NFRA: The threshold limit has to be pragmatic, says Amarjit Chopra

Let us first try to understand why it took five years for NFRA to be notified. The Companies Act 2013, vide Section 132, had envisaged constitution of the NFRA. But due to the efforts of the ICAI, it did not get notified. It was argued by the ICAI that the governing council is composed of 40 members, out of which eight are government nominees. Similarly, the ICAI’s disciplinary committee has government nominees as its members. Also, the number of disciplinary-related cases decided by the ICAI was presented to the government. Barring one or two years, the number of cases decided has been credible. It was also explained that in high-profile cases various courts were granting stay leading to delay in