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Audit firm approaches court in Satyam scam case

By IANS,

New Delhi : PricewaterhouseCoopers, the city-based audit firm Wednesday approached the Delhi High Court seeking quashing of proceedings initiated by the government following the Rs.78,000-crore Satyam scam.

Appearing for the audit firm, senior counsel Mukul Rohatgi submitted before Justice Sanjeev Khanna that the Delhi chapter of the company had nothing to do with branches at other cities.

“The Bangalore-based firm which had audited Satyam accounts has no connection with the Delhi branch, so the disciplinary action initiated by the Institute of Chartered Accountants of India (ICAI) should be quashed,” Rohtagi argued.

The court also took on record the submissions made by both sides, noting that there were six franchises of the international audit firm in the country.

“They are not related to each other in any way. Counsel for ICAI is also willing to withdraw the action taken against the audit firm, so the petition is disposed of,” the court observed.

The scam was unearthed after its founder B. Ramalinga Raju confessed to inflating the company’s accounts by Rs.78,000 crore.

PricewaterhouseCoopers was the auditor.