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