ICAI tries to restrict CAs from speaking against demonetisation

The Institute of Chartered Accountants of India (ICAI) on December 9 issued an advisory to its members on the government's demonetisation policy, warning them strictly not to indulge in any nefarious act as to subvert the intentions of the government in any remote possible way. However, it seems to be stretching itself into the realm of the absurd when it tries to mute all its members from saying or writing anything against demonetisation.

“It is a matter of grave concern and distress to our profession when certain news reports/video clippings have come in the public eye depicting certain chartered accountants indulging in such acts of illegality which goes against the efforts of the Government in eradicating the corruption and black money from business and commercial transactions,” says the advisory issued by ICAI President M Devaraja Reddy. ICAI adds that immediate steps have been taken to cause an investigation against such members in terms of the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 framed thereunder. It said that so far six cases have come to the notice of ICAI, and it had issued notices to four members calling upon them to submit their written statement.

All that’s fine; taking action against its erring members is what is mandated. However, while heaping praises on the Narendra Modi government’s demonetisation drive, it cautions its members: “The members are also advised not to share /write any negative personal views by way of an article or interview on any platform regarding demonetisation.”

Arun Anandagiri, FCA, in an email to the ICAI on its advisory asked the apex body to “withdraw” the above paragraph.

This paragraph indeed does raise some ethical issues. The ICAI is well under its powers to take stringent action against its erring members. However, should the ICAI overtly support a particular government decision? Even if it does, how can it send a diktat to all its members on not saying or writing anything against the demonetisation decision of the NDA government? Isn’t this a breach of the fundamental right of freedom of speech?

“This part of the advisory is a frontal assault on free speech enshrined in Constitution,” says Arun Anandagiri, in his email to the ICAI on its advisory. “In case ICAI does not withdraw this portion of the advisory which also seems to be of a threatening nature, I shall be constrained to seek appropriate legal remedies,” he adds.

The ICAI should realise its folly quickly and withdraw the diktat to mute all chartered accountants from speaking their mind on demonetisation. Last heard, India is still a free country.