NCLAT dismissed appeals by CA Som Prakash Aggarwal and his firm against NFRA orders imposing penalties for professional misconduct in Vikas WSP audit.
The tribunal upheld findings that the auditor failed to recognize Rs 16.91 crore interest expense on NPA borrowings, leading to 88% PBT overstatement.
NFRA had imposed Rs 3 lakh penalty and 3-year debarment on the CA, and Rs 5 lakh penalty on the firm for audit quality control failures.
The judgment clarified that RBI's NPA norms don't extinguish borrower's interest recognition obligations under Ind AS 109.