4 CAS under ICAI lens for ‘misconduct’

POST DEMONETISATION

APEX BODY of chartered accountants (ICAI) on Thursday said it has initiated disciplinary action against four of its members for "misconduct" with respect to offering advice on exchanging old currency notes.

Meanwhile, the income tax department found two chartered accountants facilitating illegal conversion of black money into white to the tune Rs 110 crore, government sources said.

During search operations conducted by the income tax department in Bikaner, Rajasthan, a Surat-based CA facilitated conversion of black money into white worth Rs 90 crore. This was done by routing cash via layers of shell firms for a fee by the CA.

Another CA helped a Jindbased (Haryana) industrialist in converting funds worth Rs 20 crore. This was done by routing money through Delhi-based shell companies, the sources said. The government is considering stringent enforcement actions against such professional misconduct, they said.

Without providing specific details, the Institute of Chartered Accountants of India (ICAI) said the cases related to these members were taken up on a fasttrack mode. The institute initiated suo moto action following media reports that post demonetisation certain members were providing advice in a manner that was in violation of Chartered Accountants Act and Rules framed thereunder.

"Hearing in five cases, where information was available against chartered accountants who had been named in the media reports was conducted on fast track mode," ICAI said.

The remaining case where further information is awaited would also be concluded shortly, it added. After following due process, the institute said its board of discipline found four CAS guilty of misconduct under the Chartered Accountants Act.

"Broadly, they were found guilty of offering to advise about exchange of old currency to new one which was contrary to the applicable laws," ICAI said.

I-T dept found 2 CAS facilitating illegal conversion of black money worth `110 cr, government sources said