Alleged economic offence by Shri Rajesh Arora, Partner of KPMG

F.No 8/04/2016 -CL.II

Government of India

Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shastri Bhawan,

Dr. R.P. Road, New Delhi- 110001

Dated. 01.02.2016
To
Dr. Kirit Somaiya
Hon’ble Member of Parliament,
203, South Avenue.
New Delhi-110001.
Sub: Alleged economic offence by Shri Rajesh Arora, Partner of KPMG- regarding
Sir,
I am directed to refer to your letter dated 22.12.2015 wherein you have enclosed copy of letter regarding some alleged economic offence by Shri Rajesh Arora, Partner of KPMG, for necessary action.
In this connection, it is submitted that the investigation of Reebok India was ordered and assigned to SFIO on 25.02 2012 and investigation report was submitted to MCA on 07.05.2013,wherein , the role of Statutory Auditors has been appropriately examined and reported upon The report had recommended that the audit deficiencies of KPMG-Germany and KPMG-India its partner and staff be referred to Public Companies Audit Oversight Board (PCAOB) USA, recommending investigation (recommendation 9 of the report ). In addition to above, the report also recommended for referring the matter to ICAI for disciplinary proceedings against BSR & Co , Chartered Accountants. NN & Company, Chartered Accountants as well as directors and other officers of Reebok India who are also Chartered Accountants (Recommendation No. 7,8,10,18,20). These recommendations had been agreed to by the Ministry and appropriate instructions were issued to SFIO to share the report with PCAAB. USA and ICAI for appropriate action in the matter
It would, therefore, be observed from the above that the Ministry has already taken appropriate action in respect of the allegation mentioned in the letter of Whistle Blower under its jurisdiction under the Companies Act,1956.
The above is for your information please.

Yours faithfully

(Dr Navrang Saini)

Director (Inspection & Investigation)

This is as received in mail