ROC's Case Against CA Quashed by High Court

As per the case filed, a criminal case was filed by the Registrar of Companies (ROC) in 2018 under section 143 of the Companies Act, against Rayan Salivati, Deloitte’s partner. The filed complaint reported that, as an auditor, he did not properly disclose some transactions with related parties in the financial statements. This was against the legal rules, especially Accounting Standard 18. Because of this, he could be prosecuted under Section 147(2) of the Act. A formal investigation was also started based on this complaint.

The Gujarat High Court cancelled a case filed by the Registrar of Companies (ROC) against a partner at Deloitte Haskins and Sells. The case was about not reporting related party transactions in the audit report of Mafatlal Industries Limited.

The High Court has dismissed the ROC’s criminal complaint against Deloitte. The High Court stated, “In order to bring a partner of the partnership firm within the outline of civil or criminal liability, it has to be proved that they acted in a fraudulent manner or colluded in any fraud. If it is not proved, then the partner cannot be held for punishment under Sections 139 to 146 of the Companies Act.”