IL&FS crisis: ICAI sends notices to statutory auditors

On the heels of the government move to supersede the board of IL&FS, the CA Institute has sent show cause notices to the statutory auditors of this crisis-ridden IL&FS group. The Disciplinary Directorate of the ICAI, upon coming across media report on IL&FS, has suo motto taken*cognizance of the matter and pro-actively issued notices to the statutory auditors on October 4, Naveen Gupta, President, Institute of Chartered Accountants of India (ICAI), told. He said the notices have been sent for the relevant years of the concerned company seeking their explanation in the matter. In addition, the ICAI is also in touch with the other regulatory authorities and has already written separate letters to the Reserve Bank of India and the Serious Fraud Investigation Office which have been investigating the affairs of crisis-ridden company, Gupta said. Based on the responses received, ICAI would be fast-tracking its investigation on the role of ICAI member/CA firm allegedly involved in terms of the disciplinary mechanism as provided under the provisions of Chartered Accountants Act and the Rules framed under it, he added.