India’s Supreme Court allows NFRA to pursue disciplinary actions

GlobalData

Tue, Mar 25, 2025, 5:19 AM 1 min read

The Supreme Court of India has allowed the National Financial Reporting Authority (NFRA) to proceed with disciplinary proceedings against chartered accountants and audit firms.

This improvement comes amidst ongoing cases wherever audit prime reappraisal reports person not been finalised.

However, the apex tribunal has instructed NFRA not to contented immoderate last orders successful these cases for the clip being, and immoderate existing last orders volition not beryllium enforced.

The bid was issued during a proceeding regarding NFRA's entreaty against a determination by the Delhi High Court.

A seat consisting of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar examined the lawsuit aft the regulator challenged the precocious court's concerns astir the operation of the authority's operations.

The High Court specifically criticised the lack of chiseled divisions wrong NFRA to separately grip audit prime reviews and disciplinary actions.

Before the Supreme Court, NFRA contended that the Delhi High Court's determination was astatine likelihood with earlier judgments from the National Company Law Appellate Tribunal and the Supreme Court itself.

The Supreme Court's interim bid permits NFRA to transportation connected with its investigations portion placing a clasp connected last verdicts.

The Big Five audit firms successful India have precocious expressed apprehension astir NFRA's operational practices, suggesting imaginable non-compliance with the Companies Act 2013.