[aaykarbhavan] Re: [sensitiveadvisor2008] Fwd: [tar-group] Fwd: Fw: ICAI ruled by Representatives of Big Firms and Corporates

A fact of the case. Nothing more. They are there to protect them , for their wrong done!!! Nothing more. What is the value of our profession? Only in words !!!???

This is going on. They are there Because of the fact that in election all of their associates , and Big 4 are relatively behind the scene to get them elected by employees of their Audited Companies and Associates!!!! And they won , one.

Thanks,

Regards,

Shah D J

On Wednesday, 2 September 2015 12:52 PM, "CA Aarchana Yadav aarchanay@gmail.com [sensitiveadvisor2008]" <sensitiveadvisor2008-noreply@yahoogroups.co.in> wrote:

 

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From: "CA Atul Modani" <atulmodani@gmail.com>
Date: 02-Sep-2015 8:34 pm
Subject: [tar-group] Fwd: Fw: ICAI ruled by Representatives of Big Firms and Corporates
To: <tar-group@googlegroups.com>
Cc:

---------- Forwarded message ----------
From: "ATUL P" <aspethe@rediffmail.com>
Date: 2 Sep 2015 20:27
Subject: Fw: ICAI ruled by Representatives of Big Firms and Corporates
To: <atulmodani@gmail.com>
Cc:

FYI

Atul Pethe

Note: Forwarded message attached

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From: "Emailer Service" srvcrply@gmail.com
To: aspethe@rediffmail.com
Subject: ICAI ruled by Representatives of Big Firms and Corporates

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From: Emailer Service <srvcrply@gmail.com>
To: aspethe@rediffmail.com
Cc: 
Date: 1 Sep 2015 16:09:12 +0530
Subject: ICAI ruled by Representatives of Big Firms and Corporates

ICAI ruled by Representatives of Big Firms and Corporates The President Sir, Vice President Sir, Council Colleagues, Sub : Malafide, Unconstitutional, non transparent, stealthy Governance by the President and Vice President with the active participation of some CCMs – financial irregularities- Representations by Big Firms and corporate respresentatives more important for their reciprocal interests against the overall interests of the profession.   The continuing wrong actions and inactions where actions are required of this President and the Vice President clearly and loudly reveal  that with the help of some select CCMs from big firms and corporate who also want to protect their own wrong doings or wrong doings of others are determined to reduce and block my attempts to bring accountability  of CCMs and transparency  of the council proceedings to make the same available to the fraternity . They want to approvehuge financial irregularities and thereby provide boost to continuing wrong doers, enhance misgovernance, add to manipulations in conduct of council proceedings, defraud and manipulate the documents in the ICAI and to continue their combined vested interests to take all necessary steps. When I say defraud and manipulate documents at the ICAI, I am saying with the evidences on records which are very veryserious  in nature and go to the roots of tricky and governance at the ICAI and the real tricky and manipulative methods of functioning at ICAI as against claimed methods but the same will have to be presented directly in any on going litigation in the Court of law or the agencies like CBI under the methods available to the whistle blowers. I have nothing personal against any one but when I try to take steps for accountability and transparency then also they come in my way. All I am writing will be evidenced by the audio recordings of the council proceedings and the papers and documents lying at the ICAI. The recent decision to accept and finalise the draft of  accounts presented as accepted accounts by the Council and submit for audit despite the specific demand for fixing accountability and for amending the accounts appropriately and consequent disapproval by some CCMs because of financial irregularities and the approval being done by  using the number game rather than proceeding with a reasoned approach and upholding highest standards of ethics, propriety of decisions and   despite strong disapproval of accounts on serious reasons concerning loss of crores of rupees to the ICAI is of serious concern.  I am shattered by  the most casual manner of dealing with annual accounts of  regulator of accounting profession. The ICAI is already making operational losses and is surviving on interest income of the accumulated funds. I am more concerned about the unconstitutional and manipulative attitude of the President and the Vice President in all such cases where they are simply concerned with preserving their positions at any cost and not ready to deal with the matters on merits. Number game is created against the issues of law, conflict of interest, constitutional questions and governance of council proceedings. A view is canvassed and is created before the Proceedings start and suddenly the decided voices start flowing in desired direction and many a times not spelling out reasons on rule of law.   The Project Parivartan process continued for many years.  The group was formed comprising some council members.  One council member was  from `Big 4. The vendor in the ProjectParivartan is client of the said Big 4 Firm.  So, there is direct conflict of interest.  The matter should be debated in the Council that after noting the conflict of interest whether we should put another council member in his place.  But, no such debate happened.  As if once interest disclosed means person becomes  independent.  The loss to the ICAI is not only Rs. 8/- crores as claimed but it will run into many many crores of rupees when computed realistically.  But, they do  not want to fix up accountability, do not want to refer the matter for investigation. In this connection the audio recordings of the Coucnil Meeting held on August 14,15 and 16 at Udaipur are also very relevant. I am one of the Council members who have disapproved the draft ICAI accounts on this as one of the reasons.But the President and the Vice President are proceeding with the approval  by majority of the council members.  How the majority behaves, whether there are any objective reasons for such behaviour, audio recording will indicate to the members. They know, there are no objective reasons for such majority behaviour except that they want to remain in good books of President and the Vice President. Therefore, they are trying to restrain me from circulating the transcriptions of audio recording. The Nagpur land acquisition matter was an alleged fraud of Rs. 97/- crores and documents were executed and payment of Rs. 10/- crores was already made apart from spending more than Rs.3 crores on stamp duty, registration etc. Even the Central Council did not know that such a deal had taken place  and that money was  already paid.  Vendor was also a Chartered Accountant. Therefore, there is every reason to understand that then  PresidentCA. Jaydip Shah  and or then Vice President CA. SubodhAgrawal  the vendor knew each other personally apart from other possible relationships.  No law would support that in the biggest land purchase deal of the ICAI the Council was kept completely in dark.  The Central Council Members came to know of such a deal and the illegalities and fallacies in the deal through newspaper reports.  Ultimately, the deal had to be cancelled because the deal was completely wrong.  The stamp duty of Rs. 3/- crores paid by the Institute is not recovered.  Institute is fighting appeals for the same at its cost. Since the Institute has not held the past president CA. JaydipShah  and  Vice President CA. SubodhAgrawal  guilty of the wrongs, therefore, stamp duty not recovered would ultimately become the loss of the Institute. As back as in 2013 such earlier and ongoing expenses were disapproved by me but they are being debited to the ICAI financial accounts.  For small wrongs Institute punishes ordinary members while  the presidents and the past presidents incur losses of crores of rupees. The huge litigation expenses are debited in the accounts of ICAI which are incurred to defend the wrong doers. No investigation has yet been ordered by an impartial Court Judge and no complaint yet filed with the police or economic offences wing for such a serious episode. In the litigations and complaints in such cases, CA. Subodh Kumar Agrawal represented his defence and more importantly he represented on behalf of the ICAI that nothing wrong happened at all. This is despite my repeated writings and strong insistence in the council proceedings since 2013 that when CA. Subodh Agrawal himself is an accused how can he himselfformulate ICAI views. The ICAI views should have been formulated by the Council. The hotly debated council meeting on Nagpur Land matter abruptly got concluded  because Past President CA. Subodh Agrawal was also involved and a CCM apparently speaking spirited against CA. Jaydip Shah was told that if the issue is further stretched then CA. Subodh Agrawal will also get implicated. The concerned CCM  eager to implicate only CA. Jaydip Shah and would not like to go against CA. Subodh Agrawal. This was quite visible in the open lobbying that started informally by taking such CCM and others to corners of the  venue in the ongoing council meeting. Therefore, the demand to discontinue litigation expenses of theirs and fixation of accountability was not disposed off after discussing for hours and hours and the issue was placed in a cold storage.     The personalised and without any basis of performance criteria out-of-turn promotions given to some of the employees is a pure political step individually taken by the Presidents from time to time in office.  Council had put a hold upon the same.  Thereafter, a group was formed to look into such past out-of-turn promotions and accumulated arrears running into crores of rupees.  Very surprisingly and strangely the group report criticized the out-of-turn promotions as political steps and not the steps on merits but ultimately the group report said that such out-of-turn promotions given by the past Presidents, even though wrong steps, must be accepted.  This has cost Institute in crores of rupees as one time expenditure entailing recurring expenditure in crores of rupees.  The accounts of the Institute clearly indicate that the Institute is making operational losses and is maintaining itself on interest income.  Under such circumstances, such wasteful crores of rupees without any reasoned approach is not justifiable.  While giving out-of-turn promotions, no performance criteria or appraisal reports were prepared.  It leads to wastage of crores of rupees, entailing continuing enhanced outflows and are and breeding favouritism.   In the discussion on alleged  financial irregularities and frauds in Varanasi Branch matter, the views were deliberately not mapped properly by the President. This is one more example that the President moves with pre conceived notions and uses those council views which support his pre conceived notion and ignores those views which go against his pre conceived notion. The audio recording will show how stubbornly the President has argued against the majority view and allowed the wrong doers go scot free for the time being atleast although clearly the majority view was  that on the basis of speaking reports before the Council, the Council should fix accountability of the wrong doings immediately and the actions be taken consequently. President from the same Region has deliberately mapped the views falsely and incorrectly to allow the alleged wrong doer's scot free or at least once again created further steps so that ultimately the matter goes into cold storage. The members should obtain the audio recording of the proceedings and make judgement about the misuse of powers by the  President and Vice President.   Loss of more than Rs. 8 croresin  ProjectPartivartan is another recent episode where despite my repeated requests impartial outside investigations are not being orders to fix the accountability. At the core of the decisions is the conflict of interest of the CCM belonging to Big 4. All this is in the audio recording of the Council Proceedings.  The question whether after interest is disclosed, does that CCM become independent ?  If any matter goes to a Court and the Judge has any kind of connection with a  party to the proceeding, he immediately refuses to continue his role as a judge in that matter and the matter is transferred to another Judge. In the Council there are many CCMs to replace the interested big 4 partner, but the President and the Vice President want this interested CCM only. Surely the concerned CCM wanted to continue his role ! "Kona Bapni Diwali ". It is very necessary for the members to have audio of the Council proceedings so that members can know the CCMs' stands on such issues. The cases cited here are only the examples and recordings will show how decisions on crores of rupees are taken in improper manner.     For some of such and other reasons, the accounts have been disapproved by few of the council members.  But, still without looking into the merits of the objections, the President and Vice President are  moving ahead on the basis of majority i.e. number game. The CCMs representing big firms have no interest in such financial irregularities. They like to be in good books of the President and the Vice President and they have the marriage of convenience. The select CCMs from big firms and Industry speak good advisory lectures in the Council but their  actions and inactions when subjected to verification, it will come out to what extent they follow their own   advisory on themselves. They represent different interests. Mastering soberness and art of preaching should be compared with concrete actions and inactions avoiding required actions. President and Vice President are comfortable with them as they speak in general and on specific issues their stands are as expected by the President and the Vice President. They do not like to raise or support the matters of general interest raised in the Council. That is ok. It is not of interest to them. But they speak very discouraging language and oppose the issues of governance and matters of general interest raised by other CCMs in the Council. The President and the Vice President do not want changes as they want to reap the advantages of out dated and systematically diluted and destroyed systems  which are not at all  in line with principles of corporate governance, transparency, handling of HR, examinations etc. The existing systems are non sensitive to the interests of the members and students. The audio recordings will clearly show that the well documented issues raised on such points are only discussed and not allowed  to be taken to logical end, no decisions are made and no improvements are made despite repeated strong demands. The CCMs representing corporate and the big firms also do not have interest in improving the same. So it is a marriage of convenience and systematic reciprocations. The audio recordings will clearly show this.  Well articulated and well worded dishonesty.  This letter only contains the examples. The aggregates of the financial irregularities go in many crores. The well deliberated issues concerning small and medium size firms are not allowed to reach to decision levels. The decisions taken after a long struggle are set aside without agenda simply on the sayof  such select CCMs. CA. NiharJambusaria is representing Reliance Industries in the Council. I am not saying this but his letters in the context of council affairs clearly mention so. Council guidelines prescribe  that a central council member cannot use his designation as a council member as well as his firm name on the same visiting card or on the same letterhead. The letters written by emails are certainly the letters and in most of the letters written by CA. NiharJambusaria  below his name, his designation in the  Reliance Industries, the address and the contact details of Reliance,  are appearing. This means he is writing these letters as a representative of the Reliance. All such communications are as the Central Council Member. Therefore the acts are against the council guidelines.    There are  no reasons for him to write Reliance details along with his name in the communications concerning council affairs. When a member is a CCM, he receives many communications from members because he is a CCM, and  whenthe CCM's  communications contain Reliance details, it is hardly material whether the CCM has  specifically written CCM or not  because in fact he is being approached by the members  in his position as a CCM and he is writing such communications as a CCM. Surely on ICAI affairs, members approach him because he is a CCM.  There is every reason to extend that with such members his communications done as a CCM also include  the details of the Reliance Industries and his designation in the same. Some of  his communications with the members are astonishing and would be produced at appropriate places where justice can really happen on merits and not on number game. CA. Sanjiv  Chaudhary is representing "BSR & Company" in the in the Council. I am not saying this but his letters  in the context of council affairs clearly mention so. Council guidelines prescribe  that a central council member cannot use his designation as a council member as well as his firm name on the same visiting card or on the same letterhead. The letters written by emails are certainly the letters  and mention of  such details are not allowed. In most of the letters written by CA. SanjivChaudhary  below his name, his designation in the  BSR and Company, the address and the contact details of BSR and details of the Website of KPMG  are appearing. This means he is writing these letters as a representative of the BSR. All such communications are as the Central Council Member therefore the acts are against the council guidelines. There are  no reasons for him to write KPMG and BSR details along with his name in the communications concerning council affairs. When a member is a CCM, he receives many communications from members because he is a CCM, and  when his communications contain BSR and KPMG  details, it is hardly material whether he has  specifically  written CCM or not  because in fact he is being approached by the members because he is a CCM and he is writing such communications as a CCM. Surely on ICAI affairs, members approach him because he is a CCM.  There is every reason to extend that with such members his communications done as a CCM also include  the details of the  BSR and Company – KPMG  and his designation in the same. The following remarks in a QRB report  have been completely ignored : "Verification of various files revealed that papers of KPMG & BSR are mixed.  Verification of Files revealed that Debtors ageing has been checked by KPMG instead of BSR.  As per SA-620, 'Determining the need of auditor's expert', services of the expert can be used only on areas other than on accounting & auditing.  Debtors' ageing is an auditing & the accounting concept & hence the work of expert cannot be taken in this area.  Therefore obtaining the services of KPMG by BSR & Co. for debtors ageing is not in consonance with the requirements of SA-620.  It is important to note here that KPMG is not a part of BSR & Co.  network which is being registered with The Institute of Chartered Accountants of India. " President and Vice President allow Mr. Chaudhary to speak any number of times and out of turn also without any rule of governance because Mr. Chaudhary preaches good advisory for others but when it comes to his own actions his actions are dubious. For example,in the context of  personalised and without performance criteria the out ofTurn Promotions which were  certainly  pure political steps entailing favouritism and loss of crores to the ICAI; on an issue of conflict of interest he took a stand that once an interest has been noted that CCM of Big 4 is independent and can be a part of the task even though CCM's interests are conflicting and in the matter concerning project parivartan and big corporates are involved. CA. Nihar has supported such stand.  On many issues, audio recordings will show that Mr. Chaudhary speaks advisory as to what others should do and how others should do the things. Such favouritism and discrimination by the President and the Vice President are creating inequality of opportunity in the Council proceedings as their actions are clearly in a group. Mr. Chaudhary was one of the CCMs who stalled theall importantagenda on webcast of council proceedings on August 25.Audio recordings transcription will bring out all such realities against the claims.President and Vice President know whom to field in taking lead on which issues and these are the qualities which make one  succeed in VP elections. That is why I have said  in the council proceedings that the politics at the Council is far worse than the much criticised dirty politics at national political levels. At least they do not say that what they speak in the Parliament should not be known to the people and they do not say that that a MP should not cite the talks which take place in Parliament.   CA. Dhinal Shah is representing Ernst & Young PVt. Ltd. in the Council.    I am not saying this but his letters in the context of council affairs clearly mention so. Council guidelines prescribe  that a central council member cannot use his designation as a council member as well as his firm name on the same visiting card or on the same letterhead. The letters written by emails are certainly the letters  and mention of  such details is  not allowed. In most of the letters written by CA. Dhinal Shah below his name, his designation as a partner in the  Ernst & Young Pvt. Ltd., address thereof, Website of E & Y are appearing. This means he is writing these letters as a representative of the EY. All such communications are as the Central Council Member therefore the acts are against the council guidelines.    There are  no reasons for him to write EY details along with his name in the communications concerning council affairs. When a member is a CCM, he receives many communications from members because he is a CCM, and  when his communications contain Ernst & Young Pvt. Ltd. details, it is hardly material whether he has specifically  written CCM or not  because in fact he is being approached by the members  in his position as a CCM  he is a CCM and he is writing such communications as a CCM. Surely on ICAI affairs, members approach him because he is a CCM.  There is every reason to extend that with such members his communications done as a CCM also include  the details of the firm.   CA. Pankaj Jain is representing Khandelwal Jain & Co. in the Council.  I am not saying this but his letters in the context of council affairs clearly mention so. Council guidelines prescribe  that a central council member cannot use his designation as a council member as well as his firm name on the same visiting card or on the same letterhead. The letters written by emails are certainly the letters  and mention of  such details is  not allowed. In most of the letters written by CA. Pankaj Jain below his name, the  Khandelwal Jain & Co., its address,  website of the firm are appearing. This means he is writing these letters as a representative of the Khandelwal Jain &Co. All such communications are as the Central Council Member therefore the acts are against the council guidelines.    There are  no reasons for him to write firm  details along with his name in the communications concerning council affairs. When a member is a CCM, he receives many communications from members because he is a CCM, and  when his communications contain Khandelwal Jain & Co., it is hardly material whether he has specifically  written CCM or not  in his position as a CCM  in fact he is being approached by the members because he is a CCM and he is writing such communications as a CCM. Surely on ICAI affairs, members approach him because he is a CCM.  There is every reason to extend that with such members his communications done as a CCM also include  the details of the firm.  CA. Pankaj Jain has been appointed by the President as the Chairman of the Ethical Standards Board of the ICAI. CA. Babu Abraham Kallivayalil represents his firm Babu A. Kallivayalil& Co.in the council. His letters in the context of council affairs clearly mention so. Council guidelines prescribe  that a central council member cannot use his designation as a council member as well as his firm name on the same visiting card or on the same letterhead. The letters written by emails are certainly the letters  and mention of  such details is  not allowed. In most of the letters written by CA. Babu Abraham below his name, that he is a chartered accountant,  that he is a Member, Central Council, ICAI, his firm name and address and contract details are appearing. This means he is writing these letters as a representative of the firm. All such communications are as the Central Council Member therefore the acts are against the council guidelines.    There are  no reasons for him to write firm  details along with his name in the communications concerning council affairs. When a member is a CCM, he receives many communications from members because he is a CCM, and  when his communications contain firm details, it is hardly material whether he has specifically  written CCM or not  because in fact he is being approached by the members because he is a CCM and he is writing such communications as a CCM. Surely on ICAI affairs, members approach him because he is a CCM.  There is every reason to extend that with such members his communications done as a CCM also include  the details of the firm.  CA. Babu Abraham is  a strong opponent of the matters of general interest in the Council. The matters of general interest is the only route through which a CCM can seek a change in governance and can raise mattes of larger professional interest. The correspondences done by such  CCMs and simultaneously using firm details have gone to CCMs as well as other various persons including chartered accountants and non chartered accountants. I have enclosed herewith few sample emails which are 127 in number and the attachment has 295 pages. These sample emails are in violation of the council guidelines. Thousands of such emails are lying in the inboxes of various committees. I hope they will not be unofficially told to delete their inboxes in such contexts. I hope the concerned CCMs will not delete their so many such emails from their sent boxes. The President and the Vice President habituated to give oral instructions to the secretaries should give some written instructions to all the secretaries in this regard including their own secretaries not to delete any such emails from the council members from their inboxes. These are the evidences in the context of wrongs having taken place.   The ICAI guidelines in substance and in spirit are very clear that the firm name and the council ship should not be mixed up. There is no reason for a CCM to mix up the two.  It is more than obvious that while communicating with the members at large who approach such CCMs they are responding in their capacities as CCMs but they are also writing their company/firm details.   By hearing the audio recordings of the Council Proceedings members can certainly hear  the views of the CCMs  including the above CCMs and whether  on vital issues they have any views at all and what are the views. Because of indifference and no desire to fix accountability, the Nagpur land losses, Varanasi financial irregularities,  ProjectParivartan losses, Political Out of turn promotions, Surat project funds stuck up and other serious financial irregularities, examination frauds, will continue and will never reach to fixation of accountability because they have to go on protecting some one or another and they have to reciprocally support in such mutual protections.  That is why they are against circulation of Council Proceedings to the members as their talks will get out to the members and their well articulated sober images will be judged by the members on their realistic stands. Wrongs and discriminations going on in the context of Disciplinary Proceedings  are an open secret and is a continuing ailment. My well documented charges of  forgery, misrepresentation, criminal breach of trust etc. against the past president CA. SubodhAgrarwal have not be appropriately dealt by the President and the Vice President. The audio recordings of Disciplinary proceedings never provided to me despite repeated demands. Probably they have destroyed the same so truth never come out.  The shopped opinion was based on totally undocumented versions of the accused themselves. Such opinion was obtained on behalf of the ICAI and at the cost of ICAI although the version contained was those of the accused only. Very rightly after my well documented objections the Council set it aside. But the facts remain that shopped opinions are very costly and therefore the loss to the ICAI. Kona BapniDiwali ! Money paid for the opinion is wasted. My speaking letter dated12th April, 2015  which was meant to be submitted by the ICAI to the Madras High Court when sent to the Council, the President announced in the Council meeting that the letter will be discussed in the Council meeting before the say of the ICAI to the Madras High Court is finalised. The President did not bring that assured discussion at all. Rather stealthily sent the draft of the letter to be submitted to Madras High Court. I did not agree with the draft and I said right the truth and in any case submit my letter to the Madras High Court. I said write the views of the Council members as per the audio recording of the Council meetings. I do not know what President and Vice President are doing because  they have no duty to inform or to respond to the letters of the CCMs. Madras High Court is looking into the 97 crore Nagpur land controversial decision and the issues concerning governance at ICAI. I demand that  those CCMs who want to join should be joined by the ICAI as party to the litigation. Like Shri Jaydeep Shah, Shri Subodh Agrawal are being defended at the cost of the ICAI for the wrong reasons but similarly CCMs joining in such litigation for the cause of the fraternity should be at the cost of the ICAI. Right on 10th July, 2015 I had initiated the process of seeking extension in respect of due dates of returns. But for President the flimsy aspect was more important as to whether a chairman of committee can sign the letter or President only can sign the letter. President  had to manipulate opinion in the council to enable some CCMs to say  that only the President can sign representations. Rather than encouraging the CCM to do such works your discouragement and your diffident attitude has disturbed me. We must strongly represent for extension after the new letter has been submitted to the CBDT Chairperson. Due to our over projections of the Presidents, they recognise your voice and therefore we must press hard in all the ways for extension even though it may cause an overlap with the ensuing council elections. Fraternity has no interest in our elections they will like to properly serve the clients.   Well considered decision  on tendering and concurrent bank audits suffered  setback by manipulative council proceedings  by the vested interests in big firms. The views of the select few can suddenly without proper agenda, become a decision. So much so that the Council decision taken and already implemented is suddenly deferred without reasoned discussion. Tendering is one example. CA. Pankaj Jain was a member of the Group on tendering etc. the Group functioned under my Convenorship. The Groüp held meetings from time to time. CA. Pankaj Jain attended no meeting.  The Group drafted report. The Group presented the Report in the Council. The Council considered the Report and accepted some recommendations of the Report unanimously and some by voting. The Council also did not accept some recommendations. On tendering the Council took decision on 20th and 21st November, 2014. Such well considered Central Council  decision having culminated from such a well  deliberated process was questioned by CA. Pankaj Jain, the CCM for the first time after so many months  in the Regional Council Meeting on 12th August 2015 just before two days before the Central Council Meeting. Then he along with  CCM CA. Sanjeev Chàudhary and others challenged   the decision without any agenda in the Central Council Meeting and he was allowed to do so by the discriminatory  President. In the President's unique style  the meeting was allowed to become unruly.  They got the well taken decision on tendering deferred withoutbringing the matter as an  agenda item. The issue was taken totally out of turn. CA. Pankaj Jain is the Chairman of the Ethical Standards Board. The decision was challenged mainly  by the CCMs representing big firms including big 4 and including industry. Earlier to this, the President had announced the decision  that the limit of concurrent audits in respect of  bank branches is fixed at 4 per partner. The decision was totally in contradiction to the recommendation of  Group on Equitable Distribution of Audit Allotments etc. headed by me. The Group had recommended  lower reasonable limits and the recommendation was quite reasoned. The recommendation was also endorsed by the PDC through its Chairman CA. AnujGoyal. Against the reasoned recommendation, the President discussed the recommendation for some time and without taking any voting declared very adhoc the limit of 4 per partner. No objective reasons for such declaration were given by the President or the Vice President. The limit of 4 per partner is a mockery of limit. It means a firm comprising 10  partners can conduct 40 bank branch concurrent audits. After this decision was announced, I wrote to the President, the Vice President, the Council Affairs section that the decision was not taken properly and required reconsideration as follows  17th May, 2015 : "Sirs, Please include in the Agenda of Next Çouncil Meeting for Review of Decision : The Council decision reg. Concurrent Audit Limit at 4 per member, passed in the preceding Council Meeting  subject to my dissent has rightly not been well received by the members. I request you to include  the review of the same in ensuing Çouncil agenda. The limit of 4 is too high compared to what was recommended by my Group on Equitable Distribution of Audits etc. suffice to say that limit of 4 per member will not lead to equitable distribution of allotments of bank branch concurrent audits.   Regards, CCM Tarun Ghia Convenor of the Group on Equitable Distribution of Audit Opportunities etc." It means that on the same issue concerning Equitable Distribution, Concurrent Audits, Tendering etc. my objection was submitted in writing on 17th May, 2015. The objection to tendering was not submitted in writing, was orally taken up directly only on 14th August, 2015. But to this President and Vice President, merits are secondary, first importance is to who speaks. Who speaks  is more important than what is spoken. The  members who hear audio recording of this meeting will be stunned. The members will note that for this President and Vice President what the partners of big firms speak is more important and acceptable even though against the overall interest of profession and even though against maintaining and enhancing the quality of audits. After the Council Meeting,  very soon, without draft minutes, an email  was received by me as follows : "Dear Sir, You are requested to kindly approve the placed below announcement pertaining to the mechanism to monitor tendering : REVISED ANNOUNCEMENT- MECHANISM TO MONITOR TENDERING The Council at its 345th meeting held from 14th to 16thAugust, 2015 considered the concerns raised by members on the decision of the Council with regard to mechanism to monitor tendering hosted on the website of the Institute on 22nd July, 2015.  After due consideration of the same, the Council at its aforementioned meeting has referred this matter to the group already constituted under the convenorship of CA. TarunJamnadas Ghia, Member, Central Council for the examination of the concerns so raised and the date of applicability of the said announcement.   The revised announcement along with the applicability date will be announced separately." To the above email, I did not reply. President phoned me to reply. It may be noted that President is one sided. To our rightful letters seeking only some information, objecting something, he would not acknowledge also. But yes, his email must be replied by a CCM. As I had to respect President's call to reply, I replied as under : " As some announcement should go I am ok with the announcement. But since you want my concurrence to the announcing and to avoid the suffering and confusion in the fraternity, and as desired telephonically to me by the President to respond to the concerned trailing email,  I have given consent hereby but recording my reservations on the concerned council proceedings and more particularly the illegality irregularities of the recent claimed decision remains as the issue had been raised in most improper manner, before this issue was raised, I had written to President about the concurrent ceiling wrongly decided disregarding the recommendations of my Group and the corroboration and view of the PDC and its Chairman's considered views that the ceiling suggested by the Group under my convenorship of which CA. AnujGoyalji was a very active member and I had written to the  President  to review the Çouncil decision taken on ceiling on concurrent audit. However, such a written representation raised first was not taken up for consideration and the President was in a hurry to listen to some CCMs on sudden oral mention out of turn and without fully digesting the Group Report on tendering and related issues and decided issue in an unusual manner. This and other controversial matters were discussed in a very unruly meeting not allowing me to express my views as many times as  the others and to my satisfaction. Regards, TarunGhia "   The members must come to know the governance of the ICAI by the Council and that can be known only if audio recordings are circulated to the members. Council proceedings verbatim can be circulated by a CCM about the Council meetings as the members should know why on a particular item if decision is not being taken, why it is not taken, what are the stands of the CCMs in the on going Council proceedings. A CCM has a right to inform the members at large the discussions in the Council proceedings every stage of such proceedings. On the contrary agenda items should be make known to the fraternity so that the fraternity members may inform their views to the concerned CCMs and the concerned CCM can represent the views of the members accordingly. I do not agree with the views expressed in the Council meeting held on August 14 that such discussions should not be informed by the CCM to the fraternity. Such a restriction will be non democratic and violates the constitutional right and a duty of the CCM as well as the members' rights to know.  The view expressed by CA. Pankaj Jain as the Chairman of the Ethical Standards Board trying to place some restrictions on CCMs in respect of circulation of council proceedigns is touching the Constitutional rights of a member and the President and the Vice President cannot support such a view in the form of a decision  by counting the numbers. Very logically such CCMs who supported such a view do not want to open out their names for the fraternity. Neither the Ethical Standards Board have such authority nor the President or Vice President. If the President and the Vice President cannot uphold the constitutional values then they should not preside over the Regulator enacted under the Act of the Parliament.  By circulating verbatim I am only doing my duty to inform the members which they are entitled to know. It is my duty and it is my right. The matters of Constitution and Law cannot be mapped by number of hands raised or counted as raised and that too the members in opposition not ready to get their names recorded. Then they should have demanded secret voting on the issue. What can be seen by the CCMs must be available to the knowledge of all the members of the ICAI. For such and other fundamental reasons, the views expressed by such CCMs in opposition to transparency are not even binding upon them.   The Udaipur Council Meeting was conducted in most unruly manner. The president was out of control and conveniently as he could have exerted like he does when he wants to do so many times. The draft of the minutes will show what the President has understood and more importantly what he wants to do. In Udaipur meeting the the issues raised by me and the President were not at all debated and were suppressed by the sheer sound of voices and numbers not acting on law but personally affected by exposure of their own stands. It is a constitutional right. In cases where legal issues were involved, in the past, matters were  deferred for decision making till legal opinion is obtained. Here question of constitution is involved, constitutional right of an elected representative is involved.   When a show of voting was carried out it was difficult to understand how the President has counted the numbers as it was evident that many  members had raised their two hands and only President with the help of  Vice President was counting. In any case the stand taken by a CCM must be noted against his name for the scrutiny of the fraternity at large. Those who expressed views against transparency must disclose their names. The President, the Vice President and some CCMs are the opponents of transparency. Many are indifferent. Take the example, how the Council proceedings on matter raised by me that the Council proceedings must be webcast to the members  was systematically stallen or  manipulated to be stallen by the President and the Vice President with the help  some CCMs who do not want webcast. The members must know this as to which CCM has given which kind of reason and whether earlier ever for such flimsy reasons the agenda item promised by the President, and announced so many times to be taken up during the day was really not taken. It is also pertinent to mention that due to my insistence and interconnection of the matter at item no. 14(2), President had listed the webcast item in the tentative list presented before the council as item no.3. The first 2 items were dropped within first few minutes at the commencement of the day. They stalled the proceedings because if the issue comes up for discussion then they will have to say on records that they do not want webcasting of council proceedingsto happen and that is risky for their public image and if they say that yes webcasting should be allowed then also they get exposed as during webcast their manipulative stands in the council get known to the members and therefore they saw systematically that the issue is not taken up for discussion at all. Therefore, the President for the show announced many times intermittently that webcast issue is being taken up but in a pre plannedmanner  accepted the opposition on the reasons never heard before and if the same reasons are accepted then the council proceedings may not be conducted on many agendas.   For example, in very similar circumstances, when I had mentioned  while discussing an infrastructure proposal that the additional criteria discussed and decided  in the preceding meeting  should be brought to the council table and should be  applied to the subsequent proposals also. Neither the earlier discussion was brought to the table nor the proposal discussion was kept pending but the proposal was cleared as the President and the VP wanted to clear the proposals. Rules are not written any whereon  conduct  of council proceedings and therefore they can take convenient and inconsistent stands on same issues as per their thinking. In the stalling the Webcast agenda, the earlier Presidents and particularly CA. K. Raghu played a very manipulative role as for reasons untenable in law  on flimsy grounds after the agenda had proceeded much in its discussion and the views indicated that my MOGI on webcast of proceedings was succeeding, he suddenly announced the adjournment of the matter with an assurance that the said MOGI will be discussed in the immediately succeeding Council meeting. But he never implemented such promise and never took the item in subsequent meetings for the reason that CA. K.  Raghu and then Vice President CA. Manoj Fadnis did not want webcast of council proceedings to happen.  So no decision has been allowed to come so far on this important MOGi concerning the rights of the fraternity and transparency in governance.  This discussion must go to the fraternity so that the fraternity can understand which kind of shrewd articulations happen to stall many important but inconvenient agenda items, the fraternity must know their CCMs on their real speaking rather then their claims on one to one basis to the members. In  one to onemeetings  a CCM can speak different views to different members as per the convenience which system has been  found suitable to some CCMs since years.  Due to such improper and non transparent manipulative systems and practices the deserving members have not be able to enter council also. The members should know with the help of audio recordings at least that who are these CCMs who and why they are stalling such agenda. In the matter of conduct of meetings as back as on Dec. 16, 2013 I had raised a written concern that the minutes of the preceding council meeting must come up for confirmation at the commencement of the subsequent council meeting as a matter of rule and not at discretion of the President. Read my letter to council of that date. Such a well written letter to the entire council is not considered and implemented but when a few voices raised that not even the minutes but without earlier transcription, they will not allow agenda on Webcast of  Council Proceedings was stalled by the President, the Vice President and few council members as they do not want to take a stand on record whether the webcast should be done or not. President had promised time and again that as the matter of item no. 14 and the matter of item of webcast were interconnected therefore, the webcast matter will be taken up as a priority item on August 25. But President and the Vice President created the show of taking up the same as a priority item. But did not take up the agenda item for the  manipulated reasons never heard before and the President and the Vice President in fact not really wanting the webcast of the council proceedings. It is on council records that the Vice President CA. Devrajja Reddy earlier  when he was a CCM had negatively contributed to the agenda on webcast of council proceedings. Cunning and flimsy ways are adopted to conduct the council proceedings. Even if they want to consider webcast that will not be relating to past proceedings and they know it. Only an informed voter can exercise his franchisee thoughtfully. Under the Right to Information era, a voter should have all the information which an elected representative has. Only the secret information pertaining to ongoing disciplinary proceedings, FRRB  reports, exam related sensitive issues can be carved out as exempt from members of ICAI.   Suffice to say that All communications between the CCMs and the ICAI are always open to the fraternity unless they pertain to FRRB, DC or exam sensitive secret information, or contain other such information which are exempt under the RTI Act.   The audio recording would show how majority council members behave.  Everybody wants to become Vice-President and therefore as soon as some numbers are  on one side, others start placing their lot on  that side and very soon most of the numbers go on that side.  Shrewd but dishonest articulations of talks then happen to support a decision.  One can verify that the decisions are blatantly wrong and questionable at law.   On a less important agenda at item no.m14 (6) on Code of Conduct, after a discussion for nearly 2 hours, CA. PrafullaChhajed expressed view that he would like to prepare for the matter as many council members are also violating the Code. On such flimsy and untenable  reasons,  the matter after being discussed for 2.hours was abandoned by the President and Vice President. So what is spoken is not important but who speaks is important. The talks of that CCM who takes an upright stand are not liked and attempts are made to curtail his talks and  the talks of those who ultimately go on the way desired by the President and the Vice President are liked and are encouraged even  though they might   express very unreasonable view. Then the philosophy is said that for the decision of the Council it is joint liability. This philosophy   is not correct because  it must be known to the members who were in favour of a particular decision and who were against the decision,  what  was the  stand of each CCM on the subject matter. The members who have elected the CCM have a right to know what the CCM speaks in the Council on a particular agenda.       If webcast of Council proceedings is allowed, then the members will be able to hear the CCM the moment he speaks in the Council. Therefore, it was a ploy of the opponents of transparency to stall the agenda item on an unusual and unprecedented reasons. To my understanding, such reasons were never advanced in the past nor were allowed to stall the agenda discussion. On the contrary, earlier minutes and transcriptions were taking many months to finalise. The President and Vice President allowed deliberately that the webcast agenda is stalled on the never before spoken reasons that unless preceding transcription comes on the table  agenda cannot be discussed.  In the afternoon the preceding verbatim transcription was circulated to the members without numbering the pages. Very strangely even when preceding verbatim transcription came on the table in the after noon the agenda was once again refused to  be taken the ground that when it was discussed earlier was not becoming clear. On a similar issue, another instance will be of relevance. In the earlier council meeting the Thane Branch infrastructure project was getting passed without some compliances. I had mentioned that the compliances agreed upon in the preceding council meeting on infrastrucure project be applied to Thane branch also. In the preceding meeting, the compliances included at my instance  that the comparative infrastruture proposals be placed on website of concerned branch so that the concerned members can forward their comments, objections, views for council consideration. However, the President and the Vice President were in  a hurry to clear Thane Proposal and therefore even though it was a Council decision of the just preceding council meeting that proposal will be first put on webcast of concerned branch for the benefit of  submitting objections, comments, views by the members of the concerned branch, such  important parameter was allowed to be avoided which deprived the members of the concerned branch to consider the proposal. This was an example of  clear violation of the council decision by the President and the Vice President. They want to speak in fraternity on one to one basis while I would like that everyone speaking in public life should support the things with relevant evidences.   Those who are acting transparently, those who are supporting transparency will spell our reasons also. In fact transparency leads accountability. But those who do not want transparency, those who do not support transparency, will prefer not to write as they know the dangers of writing. If at all they write, their writings will be vague,  their writings will be as short as possible and their writings will be leaving  more questions to be answered.   Every CCM is going to tell to the members when he meets  his version on accountability, what is happening in Çouncil etc. Rather than members being told different versions without evidence it is better that exactly whatever has happened in the Council is told verbatim on the basis of audio recording. Election Code of conduct is made in a manner that  unreasonable restrictions are placed as they  do not want to discuss all aspects of governance in open forums. Under the guise of soberness and under the guise of positivity they  have been breeding wrongs and perpetuating the same. If these things are not to be brought to the notice of fraternity at the time of elections, when they are to be brought ? My circulating the verbatim should not be taken as if I am writing against any CCM. I am only reproducing the contents as they are. If any one wants to say that any part of the contents are wrong, he should write the correct thing. I am writing on the basis of evidences and others  can also do so at their desire. There must be enforceability of the election menifesto and if some thing assured in menifesto could not be done, at least explanations should be provided by the concerned CCM and the concerned president. Unless, we create accountability in the context of our own assurances, where is the governance, much less the good governance. Why for a long my MOGI on the subject matter is not being taken up.   Governance has reached to futher worst at the council under this President and the Vice Presidnet. Vested interests are articulated shrewdly in unholy connivances. Rules and SOPs of governance not framed despite repeated demands because if the same are framed then the same will have to be followed.        My well considered MOGIs on vital issues of Council time management not considered despite repeated request and MOGI awaiting to be taken up. All decisions have to be reasoned, President has been using his powers without reasoning  inter alia wrt taking some agenda items out of  turn and some postponing beyond reasonableness. For e.g. Regulation 190 item is most serious and pertains to practice of international firms, President himself has affiliation to an international group.     The Presidents after Presidents have understood more and more the systems so much that nothing can happen to their actions and inactions and the ICAI is perpetuated with more and more wrongs. Many actions of the President and Vice President do not come to the knowledge of the Council. When a CCM demands knowledge the CCMs near to President protect them and make the things difficult. Presidents and Vice Presidents take actions and remain inactive  on vital issues fully assured that any kind of complaint or litigat

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Posted by: Dipak Shah <djshah1944@yahoo.com>

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