ICAI Finds CA not Guilty of Professional Misconduct on alleged Certification of Form INC-22A to Non-Existent Company

The Institute of Chartered Accountants (ICAI) has determined that the Chartered Accountant (CA) accused of providing Form INC-22A to a non-existent company is not guilty of professional misconduct.

The Complainant Department, Registrar of Companies, MCA, Mumbai, in their complaint submitted that the Respondent- CA Anil Yadav has certified the Form INC-22A under Rule 25A of the Companies (Incorporation) Rules, 2014 with respect to ACTIVE (Active Company Tagging Identities and Verification) for M/s China First Metallurgical Construction India Private Limited (company). The ROC stated that on physical verification of the registered office of the Company, no such Company existed at the given address.

The Respondent submitted that the registered office of the Company at Flat No. B/1302, 13″ Floor, Bhoomi Paradise, Sector-II, Sanpada (E), Navi Mumbai, Thane, Maharashtra is since I”‘ February 2011 and relevant Form-18 duly certified by a Company Secretary has been filed and the same has been taken on record by the Registrar of Companies without pointing out any infirmities in the Form.

During the course of hearing the Committee noted that with respect to verification of registered office of the Company, the Respondent has mentioned that though he had not physically verified the registered address of the Company himself, however, he has satisfied himself about the existence of the Company by deputing Mr. Piyush Jawar as his representative for carrying out the physical verification.

On examination of the witness of the Respondent i.e., Mr. Piyush Jhawar, the Committee noted that Mr. Piyush Jhawar submitted following on oath:

1. That he is the brother of the Respondent.
2. That he has visited the site of the Company located at Bhoomi paradise, Navi Mumbai.
3. That he has verified that the mentioned directors of the Company were present at the aforesaid address, and that he had also taken pictures of the directors with the office.
4.  

After reviewing the records, the statements provided by the Respondent’s counsel and the witness, the Committee observed that the Respondent has taken steps to confirm the Company’s existence, albeit indirectly through his representative Mr. Piyush Jhawar.

Mr. Jhawars’s testimony under oath indicates that the Respondent fulfilled his professional responsibilities diligently regarding the certification of Form no. INC-22A for the Company, and the Committee found no instances of negligence on the Respondent’s part.

Thus, the Disciplinary Committee of ICAI has concluded that the Respondent is not guilty of Professional and Other Misconduct falling within the meaning of Item (7) of Part I of Second Schedule and Item (2) of Part IV of First Schedule to the Chartered Accountants Act, 1949.

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