A probe by the Serious Fraud Investigation Office (SFIO) has found that audit firm Deloitte was responsible for the falsification of financials of IL&FS' subsidiary IFIN, reported Business Standard.

According to the report, an official from the SFIO said the initial probe revealed the existence of major lapses in Deloitte’s audit of the subsidiary.

The SFIO is likely to submit its probe report next month in order to bring closure to the probe, said the newspaper.

According to the report, the SFIO may recommend invoking Section 140 (5) of the Company’s Act to the Ministry of Corporate Affairs (MCA). However, Deloitte spokesperson denied that such proposal has been made.