ICAI imposes record disciplinary actions on chartered accountants: 241 punishments this FY

The Institute of Chartered Accountants of India (ICAI) announced a record number of disciplinary actions against its members this financial year. 241 chartered accountants (CAs) faced penalties, including membership removal for up to five years. This is a significant increase from the 119 disciplinary actions taken last year.

ICAI President Charanjot Singh Nanda emphasized the organization's commitment to upholding ethical standards and ensuring a swift disciplinary process. When questioned about actions against firms involved in misconduct, Nanda stated the ICAI is waiting for the Ministry of Corporate Affairs to implement amended legal provisions. He explained the ICAI can currently only take action against individual members, unlike the National Financial Reporting Authority, which can act against entire firms.

Nanda reaffirmed auditing as the core function of CAs, addressing concerns raised by company secretaries and cost accountants seeking similar recognition under the new Income Tax Bill. “Audit work can be done only by chartered accountants, the chartered accountants in practice… we do audit. Audit is a serious business which can be done only by people doing so,” he stated, extending this principle to tax audits. A committee with representatives from ICAI, the Institute of Company Secretaries of India, and the Institute of Cost Accountants of India will further discuss the matter.


Nanda's agenda also includes supporting the growth of Indian CA firms internationally. He aims to assist the 400,000 CAs in India in becoming global players, stating, "India is a factory of accountants… we want Indian (CA) firms to be global for which we will seek govt support.” A new committee focusing on work-life balance for members is also being established.

(with ToI inputs)