Never miss a story

Get subscribed to our newsletter


×
Bankruptcy board will also use such standards for the purpose of IBC related forensic audits. Pixabay

The government will shortly announce forensic standards based on Institute of Chartered Accountants recommendations, the Ministry of Corporate Affairs will notify on the lines of the Accounting Standards, the Forensic Standards and this will be applicable to all auditors who are doing forensic accounting at the behest of banks for complying to various RBI circulars on Non-Cooperative Borrowers, Willful Defaulters, and Fraud Classification. Also, IBBI the bankruptcy board will also use such standards for the purpose of IBC related forensic audits.

There are hundreds of cases across various courts in India on this subject filed by borrowers, companies, and individuals.


Follow NewsGram on Facebook to stay updated.

December 10, 2020, Telangana High Court Division Bench order (in the case of SBI & others Vs. Mr. Rajrsh Agarwal & others) held that the declaration of an account as ‘fraud’ as per the RBI’s circular on Fraud Classification by banks without following the principles of natural justice, is arbitrary and illegal, has been challenged by SBI and other banks before the Supreme Court. It is understood that the RBI is also in the process of filing an appeal against the said order of the Telangana High Court. The Supreme Court bench headed by Justice Nariman is to hear this matter on March 26, 2021.


The Ministry of Corporate Affairs will notify on the lines. Pixabay

The Supreme Court in 2019 in order by Justice Nariman has required banks to follow the principles of natural justice while seeking to classify an account as a ‘willful defaulter’ as per the RBI issued circular on Willful Defaulters in 2015. The Supreme Court’s order in SBI’s appeal on March 26, 2021, is expected to directly affect all these pending cases across India.

ALSO READ: By 2023, 75% Firms to Hire AI Behaviour Forensic Experts

Banks generally declare an account as ‘willful defaulter’ or ‘fraud’ based on a report of a forensic auditor appointed by the banks. However, as of today, there are no prescribed forensic standards that mandate or guide how an auditor is required to approach any particular set of transactions before it. In an effort to provide clarity in this respect, the Institute of Chartered Accountants of India is shortly seeking to introduce a set of forensic accounting standards which would need to be applied to evaluate and investigate the transactions in question.

While it is expected that such standards set out by the ICAI would provide guidance on the path forward, the validity of existing forensic reports which do not follow any set methodology or standard is unclear. Consequently, the actions of the banks to rely on such forensic reports while declaring the account as ‘fraud’ would also need to be revisited. (IANS/SP)


Popular

Wikimedia Commons

Amitabh Bachchan, during his speech to the crowd of over 80,000 people at the Reliance Industries' annual event, said that the legacy left by Dhirubhai has had a positive impact on millions of people's lives worldwide.

Amitabh Bachchan is adored by the public for his unforgettable on-screen performances as well as his magnetic demeanour. Not only do fans love Amitabh Bachchan's outstanding performance, but the actor's heartwarming words are also highly regarded. A much moved Amitabh Bachchan, during his speech to the crowd of over 80,000 people at the Reliance Industries' annual event, said that the legacy left by Dhirubhai has had a positive impact on millions of people's lives worldwide.

When Bollywood superstar Amitabh Bachchan became bankrupt in the late 1990s, Dhirubhai Ambani stepped forward to give him financial assistance. In his speech, Bachchan remembered that Dhirubhai had sent Anil Ambani to offer him financial assistance during the crisis, which he had respectfully declined. Lenders began knocking on his door, losses mounted, and his bank account dwindled to nothing. He said, "Dhirubhai's money might have gotten me out of the problem quickly. However, I respectfully declined his offer and gradually began to find work again, which let me pay off my debt."

Keep Reading Show less
Photo by Xavier Mouton Photographie on Unsplash

Irrespective of the age of your child, it is vital for parents to offer that extra support and assistance following an unsettling event.

In comparison to adults, children are prone to getting traumatized by troubling events easily, and this makes it important for parents to help their children when the times are tough. It could be a brutal accident, an unprecedented pandemic, a violent crime, or other disasters but with the right parental support, children have a higher chance of coming out stronger from an awful situation.

Anuja Kapur, Psychologist shares few tips wherein you can assist your child when tough times comes calling:

Every child responds differently to disturbing events:
What children feel about a current disaster in their life and how they react to it can come and go in waves. Children can act moody and withdrawn at times, struck with sorrow and fear at other times. There's no absolute "right" or "wrong" way to feel after a traumatic event so make sure not to dictate what your child or how your child should feel and react to the event.

a boy crying tears for his loss Children can act moody and withdrawn at times, struck with sorrow and fear at other times. | Photo by Kat J on Unsplash

Keep Reading Show less
Photo by Andreas Haslinger on Unsplash

European consumers will be able to use a single charger for all their portable electronics - an important step to increase convenience and reduce waste.

The European Commission, the executive arm of the European Union (EU), has announced plans for smartphone and other electronics manufacturers to fit a common USB-C charging port on their devices in an effort to reduce waste. In addition to phones, the rules will apply to other devices like tablets, headphones, portable speakers, videogame consoles, and cameras, reports The Verge. The decision will have a huge impact on Apple, as the company still uses its own Lightning connector to charge iPhones. The proposals only cover devices using wired, not wireless and a USB-C port is only mandatory for devices that charge using a cable.

Different charging cables "Chargers power all our most essential electronic devices | Photo by Solen Feyissa on Unsplash

Keep reading... Show less