Bombay HC quashes criminal charges against ex-IFIN auditor Deloitte & KPMG

Grants govt eight weeks' time to appeal in Supreme Court despite opposition from the auditor's lawyers

In a major relief to the former auditors of IL&FS Financial Services (IFIN), the Bombay High Court (HC) on Tuesday quashed the criminal complaint against Deloitte Haskins & Sells and BSR Associates, an affiliate of KPMG, filed by the Serious Fraud Investigation Office (SFIO) terming it unsustainable.
 

However, the court upheld the constitutionality of Section 140 (5) of the Companies Act, 2013, but said it is not applicable to auditors who have resigned.
 

BSR & Associates resigned in June 2019, while Deloitte’s term ended in 2018. The  National Company Law Tribunal (NCLT) cannot ban Deloitte and BSR for five years