The CA institute has issued a show-cause notice to Reebok India’s former Chief Financial Officer Vishnu Bhagat, its President Subodh Kumar Agrawal has said.
The notice is related to the alleged Rs 870-crore financial fraud at Reebok India last year.
“We have issued show-cause notice to Reebok India’s former CFO Vishnu Bhagat. He has sought time till March 31, 2013,” Agrawal said soon after assuming charge as the institute’s President on Tuesday.
Agrawal said further course of action by the institute would depend on the information provided by Bhagat.
Based on the information provided by Bhagat, the disciplinary committee will take a call on whether or not to take up the matter with the statutory auditor, he said.
The Institute of Chartered Accountants of India has in the recent years come in for some criticism for the allegedly soft approach towards its erring members.
Agrawal maintained that the disciplinary mechanism of the CA institute was robust.
“We are a watchdog and not bloodhounds. You cannot blame us if the matter gets delayed before judicial forums. That is something beyond our control,” Agrawal said when asked about the seeming delays in action against erring members.
Reebok India has already filed a first information report (FIR) alleging fraud by its former Managing Director Subhinder Singh Prem, and CFO Vishnu Bhagat. Both of them have denied the charges.
As for the Satyam fraud case, Agrawal said there was nothing pending from the institute’s side.