ICAI fights for autonomy alone

The Institute of Chartered Accountants of India (ICAI) will probably have to wage a lone battle against the Centre's attempts to curb its autonomy.

The Institute of Company Secretaries of India (ICSI) and the Institute of Cost and Work Accountants of India (ICWAI) will not join ICAI's protests against the proposed changes in the Acts governing the workings of the respective institutes.

ICAI has taken strong exception to Clause 20 of the three amendment Bills, tabled in the Rajya Sabha in December 2003, which makes it binding for all the three institute to follow any order given by the Centre.

While ICSI was willing to take up with the government the issue of taking its prior approval for expenses like allowances to council members and foreign travel, it did not see the new provision as an attack on the independence of the institutes, PK Vijay, president, ICSI, said.

"In our discussions with the department of company affairs officials, it emerged that the intention was not to impose controls, but to prevent occurrence of malpractices," Vijay said.

He said with the credibility of professionals falling and the respective institutions shielding their members, this clause was inserted to ensure accountability.

Though in agreement with most of the provisions of the amended Bill, Vijay said additional strictures on certain kinds of expenditure did not make sense as all the three institutes had to get their annual budgets, which covered the particular expenditure heads, approved by the government.

ICWAI, which was recently pulled up by the government over unauthorised foreign travel and transfers, was also concerned over the autonomy issue but would not make a formal representation to the government.

"We understand that certain provisions were in reaction to certain disciplinary irregularities in the institute, thus we are on shaky moral ground to formally approach the government on the issue," an ICWAI council member said.

Referring to Clause 20, he said such a broad provision would enable the government to misuse it. He said even now the government could discipline any of the institutes by threatening to dissolve the council, and any additional restriction would just add to the volume of regulation.

Regulatory move

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• The government seeks to bring a comprehensive legislation to amend the existing three Acts governing chartered accountants, cost and works accountants and company secretaries

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• This will lead to amendments in the Chartered Accountants Act, 1949, Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980

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• The accountants' Bill was tabled in the Rajya Sabha last month