September 20, 2022 Saying that a special cell has been constituted under the Disciplinary Committee to examine
the nature of offences of Chartered Accountants involved with Chinese companies, President
of Institute of Chartered Accountants of India(ICAI) Debashis Mitra said that the cases are
likely to be disposed of at the end of the year on a fast track basis.
“We have compiled a list of companies where CAs were involved and have issued notices to
all of them,” he said.
Recently, the Ministry of Corporate Affairs (MCA) proposed amendments to the
Companies Act that proposes to mandate joint audits for a certain class of companies
Explaining the process, he said first a notice is said to the accused CA. When he/she replies,
the Director of Discipline committee has to determine whether the person is prima facie
guilty or not.
The President also informed the media persons that there have been 400 cases this year
related to misconduct of Chinese companies. Out of those accused, 50 percent of them are
CAs.
Commenting on the nature of the alleged misconduct of CAs, he said that some Chinese
companies had registered the address of a particular place on paper but in reality their office
did not exist there. Some shell companies were also formed by giving the address of the CA’s
as the address of the company.
“There are a substantial number of such cases. How many exactly I cannot comment on. But
these cases will likely be disposed of in 3-4 months.
