26 CAs under scrutiny for alleged links with shell companies
Around 26 Chartered Accountants have come under the Institute of Chartered Accountants' scanner over alleged links with shell companies. The reference came from Serious Fraud Investigation Office and details about the CAs are being collected. Notably, ICAI can initiate disciplinary proceedings against members including suspension and cancelling of their registration.
New Delhi, Jul 23 (PTI) At least 26 chartered accountants have come under the scanner of the ICAI for allegedly helping shell companies, a senior official said. The Institute of Chartered Accountants of India (ICAI) is the regulator for accountancy professionals and can initiate disciplinary action against erring members. "The role of (around) 26 chartered accountants with respect to their alleged links with shell companies are being looked into by the institute," ICAI President Nilesh Shivji Vikamsey told PTI. As the government continues its clamp down on shell companies in efforts to deal with the black money menace, many entities have come under the lens of various agencies, including the Serious Fraud Investigation Office (SFIO). Vikamsey said reference about the 26 chartered accountants came from the SFIO and details about them are being collected. The ICAI can initiate stringent disciplinary proceedings against members violating norms. The measures can include suspension and even cancelling their registrations. Shell companies are dubious entities that are generally used for laundering illegal funds. However, the term shell company is not defined under the companies law. At ICAIs foundation day function on July 1, Prime Minister Narendra Modi had sought to send out a strong message against chartered accountants trying to help entities in black money dealings. Till July 12, the corporate affairs ministry has deregistered more than 1.62 lakh companies that have not been carrying out business activities for long. 