ICAI Announces Action Against CA Firms Quoting Extremely Low Tender Fees:

The Professional Development Committee of the Institute of Chartered Accountants of India (ICAI) has made an important announcement dated July 02, 2026, regarding the fees quoted by chartered accountants and CA firms while participating in tenders. The announcement has been made after a decision by the ICAI Council.

As per the new decision, if a member or a CA firm submits a fee quote that is considered extremely low and does not match the size, value, volume, manpower requirement, or nature of the work involved, the matter may be referred to the Director (Discipline) for appropriate action. The objective is to discourage unrealistic pricing that could compromise the quality of professional services or undermine fair competition within the profession.

The ICAI has clarified that the present decision will apply irrespective of whether the tender relates to services that are exclusively reserved for chartered accountants or to services that are open to other professionals as well. In other words, quoting an unreasonably low fee may attract disciplinary scrutiny in all types of tenders.

Members and CA firms are anticipated to carefully assess the work involved before submitting their bids and avoid quoting fees that are disproportionately low compared to the requirements of the engagement.