Lok Sabha Question No. 3449 (UNSTARRED), answered on 2017-08-04
Subject: ICAI Action on CAs
Ministry: CORPORATE AFFAIRS
Asked by: P.R. SUNDARAM, JAYAKUMAR JAYAVARDHAN, KUNWAR HARIBANSH SINGH, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, RAJEEV SHANKARRAO SATAV, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3449 ANSWERED ON FRIDAY, THE 4th AUGUST 2017 [SHRAVANA 13, 1939 (SAKA)]

## ICAI ACTION ON CAs

## QUESTION

3449.   SHRI P.R. SUNDARAM:

DR. J. JAYAVARDHAN:

KUNWAR HARIBANSH SINGH:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI SATAV RAJEEV:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of CORPORATE AFFAIRS कॉरपोरेट कार्य मंत्री be pleased to state:

- (a) whether the Institute of Chartered Accountants (ICAI) has poor track record on disciplinary front and has prosecuted only 25 Chartered Accountants (CAs) in the last 11 years and if so, the details thereof and the reasons therefor;
- (b) whether the Government has complained against some CAs for their alleged links with shell companies, entry operators and major companies act violations and if so, the details thereof;
- (c) if  so,  the  total  number  of  complaints  received  along  with  the  number  of  CAs prosecuted during each of the last five years and the current year;
- (d) the number of cases which are still pending along with the reasons for pendency, year-wise; and
- (e) whether  the  Government  is  pushing  the  ICAI  to  take  swift  disciplinary  action against  CAs  who  are  found  guilty  in  the  cases  where  the  Government  has complained and if so, the details thereof and response of ICAI in this regard?

## ANSWER

THE MINISTER OF STATE IN THE

MINISTRY OF CORPORATE AFFAIRS

कॉरपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(SHRI ARJUN RAM MEGHWAL)

(श्री अर्जयन राम मेघवाल)

(a)  to  (e):  The  Disciplinary  Mechanism of the Institute of Chartered Accountants of India (ICAI) is governed by the Chartered Accountants Act, 1949 and the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007.

Disposal of cases is a continuous ongoing process. The information about the disposal of cases during the last five years and the current year is as follows:

| 2012   | 2013   | 2014   | 2015   | 2016   | 2017   | Total   |
|--------|--------|--------|--------|--------|--------|---------|

| Total Cases registered         |   266 |   427 |   443 |   480 |   460 |   474 |   2550 |
|--------------------------------|-------|-------|-------|-------|-------|-------|--------|
| Total cases already dealt with |   266 |   413 |   244 |   134 |    58 |    10 |   1125 |

As per information received from ICAI, in respect of 25 cases punishment of removal of names from the Register of Members for one year or more, including permanent removal was awarded. The Ministry has issued directions to ICAI that where complaints have been received from Government Organizations, they should be dealt with in a strictly time bound manner as Public Interest is involved in such cases and disposal be ensured within the time limit laid down for each step.

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