The Government of India may soon debar, one of the largest management consulting firm Deloitte due to its malpractice and ill conduct in the Infrastructure Leasing and Financial Services audit process under the section 140 of the companies act, according to the report.
A Deloitte Executive officer revealed in a report, “Investigations on IL&FS Financial Service (IFIN) are in progress and we are cooperating fully. We reaffirm that we have conducted our audits in accordance with the auditing standards and applicable laws and regulations.”
Deloitte has Maintained the IL&FS default starting from the previous year. IL&FS Transportation Networks and IL&FS, both the subsidiary of the IL&FS Group, were audited by the E&Y in the year 2017-2018 and 2018-2019, another subsidiary, IFIN, was also audited by the KPMG in the year 2018-2019.
Deloitte has also revealed that many of the smaller organizations h ad performed audits on some of the majority 347 subsidiary of the IL&FS. It was also found that when the Deloitte was auditing the groups from so many years, leans were also collateralized sufficiently, and these were valued independently by some of the organizations like the Knight Frank or FIC.
These assets and their value denominations were also validated by the fact that the Piramal Group had expressed an intention of buying a majority of the stake in the IL&FS at Rs 750 per share after the due intelligence which is performed by the KPMG in the year 2015-2016.
If the government goes with it, this will be the second case which has been come into the picture after the Price Water house was debarred in the Satyam Computer Services scam. In the year 2018, Price Warehouse was banned from providing any of the audit services to get their companies listed in India for the period of two years in the case of the Satyam Fraud. Two partners from the company were also been barred for three years.
The company and two of its Company Secretariat also had to shell out at the cost of around Rs 13.09 crore as the part of a disgorgement. An interest of around 10% was also levied on this amount from the period of 7th of January 2009.
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