‘ ICAI begins probe into auditors’ role in fraud’

New Delhi/ Mumbai, Feb. 23: The Institute of Chartered Accountants of India ( ICAI), a state- controlled regulator for the sector, has said it is probing whether auditors played a role in perpetrating the alleged ` 11,400 crore fraud that Punjab National Bank unearthed last week.

The ICAI said on Thursday it has asked the Securities and Exchange Board of India ( Sebi), Punjab National Bank ( PNB) and central investigating agencies to share their findings about the alleged fraud, including anything related to the involvement of any chartered accountants.

The ICAI, which functions under the administrative control of the ministry of corporate affairs, said it has set up a committee to study the systemic lapses that contributed to the fraud and to suggest remedial measures and improvement.

Diamond trader Nirav Modi and his associates are at the centre of the alleged fraud that involved illegally issued letters of undertaking ( LoU) from PNB which

were used to get credit from overseas branches of other Indian banks.

Meanwhile, PNB said it did not consider the bid of global firm PwC for forensic audit of accounts of Nirav Modi in view of Sebi's order against the audit firm.

In reply to clarifications sought by stock exchanges, PNB said it

— PTI Finance minister Arun Jaitley listens to CEA Arvind Subramanian during an event for the signing of MoU between Department of Economic Affairs and NBCC ( India) Ltd. for construction of housing project for IES officers in New Delhi on Friday.