Frances Ball 7 Aug 2019 12:35pm

Deloitte resigns as auditor of Indian shadow bank lender

Shadow bank Dewan Housing Finance Corporation Ltd (DHFL) has announced that Deloitte has resigned as its auditor with immediate effect

In a notice to the Bombay Stock Exchange, DHFL said that Deloitte stepped down in view of “matters stated in the disclaimer of opinion in the financial statements of the company” for the last financial year.

Deloitte’s policy on client acceptance and continuation would not allow it to continue as statutory auditors, DHFL said.

The firm had raised concerns at the shadow bank over intercorporate deposits and a lack of transparency, amid a wider crisis in the shadow banking sector that is putting pressure on audit firms in India.

Deloitte is also currently fighting against a mooted five-year ban in India over work on IL&FS, the project finance and infrastructure developer company that defaulted last year. A KPMG affiliate company is also involved in the case.

Prosecutors in India claim that both firms were complicit in financial fraud at IL&FS, allegations that Deloitte and KPMG strongly deny.