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Danny McCance 26 Jul 2019 02:12pm

Deloitte India granted four-week pause in legal battle

Deloitte and BSR Associates, a KPMG affiliate, have been granted a stay on a legal order by India’s National Company Law Tribunal (NCLT)

The firms have been involved a protracted legal battle over alleged misconduct in their audit work on infrastructure firm IL&FS.

 India’s Ministry of Corporate Affairs has argued for Deloitte to be banned from the country for five years over the IL&FS case.

The case was heard in Mumbai on July 22, and the two firms sought a stay on the NCLT’s order for a ban, according to the Economic Times.

The NCLT has now agreed to stay its own order, which had allowed the government to prosecute the partners involved in the alleged fraud at IL&FS.

Auditors from both firms now have time to file an appeal at the appellate tribunal. Although the NCLT’s order is inoperable for four weeks, the auditors only have 10 days to appeal.

Deloitte has argued that the law did not allow for a ban to be imposed on a firm after it had finished auditing the company in question: in this case, the firm’s 10-year tender with IL&FS had already ended.

The Indian government responded by accusing Deloitte of a “narrow and pedantic” reading of the law, as reported by Reuters.

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