BSR & Co has sought a new audit with expanded terms of reference. The board is yet to make a decision, a source said.
Expressing its displeasure over the way the special audit of a whistleblower's complaints against YES Bank and its founder Rana Kapoor was conducted by Vadodara-based JLN US & Co, the bank's statutory auditor BSR & Co now wants a fresh audit, according to a report in Mint.
Moneycontrol could not independently verify the report.
JLN in its report said it had limited access to documents which prevented it from examining some of the whistleblower’s allegations. These included bank documents and transaction records for some of the real estate deals, including Kapoor's family office, and large borderline credit exposures.
JLN said the evidence was inconclusive since it had documents only from the bank and not the transactions done by Rana's family office. Only regulators SEBI and RBI can call for an audit into these books, the source added.
JLN's audit, however, proved exorbitant pay-outs to Kapoor's executive assistant Lata Dave, former group president and head of marketing and communication Amit Shah, former senior group president and chief financial officer Rajat Monga, and former chief risk officer Ashish Agarwal among others.
BSR & Co. termed this "unacceptable" and has sought a new audit with expanded terms of reference. The board is yet to make a decision, the source told the paper.
The allegations first emerged in September 2018 against founder Rana Kapoor for conflict of interests and against misclassifications of bad loans. Following the complaints, the bank launched an internal inquiry led by the management including Kapoor and supervised by the board.
The internal report was submitted in November 2018 and based on which JLN was engaged to independently examine the allegations.Kapoor and his two family-owned entities, Morgan Credit and Yes Capital (India), own a total of 4.72 percent promoter stake in Yes Bank. Both are owned by Kapoor’s daughters.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.