SC junks Amit Goenka's plea against SEBI order on forensic auditor in Shirpur Gold case
The case dates back to 2021, when SEBI selected KPMG to conduct a forensic audit of Shirpur Gold's financial statements for the fiscal years 2018-19 to 2020-21. The auditor submitted its findings in March 2023, which led SEBI to take action.
- Sep 25, 2024,
- Updated Sep 25, 2024 10:28 AM IST
The Supreme Court has dismissed Amit Goenka's petition challenging the Securities and Exchange Board of India’s (SEBI) appointment of KPMG Assurance and Consulting Services as the forensic auditor for Shirpur Gold Refinery Ltd. Goenka, who also contested the auditor's report on Shirpur Gold, was seeking relief from SEBI’s decision.
"Having considered the nature of the order passed by the division bench of the high court on August 14, we see no infirmity with the said order," the Supreme Court stated in its ruling. "The petition is accordingly dismissed, with all contentions for the petitioner remaining open, as per the impugned order."
The case dates back to 2021, when SEBI selected KPMG to conduct a forensic audit of Shirpur Gold's financial statements for the fiscal years 2018-19 to 2020-21. The auditor submitted its findings in March 2023, which led SEBI to take action.
In April 2023, SEBI issued show-cause notices to Shirpur Gold and former chairman Amit Goenka, accusing them of siphoning funds.
SEBI also barred Goenka from diluting or selling his stake in the company. The market regulator alleged that Shirpur Gold, under Goenka’s leadership, had been involved in fraudulent financial practices.
According to SEBI, Shirpur Gold's defaults to lenders, amounting to ₹404 crore, appeared to be part of a scheme by the promoters to divert funds to their own entities, while misusing the Insolvency and Bankruptcy Code (IBC) process.
Goenka contested the validity of KPMG’s forensic report, arguing that the firm was not registered under the Chartered Accountants Act, 1949, and lacked a firm registration number or corporate identification number, which he claimed made them ineligible to conduct the audit.
The Supreme Court has dismissed Amit Goenka's petition challenging the Securities and Exchange Board of India’s (SEBI) appointment of KPMG Assurance and Consulting Services as the forensic auditor for Shirpur Gold Refinery Ltd. Goenka, who also contested the auditor's report on Shirpur Gold, was seeking relief from SEBI’s decision.
"Having considered the nature of the order passed by the division bench of the high court on August 14, we see no infirmity with the said order," the Supreme Court stated in its ruling. "The petition is accordingly dismissed, with all contentions for the petitioner remaining open, as per the impugned order."
The case dates back to 2021, when SEBI selected KPMG to conduct a forensic audit of Shirpur Gold's financial statements for the fiscal years 2018-19 to 2020-21. The auditor submitted its findings in March 2023, which led SEBI to take action.
In April 2023, SEBI issued show-cause notices to Shirpur Gold and former chairman Amit Goenka, accusing them of siphoning funds.
SEBI also barred Goenka from diluting or selling his stake in the company. The market regulator alleged that Shirpur Gold, under Goenka’s leadership, had been involved in fraudulent financial practices.
According to SEBI, Shirpur Gold's defaults to lenders, amounting to ₹404 crore, appeared to be part of a scheme by the promoters to divert funds to their own entities, while misusing the Insolvency and Bankruptcy Code (IBC) process.
Goenka contested the validity of KPMG’s forensic report, arguing that the firm was not registered under the Chartered Accountants Act, 1949, and lacked a firm registration number or corporate identification number, which he claimed made them ineligible to conduct the audit.