In an email response, a Deloitte spokesperson said, “No such action has been proposed. The investigations on the company (IFIN) are in progress and we are cooperating fully. We reaffirm that we have conducted our audits in accordance with the standards on auditing and the applicable laws and regulations.”
The serious fraud office had on Wednesday quizzed Deloitte former chief executive officer Udayan Sen and two others over the alleged audit.
The excessive remuneration paid to Deloitte at a time when IL&FS firms were facing liquidity crunch has come under the scanner too.
The books of IL&FS group have shown that default on loans worth Rs 94,000 crore started late last year. In a move to repair the damage, the government sacked the old board, replacing it with a new one.
Sources said the SFIO had examined every allegation made by the whistle blower in a letter written to several central agencies and regulators.
The whistle blower had said that in order to protect the auditor’s position, Deloitte agreed to rely on the management’s explanations and comfort letters whenever there were dubious findings. “Internally several views in matters of audit opinion were watered down by Deloitte leadership in the first instance,’’ the communication said.
Probe heat on auditor
Preliminary investigation raises serious concern over Deloitte's conduct
Indications of misrepresentation of IFIN financials
Auditors got excessive remuneration even when IL&FS firms were facing cash crunch
Flawed facts in the books of IL&FS arms overlooked
SFIO may recommend invoking Section 140 (5) of Company’s Act, which allows debarring an audit firm for at least 5 years