35 to 40 CAs under RBI scanner in loan defaults by various companies
PrintListen to this Article
At a time when more number of companies with stressed assets are coming under the Insolvency and Bankruptcy Code, the central bank is also looking at the role of various key personnel associated with such entities.
Officials said the RBI is looking into the role of around 35 to 40 chartered accountants in loan defaults by various companies.
The regulator is looking to ascertain whether these chartered accountants helped the entities in any illegal manner causing deliberate defaults and subsequently assisting them in restructuring the dud assets, they added.
Responses to queries sent to the chartered accountants’ apex body ICAI on the issue were awaited. The Institute of Chartered Accountants of India (ICAI) works closely with the RBI on various issues.
The RBI lens on chartered accountants for suspected illegal activities with defaulting companies also come at a time when a substantial number of stressed assets are being taken up under the insolvency resolution mechanism.
The non-performing assets (NPA) woes in the banking system have been further highlighted with the over Rs13,000 crore scam at Punjab National Bank by diamond merchants Nirav Modi and Mehul Choksi. A high level panel of the ICAI is already looking into the PNB fraud to understand the systemic issues involved and suggest remedial measures.
According to officials, around Rs4.5 trillion worth of NPAs are under the insolvency resolution process. The Code, which provides for a market-determined and time-bound resolution framework, seeks to maximise the value of stressed assets rather than resorting to liquidation. #casansaar (Source - PTI, LiveMint)
Category : CA | Comments : 1 | Hits : 4297
Thank You all for 100K Subscribers on CA Sansaar YouTube Channel Thank you everyone for your continued support. We have now crossed 1,00,000 subscribers on your Youtube channel CA Sansaar. https://www.youtube.com/c/casansaarca
In reply to RTI by Nitin Pandurang Hargude on requirement of signing of project report, un-audited financials and certificate for utilisation of loan funds vide Order No. DOR0021/04.03.001/2020-21 dated April 03 2021 RBI has replied
CA Sansaar is going to organise a Series of Webinar for Members' interest and also for the PM Cares Fund. Seminar Participation Fees :- Rs. 100/- for PM Cares Fund. *(No Need to transfer fees in our bank account, Plz transfer it directly to PM Cares Fund and share details)* Details of Webinars :- (Plz click on the link for Registration and Details or visit in events section of casansaar.co) 08/04/2020 (Wednesday) from 05:00 PM onwards - SEPARATE...
The Vice President of India, Shri M. Venkaiah Naidu has called upon all nations to join hands in ensuring automatic exchange of information on black money and speedy extradition of economic fugitives. Shri Naidu asserted that all countries must speak with one voice to eliminate terror and economic frauds. “As we seek to promote a more equitable and civilized world order these measures essential for healthy economies around the globe”, he added. Speaking at the Platinu...
The Companies Act, 1913 passed in pre-independent India prescribed various books which had to be maintained by a Company registered under that Act. It also required the appointment of a formal Auditor with prescribed qualifications to audit such records. In order to act as an auditor a person had to acquire a restricted certificate from the local government upon such conditions as may be prescribed. The holder of a restricted certificate was allowed to practice only within the province of issue ...
Comments
Khaja Anwar Mohiuddin
09-Apr-2018 , 05:54:34 pmNormally when audit is undertaken by any CA firm, the job is executed by retired bankers, paid assistants and articles. This attitude of CAs to entrust the jobs to paid assistants and articles n retired bankers to change, the CAs should also involve in day to day process of audit in bank branches. A team is authorised to check whether CAs also participate in day to day audit or the task may also b