The ministry of corporate affairs (MCA) has launched a prosecution against Deloitte Haskins and Sells as well as BSR and Associates LLP and their former auditors for their role in “perpetuating the fraud” at IFIN, a subsidiary of Infrastructure Leasing & Financial Services (IL&FS).
The ministry’s regional director had moved National Company Law Tribunal (NCLT) for debarment of these audit firms and their audit partners. It sought interim attachment of their properties, including bank accounts and lockers.
MCA further directed the Serious Fraud Investigation Office (SFIO) to probe the role of lenders to IFIN and credit rating agencies covering the aspects of borrowings by IFIN from banks.
It will also look into the role of bank officials borrowing from the market using instruments like commercial papers, non-convertible debentures, ECB and so on. The SFIO has been asked to submit the status report to the ministry.
