Today marks the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. Celebrated for his effective governance, he played a crucial role in India’s technological and infrastructural advancements. His leadership is remembered for the Pokhran nuclear tests, pushing for economic growth, and bolstering education. Vajpayee’s deep cultural roots and literary contributions continue to inspire.

The National Financial Reporting Authority (NFRA) has slapped a penalty of Rs 2 crore on Deloitte Haskins & Sells LLP, along with a fine on two chartered accountants for lapses in the audit of Zee Entertainment Enterprises Ltd (ZEEL) during the 2018-19 and 2019-20 financial years.

The regulator has fined CA AB Jani Rs 10 lakh and barred him for five years from being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company. A fine of Rs 5 lakh has been imposed on CA Rakesh Sharma and the regulator has banned him for three years from being appointed as an auditor.

While Mr Jani was the Engagement Partner (EP), Mr Sharma was the Engagement Quality Control Review (EQCR) Partner for the audit of the company for 2018-19 and 2019- 20.

Why has NFRA fined Deloitte?

The regulator’s action stems from Deloitte‘s alleged failure to identify and report irregularities related to a Rs 200 crore fixed deposit held by ZEEL in Yes Bank. 

In 2018, the ZEEL Chairman, who is also the promoter of the Essel Group, issued a letter to Yes Bank, committing Rs 200 crore fixed deposit of ZEEL as a guarantee for the loans given by Yes Bank to a promoter group company Essel Green Mobility Ltd. The bank appropriated the fixed deposit in July 2019 towards the settlement of loan amounts due from seven promoter group companies.

According to NFRA, its examination showed that the auditors were grossly negligent, failed to apply professional scepticism and due diligence, did not adequately challenge the management’s assertions, and failed to evaluate the reporting of suspected fraud. “Neither the creation and maintenance of fixed deposit nor its reappropriation by the bank was with the approval of the board or shareholders of the company. The statutory auditors failed to identify and report this misrepresentation,” the regulator said.

Following this, the regulator issued a show-cause notice to Deloitte and its two auditors. 

After considering their responses, the watchdog found that Deloitte and the two CAs were “guilty of professional misconduct”.

According to Deloitte, they have received the order and are reviewing it.

“We are currently reviewing the order to determine our next course of action,” a Deloitte spokesperson said.

A series of Pakistani airstrikes on the Barmal district of Paktika province in Afghanistan has resulted in the death of at least 15 people, including women and children, with the count expected to rise. The attacks, which took place on the night of December 24, reportedly targeted seven villages, including Laman, where five members of a family were killed.

Local sources claim that Pakistani jets were responsible for the bombings. Reports indicate that the Murg Bazaar village in Barmal was destroyed, exacerbating the ongoing humanitarian crisis.

The airstrikes have caused severe civilian casualties and widespread destruction, further escalating tensions in the region. As recovery efforts continue, further investigation is required to confirm details and clarify responsibility for the attacks, reported Khaama Press.

The Taliban’s Ministry of Defence has vowed to retaliate following the airstrike on Barmal, Paktika.

The Ministry stated that defending their land and sovereignty is their legitimate right, and condemned the attack, claiming that “Waziristani refugees” were among those targeted.

While Pakistani officials have not officially confirmed the airstrike, security sources close to the military suggested that the attack was aimed at Taliban hideouts near the border.

This comes amid escalating tensions between Pakistan and Afghanistan, particularly regarding the presence of Pakistani militants in Afghanistan.

The Pakistani Taliban, or Tehreek-e-Taliban Pakistan (TTP), has increased its attacks on Pakistani forces in recent months, with Pakistan accusing the Afghan Taliban of providing shelter to them.

Enayatullah Khwarazmi, a spokesperson for the Taliban Ministry of Defence, denied the Pakistani claims and posted on X (formerly Twitter) that “civilian people, mostly Waziristani refugees,” had been killed in the airstrike.

Khwarazmi added that “several children and other civilians were martyred and wounded” in the attack, though no official casualty figures were provided. Sources reported that at least 15 bodies, including women and children, have been recovered, and the death count is expected to rise as search efforts continue.

The Waziristani refugees are civilians who had been displaced by military operations in Pakistan’s tribal areas. However, Pakistan maintains that many TTP commanders and fighters have fled to Afghanistan, where they are reportedly being protected by the Afghan Taliban in border provinces.

Tensions between Pakistan and the Afghan Taliban have been building for some time, fuelled by the ongoing presence of TTP members in Afghanistan. While Pakistan accuses the Afghan Taliban of harbouring them, the Taliban insists it is not collaborating with the group.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)