Apex court notice to PwC firm for scam

The Supreme Court on Friday decided to hear a PIL alleging financial irregularities against UK-based multinational accounting firm PricewaterhouseCoopers (PwC) and its network audit firms here.

A bench presided over by Chief Justice P Sathasivam issued notice to the Centre, the RBI, the Central Board of Direct Taxes (CBDT), the Institute of Chartered Accountants of India (ICAI), PwC and the audit firms sharing its brand name, saying the points made in the petition required “examination”.

An NGO Centre for Public Interest Litigation (CPIL) alleged that these firms, including PwC, that are providing audit, tax and advisory services apparently indulged in activities allegedly in violation of various statutes and policies like evasion of income tax, violations of Foreign Direct Investment (FDI) policy, RBI guideline, Foreign Exchange Management Act (FEMA) and other rules.

The NGO has contended that the huge inflow of funds in violation of FDI norms as well as the RBI and FEMA rules “raises serious apprehensions about the end use” of the money.
In its petition, CPIL has contended that the alleged violations of rules and regulations by PwC and its various network audit firm in India have been in public domain for more than one year, yet “relevant authorities have failed to do any investigation into these allegations/reports and take required action”.

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