RBI debars Haribhakti & Co from auditing for 2 years

Action against Statutory Auditors of NBFC under section 45MAA of RBI Act, 1934

FILE PHOTO: A worker walks past the logo of Reserve Bank of India (RBI) inside its office in New Delhi, India July 8, 2019. REUTERS/Anushree Fadnavis/File Photo

The Reserve Bank of India (RBI) has debarred Haribhakti & Co from auditing its regulated entities for two years with effect from April 1, 2022. The RBI has exercised the powers vested under Section 45MAA of the Reserve Bank of India Act, 1934, for the first time to debar a firm.

“This action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company,” RBI said in a circular on Tuesday.

According to sources the matter pertains to the audit of Srei Infrastructure Finance Ltd & Srei Equipment Leasing Ltd whose boards were recently superseded by the RBI.

“This [debarment] will not impact audit assignment/s of Haribhakti & Co. LLP in RBI regulated entities for the financial year 2021-22,” the regulator clarified.