The Institute of Chartered Accountants of India’s Disciplinary Committee (Bench-II) has ordered the removal of CA. Tanvir Singh Grover from the Register of Members for two months due to professional and other misconduct. The committee found Mr. Grover guilty of misconduct under the Chartered Accountants Act, 1949, specifically for failing to submit an audit report for the Ranchi Educational Society for the financial year 2017-18, withholding audit documents, and causing issues with the society’s income tax return filing. Despite multiple opportunities, Mr. Grover did not appear before the Committee to present his defense. The Committee concluded that an auditor cannot withhold an audit report or exercise a lien over a client’s documents, even if fees are pending. This decision, dated May 28, 2024, was based on findings from February 7, 2024, and subsequent hearings where Mr. Grover failed to appear.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
PR-131/19/DDI196/2019IDC/1473/2021
[DISCIPLINARY COMMITTEE [BENCH-II (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
In the matter of:
Shri Christopher Agnelo Francis
Secretary,
The Ranchi Educational Society
…Complainant
Versus
CA. Tanvir Singh Grover
M/s T.S. Grover and Associates
…Respondent
Members Present:-
CA. Ranjeet Kumar Agaiwal, Presiding Officer (in person)
Mrs. Rani S. Nair, IRS (Retd.), Government Nominee (through VC)
Shri Arun Kumar, IAS (Retd.), Government Nominee (in person)
CA. Sanjay Kumar Agatwal, Member (in person)
CA. Gotha S Srinivas, Member (through VC)
Date of Hearing : 10th April, 2024
Date of Order : 28th May, 2024
1. That vide Findings 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. Tanvir Singh Grover (hereinafter referred to as the ‘Respondent’) is GUILTY of Professional and Other Misconduct falling within the meaning of Item (2) of Part IV bf the First Schedule and Item (7) of Part I of the Second 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 opportunity of being heard in person / through video conferencing and to make representation before the Committee on 10′hApril 2024.
3. The Committee noted that on the date of hearing held on 10thApril, 2024, neither the Respondent was present before it nor was there any intimation as regard his non-appearance despite the due delivery of the notice for hearing and copy of the Findings of the Disciplinary Committee upon him.
3.1 The Committee also noted that the soft copy of the Findings of the Disciplinary Committee and the Notice for the hearing had also been sent to the email address available in the member records of !CAI. As per email delivery intimation for the said communication(s), the delivery of the said email(s) had been completed.
3.2 The Committee further noted from the member records of ICAI that ‘KYM’ Form of the Respondent had been submitted and the same was found ‘a.
3.3 The Committee also noted that the aforesaid case was listed for hearing before it on three occasions and the Respondent did not appear even once during the hearing despite the due delivery of the communication for hearing. Accordingly, the case was concluded on 28th July 2023 on the basis of documents on record.
3.4 Thus, the Committee was of the view that all possible efforts (speed post and email) have been made to ensure the delivery of the communication for hearing upon the Respondent, but he chose not to represent before the Committee. Keeping in view the provisions of Rule 19(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Committee was of the view that the Respondent has nothing more to represent before it and thus, decided to consider his case for award of punishment on the basis of material available on record.
4. The Committee considered the reasoning as contained in Findings holding the Respondent Guilty of Professional and Other Misconduct.
5. Keeping in view the facts as well as circumstances of the case and material on record, the Committee is of the view that it has already been held with respect to the first charge that, despite giving various opportunities, the Respondent failed to appear before Committee to defend his case and also failed to submit any written defense on the charges. It is an admitted fact that the Respondent had not submitted the Audit Report of the Ranchi Educational Society of St. Anthony’s for the financial year 2017-18. The Committee was of the view that an auditor can either issue a clean Audit Report, a Qualified Audit Report, a Disclaimer of Opinion or withdraw from an assignment. But, he has no right to withhold the Audit Report on the ground that some of the queries remained unanswered.
5.1 With respect to the second charge, the Committee noted that CA. Gurpreet Kaur, Partner of M/s Ranjit Singh & Associates, proposed statutory auditor, had communicated with the Respondent for no objection for which the Respondent had replied that audit has been completed and some queries are pending. Regarding pending queries, there was a difference of opinion between the Complainant and the Respondent. Due to the act of the Respondent, the Complainant Society was not in a position to file the Income Tax return.
5.2 With respect to the third charge, the Committee noted that it is an admitted fact by the Respondent that all the books and statements were given to him. No bill was raised by the Respondent and even if it was assumed that the Respondent’s dues were pending on account of his audit fee of any year, even then he had no right to exercise lien over the Complainant Society’s documents and records. The Respondent’s failure to handover documents and statements to the Complainant Society falls into Other Misconduct of a Chartered Accountant.
5.3 Hence, professional and other misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 7th 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 ends of justice will 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 CA. Tanvir Singh Grover, Ranchi be removed from the Register of Members for a period of 02(Two) Months.
Sd/-
(CA. RANJEET-KUMAR. AGARWAL)
PRESIDING OFFICER
Sd/-
(MRS. RANI S. NAIR, IRS RETD.)
GOVERNMENT NOMINEE
Sd/-
(SHRI ARUN KUMAR, IAS RETD.)
GOVERNMENT NOMINEE
Sd/-
(CA. SANJAY KUMAR AGARWAL)
MEMBER
Sd/-
(CA. COTHA S SRINIVAS)
MEMBER
