Delhi High Court stays disciplinary action of ICAI to Debar 2 Big 4 EY affiliate Firm Partners

The Delhi High Court has stayed the disciplinary action of the Institute of Chartered Accounts of India (ICAI) on the Big 4 EY Affiliate Firms SV Ghatalia & Co., SR Baltiboi & Associates LLP, SR Batliboi & Co. LLP, and SRBC & Co. LLP.

The ICAI has also deleted the disciplinary order from its website.

As per the disciplinary order, the Institute has barred 2 partners of EY Affiliate Firms for 3 years and also fined then Rs. 500,000 each. As part of their order, ICAI had also instructed the firms to terminate their partnerships with multinational entities such as EY Global, citing a violation of the Chartered Accountants Act, 1949.

The barred partners used to used to lead the affiliate firm in 2013. Now they have retired. ICAI was also looking into other Big Four firms, but all of them were able to obtain stay orders against the institute’s proceedings, preventing the disciplinary committees from announcing any penalties.

ICAI has been examining 171 Indian network companies linked to international entities that have violated the law.