Check genuineness of certificates issued by CAs: CVC to ICAI

The Central Vigilance Commission has asked the apex body of Chartered Accountants, ICAI, to take steps to monitor genuineness of certificates issued by its members in order to check banking frauds.
The move comes after it was noticed by the CVC that some unscrupulous people were forging documents by putting fake stamp of a CA or misusing his credentials in order to commit frauds, official sources said.
The Commission has recently written to the Institute of Chartered Accountants of India (ICAI) asking it to ensure genuineness of certificates issued by CAs to curb the fraudulent activities of loan seekers from public sector banks.

"We have received a letter from ICAI President supporting our concern and expressing commitment to work in coordination in this regard," Vigilance Commissioner T M Bhasin told PTI.
The CVC wants to put in place a system where the genuineness of documents like balance sheet and others certified by a Chartered Accountant can be verified online, he said.
There may be a unique number mentioned on a CA's stamp being put on the document and a link can be given online where concerned authorities can check the details of the concerned Chartered Accountant, Bhasin said.

"In case of suspicion, the authorities can contact the Chartered Accountant to check the genuineness of the documents certified by him," the Vigilance Commissioner said.

"There are cases where fake stamps and signatures of a CA were put on official documents to take loans from public sector banks. The matter came to light when it became Non-Performing Asset and investigation was ordered," the official said.
There are 1,12,324 full and part-time members, including fellow and associates, registered with the ICAI, as per its latest data updated on April 1, 2014.
Public sector banks had reported over 2,166 fraud cases involving a sum of Rs 11,022 crore between April and December last year.
During 2013-14, 2,593 such cases involving Rs 7,541 crore were reported, according to an official data.

The CVC had recently also suggested surprise inspection of public sector banks and insurance companies by the Chief Vigilance Officers, who act as its distant arm, to check frauds due to misuse of user-ID and password of officers by sharing it with unauthorised persons.
The Commission has observed that in many cases relating to banking and insurance sector, central public sector enterprises and even in other organisations functioning in a computerised environment, frauds were being perpetrated on account of the officers sharing their user-ID and password with unauthorised persons and not disabling them on their transfer, retirement, suspension or long leave.

"The Commission is of the view that periodic change of passwords by officers would be an important preventive vigilance measure to address the issue," it said in a directive to all ministries, banks, insurance companies and autonomous organisations.