The
Delhi High Court on Monday sought the Centre's stand on a petition challenging
the inclusion of chartered accountants, company secretaries and cost
accountants within the ambit of reporting entities under the anti-money
laundering law.
A
bench headed by Chief Justice Satish Chandra Sharma granted time to the
Additional Solicitor General Chetan Sharma to seek instructions on the petition
by Rajat Mohan, a practising chartered accountant (CA).
The
court, while listing the case for further hearing on October 4, noted that at
this stage, the petitioner was not extending his challenge to the legality of
certain provisions under the Prevention of Money Laundering Act with respect to
the consequent liabilities imposed upon the professionals.
Observing
that CAs were the experts in the field of accounting and the enhanced due
diligence was with respect to specified transactions only, the bench -- also
comprising Justice Sanjeev Narula-- asked the petitioner to state the problem
with the new regime.
Senior
advocate Trideep Pais, appearing for the petitioner, argued that the inclusion
is turning professionals into police on vague and subjective basis, which is
also in violation of the fiduciary relationship that they share with their
clients.
Noting
that onerous obligations have been put on practising CAs even when the client
is not facing any criminal case, the senior lawyer said, I can be prosecuted in
PMLA...you are surveying your own client.