questioned the justification for the corporate affairs ministry’s demand to seek a five-year ban on them. The counsel for the auditors argued that they are neither related to the management of any IL&FS company nor are involved with the day-to-day management of the crippled group that owes close to Rs 1 lakh to the system.
The NCLT posted the matter for hearing on July 15. The corporate affairs ministry had on June 10 moved the NCLT seeking a five year ban on Deloitte and BSR, who were the auditors of IL&FS Financial Services, and also to appoint a new auditor for the crippled firm. Following this, Deloitte had resigned as the auditor last week, while BSR did so Thursday. IL&FS Financial Services is one of the 348 arms of the IL&FS group, which went belly up last September.
