Friction in ICAI top body over Nagpur land deal, Satyam issue

More skeletons tumbled out at the central council meeting of Institute of Chartered Accountants of India (ICAI) on January 11. The members at the helm of the governing body for the profession, which calls itself the 'financial watchdog', hurled charges at each other, alleging vested interests in various issues.

The trigger for the muckraking was the Rs100 crore Nagpur land deal, which has left ICAIpresident Jaideep Shah, a CA from the city, under the scanner. A report of the fact finding committee on the land deal for an ICAI centre of excellence was expected to be put up by December 31. However, even a fortnight after the deadline, the report has not come up for discussion.

Central council member S Santhanakrishnan went to the extent of saying that the report was being delayed because the convener of the investigation committee, Mahesh Sarda, had an interest to safeguard. He alleged Sarda was going slow in exchange for ICAI chief Shah going soft in the disciplinary action against the firm in which his brother N P Sarda is a partner.

This is a case from two years ago, when ICAI had sought certain disclosures following the Satyam debacle. Four top foreign firms, otherwise known as the big four, which includes Deloitte, where Sarda is a partner, have not reverted with the details as yet. This has led to disciplinary action against them.

Santhanakrishnan admitted raising the issue in the meeting. But he said it was in reply to what Sarda had spoken earlier. "The issue started with the discussion on the big four, and I commented why should ICAI have different standards for smaller firms and the big four. On this, Sarda retorted that I had a vested interest. So, I said he can also have an interest in delaying the Nagpur deal report, since his brother is a partner in Deloitte," said Santhanakrishnan.