InvestorQ : Why has the auditor in the IL&FS case been banned for 7 years?
Mahima Roy made post

Why has the auditor in the IL&FS case been banned for 7 years?

Answer
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Aditi Sharma answered.
3 months ago


The National Financial Regulatory Authority (NFRA), a nodal agency for the capital markets, imposed a 7-year ban on Udayan Sen, former partner of Deloitte. This ban is for professional misconduct while auditing the books of IL&FS. NFRA has also imposed a fine of Rs.25 lakhs on Sen. This case is under hearing and the final order is pending in the Delhi High court.

NFRA, in its 88-page order, clarified that the order would not take effect till the Delhi HC judgement is delivered. The NFRA observes that Sen showed gross negligence while auditing the books of IL&FS and the independence of the audit process had also been substantially compromised. Uday Kotak heads the board appointed by the government to oversee IL&FS.