ICAI - Assignment-Fixing, Booze Parties and Caste Constellations - ABC of ICAI's Central Council Elections - The Economic Times

01/12/2021, 09:59 ICAI: Assignment-fixing, booze parties and caste constellations: ABC of ICAI’s central council elections - The
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UNDER THE LENS
Assignment-fixing, booze parties

and caste constellations: ABC of
ICAI’s central council elections
Synopsis
Candidates offer various direct and indirect inducements to win over the electorate in the crucial triennial
elections to be held later this week to elect the top office bearers of the institute. While a small group of fresh-
thinking candidates want to bring change, they are up against the well-entrenched empire.
The Leela in Andheri East, close to the airport, is one of

the popular five-star hotels in Mumbai. Its grand
ballroom has a capacity of 700 guests. A dinner party
here would cost around INR2,500–INR3,000 per head,
BY
N Sundaresha Subramanian
according to unofficial quotes available on the 15 MINS READ
Internet. A full house would set the organiser back by Dec 1, 2021, 12:00 AM IST
around INR20 lakh. What is a party without a few

Share This Article
cocktails and that could add a few more lakhs to the
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01/12/2021, 09:59 ICAI: Assignment-fixing, booze parties and caste constellations: ABC of ICAI’s central council elections - The Economic Times
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Two weeks ago, a WhatsApp invitation went out to

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prominent members of the chartered accountant (CA)
GIFT ARTICLE
2
community to join a meet-and-greet with Sunil Kumar COMMENT
Patodia at The Leela’s grand ballroom.
Rate This Story
Patodia, former chairman of the Western India

Regional Council, is contesting for the position of
central council member from the western region, the
largest and most influential constituency in the
Institute of Chartered Accountants of India (ICAI).
The western region sends 11 representatives as against

six each by the southern, central and northern region
of India. Eastern region sends three members to the
apex decision-making body of the institute.
Some 83 candidates, including some incumbents, past

members, regional council members, are in the fray for
these 32 central council member positions that are up
for grabs. Some fresh faces are also in the fray.
Alongside, elections for the five regional councils are
also on.
Home Over 300,000 members from freshly passed out

freshers to octogenarian practitioners will vote on

December 3 and December 4 in booths across the
country.
The crucial elections come at a time when small

practitioners feel cornered by increasing compliances
and regulatory scrutiny but falling business and
disappearing income streams amid the raging
pandemic.
Even as the role played by the incumbents is under

scanner, the system of elections and the campaigns
itself need rediscovery, feel the members of the
community.
ET Prime spoke to several members of the community

including council members, past council members,
candidates, veterans and the youngsters to put
together this story of how a flawed process dominated
by narrow interests are converting a statutory body
with wider social obligations into “a cross between a
medieval guild and a twentieth-century trade union”.
Party time
Patodia’s party has caught the attention of the

returning officer who received a complaint against
this. But he is not alone. ET Prime has come across
several such invites in five-star hotels and posh
banquets.
Most of these invites come with a large photograph of

the candidate and his ballot number. However,
different names are given in the RSVP, giving an
impression that the candidate himself has not called
for the dinner/party. In Patodia’s invite though
Vakrangee MD Dinesh Nandwana’s name appears in
RSVP among others, Patodia’s own e-mail and mobile
numbers appear at the bottom, leaving little to
guesswork. Patodia did not respond to an email
seeking comments.
If the pamphlets and invites are any indication, CAs

feel a lot of money is being spent by or for the benefit
of the candidates. Expenses by candidates range from
INR50 lakh to a few crores of rupees.
But it’s not clear what the expected returns are.
Candidates who are sticking to the rules say such

parties could be violative of the code of conduct on two
Home counts. First, a five-star hotel party, the size of which

Patodia was part of, could easily exceed the total

expenses allowed for a candidate. According to present
norms, a candidate is allowed to spend a maximum of
INR12 lakh for the central council elections.
Second, the code of conduct strictly specifies that a

get-together cannot exceed 100 members and the
candidate can only serve tea and snacks at such get-
togethers.
However, several candidates tell ET Prime that “wine

and dine” parties are common.
For example, in Karnal, a city in Haryana, with about

400 members, every candidate is said to have thrown a
party. “Each of these parties would have had not less
than 200 guests and 100 people are common in all
parties. It is not clear who they will finally vote for,”
says a Delhi-based candidate.
Parties have been common in Mumbai and Surat, too.
Shashikant Barve, a former central council member,

says this election year parties have gone up because a
lot of money has been freed up from printed
manifestos. “A lot of money used to be spent on
printing and postage of these manifestos. Say, for a
manifesto of four to five pages, one could spend around
INR40-INR50 and add another INR10 for postage. In
the western region, the electorate is about 100,000
people, even if you plan to reach a fraction of this
number, your expenses would run into a few lakhs.
However, following the pandemic, people have got
used to online communication such as WhatsApp, e-
mail and other social media. That means people no
longer want to use the physical manifestos. This
money is also getting channelled into parties.”
A former office bearer of the institute said he has seen

the expenses on such parties shot up this year.
“Because of the pandemic and lockdowns, there have
been very few physical meetings in the past couple of
years. It seems people have taken to the parties with a
vengeance. The number of parties have gone up
substantially and the elections overall have become
more expensive than ever before.”
An ICAI spokesperson did not comment on a detailed

questionnaire seeking details on the election
processes and action taken on violations including the
Home one reported against Patodia. The spokesperson

referred to the details on the institute’s website and

said that all the complaints would be dealt with in the
manner described in the website.
Promises of plum assignments
The candidate quoted earlier says while the party

helps draw voters in, the inducements go far beyond.
“There are promises of plum assignments post-
election. There are numerous committees at the
institute. The selection and appointment process for
these committees and faculty for JCMS classes are not
well defined. Often people are promised such gigs,” a
fellow member of the institute from Faridabad says.
The member adds, at the senior levels there are large

assignments such as the IL&FS audit or consultancy of
the railways moving from cash system to double-entry
bookkeeping. Allotment of such large audits are also
part of the promises made, he adds.
A sitting member, who is not contesting, says he has

come across instances where such promises are made,
but never delivered. “Next time, they go to different
people and seek votes.”
R Narayanaswamy, a CA himself and a retired

professor of IIM Bangalore says, “It’s difficult to believe
that the candidates are solely motivated by altruistic
considerations such as serving the members or
building the nation. To do such things there is no need
to be an elected representative. That means, getting
into the council would give them opportunities that
can be converted into money and power, such as
getting new business or developing contacts that
would not be possible otherwise. Those would clearly
fall in the category of self-dealing. Put differently, the
expected benefits are for the candidates and not for
the wider CA membership.”
Board seats in public-sector undertakings,

international trips, positions in international bodies
are some of the perks central council members have
used their positions for, allege CAs.
Caste equations
The institute’s election code clearly prohibits

candidates from seeking votes under caste, language,
religious or regional considerations. But caste is the
proverbial elephant in the room. In northern and
central regions, a lot of candidates are from a
prominent trading community. A cursory check of
surnames of candidates showed as many as 17
candidates had surnames of Agarwal, Bansal, Jindal,
Garg, Singhal, and Goyal.
Of these, seven were Agarwals. At least four candidates

had Jain surnames. Among Brahmin surnames,
Sharma was the most common with seven candidates
bearing this name, followed by Misras and Joshis.
There was a sole Christian name from Kerala and no
Muslim.
“Despite being a literate body, it is unfortunate to see

candidatures based on caste considerations. Caste and
regionalism should not be a consideration in the
elections,” Amarjit Chopra, former president of the
institute says.
Caste is a deciding factor in a lot of areas, says a sitting

council member. “Though there are more than
100,000 votes in the western region, since
participation is low, a candidate is through if he gets
as low as 3,000 votes. So, a Jain candidate needs to
seek out only his community members. He doesn’t
even need to look outside.”
A candidate belonging to the Brahmin community

says, “People come to me and say ‘Is baar Agarwalon ko
hatana hai, brahman ko lana (We have to remove the
Agarwals and bring the Brahmins.) I tell them to vote
on the basis of my manifesto not on the community.
But caste is a major issue.”
Barve also says caste is a “very major factor” in the west

and that there are groups formed around Marwari
candidates, Kutchi candidates, Jains, and Agarwals.
“Marathis are also there. But numbers are low. People
from particular places in Rajasthan and Gujarat.
Parties are arranged targeting voters from those
communities. Community organisations also play a
role in organising programmes. People from other
communities are sometimes left wondering whether
to attend these parties or not. In this whole game, the
focus on what is good for the profession and the
institute is lost.”
In the eastern region, the war is between the Bengali

and the Marwari communities to push for their own
candidates.
In the
southern
"Despite all these worrisome region, it is
trends, the candidates have not usually two
brahmin
come out with their vision for
candidates
the future of chartered that get
accountancy." elected
from Tamil
— R Narayanaswamy, CA and retired IIM-
Bangalore professor Nadu, says
a veteran
member of
the institute. “Not much chance for people from
outside the community. Usually, a Christian is elected
from Kerala, while the Karnataka professionals try to
get a Kannadiga in, it is the Chowdrys who call the
shots in the Telugu-speaking states,” the veteran adds.
Big Four, coaching barons, past presidents
The Big Four– Deloitte, KPMG, EY, and PwC – and their
networks have thousands of CAs working for them.
Though the institute itself does not accord any special
status to these candidates nor do they campaign as
such, these entities are able to ensure the election of
their candidates without much sweat.
Some candidates feel that some amendments brought

Home barely two months ahead of elections favour the Big

Four-affiliated candidates. While normally a CA is

allowed to vote from his native city, these latest
amendments allow CAs to vote from other centres
within their regions or from other regions. This is
likely to increase the active voters by a few thousands.
More Big Four employees, especially those with

memberships from native villages, who would not
have travelled from their workplaces, would now be
able to participate in the elections. Some sections cry
foul over the timing of this decision and feel allowing
e-voting or through the SSP (Self-service portal) would
have been a more equitable solution.
People running their coaching institutes are also

considered to be influential in swinging elections and
throw their weight behind the candidates of their
choice. “Many recent pass-outs may not be aware of
the issues or candidates. They look up to their
coaching masters/gurus. Lots of votes are garnered this
way. They go by their guru/teacher’s directions. Often
one sees emotional appeals made by the gurus also in
social media and other platforms,” Barve says.
The elected council members then come together to

elect the vice-president every year. By convention, the
vice-president goes on to become the president. Under
the system, the president is vested with enormous
powers.
“The president is supreme, if you go against him, you

will be crushed,” says Chennai-based CA Venkata
Sivakumar. So, the president in his year at helm gets
the maximum visibility in ICAI’s conferences,
publications and press interactions helping him build
a personal recall.
Past presidents, who usually do not contest again,

continue to use this brand to get their own people or
disciples into the central council. ET Prime reviewed
an online endorsement by a five-time central council
member and past president Vinod Jain. Other past
presidents such as ND Gupta, Uttam Agarwal are also
seen to be active in institute politics.
Other methods
Non-profits run by certain candidates have also

plunged head on into the campaign and their
activities do not get counted in the election
expenditure creating an unfair advantage. Candidates
Home alleged that these non-profits have engaged in

activities like awarding CA exam toppers with prizes

and certificates, experienced professionals with life-
time achievement certificates and so on.
Some organisations have even conducted cricket

tournaments and gifted digital diaries in support of
their candidates.
Another ploy some candidates have used is to get a

star campaigner endorse their candidature. In the last
elections in 2018, union minister Suresh Prabhu’s
endorsement of Prafulla Chhajjed became the subject
of a formal complaint.
This year though politicians have largely stayed away,

an endorsement by Girish Ahuja, a venerated guru in
tax matters, of central region candidate Anuj Goyal
ruffled feathers. In a video-recorded canvassing in
which Goyal is seen alongside, Ahuja describes Goyal’s
willingness to get things done for people and that he is
in it for the “nasha”. While addiction for the position is
common, there seems to be no such nasha to do the
right thing for the profession.
“It is weird to hear some candidates talk. They talk

about the institute’s prestige and bringing technology.
They have no clue,” says an outgoing council member.
The member feels such extraneous considerations and

misplaced priorities mean that the main agenda never
gets discussed. “Due to lack of transparency in the
institute’s functioning, members do not know what
the real issues are. They are not bothered about
whether the institute is functioning properly, whether
the disciplinary mechanism is justice-based. Broader
issues are not discussed. Common members’ priorities
are different. Irrespective of whoever gets elected, he
has to face corruption, so they go to parties and decide
based on pleasantries,” he says.
Real issues and reforms needed
Chartered accountancy today is a pale shadow of its

glorious past, when it used to be the first choice for
many commerce students. According to the ICAI’s
2020-2021 annual report, the number of new student
registrations was a third less than a decade ago. In
contrast, there is more interest in professions like law
and architecture.
Well-paying jobs in emerging fields such as data

Home science and web design are also possible reasons.

Overseas accountancy qualifications such as of

Association of Chartered Certified Accountants (ACCA)
and Chartered Institute of Management Accountants
(CIMA) are getting more popular, partly because they
are recognised worldwide.
Also, technology may reduce the role of human

intervention in accounting. Captive, state-mandated
business for CAs is depleting.
The NFRA’s proposal to exempt MSMEs from

mandatory audit under the Companies Act, the
doubling of the threshold for income-tax audit to
INR10 crore, and the abolition of GST audit have all
rattled the common member.
“Despite all these worrisome trends, the candidates

have not come out with their vision for the future of
chartered accountancy," says Narayanaswamy.
Two reforms are necessary, he adds.
“One, the ICAI should be demutualised. Membership

should be separated from governance and elections
should be done away with. The National Medical
Commission is an example of how it may be done. Two,
the state-sponsored monopoly status of the ICAI
should end and at least one more competing
accountancy body should be set up. Australia, the UK
and Canada are among the countries that have more
than one accountancy organisation.”
Though the professor is considered an “enemy of the

profession” in the institute circles for his extreme
views, most members in the community agree that
https://economictimes.indiatimes.com/prime/corporate-governance/assignment-fixing-booze-parties-and-caste-constellations-abc-of-icais-centr… 10/14
Home there is an urgent need for reforms. People have

different views on the way these reforms should be

done.
Some suggest that these be limited to the electoral

process from handing it over to an independent body
or the Election Commission of India or e-voting.
There are suggestions to overhaul the institute’s
structure itself.
Former president Amarjit Chopra suggested that steps

should be taken to make the elections inexpensive and
people without resources should be able to participate.
He also wanted that his earlier suggestion for a state-
wise representation in the central council sees the
light of the day so that smaller and remote areas such
the Union Territory of Jammu & Kashmir and the
Northeast get more representation at the central level.
Barve says, “Anybody with 40 members cannot take

decisions. The number should be drastically reduced
and those appointed directly by the government.” He
feels what NFRA has said in recent communications
has a lot of merit.
The election system, which creates conflicts of

interests in educational, disciplinary, and regulatory
functions of the institute, deserves to be scrapped
altogether, he feels.
The old guard would have none of these. They think all
is well.
Of the 32 members of outgoing council, 23 are in the

fray. While all sitting members are contesting in
central (6) and eastern (3) regions, five out of six are
contesting in the northern region with Atul Gupta, last
year’s president moving out. In the western region,
with two presidents Prafulla Chhajed and Nihar
Jambusaria and three council members who
completed three consecutive terms not contesting,
there is scope for five new faces getting elected.
Similarly in the south, only three of the six council
members are contesting.
Despite all these long-term concerns and a raging anti-

incumbency, pundits suggest many, if not all, of these
sitting members will sail through comfortably.
Some young, starry-eyed, reform-minded first timers

also hope to join them and drive change. Will they be
Home able to bell the big cats?
(Graphics by Sadhana Saxena)
The latest from ET Prime is now on Telegram. To

subscribe to our Telegram newsletter click here.
2 COMMENTS ON THIS STORY
Sriram Ranganathan 18 minutes ago
The muck has to stop as of yesterday. Folks who are in it for the moolah should not be voted
for in case the Institute is to survive. Kudos to the great work by members like Shri R
Narayanaswamy who have done great service to the glorious profession!!
Ashutosh S 2 hours ago
so finally ICAI is just another bunch of aspiring politicians and an institution which has failed
to live up to the standards it sets for itself.....what a pathetic situation..!!
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01/12/2021, 09:59 ICAI: Assignment-fixing, booze parties and caste constellations: ABC of ICAI’s central council elections - The

elections - The Economic Times

English Edition | E-Paper

UNDER THE LENS

Assignment-fixing, booze parties

The Leela in Andheri East, close to the airport, is one of

around INR20 lakh. What is a party without a few

Two weeks ago, a WhatsApp invitation went out to

community to join a meet-and-greet with Sunil Kumar COMMENT

Patodia at The Leela’s grand ballroom.

Rate This Story

Patodia, former chairman of the Western India

The western region sends 11 representatives as against

Some 83 candidates, including some incumbents, past

Home Over 300,000 members from freshly passed out

freshers to octogenarian practitioners will vote on

The crucial elections come at a time when small

Even as the role played by the incumbents is under

ET Prime spoke to several members of the community

Patodia’s party has caught the attention of the

Most of these invites come with a large photograph of

If the pamphlets and invites are any indication, CAs

But it’s not clear what the expected returns are.

Candidates who are sticking to the rules say such

Home counts. First, a five-star hotel party, the size of which

Patodia was part of, could easily exceed the total

Second, the code of conduct strictly specifies that a

However, several candidates tell ET Prime that “wine

For example, in Karnal, a city in Haryana, with about

Parties have been common in Mumbai and Surat, too.

Shashikant Barve, a former central council member,

A former office bearer of the institute said he has seen

An ICAI spokesperson did not comment on a detailed

Home one reported against Patodia. The spokesperson

referred to the details on the institute’s website and

Promises of plum assignments

The candidate quoted earlier says while the party

The member adds, at the senior levels there are large

A sitting member, who is not contesting, says he has

R Narayanaswamy, a CA himself and a retired

Board seats in public-sector undertakings,

The institute’s election code clearly prohibits

Of these, seven were Agarwals. At least four candidates

“Despite being a literate body, it is unfortunate to see

Caste is a deciding factor in a lot of areas, says a sitting

A candidate belonging to the Brahmin community

Barve also says caste is a “very major factor” in the west

In the eastern region, the war is between the Bengali

Big Four, coaching barons, past presidents

Some candidates feel that some amendments brought

Home barely two months ahead of elections favour the Big

Four-affiliated candidates. While normally a CA is

More Big Four employees, especially those with

People running their coaching institutes are also

The elected council members then come together to

“The president is supreme, if you go against him, you

Past presidents, who usually do not contest again,

Non-profits run by certain candidates have also

Home alleged that these non-profits have engaged in

activities like awarding CA exam toppers with prizes

Some organisations have even conducted cricket

Another ploy some candidates have used is to get a

This year though politicians have largely stayed away,