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  Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 10

HC orderes notice to Union Ministry of Corporate Affairs, ICAI
March, 27th 2015

The Madras High Court today ordered issue of notices to the Union Ministry of Corporate Affairs and the Institute of Charted Accountants of India (ICAI), on a plea by a Charted Accountant against the activities of ICAI.

Justice T S Sivagnanam on a petition by V Venkata Siva Kumar, a senior Charted Accountant seeking a special audit by CAG on the finances of ICAI, ordered the notices.

Kumar, in his petition, submitted that presidents of ICAI during the past several years were indulging in irregularities in the use of funds, misuse of authority, disregarding the regulations and abuse of quasi-judicial functions by exercising them in an arbitrary manner.

He submitted that ICAI does not have independent auditors and members are kept in the dark about its affairs.

"Financial scams in the operation are not being brought to the notice of members for corrective action, resulting in steady erosion in the image of the institution", he submitted.

He alleged several instances of ICAI creating fear among the members in the guise of disciplinary jurisdiction and submitted that "the instances are only the tip of an iceberg and more can come to light if an independent inquiry is ordered."

He alleged that money and several land deals apart from service and procurement contracts involving several crores of rupees have not been properly accounted for by ICAI and prayed for ordering a special and an impartial audit to unearth the "irregularities.

 
 
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