Comptroller & Auditor General has asked for powers to audit all limited liability partnerships (LLPs) in which the government holds a majority stake directly or indirectly. Under the current rules, LLPs that have a turnover of less than Rs 40 lakh a year or where the total contribution by partners does not exceed Rs 25 lakh, are not required to get their accounts audited. "There were reports that LLPs are increasingly being misused by corporate houses to evade regulators. We are of the view that since public money is involved in government LLPs, this route should be checked," a CAG official told ET requesting anonymity. The auditor has in a letter asked the government to make suitable amendments in the law.
Source: Economic Times
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