The Hindu Business Line : ICAI seeks DCA advice on probe

THE Institute of Chartered Accountants of India (ICAI) has sought the assistance of the Department of Company Affairs (DCA) to find if there is any ground for inquiry into the alleged professional misconduct by A F Ferguson in l'affaire Tata Finance.

A F Ferguson on Tuesday withdrew its controversial audit report on the Tata Finance issue, following which the firm's senior partner, Mr Y.M. Kale, the architect of the report, tendered his resignation on Wednesday.

ICAI on Thursday told the DCA that the institute would be in a position to decide on the existence of a prima facie case for enquiry of professional misconduct by A F Ferguson or its partner only after the DCA calls for the necessary information and forwards it to ICAI.

"We have no information on the Tata Finance matter. We have suggested to the DCA that it may call for the controversial Ferguson report and the management response. The department is empowered to do so under the Companies Act, 1956," the ICAI President, Mr Ashok Chandak, told Business Line after meeting the DCA Secretary, Mr Vinod Dhall, here. He said the ICAI was willing to look into the matter if the DCA were to pass on the information to them.

ICAI officials pointed out that the DCA had various options to get information, including moving the Company Law Board or directing the Registrar of Companies or even approaching the police station where a criminal complaint had been filed earlier on the Tata Finance matter.

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ICAI seeks DCA advice on probe