The functioning of UK-based multinational accounting firm Pricewaterhouse Coopers (PwC) Pvt ltd and its network audit firms in India came under judicial scrutiny with the Supreme Court agreeing to hear a petition for a probe against them for allegedly indulging in financial irregularities and fudging of accounts.
A bench headed by Chief Justice P Sathasivam said the issues raised in the plea need “examination” and issued notice to the Centre, RBI, Central Board of Direct Taxes (CBDT), the Institute of Chartered Accountants of India (ICAI), PwC and the audit firms sharing its brand name.
The court passed the order on a PIl filed by NGO, Centre for Public Interest litigation (CPIl), which alleged that these firms, including PwC, that are providing audit, tax and advisory services, “are apparently indulging in activities in violation of various statutes and polices like evasion of income tax, violations of Foreign Direct Investment (FDI) policy, RBI guideline, Foreign Exchange Management Act (FEMA) and other rules...”
The NGO has contended that the huge inflow of funds in violation of FDI policy as well as RBI and FEMA rules “raises serious apprehensions about the end use” of the money.