ICAI - Planning to send notices to six IPL franchisees
October, 08th 2010
The Institute of Chartered Accountants of India (ICAI) is planning to send notices to six IPL franchisees seeking more information from the companies owning the teams.
The six franchisees including Preity Zinta-promoted Kings XI Punjab, Reliance Industries-promoted Mumbai Indians, GMR-owned Delhi Daredevils, Shilpa Shetty-owned Rajasthan Royals, Chennai Super Kings and Deccan Chargers would be send notices soon, ICAI sources told Media.
Sources said the ICAI has not been able to complete investigations so far because of lack of information about these privately-held companies. Apart from the financial statements, no other information is available, which has made the probe difficult.
The institute was in a dilemma as to whether it should seek the information because as per the rules, the Financial Reporting Review Board (FRRB), which is investigating the matter, can not ask for any other information except the financial statements.
However, the accounting regulator has firmed up its view on the subject matter and is preparing to send the notices soon.
When contacted, ICAI president Amarjit Chopra said, The proceedings are on. Their statements are being reviewed and further information, if need be, will be called for.
However, the sources said, there is no information available on Kolkata Knight Riders, a company promoted by Bollywood star Shahrukh Khan and Vijay Mallaya-owned Royal Challengers. These companies have no published financial statements so the probe in these franchisees is still incomplete, the sources added.
The investigation by the ICAI is a part of the multi-agency probe launched by the government. While the I-T department is probing the tax evasion by the entities involved, ED is looking into alleged money laundering. The MCA is also looking into the source of funding and shareholders pattern.
The accounting regulator has been probing the IPL as well as all private limited companies, for alleged violation of auditing and accounting norms by the auditors of these companies.