SC extends major relief to audit firms Deloitte, BSR in IFIN financial irregularities case
Giving major relief to two former auditors of the debt laden IL&FS Financial Services (IFIN), the Supreme Court of India, refused to stay the Bombay High Court (HC) order to quash all prosecution against the two firms for financial irregularities. This was in response to the challenge petition filed by the Ministry of Corporate Affairs (MCA) to stay the Bombay High Court’s order of April 21.
The cases against the two firms BSR and Associates LLC and Deloitte Haskins and Sells are pending before the National Company Law Tribunal (NCLT) and a special court.
The bench comprising Justices MR Shah and AS Bopanna, headed by Chief Justice SA Bobde said that the MCA can continue its probe while the auditors are permitted a bail.
The BSR and Deloitte moved the High Court last year challenging Centre’s plea before the tribunal seeking their removal as auditors of IL&FS under Companies Act, section 140 (5). The step would lead to a five year ban on the two audit firms.
However, the NCLT backed the Centre’s plea and gave a nod for the proposal for the removal of the firms. The two firms then challenged the tribunal’s decision and submitted a plea before the High Court.
It said that the government would be penalised for filing a delayed appeal.