MUMBAI: The NCLT’s Mumbai bench has reserved its order on the Ministry of Corporate Affairs’s plea to ban BSR and Deloitte, the former auditors of IL&FS Financial Services (IFIN), for a period of five years.
KPMG arm BSR & Associates LLP had earlier resigned as the statutory auditor of IFIN.
The audit firm had earlier said that IFIN had sought its explanation on its removal as auditors in May to which it had replied but has, so far, not received any further communication from the financial arm of the crisis-hit IL&FS.
Along with seeking to bar the two firms from audit operations for five years for their alleged involvement in the financial mismanagement at the IL&FS Group, the MCA also filed an application to appoint a new auditor of the firm.
Deloitte Haskins told the tribunal that it is currently not the statutory auditor of IFIN, and was the auditor for the company till the financial year 2017-2018.