PWC moves Delhi HC to quash proceedings in Satyam scam
November, 05th 2009
Audit firm Pricewaterhouse Coopers (PWC) approached the Delhi High Court, seeking quashing of proceedings against them by the Government in the multi-crore Satyam scam as they are based in Delhi and have nothing to do with the audit of the Banglore-based controversial company.
The audit company has stated that they are only one of the six franchisees of PWC, which have separate identities and clientele, therefore, they have no knowledge of main accused Ramalinga Raju Satyams financial accounts.
Accountancy regulator Institute of Chartered Accountants of India (ICAI) agreed to withdraw disciplinary proceedings against the Delhi branch of the audit firm in the Satyam scam.
Advocate CS Vaidyanathan, appearing for ICAI, agreed to withdraw the proceedings after the Delhi High Court objected to it taking action against the Delhi franchisee of the firm without giving any evidence that it was related to PWC, Bangalore which was the statutory auditor of Satyam.
Justice Sanjiv Khanna accepted the plea of the regulator and allowed it to issue fresh notice to the Delhi franchisee in case it found any evidence regarding involvement of this firm in the scam.
Since there was no connection with the Bangalore-based franchisee which had audited Satyam accounts, proceedings should be dropped against the one based in Delhi, the petitioner told the court.
There are six franchisees of the audit firm in the country and they are not related to each other in any way. We have nothing to do with the Bangalore firm which had audited Satyam accounts, so there does not arise any cause of action against us in the aftermath of the Satyam scam, the lawyer appearing for the Delhi firm pleaded and told the court to quash all the proceedings against them.