The NFA has imposed penalties on 18 branch auditors of Dewan Housing Finance Corporation Ltd following investigations into their professional conduct.
The penalties are amounted to 18 lakh cumulatively and debarment ranging from six months to one year, as per the 18 separate orders by the NFRA. Of the 18 auditors, 14 have been removed for a period of one year and the others for six months.
The audits were appointed by the NFRA as engagement partners for statutory audit of various branches of DHFL in the fiscal year 2017-18.
Following media reports on the alleged scam of public money of around Rs 31,000 and the reported action by the promoter and directors of DHFL in April 2020 on an alleged banking fraud of about Rs 3700, NFRA took Suo motu notice of the matter and conducted an audit quality review. For nearly 250 branches, the independent branch auditors' report found. The NRA's recommendations found several instances of lapses in audit and professional misconduct by the auditors.
NFRA is a federal body that monitors and enforces compliance of auditing and accounting standards and oversees the quality of services of professions associated with ensuring compliance with such standards. NFRA has the power of a civil court.
In April this year, the NFRA had imposed a ban and monetary penalties of a total of Rs 4 lakh against four partners of an audit firm engaged by DHFL for professional misconduct.
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