NEW DELHI: India has told a tribunal the local auditing affiliate of international accounting group Deloitte Touche Tohmatsu is misreading a key federal law as the firm seeks to avoid a five-year ban on new business, according to legal documents reviewed by Reuters on Sunday.
The alleged fraud began to be exposed last autumn and Deloitte said the law only allowed such a ban to be imposed if the auditor was actively auditing the company at the time, and didn't allow the government to take into account the firm's work over previous years. India detected auditing failures as part of its wide-ranging probe into alleged fraud and mismanagement at IFIN, which has also been investigated by several other agencies including the Serious Fraud Investigation Office and the central bank.