The Institute of Chartered Accountants of India ( ICAI ) continues to grapple with a significant rate of misconduct among its members. According to recent reports, over 40% of investigations undertaken by the ICAI disciplinary bodies have resulted in findings of culpability, signalling widespread concerns about ethical lapses within the profession.
In the last fiscal year (FY23), the ICAI reviewed 500 cases of prima facie violations but was able to conclude hearings in only 152.
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As of August 31, 2024, 368 cases remain pending before the ICAI’s disciplinary bodies, awaiting resolution. Notably, during the first five months of FY24, the institute disposed of 200 out of 257 reported cases.
Despite the ICAI’s robust mechanisms for scrutinising violations, the number of cases taken up for review remains a small fraction compared to the vast pool of over 400,000 registered CAs in India.
The ICAI’s disciplinary track record reveals that since the inception of its current enforcement structure in 2007, over 2,650 cases have been referred for enquiry. Of these, hearings were concluded in 2,284 cases, leading to punishments in 1,080 instances—translating to a misconduct rate of 40.7%.
Despite amendments to the Chartered Accountants Act in 2022 aimed at improving accountability and expediting disciplinary actions, the new provisions have not yet been notified. The delay in implementing these reforms continues to hinder the timely administration of justice within the ICAI’s disciplinary framework.
The ICAI system for actions against misconduct includes three distinct bodies for handling complaints: the director (discipline), the Board of Discipline, and the Disciplinary Committee. The Board of Discipline deals with less serious infractions under the first schedule of the CA Act, while the Disciplinary Committee addresses more severe violations under the second schedule.
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Speaking on the matter, ICAI President Ranjeet Kumar Agarwal reiterated the institute’s commitment to upholding ethical standards. “The ICAI has proactively taken action against erring members through a well-defined disciplinary mechanism. It remains committed to enforcing ethical values in the profession,” he said.
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