The financial affairs of IL&FS Group came under scrutiny in 2018 after it defaulted on short-term and long-term debt obligations to the tune of Rs 91,000 crore. IL&FS Financial Services (IFIN) was audited by BSR, a KPMG-affiliated firm, in FY19 and jointly by BSR and Deloitte in FY18. Deloitte was the sole auditor of the firm in FY16 and FY17.
In January 2023, Hindenburg Research had said that Adani Groups “engaged in a stock manipulation and accounting fraud” and called it the “largest con in corporate history”.
A bench of Justice MR Shah and MM Sundresh held that the Bombay High Court erred in holding that the resignation of auditor means that proceedings against auditor before the NCLT under section 140(5) will end.