New Delhi: The Delhi High Court has issued notices to the Reserve Bank of India and two others on a petition filed by a group of Chartered Accountants alleging large-scale malpractices in the empanelment of auditors appointed for scrutinising the accounts of public sector banks in the country.
Besides seeking cancellation of the existing panel of statutory auditors constituted by the RBI, the petition filed by 23 Chartered Accountants sought an inquiry into the alleged malpractices in allotment of audit works to select individuals by the apex bank.
Justice Vikramjit Sen before whom the matter came up for hearing issued notices to the RBI, Union Finance Ministry and the Institute of Chartered Accountants of India to file their replies in two weeks and posted the matter for further hearing to April 24.
In the petition filed through counsel P Upadhaya, the Chartered Accounts Mukesh Singh Kushwah and others complained that the RBI despite the availability of sufficient number of auditors was allotting the audit works to a select few Chartered Accountants.
As per the convention, the RBI receives the list of eligible applicants from the Institute of Chartered Accounts of India to allocate their services for public sector banks.
However, it was alleged that the RBI with a motive to promote their own favourites allotted the audit works to a select few CAs who have been allocated more than one branch.
It was alleged that the RBI deliberately pruned down the list of the empanelled auditors so as to allot more than one branch to a select few Chartered Accountants.
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