ICAI withdraws controversial demonetisation diktat

After facing severe flak, chartered accountants' apex body ICAI has withdrawn a controversial diktat that was seen as a purported gag order warning its members against making public any "negative personal views" regarding the government's demonetisation move "in an remote possible way".
The "advisory", a copy of which was purportedly also published on ICAI's website, invoked "the spirit of the ICAI -- Partner in Nation Building" to ask all its members "to be more cautions and careful while advising their clients, sharing/writing of their views on any platform regarding demonetisation and work towards the best interest of the nation".
After severe criticism from various quarters, the advisory has been pulled out from the website.

Separately, ICAI has also clarified that a purported audio clip in the name of its President M Devaraja Reddy, containing views on economic matters such as demonetisation and tax reforms, doing the rounds on social media is "fake".
"It is clarified that the said audio clip is a fake one and the voice therein is not of CA M Devaraja Reddy. It is emphatically stated that the audio clip is fake and is put in circulation to malign the image of the Institute. The views expressed in the said audio clip do not represent the views of CA M Devaraja Reddy or the Council of ICAI," it added.

On demonetisation, the ICAI (Institute of Chartered Accountants of India) has now issued a fresh advisory for its members from President M Devaraja Reddy wherein the members have been "requested not to indulge into any type of questionable practices which may bring disrepute to the profession."

The new advisory further says that the members "are specifically advised to render professional services within framework of the applicable laws and ICAI Code of Conduct, upholding and elevating the high standards enjoyed by the profession and keeping overall national interests in mind with true spirit of the principle of ICAI -- Partner in Nation Building".

"Members are strictly advised not to indulge in any
nefarious act as to subvert the intentions of the government in any remote possible way. The members are also advised not to share/write any negative personal views by way of an article or interview on any platform regarding demonetisation," ICAI had said.
The new advisory from Reddy says, "As you may be aware, the ICAI has always been supportive of the bold initiatives taken by the government in strengthening the economic growth of our country and also in its efforts to weed out black money and corruption from our country.
Describing Prime Minister Narendra Modi's announcement to demonetise high value notes as a 'welcome step', Reddy said it has given a definitive boost to the economic growth.

"This move, it is believed, will not only eliminate black money, but will also choke the activities of anti-nationals from across the border financed by fake currency, ensuring inclusive growth and national security in one go," he said.
He further said that "however, it is a matter of grave concern and distress to our profession when certain news reports/video clippings have come in the public eye depicting few CAs indulging in some acts of illegality which goes against the efforts of the government in eradicating corruption and black money.
"Needless to mention, ICAI is unsparing in its efforts to discipline members found erring.Immediate steps have been taken to cause an investigation against such members..."

Reddy said ICAI is acting in the best proactive manner to discourage and condemn the alleged misconduct of some of its members and so far six cases have come to its notice.
He also said that ICAI has issued notices to four members asking them to submit their written statements under prescribed uses of investigation, while information has been sought in one case from the Principal Commissioner Income Tax, Pune.
In other cases, information has been sought from Income Tax Department, Ahmedabad.