The Disciplinary Committee (Bench-IV) of the Institute of Chartered Accountants of India (ICAI), constituted under Section 21B of the Chartered Accountants Act, 1949, has ordered the removal of CA Narinder Kumar (Membership No. 097974) from the register of members for a period of one year. The case was initiated following a complaint filed by Gaurav Bansal, Deputy Director of Income Tax (Investigation), Gurugram. The Committee, in its findings dated 5 February 2024, held the respondent guilty of professional and other misconduct under Clauses (5), (6), (7), and (8) of Part I of the Second Schedule and Clause (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949. Despite multiple notices served through speed post and email, CA Narinder Kumar failed to appear before the Committee during hearings on 19 March 2024 and did not submit any written representation or defense regarding the charges. The Committee observed that the respondent was provided several opportunities at both the investigation and punishment stages but failed to utilize them. Based on the prima facie opinion of the Director (Discipline) and its earlier findings, the Committee concluded that the charges of professional misconduct were established. Accordingly, the Committee decided that the appropriate penalty in this matter would be the removal of the respondent’s name from the register of members for one year. The order was signed by CA Ranjeet Kumar Agarwal (Presiding Officer), Shri Jiwesh Nandan (IAS, Retd.), Ms. Dakshita Das (IRAS, Retd.), CA Mangesh P Kinare, and CA Abhay Chhajed on 16 May 2024.
Summary of Disciplinary Committee which formed the base for order
The Institute of Chartered Accountants of India (ICAI) Disciplinary Committee has held CA Narinder Kumar guilty of professional and other misconduct and ordered removal of his name from the register of members for one year. The proceedings stemmed from a complaint filed by a Deputy Director of Income Tax regarding the respondent’s audit of entities controlled by Kishori Saran Goel, alleged to be “paper entities” used for accommodation entries. The Director (Discipline), in a prima facie opinion dated November 2019, found the respondent guilty under Clauses (5), (6), (7), and (8) of Part I of the Second Schedule and Clause (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949. Despite repeated notices, CA Narinder Kumar failed to attend hearings or submit written defenses. The Committee noted that his audits lacked due diligence and failed to disclose material facts, even though he admitted knowledge of the entities’ fictitious operations. Key evidence included statements of Goel admitting the operation of paper entities for bogus billing and accommodation entries, digital signatures of proprietors found with the respondent, and email exchanges suggesting his awareness and possible facilitation of irregularities. The Committee observed that Kumar did not maintain or submit audit working papers to substantiate proper verification during audits. While Kumar submitted documents claiming the firms were engaged in legitimate trading, the Committee held these insufficient to counter allegations of misconduct. Concluding that Kumar violated professional standards by not reporting irregularities and failing in his duty to maintain the profession’s integrity, the Committee imposed a one-year suspension to uphold accountability.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE [BENCH-IV (2024-2025)]
[Constituted under Section 21B of the Chartered Accountants Act, 1949)
ORDER UNDER. SECTION 21B(3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007.
[PR/G/335/17PD/344/2017/0C/1340/2020]
In the matter of:
Sh. Gaurav Bansal
Gurugram (HARYANA)
…. Complainant
Versus
CA. Narinder Kumar
…. Respondent
MEMBERS PRESENT:
1. CA. Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Shri Jiwesh Nandan, I.A.S (Retd.), Government Nominee (In person)
3. Ms. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
4. CA. Mangesh P Kinare, Member (Through VC)
5. CA. Abhay Chhajed, Member (In person)
DATE OF HEARING : 19th MARCH, 2024
DATE OF ORDER : 16th May, 2024
1. That vide Findings dated 05.02.2024 under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee was inter-alia of the opinion that CA. Narinder Kumar (hereinafter referred to as the Respondent”) is GUILTY of Professional and Other Misconduct falling within the meaning of Clauses (5), (6), (7) and (8) of Part I of Second Schedule and Clause (2) of Part-IV of First Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said Findings, an action under Section 21B(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and a communication was addressed to him thereby granting an opportunity of being heard in person/ through video conferencing and to make representation before the Committee on 19th March 2024.
3. The Committee noted that on the date of hearing on 19th March 2024, the Respondent was not present, despite the fact that notice of the present meeting was duly served upon him through speed post and email. The Committee further noted that the Respondent neither appeared at the stage of hearing(s) in instant matter despite extending him several opportunities, nor he made any submissions on prima facie opinion of the Director (Discipline) holding him GUILTY of Professional and Other Misconduct. The Committee also noted that the Respondent did not make any written submissions at the hearing stage as well as at the punishment stage.
4. The Committee considered the reasoning as contained in Prima Facie Opinion/Findings holding the Respondent ‘Guilty’ of Professional and Other Misconduct.
5. Thus, keeping in view the facts and circumstances of the case and material on record, the Committee noted that ample opportunities were granted to the Respondent to defend the charges, but he failed to appear before it at the stage of hearing and at the stage of punishment. The Respondent also failed to file any submission to defend the charges contained in the prima facie opinion/Findings. The Committee noted that it had accepted the reasoning given against the charge(s) holding the Respondent guilty of Professional and Other Misconduct in Prima Facie Opinion of the Director (Discipline). Hence, the Professional and Other Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 05th February 2024, which is to be read in consonance with the instant Order being passed in the case.
6. Accordingly, the Committee was of the view that the ends of justice would be met if punishment is given to him in commensurate with his Professional and Other Misconduct.
7. Thus, the Committee ordered that the name of the Respondent i.e., CA. Narinder Kumar be removed from the register of members for a period of 01 (One) year.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(SHRI JIWESH NANDAN, I.A.S. (RETD.})
GOVERNMENT NOMINEE
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
