49 CA Firms Blacklisted; embezzlement and corruption were not reported in banks audits

A major action has been taken against 49 CA firms across the Madhya Pradesh State by the Commissioner Cooperatives and Registrar Cooperative Societies, MP. It has been argued in the order that the cases of irregularities including embezzlement, corruption and fraud, which have come to the fore during the last few years in the District Co-operative Central Banks, have not been mentioned in the audit report.

This order has been issued by Cooperative Commissioner Sanjay Gupta on 24 May. This has stirred up 49 CA firms across the state including Bhopal, Gwalior, Indore, Jabalpur, Ujjain as well as the entire CA community. Joint registrars and sub-registrars have been ordered that the audit work done at the time with the officers-employees involved in the allegations of embezzlement in many district cooperative banks is also under investigation.

Therefore, till the completion of investigation and other action, 49 CA firms belonging to the said period have been kept in the adjournment list. This is being described as a unilateral order by CA firms. The auditors say that before taking such action, it was not considered appropriate to give any notice or correspondence.