CAs being investigated for their role in helping such apps

Chinese loan app scam: CAs being investigated for alleged role in helping such apps

New Delhi: Several chartered accountants (CAs) are facing probe by the Institute of Chartered Accountants of India (ICAI) for their role in aiding Chinese loan apps. Some of them are said to have signed documents of these app companies like incorporation forms, and annual returns among others.

The CAs are alleged to have done this without proper due diligence like not physically verifying the address mentioned in the incorporation documents as some of these entities have given fake addresses, people aware of the matter told Economic Times.

“The purview of investigation is to ascertain if there was any professional misconduct on the part of the chartered accountants. Further, the probe will also look into whether these professionals have signed or authored any false documents supplied by such shell companies,” said Debashis Mitra, president, ICAI.

While such entities are also being probed by other agencies, the ICAI’s probe is in addition to them. “Once the prima facie opinion is formed by the ICAI, the cases where lapses are found will be referred to the disciplinary committee,” Mitra said.

He added that the institute had received references from the government regarding the alleged role of certain professionals including CAs in facilitating Chinese shell companies since January.

Chinese loan app probe

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