The Institute of Chartered Accountants of India ( ICAI ) was debarred for 90 days with a fine of Rs. 20,000 for certifying the Memorandum of Association ( MOA ) and Articles of Association ( AOA ) without meeting the subscribers or first directors of the company. It was also noted that the CA did not verify the original documents before attaching them to the e-forms.
The charge against the CA pertains to his certification of the subscriber sheet of the Memorandum of Association ( MOA ) and Articles of Association ( AOA ) of M/s Logerak Infotech Private Limited without meeting with the subscribers or first directors of the company.
Additionally, he certified SPICe+, SPICe MOA, and SPICe AOA of the company based on documents received through email, failing to verify original documents before attaching them to the e-forms. This negligence in his professional duties during the certification of incorporation documents has drawn severe scrutiny.
Following the findings of professional misconduct, action under Section 21B(3) of the Chartered Accountants Act, 1949 was contemplated against the Respondent – CA. A communication was addressed to him, granting an opportunity to be heard in person or through video conferencing before the Committee on 19th March 2024.
During the hearing, held via video conferencing, the CA admitted his mistake in the matter, reiterating his previous submissions. The Committee duly considered his verbal and written representations alongside the findings of the Disciplinary Committee.
It established that CA’s gross negligence in certifying the e-forms SPICe+ MOA and SPICe+ AOA for the incorporation of M/s Logerak Infotech Private Limited was undeniable. Despite signing the forms as a witness, he had never met the subscribers, and the accompanying documents did not meet the requirements stipulated by relevant regulations.
Consequently, the Committee found the CA guilty of professional misconduct as per Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. To ensure justice is served, the Committee deemed it necessary to impose appropriate punishment commensurate with the severity of the misconduct.
Therefore, the ICAI Disciplinary Committee ordered that respondent- CA’s name be removed from the Register of Members for a period of 90 days, accompanied by a fine of Rs. 20,000/- (Rupees Twenty Thousand only), to be paid within 90 days of receiving the order. Failure to comply with the fine payment within the stipulated time frame would result in an additional removal period of 30 days from the Register of Members.
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