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Delhi HC quashes NFRA's show-cause notices against IL&FS and DHFL auditors
Financial Express Kochi
|February 09, 2025
Upholds the authority's constitutional validity
IN A SETBACK to the National Financial Reporting Authority (NFRA), the Delhi High Court quashed 11 show-cause notices issued by the authority against the auditors of IL&FS and DHFL on technical grounds.
The court ruled that NFRA did not act through properly constituted divisions as mandated under the Companies Act.
A source at NFRA said that this part of the judgment appears contrary to the judgment of the NCLAT (National Company Law Appellate Tribunal) in December 2023 wherein NCLAT had held that NFRA's executive body itself acts like a division which is in accordance to the law.
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