Lack of transparency in CA exam and exorbitant fee charged by CAs figures in Analysis of MCA grievances

Lack of transparency in CA exam and exorbitant fee charged by CAs figures in Root Cause Analysis of grievances related to Ministry of Corporate Affairs

MCA Grievance Analysis and Systematic Reforms Report 

Government has today released DARPGs Grievance Study Analysis of 20 Ministries. The study was carried by Quality Council of India, as per the mandate given by DAR&PG from August 2016 to March 2017, covering more than 100 grievance categories across 20 Ministries/Departments.

The three point approach for grievance analysis study included data analysis, root cause analysis, and systemic reforms recommendations for the service issues. 

As per the DARPGs Grievance Study Analysis related to Ministry of Corporate Affairs, the highest grievances were received by Registrar of Companies ( ROC ) Uttarakhand, which accounted for 14% of grievances received. Another 11% of the grievances were received each by ROC of West Bengal and Delhi, another 10% by Registrar of Companies (ROC) of Maharashtra and another 5% by Policy Section, ROC Chennai and ROC Madhya Pradesh.

Grievance data in top 10 divisions was deep dived and 10% of sample was analyzed. The sample size was 450 against 4498 number of grievances.

For the Ministry of Corporate Affairs, the top most issue, accounting for 48% of grievances was no return of deposited money, followed by queries regarding CA exams and results, which accounted for another 12% of the grievances, followed by issues in registration of new company and glitches in MCA form website, accounting for 3% each.

As per the study, the focus service for root cause analysis was as under:

As per the study report, the above root causes of issues was further dug deeper for root cause analysis. The Root Cause Analysis of grievances related to Ministry of Corporate Affairs were as under:

Based on the key root cause for improper delivery of service, corresponding recommendations were identified and designed. Five recommendations have been made based on best practices adopted by state governments and other stakeholders as under:

KEY RECOMMENDATIONS

This key recommends have been made for the following priority systemic reforms:

1. Drive monitoring (through Regional Office Centers) of financial disbursements. This can be achieved via collaborating with initiative of ‘corporate data management’ and deploying a dashboard that will ensure preemptive action before any investor fraud.
2. Accreditate medium and high risk product companies through NABCB (National Accreditation Board for Certification Bodies) for better standardization and easier compliance
3. Better communication by Institute of Chartered Accountants of India (ICAI) authority regarding whom should citizens reach out to regarding CA exams process.

Grievance Analysis and Systematic Reforms Report for various Ministries can be downloaded from the following links