New Delhi: Dozens of Chartered Accountants (CAs), Company Secretaries (CS) and Cost Accountants are currently under regulatory scan for alleged violations of Companies Law in relation to the establishment of certain Chinese companies and their subsidiaries in India, according to officials. The umbrella bodies of Chartered Accountants and Company Secretaries, ICAI and ICSI, have together received around 400 complaints on the issue and the necessary actions have been taken.
The Institute of Cost Accountants of India has also taken legal action against some of its members in this case. The process began after communications were sent to the institutes by the Department of Corporate Affairs, which administers the Companies Act. The ministry provided the institutes with details of their respective members who allegedly committed violations, the officials said.
The government is examining whether Chinese companies and their subsidiaries have complied with all regulations to come and do business in India, ICAI Chairman Debashis Mitra said. Show cause notices have been issued to the affected members by the Institute of Chartered Accountants of India (ICAI) and the Institute of Corporate Secretaries of India (ICSI), respectively. The Institute of Cost Accountants of India has also issued show cause notices to some of its members.
After verifying whether the members have violated the Societies Act, appropriate disciplinary action will be taken against them, officials said. Members were asked to explain the alleged violations of company law with respect to the incorporation of various Chinese companies and their subsidiaries.