Several top executives of the three companies and auditors associated with some of them now face criminal charges due to the irregularities. Additionally, both auditors and their firms are undergoing disciplinary procedures. Meanwhile, the new leadership has divested a substantial portion of assets to settle a significant portion of debts owed to creditors.
The regulators like NFRA and Sebi may tighten vigil around the need for the "effective two-way communication process" soon, they said. At present, auditors in many cases are found to give a last-minute report/presentation to the audit committee of a company, consisting mainly of independent directors, just before the board is about to approve its financial statement, one of the persons said. "So, the auditor s report isn t scrutinised properly by the audit committee. Also, there is no effective two-way communication process, as required," he added.
Parthasarthy, the kingpin, mastermind and chief architect of the Rs 1 lakh crore IL&FS scam, has been arrested by the EOW in connection with Crime No. 13 of 2020, dated September 20, 2020, the EOW of Chennai Police said in a statement.
IL&FS scam: Chennai EOW arrests Ravi Parthasarathy, kingpin of Rs 1 lakh cr fraud freepressjournal.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freepressjournal.in Daily Mail and Mail on Sunday newspapers.