ICAI says members' involvement in Satyam scam an 'aberration'

Chartered accountants' apex body ICAI today said the involvement of six of its members in the Satyam scam was a "matter of aberration" and it has got robust standards in place.
Completing a long-drawn legal process, a special court in Hyderabad today convicted B Ramalinga Raju, chief of erstwhile Satyam Computer Services, and nine others in the Rs 7,000 crore fraud that came to light in January 2009.
In the wake of the scam, the Institute of Chartered Accountants of India (ICAI) had initiated disciplinary action against six of its members for "professional misconduct".
After the court verdict, ICAI President Manoj Fadnis told PTI that involvement of its members in the Satyam scam was a "matter of aberration" and asserted that the institute has robust standards in place.

After finding them guilty of "professional misconduct", ICAI had awarded the maximum punishment of removal of their names from the Register of Members permanently and also imposed a fine of Rs 5 lakh each on them.
"Disciplinary action was initiated against S Gopalakrishnan and S Talluri, the concerned partners of the statutory audit firm, P Siva Prasad and C Ravindernath, audit incharge(s) from the said audit firm, V Srinivasu, then CFO of Satyam and V S Prabhakara Gupta, head of internal audit department of Satyam," ICAI said in a statement.

Noting that its regulatory mechanism is working assiduously, the institute said disciplinary proceedings were initiated against the concerned members in 2009.

"... The proceedings were completed in October 2010 in all cases except one and reached finality in October 2013 with the last case.
"The Appellate Authority constituted under Section 22A of the Chartered Accountants (Amendments) Act, 2006 in all cases, except one case which is yet to be decided by the said authority also upheld the decision of the disciplinary committee of ICAI," he said.
Further, he said the institute respects the special court's ruling, which further validates decision taken by ICAI.
Satyam scam kingpin B Ramalinga Raju and his brother B Rama Raju were today sentenced to seven years rigorous imprisonment and fined a whopping Rs 5.5 crore after they were convicted by a special court in the fraud.