The Reserve Bank of India (RBI) has debarred Haribhakti & Co from auditing its regulated entities for two years with effect from April 1, 2022. RBI has exercised the powers vested under Section 45MAA of the Reserve Bank of India Act, 1934. To debar a firm for the first time.
“The action has been taken due to the failure of the audit firm to comply with a specific direction issued by the RBI in respect of statutory audit of a systemically important non-banking financial company,” RBI said in a circular. Tuesday.
According to sources, the matter pertains to the audit of Srei Infrastructure Finance Ltd and Srei Equipment Leasing Ltd, whose boards were recently taken over by the RBI.
“This [debarment] RBI will not affect the audit assignment/s of Haribhakti & Co LLP in regulated entities for the financial year 2021-22,” clarified the regulator.