ICAI Penalises CA for Certifying False Form 10, Imposes ₹2 Lakh Fine [Read Order]
ICAI has fined a chartered accountant Rs. 2 lakh for careless certification of Form 10, reminding professionals that due verification and safety of digital signature is very important.
![ICAI Penalises CA for Certifying False Form 10, Imposes ₹2 Lakh Fine [Read Order]](https://images.taxscan.in/h-upload/2025/12/31/2116122-icai-penalises-ca-certifying-false-form-10-imposes-fine-taxscan.webp "ICAI Penalises CA for Certifying False Form 10, Imposes ₹2 Lakh Fine [Read Order]")
The Institute of Chartered Accountants of India (ICAI) has penalized the Chartered Accountant (CA) for certifying false Form 10 without verification and imposed a fine of Rs. 2 lakh which has to be paid within 60 days. The case started after a complaint was filed by the Registrar ofCompanies (ROC), West Bengal, during inspection of a company. It was found that the CA had certified...
The Institute of Chartered Accountants of India (ICAI) has penalized the Chartered Accountant (CA) for certifying false Form 10 without verification and imposed a fine of Rs. 2 lakh which has to be paid within 60 days.
The case started after a complaint was filed by the Registrar ofCompanies (ROC), West Bengal, during inspection of a company. It was found that the CA had certified Form 10, which is used for registration of charge for debentures. The form showed that debentures of Rs. 1 crore were secured by mortgage of property.
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But as per the company’s balance sheet as on 31 March 2010, the company had no fixed assets at all, and only very small current assets of around Rs. 4 lakh. Still, the form was certified and even no mortgage deed was attached.
During the proceedings, the CA said that his digital signature was misused and he was never engaged by the company or met its directors. He also said that he had earlier filed a police complaint in some other case for misuse of his digital signature. Later, during the inquiry, he filed another police complaint in November 2024 saying his digital signature was misused in this case also.
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The Disciplinary Committee disagreed. The Committee observed that the CA was informed about the complaint in December 2023 but he filed the police complaint almost one year later.
The Committee also said that the earlier police complaint was related to a different company and cannot explain what happened in this case. It was also clearly stated that a digital signature is personal responsibility of the CA, and it must be kept safe.
After looking at all facts, ICAI concluded that certifying a charge of ₹1 crore when the company had almost no assets shows lack of due care and negligence. Because of this, the CA was held guilty of professional misconduct.
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