Auditors in Satyam case to face ICAI enquiry

Two auditors, who are facing trial in the infamous Satyam fraud case, are expected to face departmental enquiry launched by the Institute of Chartered Accountants of India (ICAI), according to the Delhi high court has said.

Upholding a decision of a single judge, a division bench comprising chief justice Dipak Misra and justice Sanjiv Khanna turned down the plea of Subramani Gopalkrishnan and Talluri Srinivas that their criminal trial would be prejudiced if the ICAI enquiry was allowed to continue.

"On a perusal of the charges levelled in the disciplinary proceeding and the chargesheet in the criminal proceeding, the list of witnesses, the nature of enquiry, the purpose of enquiry and arraigning the appellants as accused persons in the criminal case are on a different base.

The theory of prejudice that has been canvassed is not to be routinely inferred. It cannot be held that participation of the applicants in the departmental enquiry would seriously prejudice the defence at the trial in the criminal case," the bench noted in its 59-page judgment.

The bench added it was not inclined to interfere in the proceedings launched against the two auditors by ICAI as "That would be against the public interest since the CA Act has its rigorous technical norms and the Chartered Accountants registered with it are required to function with statutory responsibility."

Both Gopalkrishnan and Srinivas face charges of "intentional mis-representation" and criminal conspiracy and cheating the share holders framed by the CBI.