The markets regulator is cross-examining PwC officials involved in the case and the delay is due to their non-availability
The Securities and Exchange Board of India is still working on the Satyam case and will take at least 3 months more to give a final order against PricewaterhouseCoopers (PwC), a source close to the developments told Moneycontrol.
The markets regulator is cross-examining PwC officials involved in the case and the delay is due to their non-availability. SEBI will also give a personal hearing to the officials post cross examination.
“The problem is that most officials are out of the country and are available only on video conference. The time difference across countries and non-availability of officials may delay the process of investigation,” the source said.
In January, the Supreme Court asked the regulator to expedite the proceedings in the case and finish the investigation in the next six months. However, SEBI filed an affidavit seeking more time to complete the investigation.
Another source told Moneycontrol: “SEBI has not made much progress in the case in the past five years and now a new regime has taken over which is handling the investigation. Under the new regime, the case is being taken seriously but they have to re-work on investigation strategy which is delaying the case further.”
In 2009, the Serious Fraud Investigation Office (SFIO) had filed a 13,000-page report to Ministry of Corporate Affairs Ministry.
Former judge AP Shah also wrote to Finance Minister on July 10, 2017 and requested to take serious action against PwC. Shah also said that the regulators should take a decision against PwC in Vijay Mallya as well. PwC was the auditor of United Spirits at the time when the company’s subsidiary defaulted on its bank loans.
In April, SEBI Chairman told reporters in a press conference that the regulator can take action against auditors.PwC moved SEBI for consent on the matter. However, till the investigation is not complete SEBI will not take a call on the consent plea.