The Institute of Chartered Accountants of India (ICAI) has developed a Standard Operating Procedure (SOP) to direct police and law enforcement agencies in the investigation and legal processes involving chartered accountants (CAs).  

This SOP is designed to protect the professional rights of CAs and ensure due process. 

It sets out clear protocols for searches in CA offices, including guidelines for the seizure of documents and the proper conduct during interrogations.  

The SOP states that: “All the communications for calling of documents, information etc. with the Chartered Accountants should be in writing.  

“Reasonable time should be given by the investigating agency to a Chartered Accountant to respond to its query(ies).” 

It also outlines the procedures for the detention and arrest of CAs, urging law enforcement to adhere to transparency and established legal standards. 

It states that: “Only in case of non-cooperation on the part of a Chartered Accountant in answering questions or producing documents available with him, he should be called to the office of the investigating agency for questioning. Sections 41 and 41A of Code of Criminal Procedure, 1973 should be complied with strictly as well with the judgment of the Hon’ble Supreme Court in Arnesh Kumar v. State of Bihar (2014) 8 SCC 273 and Satender Kumar Antil v. CBI, 2022 SCC OnLine SC 825.” 

ICAI’s initiative is a response to the growing number of financial irregularity cases involving CAs.  

The SOP aims to strike a balance between the necessity of investigations and the safeguarding of CA rights, promoting fair and lawful handling of such cases by authorities. 

In addition, recent data indicates that more than 40% of probes by the ICAI against CAs or their firms result in disciplinary measures.  

Nevertheless, the number of cases reviewed by the institute are relatively few given the total of more than 400,000 registered CAs in the country.