Mumbai, Dec 7 (IANS): The National Financial Reporting Authority (NFRA) has debarred two statutory auditors of erstwhile Dewan Housing Finance Corporation Ltd (DHFL) for 10 years and five years respectively, and imposed fines on them for professional misconduct in the discharge of their audit work.

The NFRA in its order has debarred Jignesh Mehta, partner of Chaturvedi and Shah, who was the engagement partner for the statutory audit of DHFL for 2017-18, for a period of 10 years and imposed a fine of Rs 5 lakh. The order has been issued under Section 132(4) of the Companies Act, 2013.

The NFRA found him guilty of professional misconduct and noted that he failed to discharge his statutory duty of completing the branch audits of the company’s financial statements of 2017-18.

It has also debarred CA Amit Vinay Chaturvedi, partner of Chaturvedi and Shah LLP, who was the engagement quality control review partner for all the statutory audit of DHFL for 2017-18, as an auditor, internal auditor or from undertaking any audit work for a period of five years and imposed a fine of Rs 5 lakh.

The NFRA found him guilty of professional misconduct and failed to meet relevant requirements of auditing standards.

The NFRA is the statutory body to monitor implementation and enforce compliance of auditing and accounting standards and has the powers of a civil court.

It conducted an audit quality review after media reports on the alleged siphoning of public money to the tune of Rs 31,000 crore by the directors of DHFL.

The NFRA has issued a number of orders earlier as well against auditors of DHFL who carried audit work for the company.