CA Engaging in any Other Profession Without Seeking Permission of Council is Guilty of Professional Misconduct: ICAI [Read Order]
CA – CA Engaging in any Other Profession – Profession – CA Engaging in any Other Profession Without Seeking Permission – taxscan
CA – CA Engaging in any Other Profession – Profession – CA Engaging in any Other Profession Without Seeking Permission – taxscan
The Institute of Chartered Accountants of India (ICAI) ruled that a Chartered Accountant engaging in any other profession without seeking permission of Council is guilty of professional misconduct.
The Complainant Bank, being lead bank had provided Comprehensive Credit facilities to M/s Metal Closures (P) Ltd (hereinafter referred to as the 'Company') under consortium agreement aggregating to Rs. 183.65 crores with other banks. The account of the Company was classified as Non-Performing Assets (NPA) as per RBI norms.
Based on the decision of the consortium, the Forensic audit of accounts of the Company was conducted which revealed some adverse features on the books of accounts maintained by the Company. The Respondent, CA B Prashanth Hegde, was functioning as Managing Director and Chairman of the said Company.
The Complainant has alleged that the Respondent while functioning as Managing Director of the Company as well as holding authorised signatory powers for all the bank accounts of the said Company has simultaneously continued in the position as a partner with the Respondent's firm.
The Board observed that the Respondent had signed several documents and correspondences with banks relating to day to day operations of the company not only as Chairman of the company but also as the Managing director/Authorised Signatory of the company.
A Two-Member Bench of the Board comprising CA. Rajendra Kumar P, Presiding Officer and Ms. Dolly Chakrabarty (IAAS Retd.), Government Nominee observed that “ Considering the attendant circumstances, the evidence put forth during the proceedings and the submissions on record, the Board, viewed that it is conclusively proved that the role of the Respondent in the alleged company clearly exceeded beyond that of the Director Simplicitor and he ought to have sought the prior permission of the Council before engaging himself in any business or occupation other than profession of Chartered Accountant. Accordingly, the Respondent is held Guilty in respect of the Charge alleged.”
To Read the full text of the Order CLICK HERE
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