Top Statutory Auditor EY Pune Not Registered Under Maharashtra Shops & Establishment Rule
Reported by Tikam Shekhawat
Pune, 25th September 2024: The Maharashtra Labour Department has uncovered major irregularities at the Pune office of EY member firm S.R. Batliboi and Co., according to labour officials.
Shailendra Pol, Additional Labour Commissioner, confirmed that during an inspection on 23rd September 2024, it was discovered that the company had been operating since 2007 without registering under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
EY is among the top Big Four statutory auditors, responsible for auditing, guiding, and consulting corporates regarding legal compliance. However, many in the industry were surprised to learn that EY’s Pune arm itself is not registered as per the law.
The Act mandates that all establishments in Maharashtra must obtain a Shop and Establishment License within 30 days of starting operations. Failure to comply with this law can result in penalties. This non-compliance issue came to light after the mother of a former employee, Anna Sebastian Perayil, wrote a letter to EY India Chairperson Rajiv Memani following her daughter’s death in July. Perayil, a 26-year-old chartered accountant, had been employed at the firm for just four months before her passing, which her mother attributed to stress from excessive work hours.
Recently, during the visit of the Central Minister of Labour & Employment, Mansukh Mandaviya, to Pune city, Punekar News asked him during a press meet whether his ministry would initiate an inquiry into the Pune EY case. Following this, the ministry has ordered a probe through the Maharashtra Labour Commissioner.
The Labour Department is expected to take further action regarding the irregularities found.
