ICAI issues Notices to Amrapali Group Auditors for diversion of funds and serious irregularities in conducting audit

ICAI issues Notices to Amrapali Group Auditors for diversion of funds and serious irregularities in conducting audit

ICAI has issued notices to auditors of Amrapali Group during 2008-2015 and later periods, based on findings of interim reports of forensic auditors appointed by Hon’ble Supreme Court of India, like huge diversion of funds of the home buyers, serious irregularities in the conduct of the statutory auditors, etc.

ICAI Press Release dt. 26 Oct. 2018

The attention of ICAI has been drawn to several media reports highlighting the ongoing proceedings in the Hon’ble Supreme Court in the hearings of Amrapali Group Companies. Based on the interim reports of the forensic auditors appointed by the Apex court, it is coming out that there have been huge diversion of funds of the home buyers investing in housing projects of Amprapali Group. The news reports also indicate that there were serious irregularities in the conduct of the statutory auditors of the Amrapali Group companies which has reportedly been pointed out by the forensic auditors in their report to the Hon’ble Supreme Court.

Based on such media reports as also the various interim orders passed by the Hon’ble Supreme Court, the Institute of Chartered Accountants of India (ICAI) as the proactive regulator has immediately issued suo moto notices to the statutory auditors of Amrapali Group for the period 2008-2015 and also for the latter period. The ICAI has issued suo moto notices to these auditors by treating as “Information” in terms of the provisions of the disciplinary mechanism as provided in the Chartered Accountants Act, 1949 and the Rules framed there under.

The ICAI would be vigorously investigating the matter and take all necessary steps for ensuring that any misconduct by the errant auditors are enquired into in a fast-track mode in terms of the procedure prescribed under the aforesaid Chartered Accountants Act and the Rules.

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