Indian court quashes government's call for ban on Deloitte, KPMG affiliate
By Abhirup Roy and Aditya Kalra MUMBAI/NEW DELHI (Reuters) - An Indian court on Tuesday quashed efforts by the federal government to impose a ban on auditors Deloitte Haskins & Sells LLP and a KPMG affiliate for their alleged abetment of a financial fraud at a domestic firm.
By Abhirup Roy and Aditya Kalra
MUMBAI/NEW DELHI (Reuters) - An Indian court on Tuesday quashed efforts by the federal government to impose a ban on auditors Deloitte Haskins & Sells LLP and a KPMG affiliate for their alleged abetment of a financial fraud at a domestic firm.
The government had sought to impose a five-year ban https://reut.rs/2Y10Wts on Deloitte and KPMG's affiliate, BSR & Associates, for aiding the alleged fraud at a unit of Infrastructure Leasing & Financial Services, whose near-collapse in 2018 had triggered financial contagion fears.
Deloitte's term as an auditor ended in 2018, while BSR resigned voluntarily in June 2019, just days after the government sought to ban them.
Ruling on a court challenge against the ban by BSR and Deloitte, the Bombay High Court upheld the auditor's arguments that they were erstwhile auditors of the Indian firm and so cannot be banned under a provision of law invoked by the federal government, a government source said of the court's ruling.
The court's 198-page order showed the government has sought an eight-week delay before its Tuesday ruling comes in force.
The Ministry of Corporate Affairs is likely to appeal the ruling in India's Supreme Court, according to a second government official with direct knowledge.
Deloitte and KPMG did not respond to a request for comment.
As part of a widespread probe of the alleged fraud and mismanagement at IL&FS, India had detected at least 22 violations https://reut.rs/2Voy0tP of auditing standards by the auditors, according to legal filings seen by Reuters.
Both auditors denied any wrongdoing.
(Reporting by Abhirup Roy and Aditya Kalra; Editing by Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Pulitzer Prize-winning photojournalist Danish Siddiqui killed in Afghanistan: Politicans, journalists pay tributes
The Pulitzer prize winner, who was in Kandahar covering operations against Taliban, was killed when he was riding along with the Afghan Special Forces
Siddiqui had also covered the 2020 Delhi riots, COVID-19 pandemic, Nepal earthquake in 2015 and the protests in Hong Kong
Danish's photographs were not just documentation, but the work of someone who went down to eye-level, as they say in photographic parlance.