There's more trouble brewing for V Vijay Sai Reddy, who was recently arrested by the CBI, with the Institute of Chartered Accountants of India (ICAI) preparing ground to initiate proceedings against him.

A chartered accountant and founder of audit firm V S Reddy Associates, Vijay Sai is being interrogated by the CBI for his alleged role in the illegal assets case of Kadapa MP Y S Jagan Mohan Reddy. Sources said the accountants regulator has already sent a missive to Vijay Sai seeking an explanation pertaining to allegations made by the CBI.

"Though now there are only allegations of criminal conspiracy, we, however, have to determine if there's any professional misconduct. The institute has already written to him, but has given him time to respond since he is in the judicial custody," a disciplinary committee member of ICAI told Express. According to sources, ICAI is also verifying its records to determine if Vijay Sai, who assumed a fulltime role as vicechairman of Jagathi Publications, is continuing practice as a fulltime chartered accountant and signing financial statements of his clients.

"Since he assumed a role in the daytoday management affairs of a company, Vijay Sai Reddy has to seek permission from the institute to continue signing of balance sheets of other companies on behalf of his audit firm only on a parttime basis. It's unclear if he sought such a permission," the source said. (IBNlive)