ICAI acts against four CAs for misconduct post demonetisation

Last year, PM Modi on November 8 announced cancelling of old Rs 500 and 1,000 notes

Chartered accountants' apex body ICAI on Thursday said it has initiated disciplinary action against four of its members for "misconduct" with respect to offering advice on exchanging old currency notes for new ones.

As part of efforts to fight the black money menace as well as curb corruption, Prime Minister Narendra Modi on November 8 last year announced cancelling of old Rs 500 and 1,000 notes.

Without providing specific details, the Institute of Chartered Accountants of India (ICAI) said the cases related to these members were taken up on a fast-track mode.

The institute initiated suo moto action following media reports that post demonetisation certain members were providing advice in a manner that was in violation of Chartered Accountants Act and Rules framed thereunder.

"Hearing in five cases, where information was available against chartered accountants who had been named in the media reports was conducted on fast track mode," ICAI said in a release.

The remaining one case where further information is awaited would also be concluded shortly, it added.

After following due process, the institute said its board of discipline found four chartered accountants guilty of misconduct under the provisions of the Chartered Accountants Act.

"Broadly, they were found guilty of offering to advise about exchange of old currency to new one which was contrary to the applicable laws," ICAI said.

From November 8 till December 30, 2016, entities, including individuals, were allowed to deposit the invalid notes with banks. For a specific period, exchange of junked notes was also permitted.