SC quashes ICAI fiat

NEW DELHI: In a major relief to a large number of experienced and professional chartered accountants, the Supreme Court has quashed a notification issued by the Institute of Chartered Accounts of India (ICAI) that termed as ‘misconduct’ acquiring higher excellence from noted organisations.

In other words, the notification issued in 1988 imposed a bar on achieving merit in the field of accountancy.

Allowing an appeal by Institute of Chartered Financial Analysts of India challenging the notification that hampered the growth of professionals, Justices S B Sinha and Markandey Katju held that the notification violated Article 14 (equality) and 19 (1) (g) that guarantees freedom of profession.

Institutions like the petitioner’s have been established in many other countries, including Japan, Australia and Singapore. A CFA professional is now highly regarded and recognised as vital for modern and orderly development of financial markets.

“When a person is otherwise entitled to acquire any additional qualification, such qualification per se, cannot be termed to be a misconduct in its generic sense,” said the court. “It may not be possible to lay down all such misconducts but, it would be too much to contend that even an acquisition of an additional qualification would come within the purview thereof. Such a broad meaning  defy all norms,” the apex court added.