Friday, September 15, 2006

CHARTERED ACCOUNTANTS PRACTICING IN RESIDENTIAL AREAS - UNJUSTIFIED TREATMENT BY THE GOVERNMENT

The Chartered Accountants practicing in residential areas of Karol bagh , Daryaganj, Laxmi Nagar, Shakarpur and all other residential colonies of Delhi are still facing risk of their offices being sealed by the Government arising out of orders of Honorable Supreme Court. The notification of 7th September 2006 has been issued in such a complex manner that legal experts are still struggling to interpret its real intent.
The Government vide this notification has also permitted professional activities by Chartered Accountants in all residential areas, subject to the following conditions:

  •  Professional activities by Chartered Accountants shall be permitted if carried out by the resident himself / herself;
  • Group Housing / Plots with multiple dwelling units, professional activities shall be permitted on any floor, subject to maximum 50% of permissible or sanctioned FAR for each dwelling unit.
  •  In case of single dwelling unit plots, chartered accountant activities shall be permissible on any one floor only, but restricted to less than 50% of the permissible or sanctioned FAR on that plot.
Similar facility has been given to other professionals including doctors, lawyers and architects. The requirements insist on a condition that professional activity shall be permitted only if it is carried out by the resident himself / herself.This has following implications :
  • The Chartered Accountant concerned should be residing in the same premises.
  • The professional activity is to be carried on by him / him self. This creates an apprehension that Partnership Firms or large setups may not be permitted.
The aforesaid condition of mandatory requirement of residing in the same premises by the Chartered Accountant concerned is practically infeasible in most of the cases. Most of the Chartered Accountant Firms have proper staff and are required to have necessary infrastructure like computer, scanners and various other modern gadgets to enable them to provide high quality services. In a number of cases more than one chartered accountants are associated or working jointly to carry on the professional practice. ICAI has been promoting merger and networking of firms to enable delivery of all specialised services under one roof. The Government is trying to reverse the growth process of the economy. The Government of India and the Delhi Government have miserably failed to provide adequate commercial spaces to take care of all-round growth and development of Delhi's economy. There is a need to urgently develop at least 10-20 thousand acres in Delhi for commercial purpose. The Yamuna bed and wasteland in the midst of Delhi should be targeted for low cost availability. The Government should provide alternate accommodation in commercial areas at reasonable rates to all those who are being displaced due to decision of Honorable Supreme Court or due to non- compliance of reversed master plan. The Government of India vide Notification dated 7th September, 2006 has also permitted commercial usage by retail shops, schools, nurseries, guest houses, banks, fitness centres in the residential areas, subject to certain conditions as to the width of the road and the category of the colony etc.There is no requirement for such users to reside in the same premises. But in all such cases the professional activity can be carried on by the Chartered Accountants and other professionals only subject to the conditions outlined in the 1st paragraph. These improper The Government of India vide Notification dated 7th September, 2006 has also permitted commercial usage by retail shops, schools, nurseries, guest houses, banks, fitness centres in the residential areas, subject to certain conditions as to the width of the road and the category of the colony etc.There is no requirement for such users to reside in the same premises. But in all such cases the professional activity can be carried on by the Chartered Accountants and other professionals only subject to the conditions outlined in the 1st paragraph. These improper condationalities are far from being logical and just not acceptable to the profession and we need to fight unitedly against such oppressive policies of the Government. are far from being logical and just not acceptable to the profession and we need to fight unitedly against such oppressive policies of the Government. The All India Chartered Accountants' Society is in the process of formulating a Joint Forum with doctors including various medical associations, lawyers including Supreme Court Bar Association, Delhi High Court Bar Association and other associations of lawyers and architects, to enable formation of joint strategy and action including lobbying with the Government. The possibility of filing an appropriate writ petition with Delhi High Court and / or Hon'ble Supreme Court is also being examined. We have also submitted detailed memorandum to the Chief Minister of Delhi, Urban Development Minister Jai Pal Reddy, State Urban Development Minister Ajay Makan and Commissioner, Municipal Corporation of Delhi, to consider the needs of the Chartered Accountants in a more judicious and sympathetic manner. We have outlined detailed justification to permit Chartered Accountants to operate from residential areas without any restrictions or conditions. We strongly believe that Chartered Accountants are providing very important services to the society and their activities are neither hazardous nor create any pollution or create any other nuisance or disturbances to the inhabitants around their offices. There is no justification to prohibit Chartered Accountants to operate from residential areas or to put any condition. It is very important for the Chartered Accountants lobby to become active and take up the issue strongly so that the Government could be persuaded to appropriately modify the Master Plan of Delhi. We need your support to take up the issue with the judiciary, Members of Legislative Assembly, Members of Parliament and the Minister of Urban Development besides Senior Leaders of the Congress, BJP and other political parties. The issue can be effectively taken up with the help of individual connectivity and relationship of Chartered Accountants. Today it is Delhi, tomorrow it may be any other. If we are able to effectively take up this issue for Delhi, it will be much easier to similarly convince the other State Governments to permit Chartered Accountants to operate freely from residential areas. Kindly feel free to get in touch with me at my Mobile No. 9811040004 or at my E-mail : vinodjainca@gmail.com or vinodjain@inmacsindia.com. Let us unitedly fight for this common cause for the benefit of Chartered Accountants community, society and the Indian economy.

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