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PricewaterhouseCooper functioning comes under SC scanner
December, 07th 2013

The functioning of UK-based multinational accounting firm PricewaterhouseCoopers (PwC) and its network audit firms in India has come under judicial scrutiny with the Supreme Court (SC) agreeing to hear a petition for a probe against them for allegedly indulging in financial irregularities and fudging of accounts.

A Bench headed by Chief Justice P. Sathasivam on Friday issued notices to the Centre, Reserve Bank of India, Central Board of Direct Taxes (CBDT), the Institute of Chartered Accountants of India (ICAI), PwC and the audit firms sharing its brand name.

The order follows a PIL filed by NGO Centre for Public Interest Litigation (CPIL) which alleged that several consulting firms, including PwC, that provide audit, tax and advisory services indulge in activities in violation of various statutes and polices like evasion of income tax, violations of foreign direct investment policy, RBI guideline, Foreign Exchange Management Act and other rules.

In its petition, CPIL contended that the alleged violations of rules and regulations by PwC and its various network audit firms in India have been in public domain for more than one year, yet relevant authorities have failed to do any investigation into these allegations/ reports and take required action.

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