New Delhi, Jan 11: The Securities and Exchange Board of India (Sebi) on Wednesday found international audit giant, Price Waterhouse guilty in the Satyam scam. The market regulator barred the company and its partners from issuing audit certificates to any listed company in India for two years. Sebi also ordered recovery of Rs 13 crore–as they were wrongful gains–from the company and its two former partners who worked for Satyam.
“The objective of insulating the securities market from such fraudulent accounting practices perpetrated by an international firm of repute will be ineffective if the directions do not bring within its sweep, the brand name PW,” PTI quoted the order.
“The network structure of operations adopted by the international accounting firm should not be used as a shield to avoid legal implications arising out of the certifications issued under the brand name of the network,” it added.
The strict action came nine years after the Satyam scam came out. The regulator barred entities and firms rendering the services of chartered accountants in India under the banner of Price Waterhouse from issuing audit certificates. This order will not impact the audits the company and its partners completed for the year 2017-18.
Price Waterhouse Bangalore and its two erstwhile partners — S Gopalakrishnan and Srinivas Talluri — have been ordered to return the wrongful gains of Rs 13,09,01,664 with interest at the rate of 12 percent per annum for nine years within 45 days of the issuance of the order.