Council Affairs Breaking News : Nagpur Part - 2 in Pune? Rs. 40cr real estate misadventure at whose cost?

In words of respective mailer recd by this site:

Dear Readers & Professional Colleagues,

The real estate 'obsession' of our Council, which had subsided for a while post Nagpur fiasco, is now being revived and how!! A n`ew, Rs. 40 crores building is sought to be purchased by Pune Branch of ICAI, without apparently conducting a detailed viability/feasibility study, alleged mis-representation and wrongful constitution of Infrastructure committee at branch level, strong dissent by one of the managing committee members,  refusing to call an EoGM at branch level which is what was agreed upon unanimously by all members at Pune branch AGM of 2013 and above all, seeking a 40 crores investment into a building, when Pune branch has got a 3 storey building less than 5 years ago, at a cost of between Rs. 7 - 10 crores !

Am told that the proposal is pending at ICAI HO, but given the Nagpur experience and the proposed visit of Mr. K. Raghu to Pune Branch on Nov. 26, it seems that the Institute is hell bent on wasting precious Rs. 40 crores of members and students money, without even considering if members need another building in the first place! ANd just like Nagpur, the location of the proposed building at Pune is quite far from main city... infact if am right,  it falls outside the limits of the Pune Lok Sabha constituency itself !!! 

Will atleast ONE Council member stand up and show courage to stop this colossal waste of our Institute's funds? If not, we will have no option but to approach the MCA and apprise them of this misconceived adventure! 

Please find enclosed below a succinct mail from former Council member Mr. Barve as also the dissent note of Pune Branch managing committee member - Ambarish Vaidya. For those who keep on questioning the role of industry members and what they do, lets for a change acknowledge and thank what Ambarish ( a CFO ) is doing at Pune branch.. which is virtually take on the entire establishment on issues of governance and transparency in branch functioning!

regards,

Arun

---------- Forwarded message ----------
From: Shashikant Barve <shashikantbarve@gmail.com>
Date: Sun, Oct 26, 2014 at 4:26 PM
Subject: Infrastructure Policy— Problems as regards its Relevance for Pune project,
To: "secretary@icai.in" <secretary@icai.in>, President Emails 1 <president@icai.in>, vicepresident <vicepresident@icai.in>

Recently an advertisement has been published as regards land for new Pune Branch Premises. It is not clear why proposals from private parties are being sought when

 it has  not been informed to the members with the documentary evidence whether  the efforts , if any, were not successful to acquire the Land/Building ,( as per the Infrastructure Policy as I understand ), from Central or State Government or Local Authority or respective Development Authorities of such Government(s) including municipalities, panchayats, etc.

it is shocking that the recent Infrastructure Policy of ICAI,as I understand, does not contemplate the prior information to be given to the  general all Members in a location like Pune  and obtaining their views and preferences about   the  convenience of the  location (from the viewpoints of  services to the members and the students), before any proposal is  considered for approval. It does not also ask for views of the concerned Regional Council under which and through whom, according to the C. A. Regulations, the Branch is expected to function. It also does not specifically ask  “UNANIMUS” approval of all the members of the Branch Infrastructure Committee or of the Branch Managing Committee for any new proposal. The Policy  as I understand says that if the members concerned of respective Branch or Region wish to contribute for land/building, they can do so. Isn’t it then necessary that the members be taken into confidence and their views be heard before considering any new infrastructure proposal-!

Pune Branch had purchased a new building recently only a few years ago and when immediately thereafter approximately 2 years ago, it was contemplated to look for another new building, the Annual General Meeting of Pune Branch had clearly asked the Branch Managing Committee to study all relevant aspects about  the need,  the costs,  the location, resources etc. and then call an Extra Ordinary General Meeting of Members for considering any new proposal for building  if any. This is still pending.

Even the general members of Pune Branch have not been informed as to whether and when  the Managing Committee has requested the  President to constitute a Branch Infrastructure Committee according to that  Infrastructure Policy.

As per the Policy, as I understand, the suitability of land for Institute’s purpose, location, approachability, etc. are the factors which need be considered. At least the new building has to be within a range of 3 kilometers from the centre of the city so as to be approachable for students and members.

 The Legality of the recent Infrastructure policy of ICAI itself seems to me to be a challenge because of aspects like “the power to spend such huge amounts as contemplated therein on immovable assets”, “the ’delegation” of power to spend the money to Infrastructure Development Committee” and the limitations put by Sections 15 and Section 18 of the C.A. Act on the use of funds by ICAI.

The legalities as to whether a branch infrastructure committee has been properly constituted at Branch’s request and whether the proposal has been passed UNANIMOUSLY by the Branch Infrastructure Committee  and the Branch Managing Committee will be important.Compliance of all other aspects as per the Infrastructure Policy will also be important.

This is for your information please.

Shashikant Barve

A Member Of Pune Branch Of WIRC Of ICAI

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