ICAI to send notices to auditors of Maytas firms

NEW DELHI: Accounting regulator ICAI on Thursday said it will serve notices in a day or two to auditors of Maytas Infra and Maytas Properties, the firms promoted by kin of disgraced Satyam founder B Ramalinga Raju.

"Prima facie it seems they (the auditors) have flouted the Companies Act," ICAI Vice-President Amarjit Chopra said.

Chopra said the ICAI has received some replies from S Gopalakrishnan and Srinivas Talluri of Price Waterhouse, who audited Satyam's accounts, and expected to know the exact details of auditing of Satyam accounts in 15-20 days. ICAI had earlier served notices to both Gopalakrishnan and Srinivas.

The Institute of Chartered Accountants of India's (ICAI) decision comes two days after the government moved the Company Law Board to dismiss the boards of these firms.

S R Batliboi and Associates and Hyderabad-based Krishna and Prasad are the joint auditors of Maytas Infra. S R Batliboi and Associates is an affiliate of Ernst & Young.

He said the auditors seem to have vioated the various sections of the Companies Act, including section 370 and section 372 which relate to loans and advances.

Chopra said the notices will be served in a day or two.