ICAI fast-tracks pending cases for enquiry

In order to decrease pendency, the Institute of Chartered Accountants of India (ICAI) has constituted one more bench of board of discipline to fast track all pending cases for enquiry, a senior official said.

Chartered accountants' apex body noted that the long pending residual cases under old disciplinary mechanism (section 21D of the Chartered Accountants Act 1949) were concluded by fast tracking the hearings.

"During the current year, one more bench of the board of discipline was constituted so as to fast track all pending cases for enquiry and dispose off cases at Prima facie stage," ICAI president Naveen Gupta told reporters Monday.

Giving details, he noted that during 2014-15, a total of 185 cases were executed under disciplinary directorate of ICAI. In 2015-16, the number rose to 402, in 2016-17 (284) and in 2017-18 (875).

During 2018-19 (till October 17), 365 cases were executed under disciplinary directorate of ICAI.

Moreover, the council of ICAI gave its approval for having disciplinary hearings through video-conferencing (e-hearing) and the relevant amendments required to be made in the disciplinary rules have been sent to the Ministry of Corporate Affairs for its consideration and approval, he said.

Regarding the National Financial Reporting Authority (NFRA), Gupta said, a legal opinion from senior advocate Mukul Rohatgi suggested that NFRA is not constitutionally valid and it does encroach upon the powers of ICAI.

"The government seems to not have considered the fact that if there is already a regulatory body, whose constitutionality is not doubted under act 19 (1) (6) of the constitution (the ICAI), there ought not to be another body (the NFRA) that seeks to regulate the same profession and whose constitutionality under Act 19 (6) is under doubt," Rohatgi said.

Gupta, however, said: "We are co-operating with the government, we are participating in the process. We are not against reforms".