Small BusinessICAI to withdraw proceedings against PW Delhi
Accountancy regulator Institute of Chartered Accountants of India (ICAI) today agreed to withdraw disciplinary proceedings against the Delhi branch of the audit firm Price Waterhouse (PW) in the multi-crore Satyam scam.
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Advocate C S Vaidyanathan, appearing for ICAI, agreed to withdraw the proceedings after the Delhi High Court objected to ICAI taking action against the Delhi franchise of the firm without giving any evidence that it was related to PW, Bangalore which was the statutory auditor of Satyam.
Justice Sanjiv Khanna accepted the plea of the regulator and allowed it to issue fresh notice to the Delhi franchise in case it found any evidence regarding involvement of this firm in the scam.
The court was hearing a petition filed by PW, Delhi seeking quashing of proceedings initiated against it in the aftermath of Satyam scam, saying these were illegal as it has no connection with the Bangalore-based unit.
Advocate Amit Sibal, appearing for the Delhi firm, submitted that the regulator"s action were illegal as Bangalore-based franchise had audited Satyam accounts.
"There are six franchises of the international audit firm in the country and they are not related to each other in any way. We have nothing to do with the Bangalore firm which had audited Satyam accounts.
"So, there doesn"t arise any cause for action against us in the aftermath of the Satyam scam," Sibal said.