CA Akshay Jain Vs Institute of Chartered Accountants of India and Others (Andhra Pradesh High Court)
In Akshay Jain vs. Institute of Chartered Accountants of India (ICAI), the Andhra Pradesh High Court temporarily stayed an ICAI notification that removed the petitioner’s name from its register of members. The petitioner, a practicing Chartered Accountant since 2016, faced disciplinary action following allegations by the GST Intelligence Directorate. He was accused of issuing fake GST invoices to claim ₹5.08 crores as input tax credit without actual supply of goods or services. The ICAI’s disciplinary committee found the petitioner guilty and removed his name from the register for five years starting January 3, 2025.
The petitioner challenged the decision, arguing that the disciplinary proceedings violated principles of natural justice. Specifically, he claimed he was not allowed to cross-examine witnesses, and the process lacked fairness. ICAI contended that the petitioner had an alternative remedy under Section 22(G) of the Chartered Accountants Act, which allows for an appeal within 90 days to an appellate authority. While the court acknowledged the statutory remedy, it observed the petitioner’s concerns about urgency and the irreparable harm to his professional reputation.
The court directed the petitioner to file an appeal within four weeks and stayed the publication of his removal in the Gazette of India until the appeal and interim application for suspension are filed. This interim relief ensures procedural compliance and provides the petitioner an opportunity to challenge the findings and penalty in a lawful manner. The petition was disposed of with no costs, and related miscellaneous petitions were also closed.
