As the probe continues into the IL&FS case, a senior government official has said the group’s auditors have “many questions to answer” prima facie as they are supposed to act as “gatekeepers” and detect widespread irregularities, but it will be premature to pass any judgement at this stage.
“We are not expecting an auditor to detect a needle in a haystack, but if an elephant is in a room they ought to find it. That is the issue,” Corporate Affairs Secretary Injeti Srinivas said.
Crisis-hit IL&FS group’s debt burden is estimated to be more than Rs 94,000 crore and various entities, including some former officials and auditors, are under the scanner for widespread irregularities and huge loan defaults.
