Mumbai: In fresh trouble for auditors of Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries, the Enforcement Directorate ( ED ) has summoned senior executives of Deloitte Haskins and Sells (DHS) and BSR and Associates.This is the first time the ED, probing a money laundering case in the IL&FS matter, has summoned auditors. The agency filed a case under the Prevention of Money Laundering Act (PMLA) against an IL&FS subsidiary and is also probing the parent and several group companies and former officials, following a debt crisis at the financial institution that led to defaults on payments. Queries sent to DHS remained unanswered; BSR declined to comment.“The senior executives and the audit partner have been summoned to join the investigation into the money laundering case. “Auditors with their engagement teams did not use professional scepticism to ensure true and fair disclosure of the state of affairs of the companies. They in fact colluded with officials of the companies to conceal their fraudulent activities and they failed to perform their duties.”

Source: Economic Times June 11, 2019 23:26 UTC