Saradha scam: Fraud office, ED approach ICAI for probe against members

The Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED) have approached the Institute of Chartered Accountants of India (ICAI) to look into the professional misconduct of its members engaged in financial accounting and auditing in various Saradha group outfits.

The institute president K Raghu confirmed to presspersons here on Friday that ICAI was in touch with the investigators on the issue. "We need to have detailed information before the start of proceedings against our members. The investigating agency is yet to furnish details regarding the outfits and their alleged transactions involving money collection and laundering".

According to sources, the investigating agencies had an interaction with the institute on the Saradha issue recently. Apart from misconduct related quasi judicial actions such as cancellation of membership or penalty of a maximum of Rs. 5 lakh, ICAI also helps investigators in forensic audit to unearth and pinpoint financial fraud and irregularities. The institute maintains a panel of forensic accounting and audit experts. In the Satyam probe, the Institute had suggested the names of such experts to the investigators.

Ragu, however, said investigators had not asked for such help as yet in the Saradha case.

The central investigation agencies along with the Securities Exchange Board India (SEBI) are now probing six of several hundred unauthorised money collection outfits in the eastern part of the country involving funds still to quantified fully. Investigations against the Saradha, Rose Valley and ICore groups have proceeded to some extent so far. (The Times of India)