SC notice to Centre, RBI over alleged PwC irregularities

Almost two years after CNBC-TV18 first reported the details of alleged violations of FDI norms by PwC India, the matter has reached the courts. Taking note of a PIL filed by Prashant Bhushan for the Centre for Public Interest Litigation, the Supreme Court today gave four weeks for replies from the firm as well as a host of government authorities and regulators like the Reserve Bank of India. CNBC-TV18’s Anshu Sharma and Malvika Jain report.

Prashant Bhushan's plaint levels several serious charges against the storied audit and consulting firm – Pricewaterhouse India – including receiving undisclosed foreign funds, unexplained loans to partners and incorrect accounting.

The charges are part of a 64 page PIL, that the Supreme Court took note of today. Notices have been issued to the RBI, the accounting regulator - the ICAI, the Enforcement Directorate and the taxman - as well as the 11-member PwC India network. This development comes two years after CNBC TV18 first reported the alleged violations.

Bhushan has sought the Courts intervention on why no investigation has been carried out so far against PwC member firms - 10 audit firms and one private company - despite repeated allegations of wrongdoing. CPIL alleges violations of the Income Tax Act, the Chartered Accountants Act, the Foreign Exchange Management Act, the Companies Act, RBI and FDI regulations. The petition pin-points three instances of alleged financial irregularities and violations by PwC India.