GROK has unearthed a long trail of regulatory fines and sanctions imposed on the world’s most powerful accounting firms—Deloitte, PwC, EY, and KPMG—commonly known as the Big Four.
These industry giants, trusted with auditing some of the world’s largest corporations, have repeatedly found themselves in the crosshairs of financial regulators across the globe. From the United States to India, billions of dollars in penalties have been levied for audit failures, misconduct, and compliance lapses.
To provide a clearer picture, we’ve converted several major U.S. fines into Indian rupees (INR), using an approximate exchange rate of 1 USD = Rs 83 as of April 5, 2025.
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Alongside, we also take a closer look at penalties imposed by Indian regulatory bodies, particularly the Securities and Exchange Board of India (SEBI), as well as actions taken by the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA). The findings paint a worrying picture of systemic issues within these firms—both internationally and domestically.
Currency Conversion of Fines Mentioned Earlier
1. PwC – $7 million (SEC fine, 2022)
$7,000,000 × 83 INR = approximately Rs 581,000,000 (Rs 58.1 crore)
2. EY – $100 million (SEC fine, 2022)
$100,000,000 × 83 INR = approximately Rs 8,300,000,000 (Rs 830 crore)
3. KPMG – £21 million (U.K. fine, 2022, Carillion audit)
First, convert GBP to USD: £21,000,000 × 1.27 = $26,670,000
Then to INR: $26,670,000 × 83 INR = approximately Rs 2,213,610,000 (Rs 221.36 crore)
These are international fines, but they contextualize the Big Four’s global scrutiny, which often mirrors issues in India.
Examples of Regulatory Actions/Fines by Indian Watchdogs on Big Four
Here are specific instances where Indian regulators, particularly SEBI, have penalized or acted against Big Four firms. Fines in India are often accompanied by bans rather than just monetary penalties, reflecting SEBI’s enforcement style. Amounts are provided in INR where available:
1. PwC – SEBI Ban (Satyam Scandal, 2018)
Penalty: No direct fine, but a 2-year ban from auditing listed companies in India.
Context: SEBI investigated PwC’s role as auditor of Satyam Computer Services, where founder Ramalinga Raju admitted to falsifying accounts by over R 7,000 crore (approx. $1.5 billion at the time). SEBI barred PwC network firms in India from issuing audit certificates for listed entities, effective January 2018. The financial impact was indirect—lost business—but no specific fine was levied.
INR Equivalent: The fraud amount was Rs 7,000 crore; PwC’s penalty was the ban, not a cash fine.
2. EY (SR Batliboi) – RBI Ban (2023)
Penalty: 1-year ban from auditing commercial banks, imposed by RBI.
Context: SR Batliboi & Co., an EY network firm, faced action for lapses in statutory audits of banks like HDFC Bank.
Announced in June 2023, the ban started April 1, 2024. No monetary fine was imposed, but the loss of bank audit contracts (e.g., HDFC Bank) likely cost crores in revenue.
INR Equivalent: No direct fine; revenue loss speculative but significant.
3. Deloitte and KPMG (BSR & Associates) – MCA/NCLT Action (IL&FS Case, 2019)
Penalty: MCA sought a 5-year ban via the National Company Law Tribunal (NCLT) for Deloitte Haskins & Sells and BSR & Associates (KPMG affiliate) as auditors of IL&FS Financial Services (IFIN).
Context: The IL&FS collapse involved ₹91,000 crore in debt defaults. The Serious Fraud Investigation Office (SFIO) alleged audit lapses and collusion with management. As of 2025, the ban request remains under judicial review, with no final fine or ban confirmed.
INR Equivalent: No fine yet; potential revenue loss in hundreds of crores if banned.
4. KPMG – SEBI Fine (Reliance Capital Audit, 2021)
Penalty: Rs 1 crore fine on BSR & Co. (KPMG affiliate).
Context: SEBI fined BSR & Co. in 2021 for failing to report irregularities in Reliance Capital’s financial statements during its 2018-19 audit. The fine was relatively small but part of broader scrutiny of Reliance entities.
INR Amount: Rs 1,00,00,000 (Rs 1 crore)
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Observations
• SEBI’s Approach: In India, SEBI often opts for bans over hefty fines, unlike the SEC’s multimillion-dollar penalties. This reflects a focus on deterrence via market exclusion rather than just financial punishment.
• Scale: Fines in INR tend to be lower (e.g., Rs 1 crore) compared to U.S./U.K. penalties (hundreds of crores when converted), but bans amplify the economic impact by cutting off revenue streams.
• Big Four Exposure: All four firms have faced Indian regulatory action, often tied to high-profile frauds (Satyam, IL&FS), suggesting systemic audit quality concerns.