In relief for auditors\, NCLT stays order of impleadment

In a relief to the auditors who were facing action at the hands of Ministry of Corporate Affairs, the NCLT has asked the Centre to not take action for four weeks and allowed the auditors to refer the matter to NCLAT.

The Centre is looking to clamp down on Deloitte and BSR, a KPMG network firm, for alleged lapses on their part in auditing the accounts of IFIN.

In their submission before the tribunal the auditors had contended that the tribunal lacks jurisdiction to ban them as they are no longer the auditors of IFIN.

"An auditor is like a chowkidar (watchman) and if there is a theft in the house, he should first be sacked and then it should be decided if additional legal action must be taken against him, lawyers arguing for Deloitte told NCLT on Monday," this paper had reported.