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Case Dismissed: The Supreme Court has dismissed Amit Goenka’s petition challenging SEBI’s appointment of KPMG as forensic auditor for Shirpur Gold Refinery Ltd. ¹ ²
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Forensic Audit: SEBI had selected KPMG to conduct a forensic audit of Shirpur Gold’s financial statements for fiscal years 2018-19 to 2020-21, which led to allegations of fund siphoning. ¹ ²
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SEBI Allegations: SEBI accused Shirpur Gold and Goenka of fraudulent financial practices, including diverting ₹404 crore to promoters’ entities, misusing the Insolvency and Bankruptcy Code process. ¹ ²
The Supreme Court’s decision upholds SEBI’s order appointing KPMG as forensic auditor for Shirpur Gold Refinery Ltd. Amit Goenka, the former chairman of Shirpur Gold, had contested the auditor’s report, questioning KPMG’s eligibility to conduct the audit. However, the court found no infirmity with the high court’s order and dismissed the petition. ¹ ²
SEBI’s investigation began in 2021 after receiving a complaint alleging that loans taken by Shirpur Gold were not used for company operations but were siphoned off to companies controlled by Subhash Chandra and his family. The forensic audit revealed that Shirpur Gold’s defaults to lenders amounted to ₹404 crore, which appeared to be part of a scheme to divert funds to promoters’ entities. ¹
Goenka argued that KPMG was ineligible to conduct the audit due to lack of registration under the Chartered Accountants Act, 1949. However, the Supreme Court’s decision reinforces SEBI’s regulatory powers and its efforts to ensure transparency and accountability in the corporate sector. ¹ ²
