ICAI Suspends CA for 30 Days for Acting as Company Director and Engaging in Business Without Permission [Read Notification]
ICAI has suspended a Chartered Accountant for 30 days for serving as a company director and engaging in business without its permission
The Institute of Chartered Accountants of India (ICAI) has suspended one of its members from practice for 30 days after finding the individual guilty of professional and other misconduct. The decision was taken by the Board of Discipline following a detailed inquiry.
According to the disciplinary order, the member was serving as a Director in multiple companies while also holding a full-time Certificate of Practice as a Chartered Accountant. Under the Chartered Accountants Act, 1949, this is not permitted unless specific approval is obtained from the Council of ICAI. By doing so without permission, the member violated Item (11) of Part I of the First Schedule, which prohibits CAs in practice from engaging in any business or occupation other than the profession of accountancy.
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The order also noted a violation of Item (2) of Part IV of the First Schedule, which covers other misconduct that may bring disrepute to the profession. These provisions exist to ensure CAs remain dedicated to their professional duties and avoid conflicts of interest that could undermine independence and integrity.
After affording the member an opportunity to be heard, the Board of Discipline directed that the individual’s name be removed from the Register of Members for a period of 30 days, effective September 19, 2025.
During this suspension, the individual will not be entitled to practice as a Chartered Accountant, issue audit certificates, or represent themselves as a member of ICAI.
The timing of the suspension is sensitive, as the statutory deadline for filing audit reports is approaching soon. This could create hurdles for the suspended CA’s clients, who may now need to urgently appoint a new auditor to complete filings within the due date.
Once the suspension period ends, the member’s name will be restored to the Register, allowing them to resume practice in accordance with ICAI’s rules and regulations.
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