Monday, August 24, 2020

More trouble for Mumbai International Airports as SBI likely to appoint forensic auditor

More trouble is brewing for GVK Infrastructure and Power, including Mumbai International Airports Limited (MIAL) after the action by enforcement agencies as the lenders are in the process of appointing a forensic auditor. Top banking sources revealed that this is imminent after the PWC walk out.

GVK Infrastructure and Power including Mumbai International Airports Limited (MIAL) have been facing action by the enforcement agencies, CBI and ED. The CBI filed a chargesheet on June 27 while ED filed its chargesheet on July 7.

Based on RBI Master Directions on Frauds, dated July 1, 2016 (updated on July 3, 2017), State Bank of India is believed to be appointing Deloitte as the forensic auditor to check the accounts of MIAL for the past 10 years. MIAL is operating the Mumbai Airport in a joint venture with the Airports Authority of India.

PriceWaterhouse Coopers has recently submitted its resignation as auditors from GVK Infrastructure and Power and GVK Airport Developers.

PWC resigned as statutory auditors following the CBI and ED raids in MIAL. PWC in a letter has cited the recent events at MIAL to ascertain the appropriateness of continuing as statutory auditors in the company.

PWC said in the letter to the audit committee of the companies that it is waiting for explanations and information from the company to finalise the audit for financial statement of the year ended March 31, 2020. The auditors said the company had still not provided the details which is reiterated in their resignation letter.
24/08/20 IANS/Moneylife
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