The Institute of Chartered Accountants of India (ICAI) continues its efforts to eradicate fraud and misrepresentations in the Chartered Accountant’s profession. Last day, two Chartered Accountants from Delhi and Gujarat were removed by the Institute for indulging in activities amounting to ‘profesional misconduct.’
Mr. Ashok Kumar, a Delhi based Chartered Accountant was barred from the roll of ICAI for one year, or manipulating Public Issue of Company. He was already debarred by the Securities Exchange Board of India (SEBI) for 5 years after holding him guilty of the same offense.
A two-judge bench of the Delhi High Court, while confirming the decision of the ICAI vide its order dated 24th November 2017, had observed that the entire CA fraternity should ensure that their probity and sanctity are not compromised in any manner.
Following the High Court order, the Institute has now notified that “the name of Shri Ashok Kumar stands removed from the Register of Members for a period of one-year w.e.f. 01.03.2018. During the aforesaid period, he shall not practice as a Chartered Accountant in terms of the said order of the Hon’ble High Court of Delhi.”
Vide another Notification, a Chartered Accountant Shri Manubhai A. Panchal was removed b the ICAI for committing misconduct. Earlier, disciplinary proceedings were initiated against him, on the basis of the re-audit report filed by the Registrar of Cooperative Societies, Gujarat State wherein some serious allegations were made. The report stated that the respondent had neither disclosed nor reported serious irregularities in the accounts of the Bank and that the respondent had failed to disclose material misstatements which were not disclosed also in the financial statement of the Bank though they were known to him.
The Gujarat High Court has confirmed the action of the disciplinary committee and upheld its decision to remove the CA for two years from the roll of the ICAI.
Accordingly, the ICAI now removed the name of Shri Manubhai A. Panchal from the Register of Members for a period of two years w.e.f. 01.03.2018. “During the aforesaid period he shall not practice as a Chartered Accountant in terms of the said order of the Hon’ble High Court of Gujarat.,” the Notification said.
Nearly eight Chartered Accountants have been thrown out by ICAI in a similar manner during the last couple of months.
Recently, the Government has decided to go stringent against the Chartered Accountants for indulging in money laundering and other financial frauds. Fed up with such cases, the Government is going to implement the National Financial Reporting Authority.”
ICAI who strongly opposes this move is taking all possible efforts to regulate its members.
Last day, the newly elected President of ICAI, CA. Naveen N. D. Gupta said that “CA profession owes its sustainability to the strong regimen of ethics. Time of disruptions is a time for introspection and taking corrective actions if so needed. Let us all pledge to stand united in our avowed task of being guardians of financial probity. As your first constituent, I consider it my moral duty to start my first communication on a note of awareness to take all possible steps, if so needed, to continue enjoying the confidence and trust of our stakeholders. While I assure the fraternity of the unstinting efforts by Council, its Boards, and Committees, you all have an equal role in upholding and abiding by the virtues which have brought glory to the profession so far.”
Subscribe Taxscan Premium to view the Judgment
