New Delhi, February 23, 2018

Show cause notice issued to auditor of Gitanjali Gems too

The CA Institute's Disciplinary Directorate has issued a show cause notice to all central statutory auditors of the scam-hit Punjab National Bank (PNB).

Similarly, central statutory auditors who have done a quarterly review of PNB have also been issued a show cause notice, the CA Institute had said in a statement issued on late Thursday night.

Gitanjali Gems auditor has also been issued a show cause notice in the matter, the statement added.

Also, the CA Institute has summoned PNB's Deputy General Manager to appear and produce a copy of the First Information Report, all related documents in the said fraud, and give details of the modus operandi used in the fraud.

Meanwhile, the CA Institute has also written to the Reserve Bank of India requesting them to provide the list of the corporate borrowers of public sector banks having an outstanding loan amount of Rs 2,000 crore and above so as to have the same examined by the Financial Reporting Review Board of the institute for any possible violation of applicable standards of accounting as well as auditing.

"ICAI reaffirms its commitment to be a proactive regulator of the auditing and accounting profession," the statement added.

Information sought from SEBI, CBI, ED

Soon after the Rs 11,300-crore PNB fraud came to light, the CA Institute's Disciplinary Directorate had as a proactive step, written letters on February 15 to the Securities and Exchange Board of India (SEBI), Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and Punjab National Bank (PNB), urging upon them to share the details/reports/findings in respect of the said alleged fraud, including the copies of the specific findings, in respect of the involvement of any chartered accountant/firm of chartered accountants.

ICAI has also written to its parent Ministry i.e. the Corporate Affairs Ministry requesting to prevail upon SEBI, CBI, ED and PNB to share their findings with the CA Institute to enable it to accelerate the action against any chartered accountant who have played any role in this fraud.

[The Hindu Business Line]