ICAI cautions its members regarding Demonetisation

Demonetisation Policy announced by Government of India- An Advisory for Members

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. The recent move of Government of India to demonetize the high value denomination currency as announced by the Hon’ble Prime Minister Shri Narendra Modi is a welcome step which has given a definitive boost to the economic growth and dealt a lethal blow to the parallel economy that has cast its ugly shadow on the nation’s economy for long. 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. 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 certain Chartered Accountants indulging in such acts of illegality which goes against the efforts of the Government in eradicating the corruption and black money from business and commercial transactions. Needless to mention that ICAI is unsparing in its efforts to discipline such erring members. It may be mentioned that immediate steps have been taken to cause an investigation against such members in terms of the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 framed thereunder. The alleged act of professional misconduct committed by these members is totally unacceptable to the ICAI and the acts of such members go completely against the stand of ICAI which is fully and whole-heartedly behind the Government of India in all its endeavours. The ICAI in its quick efforts to discourage and condemn such alleged misconduct by some of its members, is acting in the best proactive manner. So far 6 cases have come to the notice of ICAI. Under the provisions of its robust disciplinary mechanism, ICAI has issued notices to its 4 members calling upon them to submit their written statement under The Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 framed thereunder. In 1 case the information has been sought from the Principle Commissioner Income Tax, Pune while in the other case information has been sought from Income Tax Department, Ahmedabad. In another case the information has been sought from the News Channel – News 18 India. In this backdrop, it has been decided that an advisory be issued to the members cautioning them to watch the national interest as the upper most while advising their clients. 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. All members are, once again, advised to be more cautious 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 in keeping with true spirit of the principle of ICAI - “Partner in Nation Building”.

(M. Devaraja Reddy) President, ICAI