NEW DELHI: The Institute of Chartered Accountants of India (ICAI) will conclude the matter of the alleged involvement of chartered accountants (CAs) in aiding Chinese entities in setting up shell companies or their subsidiaries in India in the next three to four months, its president Debashis Mitra said on Tuesday.
The apex body of CAs will take strict action, including cancellation of their membership for their whole life, in case they are found guilty, stated Mitra.
“We will conclude the matter in the next three to four months. Though we have not been given any timeline by the Centre for its completion they did indicate to wrap this up at the earliest. We may even cancel the membership of CAs if they are found guilty,” Mitra added.
He added that the institute started getting complaints about their alleged involvement from the month of January this year. Together ICAI, The Institute of Cost Accountants of India(ICMAI) and the Institute of Company Secretaries of India (ICSI) have received complaints against 400 professionals, of which 50 per cent are CAs.
“We have sent show cause notices to all the suspected members. We have sought explanations from them with regard to incorporation of several Chinese companies and shell companies,” Mitra added.
He further said that papers were signed by CAs without doing proper verification of the registered address which doesn’t exist and that is an act of negligence on their part. The statement comes after the Serious Fraud Investigation Office (SFIO) arrested Dortse, an alleged mastermind of Chinese shell companies in India recenty.
Raids were conducted at various places in Gurgaon, Bengaluru, and Hyderabad. These were the offices of Jillian Consultants India Private Ltd, a wholly owned subsidiary of Jilian Hong Kong Ltd in Gurgaon; Fininty Pvt Ltd in Bengaluru; and Husys Consulting Ltd, a former listed company in Hyderabad.
Dortse is on the Board of Jillian India Ltd.