The Supreme Court on Thursday refused to allow the government to proceed against auditing company BSR & Associates LLP, a KPMG-affiliated firm, for alleged fraudulent misconduct in the Infrastructure Leasing & Financial Services (IL&FS) case.
The financial affairs of the IL&FS group came under scrutiny last year after it defaulted on short-term and long-term debt obligations to the tune of Rs 91,000 crore.
The Serious Fraud Investigation Office (SFIO) in May filed a criminal complaint against 30 parties in the IL&FS case, including Deloitte Haskin & Sells LLP and BSR & Associates. In its complaint, SFIO accused these auditors of colluding with officials of IL&FS Financial Services to conceal facts and fraudulently falsifying the books of accounts and thereby financial statements from FY14 to FY18. —FE