Alipore Commercial Court restraints KPMG, banks from acting on report against Srei group firms

BL Kolkata Bureau | Updated on: May 24, 2022

Gavel on the podium. Good copy space. | Photo Credit: Marilyn Nieves

Next date of hearing is set for May 30

Kolkata, May 24 The Alipore Commercial Court has passed an injunction order restraining KPMG Assurance and Consulting Services and other defendant banks from either using or acting on the basis of the report prepared by the firm in respect of Srei Group companies – Srei Infrastructure Finance and Srei Equipment Finance.

The next date of hearing has been set for May 30.

The Kolkata Bench of the National Company Law Tribunal (NCLT) had recently dismissed a petition filed by Srei founder Hemant Kanoria against forensic audit conducted by KPMG, which was appointed by the lenders for the group companies - Srei Infrastructure and Srei Equipment.

The Bench also dismissed a contempt application filed by Kanoria against state-owned Punjab and Sind Bank over alleged violation of an interim order of the tribunal by declaring accounts of SEFL and SIFL as “fraud” and intimating it to the stock exchanges.

In January, Kanoria had moved the Kolkata Bench of NCLT seeking to set aside the appointment of KPMG, citing the issue of a possible parallel auditing as the company is currently undergoing corporate insolvency resolution process. He further challenged the KPMG forensic report, which itself suggests that the report is inconclusive.

It is to be noted that Punjab & Sind Bank, had in April, declared as fraud outstanding dues of around ₹1,234 crore to Srei group firms Srei Infrastructure Finance and Srei Equipment Finance. Karnataka Bank has also recently declared its outstanding dues of around ₹12.81 crore to Srei Equipment Finance as fraud and reported this to the Reserve Bank of India. The Delhi High Court, however, has restrained both the banks from taking any action against Srei Group companies on the basis of the declaration.

Union Bank of India had also recently classified the accounts of Srei Equipment and Srei Infrastructure as fraud owing to diversion of funds.

Published on May 24, 2022
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you