Re: [Coopauditors] An appeal to contribute towards KSCAA's Legal Fund

[Ramesh Prabhu]

Dear All and specially the leading team of KSCAA and CA. Ravindranath,

Wish you all happy morning and joyful experience throughout the day,

I from the bottom of my heart want to compliment and appreciate the efforts taken by the leaders of KSCAA and it is time of each one of us to how strengthen their commitment to serve the profession by giving additional inputs and facilitate to make the best of the best argument and restore the audit of cooperative societies to only CAs.

It is really high time when the number of CAs are increasing and due to technology driven era, old routine work of accounts writing and audit of manual accounts have gone, we need to increase the professional opportunities.

We need to make it clear to the Court, that there is only one Body set by an Act of Parliament to regulate the accounting and Auditing through its members through out India.

Under 97th Constitutional Amendment article 43B of the constitution, a directive principle has been made that state to ensure through appropriate legislature Professional managment of Co-operative societies and how come such a direction be diluted by the  Karnataka Govt. 

Each one need to approach Local MLA, MLC and the policy makers to impress upon them to delete such provision from the Act.

In a democracy, if any citizen wants to achieve, he need to follow the following process and follow them collectively.

(1) Administration : Approach the Policy Maker- Bureaucrat (IAS) consistently by different group and make them aware that there is great injustice to the Co-operative movement is done.  The Federation and individual Societies also need to bring out that such a move is not appreciated by the Co-operative societies. Who can explain, guide and if required draft the letter of the society, the CAs who think that such a move is not good.

(2) Political/ through elected representatives  : Approach the MLA/MP/ political party ( specially ruling in the state, including Ms. Sonia Gandhi or Mr. Rahul Gandhi may be by email or by their party workers )  known to you and Co-operative Minister/ Chief Minister and explore the possibilities to bring out this as big issue. It may not be anything for them but definitely each one of you agree that it is a bread and butter for many of us. Further, the Parliament has made an act to give audit mandate to only qualified CAs to be the auditor. With this many have undergone training and also succeeded one of the toughest examination and many of us by multiple attempts. Is this the way to encourage persons stating that it is CAs exclusive domine and then give to other professional the purpose of which is not at all related to audit.  The complete mismatch.. It is a great injustice.  When our CA Institute has  president CA. K. Raghu and that to from Karnataka, the affected members need to bring to the knowledge of our own President and all the council members by the emails and sms on their mobile.  As many CAs, raise this by email, or sms to the president and all council members, the seriousness of the issue will be known and action will start even at our Institute level. My experience has shown that, any thing which is followed up at the proper forum get the desired result.  It may take more time, more energy and consistent efforts and it is process to be followed to get the focused result. We need to highlight the policy makers that, this approach of giving other professional a audit area will spread like a cancer in other states and then our Acts like Income tax for tax audit, MVAT , Certification under different act, Trust, Local Authority audit, Companies Act. Nothing can be ignorned.  Any such move should have been taken care at the beginning. Po

Nothing has gone wrong and no day is late. Taking a decision and acting on that decision to make it right and follow up consistently is the most important and each on  of such work on it without blaming or giving any excuse in working for the welfare of the profession. 

(3) Use of  Media : Known journalist should be approached and articles to be published and it should condemned.   Press Conference is the best methods to get many reports and share your views, invite the officials and get their views. Even, if the journalist get one sided view, as per their ethics, they need to approach the other side whom we are attacking, in other words, the journalist would again approach the authorities, policy makers and get their views. Contradiction  may start. But that is all part of the game.  In order to get the desired result one need to adopt all legal and appropriate steps and use all of the above. 

(4) Use Darnad / March, Few  darna and March agitation also need to be done. 

Just to share with all of you in Maharashtra in April, 2012, a bill was introduced  to repeal a strong and  old stabilized law of Maharashtra Ownership Act, 1963(MOFA)  to replace with Mah Housing (Regulation and development Act,2012) which was completely diluated and was builder friendly.

In MOFA. any voilation would be 

(1)criminal offence,

(2)  if not delivered the flats, the builder need to pay the market value of the flat when he refuses or fails to deliver on the agreed date.

(3) no amendment to the plan with the consent of the flat owners is permitted.

(4) Open space, garden, parking, utitlity areas, etc cannot be sold and even upheld by supreme court.

(5)Provision of filing the crimal cases against the defaulting builders 

New  law" Mah Housing ( regulation and Development ), bill, 2012, deliuted allmost all the provisions of MOFA with following relaxation:

(1) allowing the builder to refund the amount with maxium of 15% interest on the investment done,

(2) Criminal prosecution is completely deleted.

(3) penalty ranging from Rs.1000 to Rs.1crore for any voilation having the right to go to appeallate authority, High Court, Supreme Court and any penalty if challenged, till such time, one need not pay and if the same is decided after 20 years, you can imagine the value of the same and most important the aggrieved party, a consumer will not be able to spend the required amount and goes out of the battle fied and the builder is able to get the penalty even waved.

(4)allwoing the sale of opens spaces, Parking, Utiltiy area etc and also 

(5)allowing the conveyance of only building and retain all future FSI, TDR, 

(6)change of the plan shifting of Garden etc without the consent of flat purchasers who had purchased the flat for a good view and had paid even premium. and many loopholes and a great injustice to the common consumer.

In my capacity as the Chairman of Maharashtra Societies Welfare Association adopted all the above methods and the result was the Chief minister, Housing Minister, Housing Secrtary were forced to refer it to Joint committee of 21 MLAs headed by Housing Minister and I was given three hours to represent our side and I am pleased state that more than 50% of our suggestion was accepted and new law has been given a consent but Rules are not made and we are sure, with the new Govt, further changes, we are planning to bring and a memordum to this effect will be given to Hon'ble Shri. Prakash Mehta, Housing Minister of Govt of Maharashta in a progrm orgaised by MSWA and Afforable Housing Welfare Organisation of India on 14th Feb, 2015 at Bandra. I am sure, the minister will have to go through each and every suggestion and need to act on the same for the welfare of common citizen of Maharasthta.

IN case, all the above, efforts fail and still we feel that we are no the right foot,we need to go upto to Supreme Court of India , Judiciay a forth pillar of the Democracy.  AT this stage your conviction becomes more strong, your argument will be strong and the media news also makes a lot of difference in the decision making process of judiciary. 

In a similar matter when the restriction on collecting additional amount  by housing societies to the members of the society for the flat given on rent was opposed and all the above ,did not work, matter was taken to High court and obtained the interim order and when the final order was against the petitioner, we moved in the Supreme Court and the Hon'ble Supreme Court was pleased to continue the Hon'ble High Court interim order( regarding 79A direction not to charge non occupancy charges more than 10% of the service charges exclulding Municipal taxes). When we had gone to the court, we had taken under RTI the report, notes send to minister for issue of such notification, the committee report which had discussed different views etc. Knowledge is power, Pen is mightier then  SWORD.  The information only empowers and the tool which can an ordinary citizen can use to collect the information available to MLA, MP or parliament, Assembly should be availed.

My humble submission  is please put an RTI to Karnataka Govt, the constitution of the committee. who constituted and under which provision, report of the committee, the decision making process, file notes, cabinet notes related to amendment etc should be called for. What efforts the committee had done to get the authentic data. Whether the committee realised that CA members as the ACT of parliament can only do the audit etc.

If there is any failure such point should be highlighted to the Media, policy makers, political parties, elected reprsentative, media, get the public opinion generated and then will all this arms and ammunition, we need to go to court. 

Now also nothing is lost, we can still begin the fresh journey and well begin and with lot of concentrated efforts will bring the desired result. Any group member takes lead and I am available on phone 09820106766 / land line 022-42551414 or send the email , to guide and bring the same to a logical conclusion. 

Wish you all the best in your consistent endevour.

With lot of love and commitment to serve

CA.Ramesh Prabhu   

   

On Mon, Jan 19, 2015 at 8:26 PM, Raveendra Kore <raveend...@gmail.com> wrote:

Dear All,

I Thank CA Ravindranath B V for his quick response to our appeal. I request the members to show the unity to safeguard the interest of our profession.

UPDATES ON CASE:

The Case filed by KSCAA  has come up for preliminary hearing today. The Hon'ble Court after hearing the matter has directed issued of notice to the Additional Government Advocate for the State of Karnataka.  The case has been listed to file statement of objections and further hearing on 29.01.2015.

On Mon, Jan 19, 2015 at 7:27 PM, Raveendranath B.V. <bvr...@gmail.com> wrote:

Dear all,

We need to respond immediately with all our support to our Association's move. This is high time that we unite and show our strength and support.  I appreciate the association for taking the lead in this regard. I feel this is what we expect from our association. 

As set out in your appeal, Sir, we are with you and support you in all respect including the financial support. I am sending herewith Rs.10,000 as my contribution to the Association's legal fund. I also request all our professional brothers to express your moral as well as financial support at your earliest.

I hope I am not wrong in requesting the senior members who are empanelled in  A category to contribute more so that the Association need not worry about the quality of the arguments in our favour. 

Thanking you, in anticipation of positive response from all our members,

All the best

On Mon, Jan 19, 2015 at 11:15 AM, Raveendra Kore <raveend...@gmail.com> wrote:

APPEAL

Professional Colleagues,

As all of us know very well, we, being the Chartered accountants, are members of the audit profession and undergo intensive training in our specific domain, and acquire expertise by experience and practice.  The course curriculum, syllabus and training – all have contributed in grooming us to be full pledged professionals with requisite knowledge and expertise.  And we have to constantly strive to keep up with rapid changes that take place on day-to-day basis to maintain quality of the work.   

However, of late, we have been witnessing developments that undermine the specialized knowledge and expertise of Chartered Accountants in their chosen profession. Non-professionals and other-professionals are being considered for audit assignments, irrespective of the fact that they lack the requisite training and expertise. A case in point is the recent amendment of Cooperative societies Act which permits cost accountants to carry out audit of cooperative societies.

The department whose responsibility is to ensure high level of transparency in the cooperative societies has diluted the importance of audit of societies by permitting audit by non-chartered accountants or other professionals. Representations by the KSCAA to the Governor before the enactment of the amendments have not been considered, and the amendment has already been passed.

We cannot be complacent, as our inaction may lead to more such instances.  Since the amendment is already passed, the legal recourse left to us is to file a writ petition in the High Court of Karnataka. We have sought the views of several legal experts in this matter, who have advised us to file a writ petition.  We all know that fighting a legal battle costs considerable amount of money in form of advocate’s fees, court fee etc. We also should be prepared to go on appeal in higher courts if necessary, to fight the case to its logical end.   Already we have filed a writ petition before the High Court of Karnataka, Bengaluru on 16th of this month and  have engaged reputed advocates for pursuing the case.

Since it is a matter which affects every one of us, we appeal to all members to contribute generously to this common cause and strengthen our hands to fight the legal battle.  Let us recall the beautiful words of Mrs. J.A.Carney - “Little drops of water, little grains of sand make the mighty ocean and the beauteous land.” Let’s contribute our mite to this noble cause and make our profession a winner.

 

We appeal to all our professional colleagues to contribute generously for this cause and strengthen the association.  Those who are willing to contribute may please pay a minimum of Rs. 2,000  by way of cheque/DD to drawn in favor of  “KSCAA” payable at Bengaluru, or make an online transfer to

BANK NAME: ANDHRA BANK LTD, BRANCH  - N.R. ROAD

BENEFICIARY NAME – KARNATAKA STATE CHARTERED ACCOUNTANTS ASSOCIATION

TYPE OF A/C – SAVINGS BANK ACCOUNT, A/C NO – 039210011006887 , IFSC / RTGS – ANDB0000392

Please find the attachment for  appeal letter. 

For Karnataka State Chartered accountants Association®

Sd/- 

CA Raveendra S.Kore

President

Mob:9902046884

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With Regards,

CA. B.V.Raveendranath

Chartered Accountant

G.P.Road, SAGAR - 577401

08183 226696; 9845460896

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Thanks & Regards
CA.Raveendra S.Kore,

President,KSCAA
Mobile No. 9902046884

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With Best Regards

 

CA. Ramesh S. Prabhu

Chairman, Maharashtra Societies Welfare Association

A2-302, Laram Center, S.V. Road, Opp: Railway Station

Andheri(W), Mumbai- 400 058

Tel: 9820106766/ 022- 42551414