NEW DELHI: Audit firm BSR & Associates LLP Thursday said it has resigned as the auditors of IL&FS Financial Services (IFIN) and will continue to defend itself in the NCLT on petitions filed by the MCA.

“We confirm that BSR & Associates LLP has resigned as auditors of IL&FS Financial Services (IFIN) on June 19, 2019. We had received a notice dated May 13, 2019 from the board of directors of IFIN seeking an explanation on our removal as auditors,” it said in a statement.

BSR said it had filed a written response to the notice from IFIN on May 29.

“While IFIN has not communicated its decision to us as yet, we do not intend to impose ourselves as auditors of the company. Our resignation will allow the company to appoint another auditor so that the work on the audit for FY 2019 may progress.

“We believe, we have discharged our duties in good faith and have acted in a bona fide manner and we will continue defending ourselves,” the audit firm said.

A large number of individuals and entities, including independent directors, top management personnel, rating agencies and auditors formerly associated with crisis-hit IL&FS may soon face action by capital market regulator Sebi for their role in the alleged fraud at the group.

Sebi has been conducting an in-depth investigation into the role of several entities and individuals, including for suspected violation of disclosure and corporate governance norms.

According to officials, many of them would soon face stringent penal action for hurting the interest of minority shareholders and the overall capital markets with their fraudulent actions.

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“We have also filed our replies to the petitions and applications filed by the Ministry of Corporate Affairs with National Company Law Tribunal and we will continue defending ourselves vigorously. As the matter is subjudice, we are unable to provide any further comments at this time,” said the audit firm associated with KPMG.

The Sebi probe started after the crisis came to light at IL&FS group last year, following huge defaults by various entities, which together had a debt burden of over Rs 90,000 crore.

Earlier on Wednesday, the Enforcement Directorate arrested two former executives in connection with its money laundering probe in the IL&FS alleged financial irregularities case.

In a first in the case, former joint MD of IFIN Arun K Saha and former managing director of IL&FS Transportation Networks (ITNL) K Ramchand were arrested in Mumbai under the Prevention of Money Laundering Act (PMLA).



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