ICAI seeks details about alleged irregularities at Fortis Healthcare
Fortis Healthcare came under ICAI scrutiny after the transfer of Rs473 crore by its wholly owned subsidiary Fortis Hospitals to third parties, which were later re-classified as promoter entities
New Delhi: The Institute of Chartered Accountants of India (ICAI) is taking steps to reduce the time taken in resolving complaints against its members and has sought the government’s help to speed up the process. It has also sought details about the alleged irregularities that have surfaced at Fortis Healthcare Ltd and is awaiting details.
ICAI, which is facing increasing criticism for its handling of cases involving errant chartered accountants, said it has initiated steps to increase the benches of its disciplinary committee and reduce the pendency.
In a press conference, the newly elected president of ICAI Naveen N.D. Gupta, said the institute has written to the government seeking appointment of more government nominees to the disciplinary committee.
Each disciplinary committee bench has 5 members with 2 government nominees. At present, ICAI has two benches and wants to increase it to 3. However, there are only 2 government nominees and ICAI wants the government to appoint four more nominees. Through this, it hopes to bring down the pendency.
“Last few months, pendency of disciplinary cases has come down from 4-5 years to 2 years. We are trying to eliminate pendency,” Gupta said.
When asked about Fortis Healthcare, Gupta said ICAI is awaiting information on the case.
Fortis Healthcare came under scrutiny after the transfer of Rs473 crore by its wholly owned subsidiary Fortis Hospitals Ltd to third parties, which were later re-classified as promoter entities.
Due to the change in shareholding and re-classification, the transaction was recognized as a related-party transaction, Fortis had informed the stock exchanges on 9 February. Under the Companies Act 2013 and Sebi listing norms, related-party transactions require separate approvals from shareholders and the board.
Bloomberg had reported that Fortis’s auditor Deloitte Haskins & Sells LLP refused to sign off on the company’s second-quarter results until the funds were accounted for or returned.
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