Threatening legal action against MCX and PricewaterhouseCooper (PwC), Financial Technologies India ltd (FTIl), which has 26 per cent stake in MCX, on Tuesday rejected the PwC special audit report on the corporate governance issue at the commodity exchange, claiming that a "wrong picture" of the company had been painted in the report.
"FTIl has neither received the PwC report nor PwC has consulted or sought clarification on the report prepared by PwC. We deny strongly the convenient reports appearing on the media on the findings of the special audit done by PWC on MCX," the company said in a statement, adding that "FTIl confirms that no transaction with MCX has violated any legal provisions of corporate law or taxation and it will vehemently pursue legal action against MCX and PwC for painting a wrong picture in its audit report".
FTIl had set up the commodity exchange MCX, but it no more controls MCX after a regulatory order passed in the wake of Rs5,600-crore payment crisis at FTIl's subsidiary NSEl.
Commodity markets regulator FMC had appointed PwC in December last year to audit books of MCX to examine if NSEl arm Indian Bullion Markets Association and FTIl's subsidiary National Bulk Handling Corporation (NBHC) traded on MCX.
last week, the Board of MCX had decided to take action on the "adverse findings" of PricewaterhouseCoopers' (PwC) special audit report.
FTIl charged that MCX has violated principle of natural justice by not sharing the report and not allowing FTIl to provide clarification on PWC findings.