ICAI Notice to 200 CA Firms for aiding Chinese Firms, to violate Company Law

According to various news reports, the ICAI has issued Disciplinary Notices to approximately 200 CA Firms for their alleged involvement in violation/breach of company law by many Chinese Firms via Indian subsidiaries and shell companies.

ICAI is conducting the disciplinary proceedings on a fast track/ priority basis to conclude the matter at the earliest, in view of large scale involvement of professionals (more than 400 CAs and CSs) in aiding the Chinese entities to violate/ breach the Indian company law, as alleged/ complained by MCA to ICAI/ ICSI.

ICAI Notice to 200 CA Firms for aiding Chinese Firms to violate Company LawIt may be noted that in April 2022, the MCA had directed the respective ROCs to initiate action against about 400 Chartered Accountants and Company Secretaries, for their alleged role/ help to Chinese Firms in floating/ incorporating shell companies by flouting the provisions of company law. Accordingly, different ROCs have approached the ICAI/ ICSI for requisite action.

ICAI being the Regulator of the CA Profession has started processing the complaint of ROCs/ MCA in the matter and has moved the first step by issuing Disciplinary Notices to concerned CA Firms. However at this stage it’s premature to forecast the final outcome on violation/ breach of company law by these CA Firms, as the detailed investigation/ inquiry in the case is yet to be conducted and concluded.

One Response

  1. Yeshwant Karan

Leave a Reply