Bombay HC rejects Amit Goenka's plea against Sebi's hiring of KPMG as forensic auditor for SGRL
Amit Goenka's petition challenging the Securities and Exchange Board of India's (Sebi) appointment of KPMG as a forensic auditor for Shirpur Gold Refinery Limited (SGRL) and its subsequent report on the firm.
A division bench of Justice Rajesh Patil and AS Chandurkar stated that they are not inclined to entertain Goenka's plea due to an unjustifiable delay in challenging the Sebi communication dated September 13, 2021, and not challenging the subsequent interim order issued by the securities market regulator on April 25, 2023.
On September 13, 2021, Sebi picked KPMG Assurance and Consulting Services as the forensic auditor for SGRL's financial accounts for the fiscal years 2018-2019 through 2020-2021.
Following its appointment, KPMG submitted its report dated March 21, 2023, on SGRL, which is also under challenge.
Subsequently, Sebi had on April 25, 2023, issued interim order-cum-show-cause notices against SGRL and former chairman Amit Goenka for alleged fund syphoning, along with promoter Jayneer Infrapower and Multiventures and five others. It had also directed them not to dilute or sell their holdings in the company.
Appearing for Goenka, senior advocate Pradeep Sancheti argued that KPMG was not eligible to submit a forensic report since it was not registered under Section 2(1)(ca) of the Chartered Accountants Act, 1949, besides not having any FRN registration or CIN number.
Senior Advocate Mustafa Doctor, who appeared for Sebi, argued that the writ petition was not liable to be entertained due to
