Next hearing in GTB matter in July: ICAI

SC has cleared the deck for final decision, says the institute; blames litigation, members seeking adjournments for 10-year delay

The Institute of Chartered Accountants of India (ICAI) today said that the next hearing in the probe into auditors in the Global Trust Bank case is scheduled for next week.  “As of now, the last hearing was fixed and held on 21st May, 2015 wherein the Respondents again sought adjournment and wherein it was decided that the same would be the last adjournment being granted and the next hearing is now scheduled to take place on 7th and 8th July, 2015,” the institute said in a press release on Monday.

Business Standard reported on Monday that the recent status report of Action Taken on Joint Parliamentary Committee (JPC ) recommendations showed that the matter was pending for over a decade.

ICAI said in its press release that the delay was primarily due to various procedures and litigation. “The delay in concluding the proceedings has been solely on account of various litigations initiated in the related matters by the Respondents which takes its own time in the courts of law and also on account of frequent and periodical adjournments taken by the parties in the hearings fixed.  The ICAI is now on course to fast track the hearing and to conclude the same expeditiously,” the release said.

The institute has also got a shot in arm  as the Supreme Court has in a recent judgment cleared a long pending litigation that was a stumbling block in the proceedings. “It may be added that the Hon'ble Supreme Court has finally upheld the procedure being followed by the Disciplinary Committee of ICAI in its judgment in May, 2015,” the release said.

Arising out of the Joint Parliamentary Committee (JPC) Report on stock market scam and related matters and also probing into matters arising out the Ketan Parekh Scam, the Institute of Chartered Accountants of India (ICAI) had initiated disciplinary proceedings against the statutory auditors of Global Trust Bank (GTB) for the financial years 2000-01, 2001-02 and 2002-03.  The Disciplinary Committee has since concluded its hearing in all the matters pertaining to the statutory auditors of Global Trust Bank (GTB) for the financial years 2000-01 and 2001-02 and the concerned Respondents having been found guilty of professional misconduct, the Council of ICAI had recommended to the Hon’ble High Court that their names be removed from the Register of Members for periods ranging from 3 to 5 years, the ICAI added.

Explaining the reason for delay, the institute said, despite several hearings being fixed regularly from August, 2009 till April, 2010, the same were consistently being adjourned on the request of the Respondents and the same was finally part-heard and adjourned in April, 2010.  Thereafter, the hearing in the said matter could not be taken up between 2010 and 2013 due to pendency of a petition filed in respect of the statutory audit of Global Trust Bank (GTB) for an earlier year challenging the adoption of the provisions of the old Disciplinary mechanism (Section 21D) subsequent to the amendment made in the Chartered Accountants Act, 1949 in the year 2006.