CA accepts Invalid Appointment for Audit and not ensured Quality: NFRA debars DHFL Auditor

The National Financial Reporting Authority (NFRA) debarred CA Kashinath Chaturvedi for one year and fined him ₹1 lakh for professional misconduct. Chaturvedi accepted an invalid appointment to audit Dewan Housing Finance Corporation Limited (DHFL) without ensuring approval at the Annual General Meeting, violating Sections 139 and 140 of the Companies Act, 2013. Additionally, his audit firm failed to comply with Standards on Auditing, leading to poor audit quality. These lapses were discovered during the audit of DHFL’s branches for the financial year 2017-18.