The Institute of Chartered Accountants of India ( ICAI ) has issued a Standard Operating Procedure ( SOP ) to be followed by police and other law enforcement agencies regarding the investigation, search, seizure, detention, interrogation, and arrest of Chartered Accountants ( CAs ).
This SOP is designed to ensure that due process is followed while protecting the rights of Chartered Accountants during legal proceedings.
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Here are the key aspects of the SOP:
Before proceeding against a Chartered Accountant, investigators must verify the person’s membership with ICAI using the official “Trace a Member” link on the ICAI website.
Verification of membership be done from the “Trace a Member” Link available at https://www.icai.org/traceamember.html.
However, the trace a facility does not allow the public to search names of chartered accountants, but can only be accessed using the member registration number which has to be known in prior.
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1. Written Communication: All requests for documents or information must be communicated in writing.
2. Reasonable Time: CAs should be given reasonable time to respond to any inquiries.
3. Seizure Limitations: Only documents related to the specific investigation are to be seized. Papers related to other clients must not be taken.
4. Privacy Protections: Investigators must ensure that no media or press are allowed to enter the premises during the search, and the CA’s name should not be disclosed to the media until the investigation is complete.
5. No Harassment: CAs should not be harassed, physically assaulted, or mistreated during any searches or investigations.
6. Legal Permissions: All necessary legal permissions must be obtained, and procedural safeguards should be followed during investigations.
7. Compliance with Court Orders: Investigators must follow the directives of the Supreme Court and High Courts during the investigation process.
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1. Non-Cooperation Protocol: A CA can only be called for questioning in cases of non-cooperation, and the procedures under Sections 41 and 41A of the CrPC must be strictly followed.
2. Document Retention: Under Standard on Auditing ( SA ) 230, CAs are required to retain audit documentation for seven years, and this should be respected by investigators.
3. No Arrest if Cooperative: Arrest should not be made if the CA is cooperative and complies with investigation requirements.
4. Prima Facie Evidence: Arrest should not occur unless there is clear evidence of fraud, misappropriation, or involvement of the CA.
5. Mens Rea Consideration: Investigating agencies must assess whether there was criminal intent ( mens rea ) or collusion by the CA before arresting.
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6. Approval for FIR: FIRs against CAs should only be registered with prior approval from an officer of rank not lower than Superintendent of Police.
7. Legal Representation: CAs must be allowed to have their advocate present during interrogation, and the entire process must be video recorded.
8. Professional Conduct: Investigating officials are required to maintain professionalism, ethical behaviour, and proper decorum while dealing with CAs.
The initiative by ICAI is a positive step towards protection of the professional integrity and dignity of Chartered Accountants.
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