CAs, auditors condemn Agrawal duo's arrest

KATHMANDU, JAN 01 -

The Association of Chartered Accountants of Nepal (A CA N) and the Nepal Auditors' Association (AUDAN) have condemned the arrest of chartered accountants Jagdish Agrawal and Gopal Agrawal by Central Investigation Bureau (CIB) of Police.

The CIB arrested the duo on Saturday on charge of their involvement in financial fraud at Everest Insurance in collusion with immediate management of the company.

In a chargesheet, police have blamed them of misconduct while auditing the company's balance sheet of fiscal years 2008-09, 2009-10, 2010-11 and 2011-12.  

However, CA s and auditors on Tuesday questioned the legality of the arrest of the two, accusing the CIB of overstepping the authority of I CA N, and the regulator of the professional CA s, which has pseudo judicial power as per the CA Act.

They argued that the Act has authorised I CA N to probe into the issue and take action against the wrongdoers. "The case of misdeeds against the CA s and auditors should be recommended to I CA N," they said.

A CA N past President Naba Raj Burlakoti said the CA s were unnecessarily taken into custody although Everest Insurance management was mainly responsible for misdeeds.
"While taking them into custody, proper legal procedures were not followed," he added. The CA s and auditors have also warned that they would intensify protest unless the two were not released.

(Source: The Kathmandu Post)