ICAI Notifies One-Year Removal of Chartered Accountant Following Delhi HC Order [Read Notification]
The Court had found CA guilty of “other misconduct” under Section 22 read with Section 21 of the Act, and directed that his name be removed from the ICAI Register of Members for one year.
The Institute of Chartered Accountants of India ( ICAI ) has officially notified the removal of a Chartered Accountant ( CA ) from the Register of Members for a period of one year. The notice was issued following the order passed by a Division Bench of the Delhi High Court.
As per the Gazette of India notification dated 4 February 2026, which was published on 11th February 2026, the action has been taken following the High Court’s order dated 23 December 2025 in CHAT.A.REF 2/2018 under Section 21(6)(c) of the Chartered Accountants Act, 1949.
The Court had found Chartered Accountant Kishan Gupta guilty of “other misconduct” under Section 22 read with Section 21 of the Act, and directed that his name be removed from the ICAI Register of Members for one year.
Background of the case and Delhi HC’s decision
SEBI, by an order dated 12.12.2002 under Section 11B of the SEBI Act and the PFUTP Regulations, found serious irregularities in the public issue of Bharthari Financial Services Ltd. (BFSL).
The allegations included irregular subscription and allotment of shares through ante-dated stock invests issued by banks, involving crores of rupees, and filing of incorrect information regarding encashment of those instruments.
Based on SEBI’s communication, ICAI treated the matter as “information” of other misconduct against the respondent, a Chartered Accountant who was also Chairman and Whole-time Director of BFSL. It noted that he failed to provide clarifications despite repeated notices.
ICAI initiated disciplinary proceedings under the Chartered Accountants Act and Regulations. As no satisfactory reply was filed, a prima facie opinion of misconduct was formed and the case was referred to the Disciplinary Committee.
After hearings, the Committee found that the respondent-CA had connived with another CA, Ashok Chawla, in arranging finance and obtaining ante-dated stock invests after closure of the public issue, facilitated irregular allotments, accepted withdrawn applications, and allowed share certificates to be issued without valid funds all to the detriment of public investors.
It concluded that, as Chairman and Whole-time Director, he was directly responsible and his conduct amounted to “other misconduct” under Sections 21 and 22 of the Act.
Though the respondent later denied charges in a written representation, the ICAI Council accepted the Committee’s report and referred the matter to the High Court recommending removal of his name from the register for one year.
The High Court said that “This Court would like to observe that CAs ought to maintain the highest level of ethics and integrity, not only in the interest of their clients but also to ensure that probity and sanctity are not compromised in any manner as CAs are not merely professionals engaged by their clients, but are protectors and guardians of financial markets on which a nation depends.
“In exercise of powers under Section 21(6) of the Act, it is directed that the respondent no. 1 shall be suspended from the membership of the ICAI for a period of one year. During this period, the respondent no. 1 is restrained from rendering any services as a Chartered Accountant as recognised by the Section 21(5) of the Chartered Accountants Act, 1949”, decided the bench of Justice V. Kameswar Rao and Justice Vinod Kumar
Read HC Judgment of CICA vs Kishan Gupta :
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