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Informist, Thursday, Jun. 4, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Thursday allowed the Ministry of Corporate Affairs to amend its plea to include Deloitte Haskins & Sells LLP. and other auditors for failing to raise red flags on the systemic irregularities and fraudulent conduct of IL&FS Financial Services Ltd. The ministry had said that Deloitte and others were knowingly party to the fraud at IL&FS Financial with a view to defraud the creditors of the latter.

 

The tribunal said that the government's prayer to amend its petition was well within the prescribed limitation period – whether computed from 2019, the date of submission of the Serious Fraud Investigation Office's report, or even from 2018, the date on which the ministry had directed the fraud office to investigate the affairs of IL&FS Financial. The tribunal said that the ministry got knowledge of Deloitte's conduct after it came in possession of the fraud office's report in 2019 and as such, the limitation period would be calculated from that date.

 

In this case, the original petition was filed by the Ministry of Corporate Affairs in 2018, which sought to investigate Infrastructure Leasing & Financial Services Ltd. and its subsidiaries such as IL&FS Financial for alleged financial irregularities. The fraud office submitted a report stating massive corporate governance failures, deceptive lending practices, and widespread ever-greening of loans by Infrastructure Leasing & Financial Services and its subsidiaries.

 

Earlier, the ministry had amended its prayer in the petition to include Deloitte and others. However, the National Company Law Appellate Tribunal had set aside the ministry's move as it was not done after "taking the leave" of the Mumbai tribunal. Following this, the ministry filed an application with the Mumbai tribunal seeking amendment of its petition and including a prayer related to Deloitte and others.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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