Former Deloitte Haskins & Sells CEO Udayan Sen was banned from auditing for seven years and fined Rs 25 lakh by the National Financial Regulatory Authority on July 22 for auditing lapses at IL&FS.
The watchdog found Sen guilty of professional misconduct and not maintaining independence and quality in auditing accounts of the financial company.
Sen was the engagement partner of IL&FS in 2017-18. He stepped down as CEO in March 2015 and retired as a partner of the firm in March this year.
The role of the two auditors—Deloitte and KPMG affiliate, BSR & Co.—has come under scrutiny after a debt crisis unfolded at the financial giant in September 2018.
According to Reuters, the government had sought to impose a five-year ban on Deloitte and BSR for aiding the alleged fraud. But a judge ruled against the government in April.
Deloitte’s term as IL&FS auditor ended in 2018, while BSR resigned voluntarily in June 2019, just days after the government sought to ban them.
Sen isn’t the only Deloitter who got banned. So too did the firm’s engagement quality review partner on July 23.
India’s audit regulator has debarred Rukshad Daruwala, Deloitte India’s engagement quality control reviewer, from the audit of IL&FS Financial Services Ltd. for a period of five years
, and imposed a penalty of Rs 5 lakh on him for his alleged professional misconduct while discharging audit duties for the non-bank lender.The National Financial Regulatory Authority found Daruwala guilty of professional misconduct under the Chartered Accountants Act and penalised him for his failure to highlight the loss of statutory auditor’s independence and inadequacies in the audit engagement team.The order comes on the heels of an earlier audit quality review of Deloitte Haskins & Sells, where the watchdog found similar lapses. NFRA also recently debarred Deloitte’s former audit engagement partner, Udayan Sen, for serious lapses while discharging duties as an auditor of IL&FS.
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