Haribhakti & Co LLP was the auditor of Srei Infrastructure Finance Limited (SIFL), whose board was superseded by the RBI and insolvency proceedings were initiated last week. The term of the firm expired with the conclusion of the 35th Annual General Meeting (AGM) held on September 19, 2020.
The banking sector regulator has taken this action against the firm for failure to comply with a specific direction issued by the RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company (NBFC), the central bank said.
This is the first time that the RBI has taken such action against an auditor of any systemically important NBFC. “The Reserve Bank of India (RBI) in exercise of the powers vested under section 45MAA of the Reserve Bank of India Act, 1934, has, by an order dated September 23, 2021, debarred M/s Haribhakti & Co LLP, Chartered Accountants (ICAI Firm Registration No 103523W / W100048), from undertaking any type of audit assignment/s in any of the entities regulated by RBI for a period of two years with effect from April 1, 2022,” it said.