RBI can not discontinue service of auditor on the complain of bank without fair and proper enquiry – Delhi HC

Gupta & Gupta Chartered Accountants & Anr. Vs Reserve Bank Of India & Ors. (Delhi High Court)-  The Delhi High Court has held as illegal the decision of RBI to discontinue the services of a Statutory Central Auditor (SCA) of Punjab National Bank (PNB) without fair and proper enquiry into the allegations against the firm. The observations came on the plea of accounting firm, Gupta and Gupta Chartered Accountants, alleging arbitrariness on the part of RBI in asking PNB to discontinue it (firm) as an SCA without fair and proper inquiry. RBI, in a letter written on June 24, 2009, per...