Institute of Chartered Accountants of India (ICAI), through its Disciplinary Committee Bench-IV, has reprimanded CA Mahinder Kamboj for professional misconduct under the Chartered Accountants Act, 1949. The case arose from a complaint by the Deputy Registrar of Companies (Delhi & Haryana), Ministry of Corporate Affairs, regarding irregularities in the certification of Form INC-32 (SPICe+) during a company’s incorporation process. The Committee found that the respondent failed to exercise due diligence by not ensuring that a signed rent agreement was attached to the form as mandated under Rule 25 of the Companies (Incorporation) Rules, 2014.
Despite CA Kamboj presenting a rent agreement during the hearing and stating that any filing error may have been inadvertent on the part of the company secretary, the Committee noted that he did not provide the submitted form or its attachments to prove compliance. His written and verbal representations were considered, but the Committee concluded that the required diligence had not been observed at the time of certifying the incorporation documents. Consequently, the Committee found him guilty under Item (7) of Part I of the Second Schedule to the Act and ordered a reprimand under Section 21B(3)(a), deeming it appropriate in light of the evidence and circumstances.
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 2113(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/276/22/DD/214/2022/DC/1777/2023]
In the matter of:
Ms. Kamna Sharma,
Versus
CA. Mahinder Kamboj
MEMBERS PRESENT:
1. Shri Jiwesh Nandan, I.A.S (Retd), Presiding Officer and Government Nominee (In person)
2. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
3. Mangesh, P Kinare, Member (In person)
4. Abhay Chhajed, Member (In person)
DATE OF HEARING : 06th January 2025
DATE OF ORDER : 20th January 2025
1. That vide Findings dated 04.12.2024 under Rule 18(17) of the Chartered Accountants (Procedure of In Vestigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee was inter-alia of the opinion that CA. Mahinder Kamboj (hereinafter referred to as the Respondent”) is GUILTY of Professional Misconduct falling within the meaning of Item (7) of Part I 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 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 06th January 2025.
3. The Committee noted that on the date of the hearing on 06th January 2025, the Respondent was present in person and appeared before it. During the hearing, the Respondent stated that he had already submitted his written representation dated 03′ January 2025 on the Findings of the Committee. He submitted that the Complainant had not provided the date of inspection or report of inspection and address of the Company where the officials of Complainant Department had visited. All these documents should have been provided to him for properly defending the case. The Committee also noted the written representation of the Respondent dated 03rd January 2025 on the Findings of the Committee, which, inter alia, are given as under:-
(i) The Complainant had grievance against the Directors of the Company as they failed to maintain registered office address as per Section 12 of the Companies Act, 2013 and no misconduct was alleged on part of the Respondent.
(ii) A duly signed rent agreement was available on record and it may be possible that inadvertently, partially signed copy of rent agreement was uploaded by the Company Secretary with the Form.
(iii) He had duly attached the documents as per the requirement of Rule 25 of Companies (Incorporation) Rules, 2014 while certifying SPICe+ Form INC — 32.
(iv) Police has harassed him citing financial fraud in the Company and he has already suffered in the matter.
4. The Committee considered the reasoning as contained in the Findings holding the Respondent ‘Guilty’ of Professional Misconduct vis-à-vis written and verbal representation of the Respondent. The Committee noted that the issues/ submissions made by the Respondent as aforestated have been dealt with by it at the time of hearing under Rule 18.
5. Thus, keeping in view the facts and circumstances of the case, material on record including written and verbal representation of the Respondent on the Findings, the Committee observed that although the Respondent has brought on record a copy of the rent agreement at the time of hearing before it, however, no evidence was submitted t6 show that the said agreement was filed along with SPICe+ Form INC-32. The Committee noted that the Respondent did not bring on record the SPICe+ Form INC-32 along with its attachments to substantiate that relevant documents including the rent agreement were filed at the time of incorporation. Therefore, the Committee concluded that the Respondent did not exercise due diligence as regards attaching the rent agreement as per the requirement of Rule 25 of Companies (Incorporation) Rules, 2014. Hence, the Professional Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 04/12/2024 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 Misconduct.
7. Thus, the Committee ordered that the Respondent i.e. CA. Mahlnder Kamboj be REPRIMANDED under Section 21B(3)(a) of the Chartered Accountants Act 1949.
Sd/-
(SHRI JIWESH NANDAN, I.A.S. (RETD.)
(PRESIDING OFFICER AND GOVERNMENT NOMINEE)
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
