The Institute of Chartered Accountants of India ( ICAI ) has removed the name of the Chartered Accountant ( CA ) for 2 months with a fine of Rs. 20,000 for failing to visit the registered office of the company and certified the incorrect details in INC-22.
The charge against the Respondent-CA Karthik Mohan arises from gross negligence in certifying Form No. INC – 22 of M/s. Vocca Technology Private Limited (‘Company’).
Following the findings, action under Section 21B(3) of the Chartered Accountants Act, 1949 was considered against the CA. The CA was granted an opportunity to be heard in person or through video conferencing, with a hearing scheduled for March 19th, 2024.
During the hearing, held via video conferencing, the Respondent-CA presented verbal submissions, reiterating previous claims that he had diligently reviewed all documents before certifying Form INC-22. He submitted that due to COVID travel restrictions, he conducted a video call to verify the Company’s registered office, although no recording was made. Instead, he obtained photos and videos of the office before certification.
The Committee deliberated on the Respondent’s submissions and found discrepancies. Contrary to the Respondent’s claim of travel restrictions in Delhi at the time of certification, the Committee noted no such restrictions.
Moreover, the Respondent’s declaration of personally verifying the registered office conflicted with his admission of using a video call for verification, without providing concrete evidence. This failure to ensure compliance with the Companies Act, 2013, regarding the registered office’s requirements, constituted professional misconduct.
Consequently, the Committee ruled that the Respondent’s conduct warranted disciplinary action. Not only did he incorrectly certify details in Form INC-22, but he also overlooked discrepancies in the Company’s documentation.
Thus, the Committee ordered the removal of CA. Karthik Mohan’s name from the Register of Members for a period of two months. Additionally, a fine of Rs. 20,000/- (Rupees Twenty Thousand only) was imposed, with a deadline of 90 days for payment. Failure to comply would result in a further 30-day removal from the Register of Members.
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