Infrastructure Leasing & Financial Services (IL&FS), which runs engineering projects including India’s largest tunnel, defaulted on several loan repayments through 2018. Its long-term ratings were downgraded as a result.
Reports say that the Ministry of Corporate Affairs is considering a ban of five years on Deloitte India for alleged malpractice in its audit of IL&FS.
A spokesperson for Deloitte told Indian news network IANS, “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 applicable laws and regulations.”
IL&FS Financial Services Limited (IFIN) is the advisory branch of IL&FS, specialising in infrastructure financing.
Big Four rival PwC recently had its Indian member firm, Price Waterhouse, banned for two years over the audit of now-defunct Satyam Computer Services.
Although Price Waterhouse could finish auditing existing clients until 31 March 2019, it was banned from auditing listed companies in India.
Deloitte has been contacted for comment.