Fraud in Consultancy Services: ICAI removes Name of Chartered Accountant, imposes Penalty of Rs 50,000
Fraud in Consultancy Services – Consultancy Services – Fraud – ICAI – ICAI Removes Name of Chartered Accountant – Chartered Accountant – imposes penalty – penalty – taxscan
Fraud in Consultancy Services – Consultancy Services – Fraud – ICAI – ICAI Removes Name of Chartered Accountant – Chartered Accountant – imposes penalty – penalty – taxscan
The Institute of Chartered Accountants of India (ICAI) removed the name of the Chartered Accountant from the Register of Members and imposed a penalty of Rs 50,000 on fraud committed in consultancy services.
The Respondent took undue advantage of being Chartered Accountant and kept the complainant and his wife on false assurance to invest their money in property and earn best profit and make adjustments in the Income Tax etc. The Respondent always succeeded in taking money from the Complainant and his wife as and when they received the same from the builder.
Two copies of the agreement with the builder were prepared and the Respondent kept a copy thereof with him for ready reference. The Complainant and his wife could not judge the conspiracy and in furtherance thereto, two cheques of each totalling to were given to the Complainant. In token of receipt, the Respondent also put his signatures at the back of the agreement. Amount was received in furtherance to the agreement executed with the wife of the Complainant. The Respondent took the said entire amount too.
The Respondent and his family members have received money from the Complainant and his wife under a pre-planned conspiracy in the name of repayment of loan and giving of flat through a builder well known to them. Thus, the Respondent and his family cheated the Complainant and his wife.
A Two Member Bench comprising CA. Rajendra Kumar P, Presiding Officer and Dolly Chakrabarty (IAAS, retd.), Government Nominee observed that “In this regard, the Board observed that although the wife of the Respondent was the proprietor of the entity M/s S.S. Builders, however, the Respondent not only appeared to be the face behind the execution of all transactions in the name of the said entity, but also did public dealings in the name of the said entity.
The Board was of the view that being a Chartered Accountant, he should have ensured that the fine line between his personal and professional interests should have been maintained and he should not have acted in a manner which was detrimental to the interest of the others.
“Thus, upon consideration of the facts of the case, the consequent misconduct of CA. Praveen Kumar Singhvi and Keeping in view his oral and written representation before it, the Board decided to remove the name of CA. Praveen Kumar Singhvi from the Register of Members for a period of 15 (Fifteen) days and also imposed a fine of Rs.50,000/- (Rs. Fifty Thousand only) upon him” the Board concluded.
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