GVK group auditors offer to resign, cite non-cooperation from company

Price Waterhouse Chartered Accountants LLP, statutory auditors of GVK Power and Infrastructure Ltd, have submitted their proposed resignation letter as the beleaguered group is not providing them with the necessary information for audit of the financial statements for FY20, a filing from GVK to stock exchanges said on Friday.

The auditors alleged that despite several communications to GVK, the group did not provide them with necessary information.

“In view of various matters described in our communications, including the recent events in relation to companys subsidiary Mumbai international airport Ltd (MIAL), we have assessed the appropriateness of our continuance as the statutory auditor of the company in terms of Standard on Quality Control..” the auditors said.

“… we accordingly wish to communicate our intention to resign as statutory auditors of the company,” the Price Waterhouse Chartered Accountants said in their proposed resignation letter written on August 13.

Earlier, the CBI hadregistered a case against GVK Group Chairman GVK Reddy, his son Sanjay Reddy, their companies and nine other private firms that were allegedly used to camouflage the inflated figures using sham deals and unidentified AAI officials.

The Enforcement Directorate also filed the enforcement case information report, equivalent to the first investigation report registered by police, under the Prevention of Money Laundering Act, after studying a recent CBI FIR filed against the same entities.

In the resignation letter, the auditing firm further stated that the GVK group is requested to take the necessary steps in order to comply with the applicable various SEBI circulars and other regulatory requirements in this connection.

“Our resignation as statutory auditors of the company shall accordingly be effective immediately on discharge of our obligations under the Companies Act 2013,” they said.