ICAI Election effects - Disciplinary Proceedings against IL&FS Auditors postponed

The much-anticipated hearing in the CA Institute’s inquiry against certain statutory auditors of beleaguered IL&FS Group stands postponed.

The first hearing, which was scheduled to take place in Kolkata on Friday, has been postponed, sources close to the developments said. There is no information on when the next hearing will take place.

Meanwhile, the Disciplinary Committee will go ahead with its meeting and look at other cases, it is learnt. The move to postpone the hearing on IL&FS auditors’ disciplinary matter comes at the behest of a few signing partners requesting for adjournment, sources said.

It may be recalled that the CA Institute had already declared the signing partners of three top-notch Indian audit firms responsible for the statutory audit of these companies as prima facie guilty. Formal communication to the partners of the three firms – Deloitte, Haskins and Sells, BSR and Associates LLP, and SR Batliboi – had been sent and some had also formally replied.

Currently, disciplinary proceedings can be initiated only against the signing partners or those responsible for the statutory audit work. ICAI has been demanding powers to proceed against errant audit firms.

Meanwhile, the newly-reconstituted board of IL&FS has approved the appointment of Bijay Kumar, a retired IAS officer, as Deputy Managing Director of IL&FS. #casansaar (Source - The Hindu Business Line)