The National Financial Reporting Authority (NFRA) has levied fines totaling Rs 2.5 crore on two auditors for professional misconduct and auditing deficiencies related to the Reliance Commercial Finance case for the financial year 2018-19.

According to NFRA, Shridhar & Associates faces a penalty of Rs 2 crore, while Ajay Vastani has been fined Rs 50 lakh. Additionally, Ajay Vastani has been barred from conducting any audit of financial statements or internal audits for a period of 5 years.

The penalties were imposed after NFRA found significant lapses in auditing standards and professional conduct during its investigation into the financial affairs of Reliance Commercial Finance. The regulatory action underscores NFRA’s commitment to upholding audit quality and ensuring accountability in financial reporting practices.

The NFRA, established under the Ministry of Corporate Affairs, plays a crucial role in overseeing the conduct of auditors and promoting transparency and reliability in corporate financial disclosures. The penalties are intended to serve as a deterrent against similar lapses in the future and reinforce the importance of stringent auditing standards in maintaining investor confidence and financial integrity.