SC allows audit regulator’s proceedings against CAs

NEW DELHI: The Supreme Court has allowed audit regulator National Financial Reporting Authority (NFRA) to proceed its proceedings against chartered accountants and corporations the place no audit high quality overview experiences have been ready and remaining orders are but to be handed.
During a listening to in a case difficult an order handed by the Delhi HC, a bench of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar has, nevertheless, requested NFRA to not challenge remaining orders in these circumstances and in addition stated that remaining orders which have already been handed won’t be given impact. NFRA had moved the SC difficult and order by Delhi HC bench of Justices Yashwant Varma and Dharmesh Sharma, raised considerations over NFRA not constituting divisions to separate powers for audit high quality overview and disciplinary actions and had sought recent analysis in 11 circumstances.
In the apex court docket, NFRA pleaded that the order is opposite to the ruling by NCLAT and SC in earlier circumstances. It has cited an SC judgment within the case of T Ok Harish, a department auditor of DHFL, regarding siphoning off of Rs 31,000 crore of public cash and a financial institution fraud of Rs 3,700 crore being investigated by different regulation enforcement companies.
In its attraction within the case involving Snehal N Muzoomdar, NFRA has argued that the auditor was an engagement accomplice of a department auditor of DHFL and the Delhi HC order has resulted in an anomalous state of affairs the place the proceedings and order handed within the case of 1 department auditor has been upheld by SC, whereas the proceedings and order handed within the case of an engagement accomplice of one other department auditor of the exact same firm have been quashed.