Appellate Authority Reduces ICAI's Disciplinary Action: CA’s Removal Period Reduced to 10 Years
The Appellate Authority reduces Hyderabad CA’s removal period from ICAI register to 10 years for professional misconduct.
The Appellate Authority modified a disciplinary order issued by the Institute of Chartered Accountants of India (ICAI) against a Hyderabad-based Chartered Accountant, reducing his removal period from the ICAI Register of Members from permanent to 10 years. Initially, the ICAI’s Disciplinary Committee had found Hyderabad-based Chartered Accountant guilty of professional...
The Appellate Authority modified a disciplinary order issued by the Institute of Chartered Accountants of India (ICAI) against a Hyderabad-based Chartered Accountant, reducing his removal period from the ICAI Register of Members from permanent to 10 years.
Initially, the ICAI’s Disciplinary Committee had found Hyderabad-based Chartered Accountant guilty of professional misconduct under Clauses (5), (6), (7), (8), and (9) of Part I of the Second Schedule of the Chartered AccountantsAct, 1949. The Committee ordered his permanent removal from the register of members and imposed a fine of Rs. 5,00,000.
Aggrieved by the decision, CA filed an appeal (Appeal No. 01/ICAI/2014) before the Appellate Authority under Section 22G of the Act. During the period when the Appellate Authority was not functional, he also approached the Delhi High Court, which granted an interim stay on April 30, 2014, until the disposal of the appeal.
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After hearing both parties, the Appellate Authority issued an order on March 25, 2025, reducing the disciplinary penalty from permanent removal to a 10-year suspension, effective from June 3, 2025.
The Central Government, through the powers conferred under Section 20(2) of the Chartered Accountants Act, 1949, read with the Chartered Accountants Regulations, 1988, officially notified the revised action in The Gazette of India.
This case highlights the importance of accountability in the accounting profession and the multi-level disciplinary framework established to ensure fairness and transparency. The fact that the penalty was modified on appeal reflects both the gravity of the misconduct and the need for proportionate punishment.
CA will remain barred from practicing as a Chartered Accountant until June 2035, after which his name may be restored to the Register of Members, subject to applicable conditions.
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