ICAI Disciplinary Action: 172 Cases in 6 Months

New Delhi, Dec 6 (PTI) Chartered accountants' apex body ICAI has awarded punishments to its members under the disciplinary mechanism in 172 cases in over six months starting from February 12.

Amid concerns in certain quarters that ICAI has not been acting fast against erring chartered accountants, the institute's President Ranjeet Kumar Agarwal in a statement said it has a zero-tolerance policy in disciplinary cases and in some cases, members have been removed from the register for lifetime.

Under the disciplinary mechanism, that came into force in 2007, the Institute of Chartered Accountants of India (ICAI) has taken up 2,652 cases wherein members were prima facie found to be guilty of misconduct. The cases are for the period from the inception of the mechanism in 2007 till August 31, 2024.

"Out of the 2,652 cases referred to for enquiry, hearing has been concluded in 2,284 cases after giving due opportunity of being heard to the parties to the case by the Board of Discipline u/s 21A and Disciplinary Committee u/s 21B of the Chartered Accountants Act 1949, as the case may be," ICAI said.

Among the 2,284 cases in which the hearings have been concluded, members have been allegedly held guilty of misconduct in 1,080 cases.

In 2024-25 council year till August 31, hearings have been concluded in 200 disciplinary cases and punishments have been given in 172 cases, as per data shared by ICAI.

The council year is the one-year period starting from February 12.

The punishment varied from removing the name of a chartered accountant from the records for 1 month to 5 years, imposing a fine of Rs 5,000 to Rs 5 lakh or awarding both debarment and fine.

Agarwal said the institute has implemented comprehensive measures to address disciplinary cases effectively, with initiatives such as e-hearings and online filing of cases significantly helping in the faster resolution of the cases.

The institute, which has more than four lakh members, has three levels in handling cases for possible disciplinary actions -- Director (Discipline), Board of Discipline and Disciplinary Committee.