IL&FS case: NFRA bans another auditor for 5 years; Rs 5 lakh fine imposed on Rukshad Daruvala

New Delhi: The National Financial Reporting Authority (NFRA) has slapped a five-year ban on an auditor for alleged irregularities in the audit of IL&FS Financial Services Ltd (IFIN). Apart from the ban, a fine of Rs 5 lakh has been imposed on Rukshad Daruvala. He is at least the second auditor in the matter to be barred by NFRA. However, NFRA's ruling would not come into force till July 31 due to a Delhi High Court order passed in June. Deloitte Haskins and Sells LLP, which conducted the statutory audit of IFIN for 2017-18. According to the regulator's 49-page order, dated July 23, Daruvala was Engagement Quality Control Reviewer (EQCR) in the statutory audit of IFIN for 2017-18. Daruvala has been debarred for five years from "being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate", NFRA said in the order. There was no immediate comment from Deloitte. On July 22, the watchdog imposed a seven-year ban on Udayan Sen, who was an Engagement Partner of Deloitte Haskins and Sells LLP. In February, Daruvala had moved the court challenging the jurisdiction of NFRA to look into the matter and the court had also passed an order on June 26. Sen had also moved the court on similar grounds. With respect to both Daruvala and Sen, NFRA has mentioned that its orders shall not be given effect till July 31. IFIN is part of diversified IL&FS group, where financial irregularities came to light in late 2018.