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Richa Mishra

New Delhi , July 19

THE Institute of Chartered Accountants of India (ICAI), which till now has been waging a battle against the Centre's attempts to curb its autonomy, may finally get some respite.

The Ministry of Company Affairs (MCA) is considering toning down the clause in the Chartered Accountants (Amendment) Bill that gives larger powers to the Central Government and dilutes the autonomy of the Institute's Central Council.

The Bill will now propose that the Central Government can give directions if it finds any violations to the law governing the profession, sources indicated.

Earlier, the Central Government was looking to empower itself to give directions from time to time, as it thought fit, and Council has to comply with the same. Further, if the Institute did not comply with the directions the Centre would dissolve the Council.

In fact, the Chartered Accountant Institute has taken strong exception to the provision, which makes it binding for ICAI to follow any order given by the Centre. The Ministry proposes to table the professional Bills in the forthcoming monsoon session for the approval of the Parliament.

The Company Affairs Minister, Mr Prem Chand Gupta, has been maintaining that while the Government's intention is not to curb the autonomy of the professional institutes, it would, however, like to protect the interest of all stakeholders.

The ultimate responsibility of the State would need to be discharged irrespective of the institutional autonomy, since issues affecting the professionals involved would have capacity to de-stabilise the financial sector, he said. When asked about the specific changes to be brought into the Bill, the Minister remained non-committal.

While taking note of the justification given by the Ministry in respect of the empowerment to the Government to issue directions and dissolution of the Council, the Standing Committee on Finance, had opined that the provision seemed to be an open ended one.

Further, it had said that since the function of the ICAI was different from the other two Institutes, it should not be equated with Institute of Company Secretaries of India and Institute of Cost and Works Accountants of India. Such blanket powers would rather impinge upon the autonomy of the Institute, the Committee added.

When asked as to what would attract directions from the Ministry, sources said, the areas were still being examined.

Besides, addressing the issue of autonomy, the Bill is also going to allow the professional Institutes to set up multi-disciplinary firms to beat competition with the opening of the profession.

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