View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
August 12, 2019

Audit ban in India a step closer for Deloitte, KPMG

The prospect of a five-year ban from statutory audit has moved closer for Deloitte Haskings & Sells and KPMG-affiliate BSR & Associates following a ruling by the Indian National Company Law Tribunal (NCLT).

The Indian government is pressing for the ban to be imposed over allegations concerning the two firms’ roles in the IL&FS scandal, allegedly aiding and abetting financial fraud at Infrastructure Leasing & Financial Services and, it is also claimed, ‘deliberately’ failing to report fraudulent activity.

The two firms had challenged the NCLT jurisdiction but this challenge has now been rejected. However, in handing down its ruling, the NCLT did allow for an appeal and another hearing has been scheduled for 5 September 2019. That is unlikely to be the end of the matter, with the NCLT itself expecting the case to go onto the National Company Law Appellate Tribunal and ultimately to the Supreme Court.

Deloitte and BSR had argued that as they had already resigned as auditors, they were not liable to be ‘removed’. The NCLT disagreed and the two firms could now be subject to ‘deemed removal’.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to International Accounting Bulletin