1. Demonetisation: Narendra Modi govt hands 34 chartered accountants’ names to ICAI for money laundering investigation

Demonetisation: Narendra Modi govt hands 34 chartered accountants’ names to ICAI for money laundering investigation

The government has shared names of 34 chartered accountants (CAs) with the Institute of Chartered Accountants of India (ICAI) for investigation after the professionals were allegedly found to be involved in money laundering through shell companies during the demonetisation period, ICAI president Nilesh S Vikamsey said on Tuesday.

By: | New Delhi | Updated: February 15, 2017 12:03 PM
ICAI president Nilesh S Vikamsey ICAI president Nilesh S Vikamsey

The government has shared names of 34 chartered accountants (CAs) with the Institute of Chartered Accountants of India (ICAI) for investigation after the professionals were allegedly found to be involved in money laundering through shell companies during the demonetisation period, ICAI president Nilesh S Vikamsey said on Tuesday.

Last week, the government had said it had been found that 559 beneficiaries had laundered nearly Rs 3,900 crore with the help of 54 professionals who have been identified. It had said information was shared with various agencies, including ICAI.

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The ICAI has started the process of identifying the names given to them, and show-cause notices would be issued to these professionals depending on nature of their involvement. The ICAI chief said if prima facie guilt is established in their investigation, the professionals would be taken to the disciplinary committee.

“The ICAI does not have the power to temporarily suspend chartered accountants found involved in wrongdoing. We have made a representation to the government to equip us with such powers by amending the CA Act,” Vikamsey said.

Additionally, ICAI vice-president Naveen N D Gupta said the institute has made representation to the finance ministry against a provision in the finance Bill that seeks to penalise chartered accountants for furnishing incorrect information in the filing returns. Gupta said penal provisions already existed in the Income Tax Act for these mistakes, and there was no need for Parliament to enact law for the same.

The institute has also urged the finance ministry to extend the tax benefit to limited liability partnership (LLPs) companies and others that are not incorporated. “We have asked the government to consider all the companies within the threshold of Rs 50 crore annual revenue to be covered under corporation tax of 25%,” Gupta said.

He added that such a move would encourage new companies that still have some distance to go before they are incorporated.
However, in an interview with FE, revenue secretary Hasmukh Adhia had said the tax relief was limited to incorporated companies as LLPs do not pay dividend tax and can also earn interest of 12% on their own capital, unlike incorporated firms.

  1. A
    ajmal
    Feb 15, 2017 at 11:59 am
    Ajmal
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    1. A
      Anil bansal
      Feb 15, 2017 at 11:51 am
      It is time that CA's are punished for their misdeeds of false certifications, reports and guidance to beat the system and law.
      Reply
      1. N
        Nitin
        Feb 15, 2017 at 4:24 pm
        #Right_brother 😁😁they are saying for certificate cancellation but they don't know what is the level of hard work to get a degree of CA...
        Reply
        1. P
          Prabhu Vaze
          Feb 15, 2017 at 12:07 pm
          This is not first time CAs are involved in the frauds..Gov't was ignoring it so far. Strictest punishment should be given to them including confistication of their Ill earned property.
          Reply
          1. S
            Shensha
            Feb 15, 2017 at 9:53 am
            Mr modi why does not urgovt take any action against them
            Reply
            1. S
              Sandeep
              Feb 16, 2017 at 6:21 am
              Basic objective of any penal provision is that the guilty should be punished. By suggesting that Ca,s be punished for submitting incorrect information we are trying to shoot the messenger. This will only complicate the process of furnishing returns and increase the fear in mind of essees. The person submitting the information is the person. Responsible and various provisions exist which clearly make the person responsible.
              Reply
              1. S
                Santosh Pant
                Feb 15, 2017 at 11:29 am
                There are only two bodies involves in corruption first Charterd Accountants and second Income Tax Authorities. Government should restrict their monopolies in direct taxation like other bodies should allow Income Tax practise and other government bodies to Vat Income Tax cases.
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                1. A
                  Adv.agrawal
                  Feb 16, 2017 at 10:53 am
                  Thanks, for supporting corrupt CA.
                  Reply
                  1. M
                    M R
                    Feb 20, 2017 at 11:47 am
                    '......... if the Government lets a gentleman stand atop of a tower and asks him, fall down and worship me, this government would give you wealth and power.... ' Who else would not be tempted?. First let the government come complacency with user-friendly and less teeth (of powers) with the authorities. Then speak about the Chartered Accountants who, of course, are a via-media between the two. The relationship already started straining, and who to blame? The finance minister who could not read a balance sheet, the home minister always blame about the neibhours, the defense minister who, if given a colt would shoot himself, not knowing how to handle and the Emperor Prime Minister who plays an all-rounder. Let the government first sanitize it's own house.
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                      M R
                      Feb 20, 2017 at 11:51 am
                      Yes, appoint Modi & Co. they'll do as they have shunted out Chowdary in the investigation case of Sahara and Birla.
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                      1. B
                        bharat
                        Feb 16, 2017 at 11:56 am
                        iyou are world's bigest
                        Reply
                        1. S
                          sivakumar
                          Feb 15, 2017 at 9:15 am
                          so ???
                          Reply
                          1. S
                            suresh kaul
                            Feb 15, 2017 at 1:00 pm
                            Point is,is the government prepared to go w hog to banish the impact and curse of black money from the Country.Gor that first and foremost is political funding i.e receipts of donations and end use, both need to be thorough banking channels and rigorously monitored and audited.Plus abolition of discretionary powers of ministers and beaurocracy. End of Inspector Raj,which unfortunately seems to have risen from adhed like Sphenix in last few days to bringin era of old dark days
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                              Rakesh Pandit
                              Feb 15, 2017 at 5:04 am
                              All guilty CAs have to be jailed. Many more could be involved.
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                                NLS
                                Feb 15, 2017 at 8:34 am
                                So, what disciplinary action will ICAI take against the crooked Chartered Accountants involved in money laundering? A one time fine of Rs.500/-?
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                                1. V
                                  Velvet
                                  Feb 15, 2017 at 8:43 am
                                  "Narendra Modi govt hands 34 chartered accountants’ names to ICAI for money laundering investigation"but if modi government make investigation more, the government will find that apart from money laundering , all the Indian chartered accountants are involved in lots of monetary scams some of which are disclosed and many of these scams are still hidden. Below are the few views and causes how the scam occasioned by Indian chartered accountants :A.The Chartered Accountants ( The product of cheater accountants of India (ICAI)) takes the advantage offollowing in all types of monetary scam: 1. The "True and fair view" in audit report honored by Indian Consution.2. The stamp and seal which has honored by Indian Consution.B.There is no such quality of Indian chartered accountants that it will make financial analysis and decision,a layman with knowledge of commerce can also do so efficiently. There are also data analyst and statistical analyst.C.Big MNCs in India hire chartered accountants mainly for tax evasion.Since there are other analyst -- why not recruit them ?D. “The ICAI does not have the power to temporarily suspend chartered accountants found involved in wrongdoing. We have made a representation to the government to equip us with such powers by amending the CA Act,” Vikamsey said.Mr. Vikamsey asked for some power , but if power is given by the modi government the India will go under the black depot of black money sanctioned by ICAI and its team by "temporarily suspend chartered accountants". How wonderfully Mr. Vikamsey has asked the government -- amazing.E."Gupta said penal provisions already existed in the Income Tax Act for these mistakes, and there was no need for Parliament to enact law for the same." So, Mr.Gupta antite intentional crimes are mistakes.Do Mr.Naveen N D Gupta has requested anytime to its client to disclose incomes in return without going for tax evasion ? Where is the request form if Mr.Gupta has taken the initiative? F. "The ICAI chief said if prima facie guilt is established in their investigation, the professionals would be taken to the disciplinary committee." There is no need of "disciplinary committee" since it is a "settlement committee" to re-enter the practicing chartered accountant again with or without a lump-sum monetary transaction. If chartered accountant found guilty the India Government should send him/her in jail custody with P.C. for a period of 7 years.G. Retrench all the chartered accountants which are harmful for the Indian economy and Indian society from CBDT to make "Swatch Bharat"H.Delete all the trust on chartered accountants in Income Tax Act 1961 by an act ped by parliament.Employ general commerce knowing people with flavor of data analysis and statistics.I."The insute has also urged the finance ministry to extend the tax benefit to limited liability partnership (LLPs) companies and others that are not incorporated. “We have asked the government to consider all the companies within the threshold of Rs 50 crore annual revenue to be covered under corporation tax of 25%,” Gupta said."Mr. Gupta is creating more avenue for monetary scam. Yes, tax benefit to LLPs only be allowed only if chartered accountants are not to allow organize audit by an act of parliament. Since, ICAI and its products has proved as an fake and untrusted to nation.j. Do the news mentioned chiefs of ICAI has submitted their property records to Government of India ? Yes or No? where is that? ICAI should be banned and India Government should organize a trustable body.thanks.
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                                  1. G
                                    Ghanshyam Parekh
                                    Feb 15, 2017 at 8:43 am
                                    Modi haters are just waiting for a chance to comment in any move of his govt.
                                    Reply
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                                      Ganesh
                                      Feb 15, 2017 at 3:08 pm
                                      CAs alone cannot commit any frauds like this without the co-operation/ involvement of persons in financial insutions or political circles. Are those people also being prosecuted. Who are those persons, especially from political circles. Since politicians are elected representatives, their names should be published in media and take strict action against them also, which does not happen. I am not saying that all CAs are saints, but 99 % of politicians are guilty.
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                                      1. C
                                        CA P JITENDRA KUMAR
                                        Feb 15, 2017 at 5:03 am
                                        Wish the ICAI 'a request for power to make suspension of member during pendency , is accorded quick response
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                                        1. K
                                          Kashinath sahadu
                                          Feb 15, 2017 at 5:38 pm
                                          Almost all Parliamentary beneficiaries are corrupt.leave alone the CA's government is requested to initiate a probe of undisclosed ets of the civil servants,may they be IAS's or IPS's .clean the system under the preview of Central government & under it's nose .
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                                          1. K
                                            Kashinath sahadu
                                            Feb 15, 2017 at 6:05 pm
                                            Gone through the comments however felt confused whether these commentators have the idea how deep this TUMOR of corruption is spread the body of our sovereign nation.one best surgeon is the need of hour. so called surgical strike on corrupted economy is carried out by fake surgeons.we should be always careful of our nation and its health only.these politicians and civil servants come & go ,our beautiful nation remains with the golden history.
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