‘ICAI’s actions on multinational accounting firms follow SC diktats’
The CA Institute on Friday said that its recent disciplinary actions on several multinational accounting firms (MAFs) arose out of the directions of Supreme Court’s February 2018 order in the S. Sukumar vs ICAI case.
These disciplinary actions align fully with the legal framework outlined in the CA Act and its rules and regulations, according to a statement issued by the CA Institute.
Without naming the CA firms against whom actions have been recently initiated under its disciplinary mechanism, the CA Institute’s statement said, “ICAI is committed to discharge the regulatory functions (as a statutory regulator of CA profession) in accordance with due procedure established by law and in compliance with the direction of the Supreme Court”.
This is the first time ICAI has gone public about the recent disciplinary actions (which covered both domestic and MAFs) as part of
This is the first time ICAI has gone public about the recent disciplinary actions
an eort to dispel the notions in certain quarters that its actions are arbitrary and seem to target MAFs.
The basic issue for consideration by the Supreme Court in the Sukumar vs ICAI case was as to whether the MAFs were operating in India in violation of the law in force in a clandestine manner and whether no effective steps were being taken to enforce the said laws. If so, what orders are required to be passed to enforce the said law?, the SC had asked the Government and the CA Institute.
Last week, ICAI passed orders against global audit major EY’s three Indian aliates —levied penalty and de registered its partner (now retired) for professional misconduct.
ICAI’s recent action was also on few other MAFs who were part of the Big Four. These firms had however obtained stay from the High Courts to ensure that the ICAI does not issue these orders.
Meanwhile, the Delhi High Court on Thursday stayed the ICAI order against the EY aliate firms – SR Batliboi & Associates LLP, SRBC & Co., LLP and SR Batliboi & Co. LLP – as well as the partner concerned until it reached a verdict on the issues challenged before it. The ICAI has now removed the EY aliates related Disciplinary order from its website in view of the Delhi High Court stay.