Standing bold in PMC bank fraud, ICAI initiates discipline to check auditor's alleged involvement in financial irregularities

Mumbai, October 02: Taking note of the enormity of the matter concerning the PMC bank fraud in mumbai, the Chartered accountants apex body ICAI on Wednesday has sought information from the RBI and other authorities in relation to check whether any auditor was involved in the alleged financial irregularities at the lender.

 

Writing it to the Vigilance Department of the RBI and the Commissioner of Maharashtra Co-operative Societies, the ICAI said it had triggered its disciplinary mechanism to seek requisite details of their findings as well as that of any member alleged to be involved in the matter.

 

 

"ICAI would be actively pursuing the issue with the concerned regulators so as to examine the matter in detail and would also take action through its proactive disciplinary process against any member, if so, found to be involved in the matter," the statement issued by the body read.

 

The problems at the Punjab and Maharashtra Cooperative (PMC) Bank came to light after a whistle blower complaint, following which the Reserve Bank of India, on September 23, placed the lender under an administrator. The RBI has also barred the bank from carrying out regular banking activities.

 

The suspended managing director of PMC Bank, Joy Thomas meanwhile has blamed the auditors for the mess at the bank, accusing them of only superficially auditing the books of the now crippled lender due to time constraints. The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the Punjab and Maharashtra Cooperative Bank case and said a special investigation team would be probing the case.