ILu0026FS case: HC interrupts the process against the BSR audit firm in NCLT

Mumbai, Sep 4 () The Bombay High Court on Wednesday suspended proceedings against BSR and Associates LLP, former auditor of ILu0026FS Financial Services, before the National Court of Corporate Law.

BSR had moved the court challenging the validity of the central government's statement to the NCLT seeking a ban on the audit firm for five years under the 2013 Companies Act.

The government has sought a ban on BSR for its role in alleged financial irregularities in the ILu0026FS group affected by the crisis.

The NCLT was scheduled to begin listening to the statement on September 5.

On Wednesday, a bank of Judges Ranji More and N J Jamadar suspended the NCLT proceedings until further orders and ordered the Ministry of Corporate Affairs to submit their response to the BSR statement within four weeks.

The court also ordered the Office of Serious Fraud Investigation (SFIO), a central agency that is a party to the case, to submit its response within four weeks.

In June, the ministry moved the NCLT against BSR and some other external auditors of ILu0026FS alleging professional misconduct.

At that time, he had also ordered the SFIO to initiate an investigation against such audit firms. Subsequently, the SFIO stated that BSR and some other audit firms had acted in violation of audit standards and that they had not been able to detect financial inconsistencies in ILu0026FS. AYA RSY MKJ

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