NFRA imposes 7-year ban on auditor in IL&FS case

The National Financial Reporting Authority (NFRA) on Wednesday imposed a seven-year ban on Udayan Sen as well as penalty of Rs 25 lakh in connection with alleged irregularities in audit of IL&FS Financial Services Ltd (IFIN).

The National Financial Reporting Authority (NFRA) on Wednesday imposed a seven-year ban on Udayan Sen as well as penalty of Rs 25 lakh in connection with alleged irregularities in audit of IL&FS Financial Services Ltd (IFIN). Sen was an engagement partner of Deloitte Haskins and Sells LLP, which conducted the statutory audit of IFIN for 2017-18.

IFIN is part of the diversified IL&FS group where a financial crisis came to light in late 2018. The watchdog noted that professional misconduct becomes very serious when the chartered accountant has gone along with the company's management in "agreeing to misstatements/ omissions so as to commit a fraud on the users of the financial statements".

In an 88-page order, NFRA has slapped a monetary penalty of Rs 25 lakh on Sen. Besides, he has been "debarred for a period of seven years from being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate".