CA FIRM PROPOSED ₹1 AS ITS STATUTORY AUDIT FEE AND WON THE TENDER FROM NATIONAL HIGHWAYS AUTHORITY OF INDIA (NHAI) FOR ITS NEW SUBSIDIARY, RAAJMARG INFRA INVESTMENT MANAGERS PRIVATE LIMITED.

 CA FIRM PROPOSED ₹1 AS ITS STATUTORY AUDIT FEE AND WON THE TENDER FROM NATIONAL HIGHWAYS AUTHORITY OF INDIA (NHAI) FOR ITS NEW SUBSIDIARY, RAAJMARG INFRA INVESTMENT MANAGERS PRIVATE LIMITED. 

A CA firm ,Chandra Gupta & Associates proposed ₹1 as its Statutory Audit fee…And surprisingly won the bid for a recent National Highways Authority of India (NHAI) tender. 

About 43 firms competed nationwide, most quoted normal fees. 

Despite the shockingly low fee, the bid was accepted, making them the statutory auditor for Raajmarg Infra Investment Managers Private Limited. 

IS IT EVEN LEGAL TO QUOTE ₹1? 

The ICAI issues recommended minimum fees, but they aren’t binding law. 

Audit Firms can undercut these recommendations, especially in tenders. 

So legally, the ₹1 bid is allowed 

POINTS DAZZLING IN MIND 

“If the lowest bid always wins, can quality even survive?” 

“Is audit work now cheaper than a cup of chai?” 

They may have quoted ₹1 bid by planning to provide other services and reimbursement of expenses from the client. 

They might have quoted  ₹1 bid to bid for new projects by showing this one as their client in the near future. 

Will ICAI take further action and issue binding notification to prevent its members to do such scrupulous practice in future. 

R V SECKAR FCS,LLB 79047 19295