NCLT rejects IL&FS Financial Services auditors’ plea challenging 5-year ban
The National Company Law Tribunal (NCLT), Mumbai, on Friday rejected an appeal of former auditors of IL&FS Financial Services (IFIN) — Deloitte Haskins & Sells and BSR & Associates — questioning the jurisdiction of the tribunal to ban them for five years under Section 140(5) of the Companies Act.
The tribunal also said that it would hear the argument of the Ministry of Corporate Affairs (MCA) on September 5 on banning the auditors based on the investigation of the Serious Fraud Investigation Office (SFIO). The MCA had moved the NCLT in June to ban Deloitte Haskins & Sells and KPMG-network firm BSR & Associates for five years after the SFIO in its investigation found them colluding with the erstwhile management of IFIN in painting a rosy picture of the struggling company, despite knowing the sorry state of affairs.
