NCLAT dismisses Deloitte, KPMG pleas against impleadment in IL&FS matter; allows operation of 29 July interim order for two weeks

On 29 July, the NCLAT stayed the order of the Mumbai bench of the NCLT to implead the auditors and the independent directors of IL&FS.

Press Trust of India March 04, 2020 15:09:38 IST
NCLAT dismisses Deloitte, KPMG pleas against impleadment in IL&FS matter; allows operation of 29 July interim order for two weeks
  • A two-member NCLAT bench led by Chairman Justice SJ Mukhopadhaya dismissed the pleas of auditors and other independent directors

  • On 23 July, the NCLT had allowed the plea of Commerce Ministry to implead the auditors and independent directors of IFIN

  • The MCA had asked the NCLT to freeze the assets of the former auditors in the case involving alleged fraud in IFIN

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed the pleas of debt-ridden IL&FS auditors — Deloitte Haskins & Sells and KPMG arm BSR & Associates — challenging their impleadment in the case involving alleged fraud in IFIN, a subsidiary of IL&FS.

A two-member NCLAT bench led by Chairman Justice SJ Mukhopadhaya dismissed the pleas of auditors and other independent directors.

NCLAT dismisses Deloitte KPMG pleas against impleadment in ILFS matter allows operation of 29 July interim order for two weeks

Representational image. Reuters.

The appellate tribunal, however, granted a relief to both auditors and other independent directors by allowing the operation of its earlier interim order passed on 29 July 2019 for two weeks.

On 29 July, the NCLAT stayed the order of the Mumbai bench of the National Company Law Tribunal (NCLT) to implead the auditors and the independent directors of IL&FS.

Earlier on 23 July, the NCLT had allowed the plea of the Ministry of Corporate Affairs (MCA) to implead the auditors and independent directors of IFIN.

"On the request of the counsel, we allow (that) interim order dated 29 July would continue till another two weeks," the bench said.

The MCA had asked the NCLT to freeze the assets of the former auditors in the case involving alleged fraud in IFIN.

While, commenting on the development, Delloite India spokesperson said: “We will review the written order before determining our further course of action, which may include an appeal."

Auditors cannot be treated as part of the management which is responsible for managing the affairs of the company and therefore should not be charged, the spokesperson said.

"We will continue to present and protect its position, supported by the facts, to the relevant authorities. The firm remains committed to high standards of audit quality and ethical conduct in its professional practice," he added.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

No concerns over financial statements for FY19, board to consider results on 27 May: Zee Entertainment
Business

No concerns over financial statements for FY19, board to consider results on 27 May: Zee Entertainment

Zee said it has been informed that "there are certain rumours floating in the market raising concerns about the audit of the financial statements of the company

ITR Form: Experts call for more details on asset disclosure
Business

ITR Form: Experts call for more details on asset disclosure

People earning more than Rs 50 lakh will find it challenging to declare cost of inherited properties and gift items in the new Income Tax Return (ITR) Form for the Assessment Year 2016-17, say tax experts.

Bugdet 2016: Startups may get tax benefit in Budget for brand building
Business

Bugdet 2016: Startups may get tax benefit in Budget for brand building

In order to encourage startups, especially e-commerce companies, the Finance Ministry may look at according beneficial tax treatment to their brand building expenses in the forthcoming Budget.