Sunil Wahal Vs National Financial Reporting Authority NFRA & Anr. (Delhi High Court)
Delhi High Court has dismissed a writ petition filed by Sunil Wahal, who sought to quash a show cause notice issued by the National Financial Reporting Authority (NFRA). The notice, dated December 30, 2024, accused Wahal of professional misconduct in his role as the Engagement Quality Control Reviewer (EQCR) for the statutory audit of M/s Religare Finvest Ltd. for the financial year 2017-18.
Wahal’s petition contended that the issues were identical to those in a separate case, W.P.(C) 1135/2025, where an interim stay had been granted. The court initially provided a similar interim relief to Wahal. However, the NFRA subsequently informed the court that the interim order in the similar case had been challenged in the Supreme Court in National Financial Regulatory Authority vs Charmi M. Shah and Anr.
The Supreme Court, in its order dated March 7, 2025, reserved liberty for the respondent in that case to file objections to the show cause notice within four weeks. The apex court also directed the NFRA to consider these objections, including those related to jurisdiction, and issue a speaking order. It also instructed that no coercive action be taken until a final order on the jurisdiction issue was passed. The Supreme Court’s decision effectively disposed of both the Special Leave Petition and the original writ petition, with liberty for the respondent to challenge any adverse order later.
