RAYAN Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Except seminal difference, that Special Criminal Application No.7018 of 2018 is in regard to consolidated financial statement, whereas, Special Criminal Application No.7019 of 2018 is in regard to standalone financial statement, there is no other substantive change in both the petitions challenging questioned Criminal Complaint dtd. 14/2/2018 bearing Criminal Enquiry No.147 of 2018 and Criminal Complaint dtd. 14/2/2018 bearing Criminal Enquiry No.162 of 2018. Hence, with consent of learned advocates for both the sides, both the petitions are decided analogously.

(2.) Facts of the case are as under :-

(3.) Learned Senior Advocate Mr.Mihir Joshi assisted by learned advocate Ms.Nisha Ojha and learned advocate Ms.Vinisha Jain for the petitioners would submit two fold submissions in seeking quashment of Criminal Complaints. He would submit that M/s. Deloitte Haskins and Sells - partnership firm was appointed as auditors for Mafatlal Industries Limited for the year 2013- 2014, 2014 - 2015 and 2015 - 2016. He would submit that show cause notice was issued on 22/3/2017 by Regional Director to M/s. Deloitte Haskins seeking clarification as to why in related party transaction, name of Shri Priyavarta Mafatlal is mentioned as "relative of individual having significant influence" but no description of "relative" is given and as such it is violation of Accounting Standard 18. It is submitted that on the basis of above violation, prosecution is launched against Mr.R.Salivatri petitioner herein who was partner in M/s. Deloitte Haskins. However, prosecution is not launched against firm viz. Deloitte Haskins but against petitioner in his personal capacity.