India’s national accounting body ICAI asks CAs not to critisize demonetisation

The Institute of Chartered Accountants of India (ICAI) has asked CAs not to criticise the government’s demonetisation decision and served notices to four CAs for their alleged acts of professional misconduct.

According to ICAI President M. Devaraja Reddy, the CAs have been served notice under the Chartered Accountants Act, 1949 and Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules 2007.

The accounting body has not revealed the identities of the CAs who were served notice.

Apart from the CAs who were served notice, ICAI is also in the process of initiating a disciplinary action in three more cases of the same nature.

According to an IANS report, ICAI has sought information from Principal Commissioner of the Income Tax Department in Pune in one case.

In the second case, the details have been solicited from the Income Tax Department in Ahmedabad while the ICAI has sought information from a private television channel, News18 India, in a third case.

“It is a matter of grave concern and distress to our profession when certain news reports/video clippings have come in the public eye depicting certain CAs indulging in such acts of illegality which go against the efforts of the government in eradicating corruption and black money from business and commercial transactions,” Reddy said in a sharp advisory to the ICAI members.

Reddy also advised its members not to criticise the demonetisation decision and cautioned all members “to watch the national interest as the uppermost while advising their clients”.

The same was reflected in a post on the ICAI website.

“The members are strictly advised not to indulge in any nefarious act to subvert the intentions of the government in any remote possible way. The members are also advised not to share/write any negative personal views by way of an article or interview on any platform regarding demonetisation,” he said.

Further, Reddy urged CAs to work towards the best interest of the nation in keeping with true spirit of the principle of ICAI i.e. ‘Partner in Nation Building’.

Established in 1949, ICAI is the national professional accounting body of India. It was set up by an act of parliament under the Chartered Accountants Act, 1949 to regulate the profession of Chartered Accountancy in India. It has over 250,000 members as fellows or associates with more than half practicing full time.

With IANS inputs