Supreme Court paves way for tribunal to act against IL&FS auditors
In a setback to BSR & Associates, LLC (BSR) — a KPMG India affiliate — and Deloitte Haskins and Sells (Deloitte), both former auditors of IL&FS Financial Services (IL&FS Financial), the Supreme Court (SC) on Wednesday set aside the Bombay High Court (HC) order to quash all prosecution against the two firms pending before the National Company Law Tribunal (NCLT) and a special court in Mumbai.
Upholding the constitutional validity of Section 140(5) of the Companies Act, 2013, that allows the government to enquire and act against auditors, it allowed the tribunal to proceed with its enquiry and any subsequent action against the former auditors of IL&FS Financial.
