According to sources, the SFIO filed its application under Section 140(5) of the Companies Act. This section of the Companies Act deals with the removal of auditors. The SFIO alleged that Deloitte and BSR failed to fulfill their statutory auditor duties. Deloitte was the auditor of IL&FS Financial for FY 2015-16 and 206-17, BSR and Deloitte were joint auditors for FY 2017-18 and BSR was auditor in its own right for FY 2018-19.
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The auditors have filed a review petition in the apex court, which is expected to be heard in the second week of March.
