NSEL scam : Investors seek ICAI action against Auditors

In a separate development, the NSEL Investors' Forum, whose members have petitioned the Bombay HC against NSEL and its promoter FT, on Tuesday urged the Institute of Chartered Accountants of India (ICAI) to take disciplinary action against Rajesh Hiranandani, partner,Deloitte Haskins & Sells, for withdrawing its audit report for the FY13 financial statements of FT, which consolidates the results of subsidiaries, including NSEL. 

The exchange went kaput by July-end, after Deloitte signed the balance sheet on May 30, 2013. The complaint, referring to an FT press release dated September 24, 2013, states that Deloitte should be urged by ICAI to disclose details of the communication (between FT and the auditor) that has caused it to state that the audited financials of FTIL can no longer be relied upon; disclose the specific issues that have led it to the conclusion that the financial statements of FT, which have been audited and certified by them, are now "unreliable" ; state the reasons for the delay in their disclosure of the inaccuracy in the accounts of FT. (Economic Times)