In a recent ruling, the Andhra Pradesh High Court stayed the publication of a notification issued by the Institute of Chartered Accountants of India ( ICAI ) removing a Chartered Accountant (CA) name from its register of members. The CA was accused of creating fake GST invoices and fraudulently claiming input tax credit.
CA Akshay Jain, an associate member of the Institute of Chartered Accountants of India (ICAI) practicing since December 15, 2016, filed the writ petition challenging the disciplinary action taken by ICAI’s Disciplinary Committee. The complaint against him was filed by the Director General of GST Intelligence on January 25, 2021, alleging professional misconduct.
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The petitioner’s counsel argued that the Disciplinary Committee failed to follow the due process under the Chartered Accountants Act, 1949, and that the petitioner was not given the opportunity to cross-examine witnesses and claimed the proceedings were conducted in a formalistic and arbitrary manner.
On October 24, 2024, the committee found him guilty and proposed a five-year removal from ICAI’s membership register which was effective January 3, 2025. The respondent ( ICAI ) defended the matter by arguing that the petitioner had an alternative statutory remedy under Section 22(G) of the Chartered Accountants Act to appeal the decision.
The respondent’s counsel pointed out that the petitioner approached the court without exhausting this remedy and failed to allege any procedural malafide or violation of natural justice.
Justice Venkateswarlu Nimmagadda observed that the petitioner had bypassed the statutory appeal process and the urgency of the matter warranted interim relief. The court stayed the publication of the Gazette notification removing the petitioner’s name from the ICAI register, effective January 3, 2025, until the petitioner files a statutory appeal.
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The court directed the petitioner to file an appeal before the Appellate Authority within four weeks along with an interlocutory application seeking interim suspension of the disciplinary proceedings. The respondents were directed to communicate the court’s decision to the concerned parties. The writ petition was disposed of and the petitioner was advised to proceed with the appellate mechanism. The court did not impose costs on either party.
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