Major Irregularities Found at EY Member Firm SRBC Amid Investigation into Employee’s Tragic Death

MUMBAI, Sept. 25 — The Maharashtra Labor Department has uncovered significant irregularities at S.R. Batliboi & Co. (SRBC), an EY member firm, during an inspection on September 23. This comes in the wake of the tragic death of 26-year-old chartered accountant Anna Sebastian Perayil, who reportedly suffered from excessive workloads and long hours. The department is now investigating the firm for failing to register under the Shops and Establishments Act since 2007 and examining employee welfare policies. SRBC has seven days to comply with regulatory requirements, and a broader review of protections for young employees is being considered.

Inspection Findings: The Maharashtra Labor Department discovered that SRBC has not registered under the Shops and Establishments Act despite operating since 2007. The firm has been given seven days to comply.

Employee Death Sparks Inquiry: Anna Sebastian Perayil died in July, prompting her mother to write to EY India Chairman Rajiv Memani about her daughter’s burdensome workload and mental health struggles.

Compensation and Records: During the inspection, officials examined details related to Perayil's employment, including her salary and compensation for extra hours worked. SRBC stated that ₹28.50 lakh was deposited in her account for her employment duration.

Investigation Scope: The inspection included reviews of digital records and employee statements concerning wages and working conditions under various labor laws, including the Minimum Wages Act.

Company's Response: EY stated that SRBC is cooperating fully with the Ministry of Labor and cannot comment further while the investigation is ongoing.

Government Actions: Minister of State for Labor Shobha Karandlaje expressed deep sorrow over Perayil's death and affirmed a commitment to ensuring justice and investigating allegations of an unsafe work