IS THIS LUCKNOWS OWN ENRON-ANDERSON SAGA ????? This is a classic case of CONFLICT OF INTEREST having similar footprints and issues raised by ENRON - ANDERSON ACCOUNTING SCAM , which once shocked the conscience of entire world and made a Serious dent on the reputation of entire accounting & audit fraternity. The Vicigerant / Regulator of accounting & audit profession in india is ICAI ( Institute of chartered accountants of india) , which so far has not taken suo-moto cognizance of below mentioned case ( Not in public domain so far). The implication of this case is that – People of Uttar Pradesh may suffer a steep hike in their power-tariffs AND once again the integrity of Accounting Professionals has been challenged ( Some say - Howcome a thief is allowed to appoint his own Judge ???? ) . My article is based on media reports and is not intended to defame anyone. Anyone can check the same through this link --- timesofindia.indiatimes/power-hike-proposed-and-cleared-by-same-consultant/articleshow/20418834.cms The facts of the case are as follows :- LUCKNOW: After the power tariff hike, comes the real shocker. TOI has in its possession of documents which show that the consultant who proposed the steep power hike by Uttar Pradesh Power Corporation Ltd (UPPCL) was also the one who got this cleared at UP Electricity Regulatory Commission (UPERC), in clear violation of all norms. UPPCLs consultant was PERCEPT 360 DEGREES CONSULTING LTD and UPERCs consultant was BHUSHAN RASTOGI AND ASSOCIATES . HOWEVER, A CLOSE LOOK REVEALS THAT BHUSHAN RASTOGI, WHO IS A CHARTERED ACCOUNTANT HAS STAKES IN BOTH THE FIRMS. In 2012, UPPCL appointed Percept to work out a new tariff structure. The minutes of the UPPCL board meeting on April 26, 2012 mentions that the consultant was being appointed for a fee of Rs 8 lakh. The consultant was to determine the tariff after compiling the balance sheets of various distribution companies between 2001 and 2007. On May 8, 2013, UPERC secretary A K Srivastava sent out the contract award letter to Bhushan Rastogi and Associates for assisting the commission in finalizing the annual revenue recovery and tariff order for 2013-14. For this the consultant was paid Rs 4.25 lakh. The commission asked the consultant to enter into a contractual agreement within three days — by May 11 — and start work immediately. The UPERC letter was addressed to Flat No. 4, Daffodil Apartments, 4B La Place Bungalows, Shahnajaf Road, Lucknow. Interestingly, the same address had been given by Percept 360 Degrees Consulting Ltd while participating in the contract. Even the phone number and email address of Percept 360 Degree Consulting Ltd and that of Bhushan Rastogi and Associates are the same. Bushan Rastogi, who heads Bhushan Rastogi and Associates, also worked on behalf of Mohit Goyal, vice-president, operations, Percept 360 Degrees Consulting Ltd. This ran contrary to the terms of reference issued by UPERC on May 8 banning any company which is associated with the power utility while determining the tariff. When contacted, UPERC secretary Arun Kumar Srivastava said: The commission is reviewing the matter and will forward its recommendation soon. On the other hand, UPPCL managing director AP Mishra said, the commission had decided the tariff suo moto. Hence it hardly matters as to who is the consultant. I request ICAI to come with a clarification on the conduct of CA.BHUSHAN RASTOGI in interest of entire CA Fraternity. JAI ICAI !!! P.S --- Those who are willing to know the matter more in-depth , kindly check the following links :- timesofindia.indiatimes/city/lucknow/UP-Power-Corporation-Limited-consultant-used-cover-up-to-pull-off-electricity-tariff-scam/articleshow/20514934.cms samachar/Power-punch-Uttar-Pradesh-Electricity-Regulatory-Corporation-stops-all-payments-to-consultant-ngfcNgciici.html timesofindia.indiatimes/power-hike-proposed-and-cleared-by-same-consultant/articleshow/20418834.cms
Posted on: Sat, 22 Mar 2014 21:35:56 +0000
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