ICAI prefers to wait and watch

The Institute of Chartered Accountants on India (ICAI) has taken a wait-and-watch stand in the controversy surrounding the M P Birla Group's inheritance.

Rajan S Lodha, who has claimed to have inherited the Rs 5000 crore fortune of the M P Birla group, is a member of the ICAI and also co-chairman of flagship Birla group.

ICAI president, Sunil Goyal, who was in Chennai today said at present, the only source of information for the council was media reports and no independent enquiry has been initiated by ICAI.

"We will meet you (the media) again in the next seven to 10 days, if we have anything to say on this subject," Goyal said. He however added that the central council is 'assessing' the situation.

All of the five central council members, including Goyal, who spoke to Business Standard, said that it was too early to comment on the issue and did not find it apt for the council to initiate any enquiry at this stage.

Another ICAI Central Council member, Pankaj Jain said the council is meeting on July 20, in New Delhi.

Jain said, "The controversy surrounding the succession of the M P Birla Group fortune is not on the agenda. It may come up in the due course of the discussion, but it is not on the agenda. Only the council president will be able to comment on this."

Another senior council member said ICAI would not be able to initiate any enquiry on Lodha unless there is prima facie evidence to prove that he had compromised his position as a member of the institute. "The term M P Birla group has been used very loosely.