IL&FS case: MCA moves NCLT for appointment of new auditors

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IL&FS case: MCA moves NCLT for appointment of new auditors

The ministry had earlier proposed the appointment of Chitale & Co, CNK & Associates LLP, Borkar & Mazumdar & Co, and GM Kapadia &Co as auditors.

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The Ministry of Corporate affairs on September 27 moved the National Company Law Tribunal to file an application seeking a change in the auditors of Infrastructure Leasing and Financial Services Ltd.

The move comes in the wake of Supreme Court allowing government to approach Mumbai Bench of NCLT for appointment of new auditors.

The apex court also said that Deloitte and BSR – former IL&FS auditors – can also file their objections to the government’s plea for new auditors before the tribunal.

“We will file an application to change the auditors in IL&FS,” said Sanjay Shourie, Director, legal and prosecution, Ministry of Corporate Affairs.

The ministry had earlier proposed the appointment of Chitale & Co, CNK & Associates LLP, Borkar & Mazumdar & Co, and GM Kapadia &Co as auditors.

The Serious Fraud Investigation Office had earlier this year unearthed grave irregularities across corporate governance and financial parameters that led to the crisis at IL&FS.

Source- Moneycontrol.