Institute of Chartered Accountants of India (ICAI) Disciplinary Committee has found CA. Devashish Garodia guilty of professional misconduct and imposed a fine of ₹15,000. The order, dated June 26, 2024, follows a complaint from CA. Tapan Kumar Mukhopadhyay. The committee, comprising Presiding Officer CA. Charanjot Singh Nanda, Government Nominee Shri Jugal Kishore Mohapatra, and Member CA. Chandrashekhar Vasant Chitale, heard the case on April 2, 2024.
CA. Garodia was found to have violated two key provisions of the Chartered Accountants Act, 1949, and related guidelines. Firstly, he accepted an auditor position without proper written communication with the previous auditor, failing to adhere to the methods prescribed in the Code of Ethics, which requires demonstrable evidence of delivery. Despite his claim of using courier due to COVID-19, the committee determined this did not meet the stipulated requirements. This was deemed a violation of Item (8) Part I of the First Schedule. Secondly, he participated in a tender for audit work that was exclusively reserved for Chartered Accountant firms and did not specify a minimum fee, thereby contravening Guideline No. 1-CA (7)/03/2016. The committee rejected his defense that the tender was open to other professionals, citing the explicit language of the tender advertisement. This was found to be a violation of Item (1) of Part II of the Second Schedule. Failure to pay the fine within 90 days will result in his name being removed from the Register of Members for a period of thirty days.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE (BENCH-I (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/0112021/DD/48/2021/DC/1661/2022]
In the matter of: –
CA. Tapan Kumar Mukhopadhyay,
……Complainant
-Vs-
CA. Devashish Garodia,
…..Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee)
CA. Chandrashekhar Vasant Chitale, Member
Date of Hearing : 2nd April 2024
Date of Order : 26.06.2024
1. That vide findings under Rule 1807) of t4,210:0 Accountants (Procedure of Investigations of Professional and Other Misconduetr and conduct of WST Rules, 2007, the Disciplinary Committee noted that CA. Devashish Garodia (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of Item (8) of Part I of First Schedule and Item (1) Part II of Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said findings, an action under Section 216(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and communication was addressed to him thereby granting opportunity of being heard in person / through video conferencing and to make written & verbal representation before the Committee on 2ndApril 2024.
3. The Committee noted that on the date of the hearing held on 2ndApril 2024, the Respondent was present through video conferencing, and he made his verbal submission on the findings of the Disciplinary Committee.
4. In his verbal submission the Respondent inter alia stated that he has already given his written submission on the findings of the Committee.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-a-vis verbal/ written submissions of the Respondent.
6. Keeping in view the facts and circumstances of the case, material on record including submissions of the Respondent on the findings of the Committee, the Committee is of the view that the professional misconduct on the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs. 15,000/- (Rupees Fifteen Thousand only) be imposed upon the Respondent i.e. CA. Devashish Garodia to be paid within 90 days of receipt of the Order. If the Respondent fails to pay the fine within the stipulated period, his name be removed from the Register of Member for a period of thirty days.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATARA),
I.A.S. (RETD.), (GOVERNMENT NOMINEE)
Sd/-
CA. CHANDRASHEKHAR VASANT CHITALE
(MEMBER)
Place : 26.06.2024
Date : New Delhi
