In an unprecedented move that has taken the Indian auditing world by surprise, Chandra Gupta & Associates, a leading Chartered Accountancy firm, has secured the statutory audit contract for Raajmarg Infra Investment Managers Private Limited, a subsidiary of the National Highways Authority of India (NHAI), by quoting a fee of just Re 1.
The audit tender, concluded on September 15, 2025, saw participation from 43 firms across India. While most competitors submitted standard fee proposals aligned with industry norms, Chandra Gupta & Associates submitted a nominal Re 1 bid, which was surprisingly accepted, making them the appointed statutory auditor.
The firm, known for its offices in New Delhi, Mumbai, Jaipur, Chandigarh, Mohali, Solan, Hazaribagh, Guwahati, Ahmedabad and an advisory office in Canada, has a team of seven partners and over 50 professionals. Their portfolio includes audits under Ind AS, taxation, compliance and financial advisory services.
The move has triggered significant discussions among industry experts and professionals. Social media and industry forums are abuzz with concerns over whether such a low fee could compromise audit quality and undermine professional ethics. Retired professors and auditing veterans have also expressed alarm, questioning whether statutory audits can be properly conducted at such minimal costs.
While the Institute of Chartered Accountants of India (ICAI) issues recommended fee guidelines for audits, these are not legally binding. Firms are legally allowed to submit bids below recommended fees. However, experts warn that sustained undervaluation of audits could lead to compromised financial oversight and erosion of professional standards.
This incident has reignited conversations on the balance between competitive pricing and maintaining rigorous audit quality. The industry is closely watching whether regulatory bodies will respond with revised fee recommendations or stricter guidelines to protect the integrity of statutory audits.
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