A land deal worth Rs 100 crore involving the Institute of Chartered Accountants of India ( ICAI) has landed its president Jayadeep Narendra Shah in a spot. Shah, a native of Nagpur, signed a deal for purchasing a nine-acre plot in that city for setting up a study centre of the institute. It is alleged that the deal was finalised keeping ICAI's central council members in the dark. 

The land, said to be valued at Rs 80 crore, has been registered after paying a nominal advance to the owner. In all, the institute has spent Rs 10 crore so far, including the registration fee and stamp duty. The members allege the land is heavily overpriced and people involved have taken huge cuts. ICAI's central council, in its meeting on October 15, set up a committee to investigate the deal"The price paid for the land is several times higher than the prevailing market rate. Out of the Rs 100 crore, nearly 80% goes for the land and the rest for the building. As the registration has already been done, even if the central council refuses to ratify the deal, Rs 10 crore cannot be recovered," said a member, seeking anonymity. 

The land deal was finalised and registered between July 13 and August 3. "The central council met in between these days and there was no mention about the deal, either by the president or the institute's finance department, at the meeting. It is only after members from Nagpur informed the institute about the land deal did the central council members come to know of it," he said. Though Shah confirmed the deal, he denied the allegations. Speaking to TOI, Shah said: "A committee has been appointed to probe all land deals from 2004 onwards. The truth will come when the report is submitted. I was not in the country. I wish to comment only after the committee has submitted its report." 

The members of ICAI's regional council in Chennai are upset that the prestigious institution has been in the news for wrong reasons. Chennai is the most important regional council of the institute which gets students not only from south India but also from West Bengal and Odisha. Many members from the regional council have gone on to head the institute. "This issue and the general decline in standards have made the institute a laughing stock. I will approach the Madras high court on the land deal," said Venkata Sivakumar, a senior faculty member in the institute. 

"Since the institute has been set up by an act of Parliament, land to set up a branch or study centre can be obtained from the state government concerned. All the branches and the only business excellence centre in Hyderabad have been set up on lands donated by the state governments. There was no request from the western region seeking a study centre in Nagpur and the president has acted on his own keeping the central council in the dark," Sivakumar said. (Times of India)