ICAI To Check Role Of Auditors In PMC Bank Case
The Institute of Chartered Accountants of India has sought information from the Reserve Bank of India and other authorities on the Punjab and Maharashtra Cooperative Bank crisis to check whether any auditor was involved in the alleged financial irregularities at the lender.
Taking note of the "enormity of the matter", the ICAI on Wednesday said it has triggered its disciplinary mechanism and has written to the bank as well as regulatory agencies concerned.
The chartered accountants' apex body has written to the Vigilance Department of the RBI and the Commissioner of Maharashtra Co-operative Societies.
In a statement, the institute said it has sought requisite details of their findings as well as that of any "member/firm alleged to be involved in the matter.
Information has also been sought from the statutory auditor of the bank "pertaining to financial years 2017-18 and 2018-19", it added.
"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 said.
The problems at the PMC Bank came to light after a whistleblower complaint, following which the RBI, on Sept. 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, 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".