The Institute of Chartered Accountants of India ruled that Chartered Accountant acting as intermediary seeking investments from independent personnel is guilty of professional misconduct.
The crux of allegations in the instant case relates to the cheating and fraud done by the Respondent to the Complainant and his relatives for an amount Rupees fifty lakhs which has been alleged to be paid in cash to the Respondent for investment in some building projects. The Complainant also alleged that the Respondent provided bogus entries through some bogus companies.
The complainant stated that the real face of the respondent came in front when he started rigorous follow up with the Respondent and finally, he arranged the meeting with the builder, where builder stated about some bogus investment entries through Respondent and further disclosed no more amount is payable to the Respondent. Thereafter on realizing that he has been duped by the respondent, the complainant filed present complaint.
The Board consisting of CA Rajendra Kumar P, Presiding Officer and Ms. Dolly Chakrabarty (IAAS, retd.), Government Nominee observed that builder the role of the Respondent as a facilitator/intermediary in the said transaction is undisputed. Also, in his Written Statement submitted at Prima Facie Opinion stage, the Respondent clearly admitted of his presence in the meeting with the builder and of arranging the said meeting.
Thus, the Board observed that the said transactions of the Complainant with the builder were in the complete knowledge of the Respondent.
The Board was of the view that a Chartered Accountant can indulge in any other business or occupation apart from being in practice with the permission of the Council depending upon the engagement. It is expected of a Chartered Accountant to use his professional acumen in the interest of the profession rather than indulging in acts which bring disrepute to the profession.
The Board went on to add that in the instant case, the act of the Respondent of being the facilitator/intermediary in the project of constructing buildings/flats wherein he sought investments from independent personnel which subsequently turned out to be fraudulent is highly indecorous and amounts to Misconduct on the part of the Respondent. Hence, the Respondent was held Guilty in respect of the charge alleged.
Thus, upon consideration of the facts of the case, the consequent misconduct of CA. Radhey Shyam Bansal and keeping in view his oral and written representation before it, the Board decided to remove the name of CA. Radhey Shyam Bansal from the Register of Members for a period of 1 (One) month and also imposed a fine of (Rs. One Lakh only) upon him.
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