The Ministry of Corporate Affairs (MCA) has asked the National Company Law Tribunal (NCLT) to freeze the assets of the former auditors, including Deloitte Haskins & Sells LLP and BSR Associates LLP, of an Infrastructure Leasing & Financial Services (IL&FS) subsidiary, arguing that the step is needed to stop fund diversion. “We are seeking an order to freeze assets of audit firms, its partners as well as the erstwhile directors of IFIN,” argued Sanjay Shorey, director — legal prosecution, MCA.
Companies may soon have to geotag and furnish pictures of projects undertaken under their corporate social responsibility (CSR) programmes to the government. Parliament last week approved amendments to the Companies Act, adding provisions that make companies criminally liable for CSR violations. Companies with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required every year to spend at least 2% of their average profit for the previous three years on CSR activities.