The Reserve Bank of India (RBI) has barred Haribhakti & Co LLP, one of India’s top chartered accountant firms, from auditing regulated entities for two years with effect from April 1, 2022.
“The action has been taken due to the failure of the audit firm to comply with a specific direction issued by the RBI in respect of statutory audit of a systemically important non-banking financial company,” RBI said in a circular. Tuesday.
The move by the central bank is the first such restriction under Section 45MAA of the RBI Act 1934, which deals with the powers and duties of auditors.
Haribhakti is the auditor for Srei Infrastructure Finance Limited and Srei Equipment Leasing as of September 2022.
This restriction will not affect the audit assignments being carried out by Haribhakti & Co for 2021-22.
Haribhakti is also the official auditor of Axis Bank, RBL Bank and IndusInd Bank.
The RBI last week superseded the boards of Srei Infrastructure Finance Ltd (SIFL) and Srei Equipment Finance Ltd (SEFL) for their failure to repay loans.
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