Delhi High Court Upholds NFRA's Authority, Dismisses Challenges from CAs and Audit Firms

The Delhi High Court has rejected pleas by chartered accountants and audit firms challenging the powers of the National Financial Reporting Authority (NFRA). The court upheld the validity of Section 132 of the Companies Act and NFRA Rules, dismissing arguments of vicarious liability and retroactive operation. While the bench quashed previous show-cause notices due to procedural issues, it left room for the NFRA to initiate fresh proceedings. This ruling reinforces NFRA's role in overseeing auditing standards and practices in India.
Source: The Economic Times