On July 2, 2026, the Professional Development Committee of the Institute of Chartered Accountants of India (ICAI) released a crucial announcement addressing the issue of underpricing in professional engagements.
Strict Action Against “Extremely Low” Bids: The ICAI Council has taken a firm stance against members or firms that quote extremely low fees to win tenders. The Council has decided that if a quoted fee is not commensurate with the size, value, volume, manpower requirements, and the specific nature of the work involved, it will be viewed as a matter of concern.
Escalation to the Director (Discipline): To ensure professional standards are maintained, the Council has introduced a strict accountability measure. In cases where the fee quoted is found to be unjustifiably low, the matter can now be directly referred to the Director (Discipline) for appropriate disciplinary action.
A Universal Rule for All Tenders: Importantly, the Council has ensured that there are no loopholes regarding the type of work being bid on. The announcement clarifies that this disciplinary decision applies universally, whether or not the tender is issued for services exclusively reserved for chartered accountants.
By empowering the Director (Discipline) to investigate disproportionately low tender quotes, the ICAI aims to discourage unhealthy competition and ensure that the value, effort, and manpower required for professional assignments are properly respected and compensated.