Delhi HC seeks centre's view on treating CAs as reporting entities in PMLA

The Delhi High Court on Monday sought the central government's response on a petition challenging the inclusion of chartered accountants, company secretaries and cost accountants within the ambit of "reporting entities" under the Prevention of Money Laundering Act (PMLA).

A division bench comprising Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula asked additional solicitor general Chetan Sharma to get instructions from the government on the matter. It posted the matter for further hearing on October 4.

Rajat Mohan, a chartered accountant, has challenged the validity of the government's May 3 Gazette notification on the grounds that by bringing chartered accountants and other professionals within the definition of reporting entities, "onerous obligations" have been put on them with consequences of non-compliance leading to criminal prosecution.


According to him, the government's decision virtually makes CAs and such professionals engage in policing their own clients.