Clarification on acting as recovery consultant in Banking Sector
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The members of the profession have sought the Institute’s view as to whether the Chartered Accountants in Practice acting as Recovery Consultant for recovery of Non-Performing Assets (NPA) of Banks under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SRFA&ESI) can charge fee on percentage basis as is permitted under Regulation 192 of the Chartered Accountants Regulations, 1988 for ‘receiver’ or ‘liquidator’.
The Institute has examined the matter in detail and is of the view that Recovery Consultant cannot be equated with ‘receiver’ or ‘liquidator’ provided under Regulation 192 of the Chartered Accountants Regulations, 1988 and as such, the charging of fee by Recovery Consultant in Banking Sector on percentage basis is not permissible.
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